MODULE APPROACH – CASE STUDY

A Cash Credit limit to the tune of Rs.35.00 lacs @ Base Rate +2% was sanctioned in the account M/s Telematics , a proprietary concern by the
Branch Manager on 08.12.2007 as per application of the borrower dated 24.11.2007.where the proprietor was Mrs. Ruchika Jain (Sarawgi) and
the guarantor was her father Mr. Ashok Kumar Jain and limit was availed for the business Retail Sale of Electronics good. The entire limit in the
account was availed by the borrower by Dec’07 after accepting the terms and conditions of sanction and executing documents to secure the loan
sanctioned. Operation in the account was satisfactory upto Feb’09 as reported by Regional Office and thereafter the account became out of order.
Unit is closed since Mar’09. On taking up the matter with the borrower through various correspondences / verbally, to regularize the out of order
position persisted in the account and operate the account in terms of sanction, the borrower did not respond / regularize the account although
promised to set right the irregularities. As there was no response from the borrower, branch adjusted the FDR of Rs.10.00 lacs kept under lien on
26.02.2010 and RDS of Rs.20,000/- on 08.04.10. The account was classified as NPA as on 31.03.2010 with o/s balance of Rs.29.92 Lakh through
MoC by Statutory Auditor. Later the account was declared NPA on credit of RDS kept as security and Balance amount was 29.72 lakhs. A suit was
filed on 23.11.2010 for Rs. 32.67 lakhs and it is continuing. Legal expenses are Rs.0.43 lakh .The account has been identified as willful defaulter in
June 2011 Ref RO/GUWA/RECV/11-12/1 dated 30/06/2011.

At the time of last review of

facilities on

Nature Value.
Primary Stocks of electronic Rs.54.0
goods 0 lac
Collateral (Give full details viz. Nature, Location, extant, Age MMDC No.3053864694 for
of assets etc. with owner’s name) Rs.10.00 lacs and RDS
1641864272 for Rs.0.20 lac

Means of Borrower Rs.20.61 lacs

Means of Guarantor Rs.26.14 lacs
Compromise amount offered. Rs.24.00. Based on the above workout the case as per our module approach.
CASE STUDY

d in the account M/s Telematics , a proprietary concern by the

.2007.where the proprietor was Mrs. Ruchika Jain (Sarawgi) and
e business Retail Sale of Electronics good. The entire limit in the
onditions of sanction and executing documents to secure the loan
by Regional Office and thereafter the account became out of order.
h various correspondences / verbally, to regularize the out of order
, the borrower did not respond / regularize the account although
ower, branch adjusted the FDR of Rs.10.00 lacs kept under lien on
NPA as on 31.03.2010 with o/s balance of Rs.29.92 Lakh through
S kept as security and Balance amount was 29.72 lakhs. A suit was
Rs.0.43 lakh .The account has been identified as willful defaulter in

Present Market Value and Reasiable value as per

valuation report dated

Nil (Unit closed)

Adjusted in the account on 26.02.10 & on 08-04-2010

Rs.1.60 lac
Rs.136.77 lacs
as per our module approach.
Case Study on compromise under module approach

M/s XYZ Ltd , a public ltd. Co., dealing in import of synthetic rubber and pulses etc. were
sanctioned credit facilities (Term Loan of Rs 70 Lacs @BPLR) on 03/11/1999 by Satpur
Branch, Nasik Region, Pune Zone. The advance was secured by equitable mortgage of the
basement property at Maitri Bldg. Vile Parle (West) Mumbai offered by the guarantor as
collateral security for the facilities granted. However due to devolvement of LCs, the
account turned to NPA on 31.3.2000 with o/s balance of Rs.72.86 lacs. Present balance is
Rs.100, after PWO of Rs.40.19 lacs and total recovery of Rs.32.67 lacs after NPA deposited
on various dates. Account was written off on 08/03/3008. Legal Expenses incurred was Rs.
1.33 Lakhs but recovered in full on 08.04.2007.

1) Rs. 5 lacs on 30.06.2002

2) Rs. 10 lacs on 25.03.2004
3) Rs. 10 lacs on 28.03.2006
4) Rs. 9 lacs on 08.04.2007 (legal expenses included)

Provision & URI are nil. Market value & realizable value of the property is Rs.152.00 lacs
and Rs.137.00 lacs respectively as per VR dated 28.02.2013 by ABC ,panel valuer; at the
time of last review, its value was Rs. 80 lac. At the time of Sanction the worth of Borrower
was Rs. 20 Lacs and that of gyarantor Rs. 80 Lacs, But the Present means of
directors/guarantors are meager.
The guarantors filed a suit against the company in 2004 and as per the Court Order the
property is in possession of High Court Receiver. As such, SARFAESI action could not be
taken. Bank filed suit in DRT I, Mumbai on 05.03.2007 for Rs.117.64 lacs which was
decreed on 01.02.2013 for reduced amount of Rs. 67.93 lacs with interest @12%, quarterly
compounding, from 05.03.2007. Bank did not prefer appeal on the basis of opinion of panel
advocate since the claim under devolvement of LC had been disallowed. Earlier, on various
occasions, the party came to settle Bank’s dues under compromise settlement; however, their
offer was low. The present offer is of Rs.90 lacs. Compromise amount is payable within a
period of one year including Rs.15 lacs already deposited in No Lien Account.

Please prepare compromise proposal in format Recv 6 with proper justification & calculate
the module amount.
 YELLOW BOXES ARE PASSWORD PROTECTED Please MAILTO trg4@centralbank.co.in for Password/Suggestions
MODULE APPROACH WORKSHEET
ALL AMOUNTS ARE IN LAKHS
i Name of Borrower: PRIYANKA TIWARI D/O MR MRITUNJA
Name of Branch/ Name of Region/ Name of Zone LANKA
ii Account No : 3050636794
iii Facilities availed TL
Date of Original Sanction Friday, July 31, 2009 (enter date)
Sanctioning/Reviewing Authority BM
Rate of Interest as per Sanction 13.00
Applicable Rate for Contractual Dues Calculation (Maximum @14%) 13.00
iv Date of NPA 28-Aug-14 (enter date)
Date of Receipt of Compromise Proposal 22-Oct-18 (enter date) 1
v Date taken for calculations for the Compromise Proposal 30-Nov-18
vi Age of NPA in months (for calculating Notional Amount) 51
vii Age of NPA in Years Completed 4
viii Valuation Report Dated (enter date)
Name of the Valuer BM (enter name)
Valuation to be taken afresh NA No. of months old 1427
Market Value as per the previous valuation report 0.00 (enter amout)
Marketable value of securities (Report not older than one year) 0.00 (enter amout)
Realisable value of securties (Not below 60% of market value) 0.00 (enter amout)
CHECK FOR SECURITY D
The Present Value of Security is NIL/No Security Available FALSE
If SARFAESI 13(2) Notice served, Enter Date
If Possession Taken, Enter Date
Worth of Borrowers at Sanction Date 0.00 (enter amout)
Worth of Gaurantors at Sanction Date 0.00 (enter amout)
Agrregate means of Borrowers 0.00 (enter amout)
Agrregate means of Guarantors 0.00 (enter amout)
ix Agrregate means of Borrowers & Guarantors 0.00
x Legal Exp (if any) 0.00 (enter amout)
Whether PWO/Sold to ARC (for Yes enter 1/No enter 0) 0
xi Assets Classification Doubtful/Loss
Amount Written Off 0 (enter amout)
Date of Write Off
Present Ledger Balance after Write Off 94934 (enter amout)
xii The borrower is a wilfull defaulter (True/False) F FALSE
Write the date when declared (enter date)

Module.Appro
 Write the SR. NO. for declaring willful defaulter by RO
The proposal can be sanctioned below C.O. level YES
xiii Whether Suit File (for Yes enter 1/No enter 0) 1
xiv The Date of Suit File (enter date)
Amount of Suit File 0
xv Whether Decreed (for Yes enter 1/No enter 0) 0
if yes then Date of Decree (enter date)
xvi Date from when interest awarded
xvii Amount of Decree 0 (enter amout)
xviii Rate of interest in Decree awarded 0
Whether compound interest awarded (for Yes enter 1/No enter 0) 0
Compounding Period(Monthly/Quarterly/Half yearly/Annually)
xix Period for which interest is to charged as per Decree (months) 0
xx Period for which interest is to charged as per Decree (years) 0.00
xxi Interest on Decreed Amount FALSE
xiv Recovery after Decree (Enter individually in white box) 0.00 (total recovery amount)
xv Recovery date
xvi Recovery benefit in months 0 I II III
(For subsequent recoveries work individually above & ENTER TOTAL IN GREEN BOX BELOW)
xvii Interest on recovered amount FALSE
Recovery benefit interest in the right formula box,
xviii Total Recovery plus interest 0.00 Enter total of recovery + interest in the left box

Amount
Ledger Balance as on NPA Date 94934.00 (enter amount)
Unrecovered URI if any 65904.00
Provision held if any 0.00
Subsequent Debits if any 0.00
(A) Running Ledger Balance as on NPA Date 160838.00

Add:
(B) Interest from date of NPA @ 10% simple 68356.15
till the following month of compromise

(C) Legal / Other Exp (Not debited to account) 0.00

(D) Amtt recovered after date of NPA (Enter individually in white box) 0.00 (enter the individual recovery amount)
DATE OF RECOVERY 01/Jan/19 (enter date)

Module.Appro
 BENEFIT TO BE GIVEN FOR__MONTHS -1
PLUS AMOUNT OF INTEREST OF RECOVERY 0.00
INTEREST FOR CONTRACTUAL DUES 0.00
(for subsequent recoveries work individually below) 0.00 No more entry needed
Individual Dates of Recovery
Individual Amount of Recovery on those dates
I II III IV
INDIVIDUAL INTEREST FOR NOTIONAL CALCULATION
INDIVIDUAL INTEREST FOR CONTRACTUAL CALCULATION
ADD TOTAL RECOVERY PLUS INTEREST 0.00 0.00 0.00
ADD TOTAL RECOVERY PLUS INTEREST (CONTRACTUAL DUES) 0.00 0.00 Please workout for multiple recoveries in int sheet
0.00

xxii Decreetal Dues 0.00

(this is the contractual dues in case of decreed accounts where execution petition has been filed)
CONTRACTUAL DUES 95698.61
(Decreetal Dues/Contractual dues is the amount where to start in the process of negotiation)

INTEREST HELD IN DUMMY LEDGER -65139.39

(E) NOTIONAL AMTT DUE (A+B+C-D) NAD 229194.15

(F) Less: OTS Offered 41800.00 (enter offer amount)

MINIMUM UPFRONT PAYMENT REQURIED 4180.00
Down Payment Made 41800.00
MINIMUM DOWN PAYMENT INCLUSIVE OF UPFRONT 10450.00
If being paid in installments in ____ months (maximum 12) 0 (enter repayment period required)
EMI Payable (@Base Rate + 4%) #NUM!

(G) Sacrifice = Notional Amtt - OTS Offered (E) - (F) 187394.15

Of which
- Write off 119038.00
- Waiver of unchraged interest 68356.15
- Abosrpotion of Legal / other Exp 0.00
Sacrifice in percentage terms (it is not significant in module working) 81.76

PARAMETERS POINTS

Module.Appro
1 Realisable value of securties charged to the bank
(should be based on valuation not older than 1 year)
a. > NAD 10
b. > 75% & upto 100% of NAD 8
c. > 50% & upto 75% of NAD 5
d. > 25% & upto 50% of NAD 3
e. 25% or < of NAD 0 0

2 Aggregate means of Borrower / Guarantors

(To be calculated excluding the securties charged to us )
a. > NAD 4
b. > 75% & upto 100% of NAD 3
c. > 50% & upto 75% of NAD 2
d. > 25% & upto 50% of NAD 1
e. 25% or < of NAD 0 0

3 Marketability of Securties
a. Easily marketable 6
b. Not easily marketable 3
c. Not marketable 2
d. No securties 0 0

4 Age of NPA ( No of years remained in NPA status)

a. Upto 2 years 3
b. > 2 years & upto 5 years 2
c. > 5 years & upto 8 years 1
d. > 8 years 0 2

5 Legal position of the Bank

a. No defects/ deficiencies in documents and equitable 2
mortgage in order 1427
b. Documents are defective / EM not enfoceable 0 2

TOTAL POINTS AS PER MODULE 4

RATE OF INTEREST APPLICABLE AS PER MODULE 0

IF MODULE SCORE IS BELOW 4, THE MODULE AMOUNT IS Not Applicable

Module.Appro
 MINIMUM MODULE AMOUNT (IF SCORE BETWEEN 4 TO 7) 80419
MAXIMUM MODULE AMOUNT (IF SCORE BETWEEN 4 TO 7) 120628.5

MINIMUM COMPROMISE AMOUNT AS PER MODULE FALSE

(IF MODULE SCORE IS 8 & ABOVE)

MINIMUM COMPROMISE AMOUNT ACCEPTABLE BY LOOKING AT THE REALISABLE VALUE OF SECURITY FALSE
NPV@11%
NPV SECURITY VALUE 0.00
NPV COMPROMISE AMTT 41,800.00

Maximum Amount Recoverable is the decreetal due FALSE

OPPURTUNITY COST (NECESSARY FOR O/S ABOVE 100 LACS) 71913.91

Does the offer confines to the module amount FALSE

Any other deviation other than module amount (for Yes enter 1/No enter 0) 0
The NPV of the security is greater than NPV of Offer Amount
The proposal to be sent to ED for sanction as deviation other than module NO
Sanctioning Authority will be CM Committee if sacrifice is upto 6.00
Sanctioning Authority will be AGM Committee if sacrifice is upto 18.00
Sanctioning Authority will be DGM Committee if sacrifice is upto 30.00
Sanctioning Authority will be GM Committee if sacrifice is upto 52.50
Sanctioning Authority will be ED Committee if sacrifice is upto 80.00
Sanctioning Authority will be CAC CO if sacrifice is upto 1000.00
Sanctioning Authority under the module approach MCB FALSE FALSE
The Authority to sanction compromise is not below the one who sanctioned the
credit facility or the person who has originally sanctioned the loan is not the one YES
sanctioning the compromise proposal (YES/NO)
The Sanctioning Authority will be MCB
(PLEASE REFER TO POWERS ASSIGNED TO DELEGATED AUTHORITIES AS PER OUR RECOVERY POLICY FOR SACRIFICE WITH & WITHOUT DEVIATIONS FOR MENTIONING OF SANCTIONING AUTHORITY)

REPAYMENT PERIOD NOT TO EXCEED 12 MONTHS AND INTSTALLMENTS WILL ATTRACT INTEREST @Base Rate +4% (SIMPLE), DELAYED INSTALLMENTS WILL ATTRACT INTERST @Base Rate+6% (SIMPLE). THE PROPOSAL WILL LAPSE ON
DEFAULT OF 3 CONSECUTIVE MONTHLY OR 2 QUARTERLY INSTALLMENTS. IF PROPOSAL LAPSES IT SHOULD BE REFERRED TO NEXT HIGHER AUTHORITY BY THE DELEGATED AUTHORITY. ANY DEVIATION TO BE REPORTED TO ED/CMD

Module.Appro
co.in for Password/Suggestions

Module.Appro
 No more entry needed

IV

0.00

vidual recovery amount)

Module.Appro
 V

0.00
0.00

nt)

period required)

Module.Appro
Module.Appro
mount

AUTHORITY)

PLE). THE PROPOSAL WILL LAPSE ON

IATION TO BE REPORTED TO ED/CMD

Module.Appro
 CALCULATION OF INTEREST ON RECOVERY AMT

Enter dates in" DD/MM/YY". Don't copy/pase cell data

Enter data in Date, DR and CR columns only.
Date of NPA 28.08.2014
Total Recovery after NPA 0.00
Toal Dr after NPA 0.00 Contractual Notional
Total Product - -
Interest rate 13.00 10.00
Intt. Up to 30/11/18 30/11/18
Toral Intrest - 0.00

RECOVERY MATCHES DATA ENTERED

Dt.of Amt Rs Amt Rs Days Dr Product Cr Product Cr/Dr
deposit Dr Cr
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
- - 0
 MODULE WORKSHEET
i Name of Borrower:
Name of Branch/ Name of Region/ Name of Zone
ii Account No :
iii Facilities availed
Date of Original Sanction

Rate of Interest as per Sanction

Applicable Rate for Contractual Dues Calculation (Maximum @14%)
iv Date of NPA
Date of Receipt of Compromise Proposal
v Date taken for calculations for the Compromise Proposal
vi Age of NPA in months (for calculating Notional Amount)
vii Age of NPA in Years Completed
viii Valuation Report Dated
Name of the Valuer
Valuation to be taken afresh
Market Value as per the previous valuation report
Marketable value of securities (Report not older than one year)
Realisable value of securties (Not below 60% of market value)
CHECK FOR SECURITY
The valuation from second panel valuer required
If SARFAESI 13(2) Notice served, Enter Date
If Possession Taken, Enter Date
Worth of Borrowers at Sanction Date
Worth of Gaurantors at Sanction Date
Agrregate means of Borrowers
Agrregate means of Guarantors
ix Agrregate means of Borrowers & Guarantors
x Legal Exp (if any)
Whether PWO/Sold to ARC (for Yes enter 1/No enter 0)
xi Assets Classification
Amount Written Off
Date of Write Off
Present Ledger Balance after Write Off
xii The borrower is a wilfull defaulter (True/False)
Write the date when declared
Write the SR. NO. for declaring willful defaulter by RO
The proposal can be sanctioned below C.O. level
 xiii Whether Suit File (for Yes enter 1/No enter 0)
xiv The Date of last valid Document available
CHECK FOR THE ENFORCEABILTY OF THE DOCUMENT
xv Whether Decreed (for Yes enter 1/No enter 0)
if yes then Date of Decree
xvi Date from when interest awarded
xvii Amount of Decree
xviii Rate of interest in Decree awarded
Whether compound interest awarded (for Yes enter 1/No enter 0)
Compounding Period(Monthly/Quarterly/Half yearly/Annually)
xix Period for which interest is to charged as per Decree (months)
xx Period for which interest is to charged as per Decree (years)
xxi Interest on Decreed Amount
xiv Recovery after Decree (Enter individually in white box)
xv Recovery date
xvi Recovery benefit in months
(For subsequent recoveries work individually above & ENTER TOTAL IN GREEN BOX BELOW)
xvii Interest on recovered amount

xviii Total Recovery plus interest

Ledger Balance as on NPA Date

Unrecovered URI if any
Provision held if any
Subsequent Debits if any
(A) Running Ledger Balance as on NPA Date

Add:
(B) Interest from date of NPA @ 10% simple
till the following month of compromise

(C) Legal / Other Exp (Not debited to account)

(D) Amtt recovered after date of NPA (Enter individually in white box)
DATE OF RECOVERY
BENEFIT TO BE GIVEN FOR__MONTHS
PLUS AMOUNT OF INTEREST OF RECOVERY
 INTEREST FOR CONTRACTUAL DUES
(for subsequent recoveries work individually below)
Individual Dates of Recovery
Individual Amount of Recovery on those dates

INDIVIDUAL INTEREST FOR NOTIONAL CALCULATION

INDIVIDUAL INTEREST FOR CONTRACTUAL CALCULATION
ADD TOTAL RECOVERY PLUS INTEREST
ADD TOTAL RECOVERY PLUS INTEREST (CONTRACTUAL DUES)

xxii Decreetal Dues

(this is the contractual dues in case of decreed accounts where execution petition has been filed)
CONTRACTUAL DUES
(Decreetal Dues/Contractual dues is the amount where to start in the process of negotiation)

INTEREST HELD IN DUMMY LEDGER

(E) NOTIONAL AMTT DUE (A+B+C-D) NAD

(F) Less: OTS Offered

MINIMUM UPFRONT PAYMENT REQURIED
Down Payment Made
MINIMUM DOWN PAYMENT INCLUSIVE OF UPFRONT
If being paid in installments in ____ months (maximum 12)
EMI Payable (@Base Rate + 4%)

(G) Sacrifice = Notional Amtt - OTS Offered (E) - (F)

Of which
- Write off
- Waiver of unchraged interest
- Abosrpotion of Legal / other Exp
Sacrifice in percentage terms (it is not significant in module working)

PARAMETERS
1 Realisable value of securties charged to the bank
(should be based on valuation not older than 1 year)
 a. > NAD
b. > 75% & upto 100% of NAD
c. > 50% & upto 75% of NAD
d. > 25% & upto 50% of NAD
e. 25% or < of NAD

2 Aggregate means of Borrower / Guarantors

(To be calculated excluding the securties charged to us )
a. > NAD
b. > 75% & upto 100% of NAD
c. > 50% & upto 75% of NAD
d. > 25% & upto 50% of NAD
e. 25% or < of NAD

3 Marketability of Securties
a. Easily marketable
b. Not easily marketable
c. Not marketable
d. No securties

4 Age of NPA ( No of years remained in NPA status)

a. Upto 2 years
b. > 2 years & upto 5 years
c. > 5 years & upto 8 years
d. > 8 years

5 Legal position of the Bank

a. No defects/ deficiencies in documents and equitable
mortgage in order
b. Documents are defective / EM not enfoceable

TOTAL POINTS AS PER MODULE

RATE OF INTEREST APPLICABLE AS PER MODULE

IF MODULE SCORE IS BELOW 4, THE MODULE AMOUNT IS

MINIMUM MODULE AMOUNT (IF SCORE BETWEEN 4 TO 7)

MAXIMUM MODULE AMOUNT (IF SCORE BETWEEN 4 TO 7)
 MINIMUM COMPROMISE AMOUNT AS PER MODULE
(IF MODULE SCORE IS 8 & ABOVE)

MINIMUM COMPROMISE AMOUNT ACCEPTABLE BY LOOKING AT THE REALISABLE VALUE OF SECURITY

NPV@11%
NPV SECURITY VALUE
NPV COMPROMISE AMTT

Maximum Amount Recoverable is the decreetal due

OPPURTUNITY COST (NECESSARY FOR O/S ABOVE 100 LACS)

Does the offer confines to the module amount

Any other deviation other than module amount (for Yes enter 1/No enter 0)
The NPV of the security is greater than NPV of Offer Amount
The proposal to be sent to ED for sanction as deviation other than module
Sanctioning Authority will be CM Committee if sacrifice is upto
Sanctioning Authority will be AGM Committee if sacrifice is upto
Sanctioning Authority will be DGM Committee if sacrifice is upto
Sanctioning Authority will be GM Committee if sacrifice is upto
Sanctioning Authority will be ED Committee if sacrifice is upto
Sanctioning Authority will be CAC CO if sacrifice is upto
Sanctioning Authority under the module approach
The Authority to sanction compromise is not below the one who sanctioned the
credit facility or the person who has originally sanctioned the loan is not the one
sanctioning the compromise proposal (YES/NO)
The Sanctioning Authority will be
(PLEASE REFER TO POWERS ASSIGNED TO DELEGATED AUTHORITIES AS PER OUR RECOVERY POLICY FOR SACRIFICE WITH & WITHOUT DEVIATIONS FOR MENTIONING OF SANCTIONING AUTHORITY)

REPAYMENT PERIOD NOT TO EXCEED 12 MONTHS AND INTSTALLMENTS WILL ATTRACT INTEREST @Base Rate +4% (SIMPLE), DELAYED INSTALLMENTS WILL ATTRACT INTERST @Base Rate+6% (SIMPLE). THE PROPOSAL WILL LAPSE ON
DEFAULT OF 3 CONSECUTIVE MONTHLY OR 2 QUARTERLY INSTALLMENTS. IF PROPOSAL LAPSES IT SHOULD BE REFERRED TO NEXT HIGHER AUTHORITY BY THE DELEGATED AUTHORITY. ANY DEVIATION TO BE REPORTED TO ED/CMD
mount

AUTHORITY)

PLE). THE PROPOSAL WILL LAPSE ON

IATION TO BE REPORTED TO ED/CMD
 PRESENT VALUE CALCULATION
ENTER ONLY BASE RATE VALUE HERE
COMPROMISE OFFER 41800.00
DOWN PAYMENT 41800.00
AMT TO BE PAID 0.00
NO OF INSTALMENT 0
NPV RATE 11
BASE RATE 10.25
APP.RATE 14.25

PERIOD 1 2 3 4 5 6 7 8 9 10 11 12 13

PV FACTOR 0.9909 0.9819 0.9730 0.9642 0.9554 0.9467 0.9381 0.9296 0.9212 0.9128 0.9045 0.8963 Total
PAYMENTS 0 0 0 0 0 0 0 0 0 0 0 0 0.00

PV 0 0 0 0 0 0 0 0 0 0 0 0

EMI #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM! #NUM!

EQUATED PRINCIPAL #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
 NPV
Rs.0.00

0.00

Rs.0.00

Rs.0.00
 ANNEXURE RECV - 6

PROPOSAL FOR COMPROMISE SETTLEMENT/WRITE OFF

ACCOUNT 3050636794
BRANCH/RO/ZONE LANKA
PROPOSAL TO BE
MCB
SANCTIONED BY

1 Date of NPA 28-Aug-14

2 Asset Classification
( Sub standard / Doubtful / Loss Doubtful/Loss

3
a)Balance on NPA date
94934.00
b)Less: PWO, if any 0

c)Less: Subsequent Recoveries

0.00

d)Add: Subsequent Debits

0.00
e) Present Balance 94934.00
4 URI, if any. 65904.00
5 Present Balance + PWO 94934.00
6 Provision held 0.00
7 Value of security
A) Market Value as
0.00
on B) Realizable Value 0.00
as on

8 a) Contractual/ Decreetal Dues

95698.61
8

b) Module Amt 80419.00

c) Notional Dues 229194.15
9 Compromise offer with payment terms
( Enclosed copy of offer letter) 41800.00
To be paid in Months/EMI Payable 0 #NUM!
Down Payment Made/On Date 41800 30/11/18
10 Sacrifice ( 8c - 9 ) 187394.15
- Write off of ledger balance 119038.00
- Waiver of uncharged interest 68356.15
11
- Waiver of Legal/Other Exp.
0.00
Impact on Profitability [9 + 4 - 3(e)] 12770.00
 .. 2 ..
12 Constitution

13 Names of Proprietor /Partners/

Directors

14 Names Of Guarantors

15 Nature of Activity at the time of

Finance
16 Present Activity
17 Banking Since
18 Advance Since
19 Reasons for account turning NPA

Amount of
20 Date & amount of suit with present Date of suit 30/12/99
suit
status Interest
claimed % From (Date)
Date of
N/A Decree Amt. 0.00
Decree
Interest
0.00 From (Date) N/A
decreed %
Present Status Doubtful/Loss
21(a) Action taken under SARFAESI Act Date of Notice under
& present position sec 13(2)
Date of Possession
Further Steps taken
Date
 Details

21(b) If reference is made to BIFR-

Present status
22 Whether identified as Willful Defaulters VERIFIED AS NOT DECLARED YET
If yes, whether declared -Sl. No 0
If not, present position

23 Details of any LG/LC issued/invoked

and outstanding with margin,
security etc.

Name of Account - PRIYANKA TIWARI D/O MR MRITUNJAY TIWARI

 .. 3 ..

24. Brief History:

25. Securities
At the time of last review of * Present Market Value and Realisable
value as per Valuation Report dtd. by
facilities (Year) M/s

Dated By
Nature Value 30/12/99 BM
Primary
Market
Collateral Realisable Value
Value
(give full details viz,
Nature, location, extent
0.00 0.00
(area), age of asset etc.
with owners’ name)
Means of Borrower 31/07/09 0.00 0.00
Means of Guarantor/s 31/07/09 0.00 0.00
*(1) Valuation report should not be more than one year old.
(2) In case of wide variations in old and latest valuation, reasons there
for to be given as footnote
(3) Means/Networth of the borrower/guarantor as of recent date to be
mentioned by making suitable inquiries
(4) For means of Ltd. Company, please mention TNW and the date of
Balance Sheet.
(5) Enclose copy of latest valuation report along with photo of property /
asset, wherever possible.
26 Contractual / Decreetal Dues: #REF!
Outstanding on the date of NPA (RLB) or Amt of decree granted
by DRT/Court (for decreed accounts) 94934.00
Add:
1) Subsequent Debits, if any.
2)Interest * held in Dummy Ledger/ Memorandum book / Interest
granted by DRT / Court as per decree (for decreed accounts) from
……….. to……….. at ---- % (Compound / Simple)
-65139.39
3)Legal / other expenses ( not debited to account)
0.00
SUB TOTAL 29794.61
Less: Recovery after NPA date/ Decree Date 0.00
Contractual/ Decreetal Dues 29794.61
* Int. rate should be contracted rate/documented rate or 14% (which ever less)
Attach copy of statement of account from date of NPA.
Name of Account - PRIYANKA TIWARI D/O MR MRITUNJAY TIWARI
 -4

27. Notional Dues & Sacrifice, if any. #REF!

Balance as on date of NPA . 94934.00
Add : - Subsequent debits, if any. 0.00
>Unrecovered URI, if any 65904.00
>Unapplied interest at 10% p.a simple from 68356.15
NPA date to following month of submission of
proposal
> Legal /Other Expenses (not debited to 0.00
account).
SUB-TOTAL 229194.15
Less : - Subsequent recoveries. 0.00
Notional Dues 229194.15
(A)
Compromise Offer 41800.00
(B)
Sacrifice ;if any (A) - (B) 187394.15
Of which :
- Write off of present ledger balance 119038.00
- Waiver of uncharged interest 68356.15
- Waiver of Legal/Other Expenses 0.00
The effect of value dating for credits and debits shall be given
while calculating interest under para 26, 28 and 29.

28 Evaluation Module
Sl.No Parameter Particulars* Points
 1 Realisable value of Securities 0.00 0
( ____ % of Notional dues )
2 Aggregate means of the borrower/guarantors 0.00 0
_____ % of Notional dues
3 Marketability of security No security 0
(‘0’ points if no securities)
4 Age of NPA(months) 49 2
5 Legal position of the Bank 2
Total Score 4
* tick whichever is applicable..

Name of Account- PRIYANKA TIWARI D/O MR MRITUNJAY TIWARI

 -5-
28. Module Amount (Rs.in lacs)
Methodology for calculation of
Points Scored
settlement amount

17 & above Balance on NPA date + interest @ 10 (simple) + Legal and other expenses - Recoveries

12 to 16 Balance on NPA date + interest @ 8% (simple) + Legal and other expenses – Recoveries.

8 to 11 Balance on NPA date + Legal and other expenses- Recoveries.

50% to 75% of Balance on NPA date + Legal and other expenses - Recoveries or Current
4 to 7 Ledger Balance + Legal Charges (which ever is higher, if subsequent recovery is more than 50% and up
to 75% of balance on NPA date).

0 to 3 As much as possible

Amount due as per Module: Rs FALSE

30 Compromise amount offered : Rs 41800.00
31 Whether conforms to module : True /False FALSE
32 Terms of Settlement (down payment) : 41800.00
Terms of Settlement (EMI Proposed) : #NUM!
33 Source of repayment :
34 Any deviations from Bank’s recovery Policy, : NO
other than Module amount, if yes, given reasons. The NPV of the security is greater than NPV of Offer Amount
35 Net Present Value of OTS amount if payable in : 0
 instalments (@11%) 41800.00
36 ECGC / CGTMSE Claim , if any .
(a) Date & Amount Claimed
(b) Amount settled with date (attach copy of
ECGC / CGTMSE letter) :
(c) If not, reasons thereof:
(d) Claim received Rs.
credited to loan account on
kept in nominal a/c on
(e) Amount refundable to ECGC/CGTMSE Rs.
(from out of OTS amount)
37 Staff Accountability(enclose copy of report):
(1) Date of Examination
(2) Examined by
(3) Whether any staff found accountable, if
yes give name and designation
(4) Action taken

A/c : PRIYANKA TIWARI D/O MR MRITUNJAY TIWARI

:
 -6- OUTSIDE PRINT AREA
OP.COST NPV
38 OPPORTUNITY COST: On an assumption, the opportunity cost of the present 71913.
compromise works out to Rs. =____________lacs calculated at 11% interest rate
monthly compounded for a period of 5 years in case of suit filed and 7 years in case of 91
non-suit filed accounts.
Net Present value of Compromise Rs. _____________
41800.00
USE FOR REFERENCE
39 Justification / Recommendations:
We certify that the information furnished herein above in respect of M/s
------------------------------- are true and correct to the best of our knowledge and based on records.
We further certify that the proposal is in conformity with RBI guideline We recommend
approval of the proposal as under

* a) Accept in full and final settlement Rs 41800.00

* b) Write off of ledger balance Rs. 119038.00
* c) Waiver of uncharged interest Rs. 68356.15
* d) Waiver of legal & other expenses Rs 0.00
* tick applicable clauses. THE SHEET IS UNPROTECTED

insert
It is confirmed that all the facilities funded /not funded enjoyed by the borrower are
incorporated in this proposal including LGs/LCs invoked and outstanding.

data &
BRANCH MANAGER

We have verified the above proposal along with its relevant papers/ process note

print
and recommend approval of the proposal at Rs.---------- with sacrifice of Rs.-------------.

SAC AT REGIONAL OFFICE

only
 print
We recommend acceptance of the compromise proposal and write off /
waiver (sacrifice) as proposed. only
SAC AT ZONAL OFFICE
page 1
Name of Account ------------------
Date of Submission--------------------------
 t
&
t
y
 t
y
1
40 Additional Details A/c…………………….. PRIYANKA TIWARI D/O MR MRITUNJAY TIWARI
Worth of the Proprietors/Partners/Directors at the time
i. 0.00
of original sanction ------------- (Available on records)
ii. Present Worth of Proprietors/partners/Directors as on -- * 0.00
iii. Group Affillation, if any
Present Activity of-
iv.
Proprietor/Partners/Directors 0
Category(Priority/Non-Priority)
v.
If priority Agriculture/SME/others
Facilities Last Sanctioned/reviewed by
A) Sanctioning / reviewing Authority BM
vi.
B) Date of last sanction/review Friday, July 31, 2009
C) Nature of the facilities & Limit sanctioned TL
vii. Any other information relevant to the OTS proposal.
0.00
viii Amount Paid after date of NPA and date of payment
No Recovery
Date up to which interest charged in the ledger 28/08/2014
ix.
and Corresponding Ledger balance 160838.00
x. Contracted rate of interest 13.00
94934
xi. prudential write off amount and date
30/12/1899
LC/BG, if any, issued on behalf of this account and
xii. 0
outstanding/invoked
a) Date of LC/BG
b) Amount of LC/BG
c) Date of maturity
d)Margin Held
e) Date of invocation and amount paid
 * Incase it is not ascertainable Branch Manager should arrange inspection of borrower /guarantor place/asset indicating efforts take

We certify that the information furnished herein above are true and correct to he best of our knowledge and based on records.

BRANCH MANAGER

A/c : PRIYANKA TIWARI D/O MR MRITUNJAY TIWARI

ndicating efforts taken to ascertain their worth.

ed on records.