:: THE BANK OF RAJASTHAN LTD.

::
(Regd. Office: C. T. Udaipur)
Central Office: Jaipur

MEMORANDUM FOR THE COMMITTEE OF DIRECTORS

NOTE PREPARED BY: CAD, Cor. Off., Mumbai. MEETING DATED…….

NOTE PREPARED ON: 01/07/2005 AGENDA ITEM NO…….

Proposal Flow Chart:

Date of receipt of the proposal at the Branch:

Date of receipt of the proposal at Regional Office:
Date of Receipt of the proposal at CAD:

ACCOUNT : M/s IND-SWIFT LABORATORIES LIMITED

BRANCH : CHANDIGARH REGION : CHANDIGARH

STATUS : Large Ind. / Manufacturing / Consortium

LINE OF ACTIVITY : Manufacturing of bulk Drugs

ASSET CLASSIFICATION : Fresh Proposal

CREDIT RISK RATING : 4.6 in the scale of 1-10 (Indicates “ No Immediate Concern” )

RATE OF INTEREST : Applicable: 0.75% above BPLR i.e. 11.75% p.a. on monthly rest.
Proposed: 8.00% p.a. on monthly rest

DEALING WITH BANK : New connection

1.THE PROPOSAL:

The proposal is for sanction of fresh corporate loan as under: -

(Rs. In lacs)
Nature of Facility Proposed limits Period Rate of Interest

Funded Limits:
5 years (Including 8.00% p.a. on
Corporate Loan 1000.00 Moratorium of 1 yr) monthly rest
TOTAL 1000.00

2. TERMS & CONDITIONS: As per Annexure - I

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3. Collateral Security:
A) Pari-passu 1st charge over entire fixed assets (existing & future) of the Company as under:
(Rs. in lacs)
i) Written-down Value (as per audited B/S as on 31/03/2005 Land 401.56
Building 1963.35
Plant & Mach. 6319.30
Others 171.79
Total 8856.00
Capital Work in progress 5934.84
Net value available for 1st charge holders 14790.84
Out standings of existing first charge holders (Incl. Proposed loan from BOR) 9097.25
Security coverage (based on figure as on 31/03/2005) 5693.59

B) Other Security: Post dated cheques for Principal and interest amount, favouring “The
Bank of Rajasthan Limited” will be obtained from the Company prior to release of the
facilities along with proper covering letter.

C) PERSONAL GUARANTEE / CORPORATE GUARANTEE: None

4. DETAILS OF WORKING CAPITAL FACILITIES FROM CONSORTIUM:

(Rs. in lacs)
Name Funded O/s as on Non-funded O/s as
Limits 31.03.05 Limits on31.03.05
State Bank of India (leader Bank) 1920.00 1334.30 2820.00 1598.40
State Bank of Patiala 800.00 491.14 1175.00 341.52
Bank of India 480.00 248.67 705.00 179.12
TOTAL 3200.00 2074.11 4700.00 2119.04
Branch will obtain standard assets certificate from the leader bank as of latest date and
CA certificate mentioning latest o/s, to ensure that the account is regular with no overdue,
before release of fresh facility.

5. TERM LOAN FACILITIES/DEFERRED PAYMENT GUARANTEE FROM BANKS / FI’s:

(Rs. in lacs)
Name of Banks / FI Limits O/s as on 31.03.05
Exim Bank 2595.40 1805.72
Bank of India 1300.00 650.00
State Bank of India 3772.00 2295.79
UTI Bank 1000.00 1000.00
Catholic Syrian Bank 983.25 929.47
Indusind Bank 300.00 300.00
State Bank of Patiala 1000.00 1000.00
IDBI Bank 1670.00 267.69
IIBI Bank 584.70 48.56
State Bank of Bikaner & Jaipur 300.00 300.00
South Indian bank 500.00 500.00
TDP 120.00 30.00
OTHER LOAN 252.37
TOTAL 14625.35 9379.60

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6. GENERAL INFORMATION ON THE BORROWER:

Name of the borrower : M/S IND-SWIFT LABORATORIES LIMITED

Constitution : PUBLIC LIMITED COMPANY

Date of Incorporation : 04.01.1995

Date of Commencement of Business : 21.02.1995

Commercial Production : MAY 1997

Location of Regd. Office : SCO 493-494, Sector-35 C, Chandigarh

Location of:
1. Factory / Shop / Plant : Barwala Road Vill. Bhagwan Pura Dist. Patiala Punjab.

2. Corporate Office : S.C.O. 850 Shivalik Enclave, NAC Manimajra Chandigarh

Group to which the Borrower belongs : IND-SWIFT LIMITED

No. of persons employed : 400 ( APPROX)

Dealing with the Bank since : New Connection

OWNERSHIP AND MANAGEMENT:

NAME OF DIRECTOR POSITION HELD

Dr. Gopal Munjal Chairman
Mr. N. R. Munjal Managing Director
Mr. V. K. Mehta Jt. Managing Director
Mr. S. R. Mehta Promoter Director
Dr. V. R. Mehta Promoter Director
Mr. Himanshu Jain Promoter Director
Dr. S. D. Nanda IIBI Nominee Director
Dr. J. K. Kakkar Director
K. M. S. Nambiar Director

Name of the Chief Executive/key person/s: Dr. Gopal Munjal.

Shareholding pattern: As on 31/03/2004 (Rs. in lacs)

Equity Pref. Redeemable Pref.

Authorized Capital 1750.00 750.00 --Nil--

Issued, Subscribed & Paid up Capital 1561.37 350.54 --Nil--

Whether a Listed Company: : Yes

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Name of the stock exchange(s) where shares are listed:

The shares of the Company are listed at: Delhi, Mumbai, Ludhiana & National stock
exchanges.

If listed, Face Value of Shares : Rs.10/-

Market Quotation (latest) : Rs. 194.95 (as on 04/07/2005)

High and Low (During last 52 weeks) : High Rs. 297.00 Low: Rs. 35.00

SHARE HOLDING PATTERN: AS ON 31/03/2004

Category No. of shares held Percentage Holding

Promoters 5834081 37.36%

Mutual funds & Banks / FI’s 389750 2.49%
NRI’s / OBC’s 44625 0.29%
Private Corporate Bodies 3368874 21.58%
Indian Public 5976345 38.28%
TOTAL 15613675

Comments about borrowing powers:

Resolution from the Company will be obtained seeking the borrowings from our Bank.

Position regarding Statutory Dues:

Particulars Paid up to Assessment completed up to

Income tax (A.Y) 31/03/2005 31/03/2004
Sales tax 31/03/2005 31/03/2004
Excise --

Market /Existing Banker’s report:

The Company is enjoying good reputation in the market. However prior to release of
proposed loan the branch will obtain satisfactory credit report, No Objection Certificate and
standard assets classification from the leader bank.

Brief comments about experience & quality of management:

The Company is enjoying good reputation in manufacturing of bulk drugs i.e. anti-biotics,
anti-allergies, cardiovascular, diabetology and anti-ulcerate therapeutic segments.

WHETHER THE NAME (S) OF BORROWER / DIRECTOR (S) APPEAR (S) IN THE
DEFAULTERS LIST/ WILLFUL DEFAULTERS LIST OF RBI:

The name of the Company doesn’t appear in the RBI Defaulters List as of March 2004 and
Willful defaulters list as of June 2004. However, some names are appearing in RBI
Defaulters’ list as of March 2004, which resembles with the names of directors of the

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Company, the Company has informed that these directors are not the same person who are
in the defaulters list.

S. No. Name of Directors Name of Companies

1. Mr. V. R. Mehta M/s Birla VXL Ltd., Spectrum Power Generation Ltd. &
M/s SPIC Ltd.
2. Mr. V.K. Mehta M/s Clutch Auto Ltd.

3. Mr. S.D. Nanda M/s Kamlapur Sugar & Industries Ltd.

4. Mr. Himanshu Jain M/s Salsa Associates Pvt. Ltd.

Whether the name(s) of Company / Director(s) appear(s) in the Specific Approval List
/ Caution List of ECGC. Ltd: No

7. LIMITS ENJOYED BY SISTER/ASSOCIATE CONCERNS:

(Rs. in lacs)
Name of party Nature of Limits Asset Class Conduct of
facility Our Other Bank on 31.03.04 a/c
Bank (Consortium)
IND SWIFT LTD WC NIL # FB: 5550 Standard Satisfactory
NFB 3470
Term Loan 7000.00(Sanctio
ned)
2473.40(o/s)

# Earlier a STL of Rs.300 lacs was allowed to M/s Ind-Swift Ltd., which was adjusted on
due date.

8. PRODUCTS AND PRODUCTION FACILITIES:

(i) Line of manufacture / Nature of business activity:

Manufacture of Pharmaceutical Bulk drugs inter mediates & solvents.

(ii) Installed Capacity: 120 TPA

(iii) Capacity Utilization

Projected YEAR
(Product-wise) 31/03/2003 31/03/2004 31/03/2005
Installed Capacity (TPA) 81 120 150
Actual Production 55 108 123
Capacity utilization % (Percentage) 68% 90% 82%

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9. COMMENTS ON PRODUCTION & MARKETING FACILITIES:

The Company is a reputed one in manufacturing of Pharmaceutical Bulk drugs inter

mediates & solvents. The Company has built its trust with the buyers in partially regulated
and regulated markets.

The Company has filed IDL for some of its products in the Chinese market and has been
able to register Betamethasone Salts in Taiwan, which has opened up new business
avenues. The Company has got an approval for its Clarithromycin Powder & Granules from
Philippines and has signed an exclusive supply & secrecy contract. This would give an
edge to the Company in the years to come and fetch profitable results.

The Company markets / sells its product in 45 countries. The Company has a special
technical team who assists its existing and prospective customers in validation of
manufactures. The Company exports its products mainly to the counties like USA, Holland,
Hong Kong, Singapore, Taiwan, Pakistan, Bangladesh, Turkey, Brazil, and Argentina etc.

The Company has in its customer profile the best-known and reputed business houses of
India. The some of the regular customers of the Company are as under:

Indian Buyers:

Cipla Ltd., Panacea Biotech Ltd., Unichem, Ipca Ltd., Intas Ltd., Cadilla Ltd., Blue Cross
ltd.., Lupin Labs ltd., Bio-chem ltd., Aristo Pharmaceutical ltd., Sun Pharmaceuticals ltd., Ind
Swift Ltd., Alkem Pharmaceutical ltd., Dabur India Ltd., Wockhardt ltd., Morepen Labs Ltd.,

Major foreign buyers:

M/s Chemosa Ltd. Switzerland, M/s KRKA Slovenia, M/S FAKO, Turkey, M/S Generic
Pharma Thailand etc.

INDUSTRY SCENARIO:

The Indian pharmaceutical is meeting 95% of domestic requirement. The industry is

growing at 16% of the Compound Annual Growth Rate (CAGR) over last 7 years and the
bulk drug segment has reported a growth of 20%. The growth of Indian middle class has
inspired a change in lifestyles, which opens a huge market for lifestyle drug. Indian
manufactures are one of the lowest cost producers with a scalable labour force, which
results the drugs produced by India is 40-50% of the global benchmark.

The Company is manufacturing 7 out of the 20 best-selling drug in the industry.

10. AVAILABILITY OF ECGC COVER/REFINANCE FROM RBI/SIDBI/NABARD/EXIM

BANK: NIL

11. INTEREST OF ANY OF THE DIRECTORS OF OUR BANK/OTHER BANKS AND

EXECUTIVE IN SCALE V AND ABOVE OF OUR BANK: N0

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12. IF ANY STAFF MEMBER IS INTERESTED IN THE PROPOSAL: No

13. COMPLIANCE OF ACCOUNTING STANDARDS:

As per Auditors Report on the Balance Sheet as of 31/03/2004 the borrower is complying
with the accounting standards prescribed by Institute of Chartered Accountants (ICA) under
section 211 of Companies Act, 1956.

Value of Connections:

M/S Ind Swift Ltd. , a group concern is maintaining Current A/C with our branch with
satisfactory conduct. M/S Ind Swift Ltd was sanctioned a STL of Rs.3.00 crores ,
which was paid timely. We have been in constant touch with the group for taking
some exposure in working capital / term loan requirement of the group. As a
gesture the group has agreed to take corporate loan of Rs.10.00 crores in M/S Ind
Swift Laboratories Ltd. We expect to be inducted in the consortium in near future.

14. ANALYSIS OF BALANCE SHEET:

(Rs. in lacs)
Year ended / ending March
LIABILITIES Audited Audited Audited Estimated
31.03.03 31.03.04. 31.03.05 31.03.06
A. Current Liabilities:
Borrowings from Banks 2004.90 1777.55 2669.31 4000.00
Creditors for goods 2502.47 3304.41 4427.41 5900.00
T.L./DPG Installments (Due in next 12 M) 786.00 1225.00 2718.00 3658.00
Short term loan / borrowings 109.90 48.64 360.86
Statutory liabilities & Provision 58.09 95.10 317.22 420.00
Other current liabilities 82.97 261.28 459.34 496.00
Share application money 198.95
Total Current Liabilities 5544.33 6711.98 11151.09 14474.00
(Sub-total A)
B. Term Liabilities:
Term Loan/Deferred Credits (Excl. install. 1807.70 2359.26 6662.22 9438.00
due within 12 M)
Public Deposits 237.41
Unsecured loans 95.50 595.50 2123.70 1285.00
Deferred Tax Liability 642.95 967.93 1238.96 1624.00
Punjab State Investment Subsidy 30.00 -- -- --
Total Term Liabilities 2576.15 4160.10 10024.88 12347.00
(Sub-total B)
Total Outside Liabilities 8120.48 10872.08 21175.97 26821.00
(A+B)
C. Net worth (Owned Funds):
Equity Share Capital 1304.63 1561.37 1840.00 2011.00
Preference Share Capital 743.30 350.54 350.52 350.54
General Reserve -- 76.92 275.22 275.00
Security Premium 1077.19 1548.21 4473.85 6273.00
Surplus/ (Deficit) of P&L Account 1435.80 1947.95 4116.39 7593.00

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Capital Reserve 8.66 8.66 8.68 8.66
Owned Funds 4569.58 5493.65 11064.66 16511.20
(Sub-total C)
GRAND TOTAL 12690.06 16365.73 32240.63 43332.20
(A + B + C)

(Rs. in lacs)
ASSETS Audited Audited Audited Estimated
31.03.03 31.03.04 31.03.05 31.03.06
D. Current Assets:
Inventory 4836.03 5469.36 6947.11 9890.00
Receivables 1526.02 2051.75 4485.24 6770.00
Cash & Bank balance 450.78 564.60 1177.64 975.00
Other current assets 667.35 1062.73 1922.90 2465.00
Total Current Assets 7480.18 9148.44 14532.89 20100.00
(Sub-total D)
E. Fixed Assets:
Gross Block 4846.13 7051.35 10343.70 23282.00
Less: Depreciation 869.68 1127.79 1487.69 2524.00
Net Block 3982.44 5923.56 8856.01 20758.00
Capital Work in Progress 521.78 740.44 5934.84 -----
Investment (Subsidiaries / Govt. securities) -- 20.74 314.22 649.00
Debtors over 6 months 209.80 112.58 365.48 Na
Other non-current assets 25.82 40.64 360.54 325.00
Intangible assets 470.04 379.33 1876.65 1500.00
(Sub-total E) 5209.88 7217.29 17393.52 23232.00

GRAND TOTAL 12690.06 16365.73 32240.63 43332.00

(D + E)

Operating Statement / Key Financial Indicators:

(Rs. in lacs)
Audited Audited Audited Estimated
31.03.03 31.03.04 31.03.05. 31.03.06
Gross Sales 13726.02 15838.74 23944.93 34000.00
Less: Excise 476.61 793.31 764.78 990.00
Net Sales 13249.72 15045.42 23180.15 33010.00
Other Income 827.09 1006.53 57.49 ------
Profit before tax 745.61 1169.62 3179.27 4523.00
Net Profit (PAT) 541.05 761.97 2647.96 4143.00
Cash Accruals 774.51 1040.64 3208.60 5379.00
Capital / Paid up Equity 1304.63 1561.37 1840.00 2011.00
Intangible Assets 470.04 379.33 1876.65 1500.00
Tangible Net Worth 4099.54 5114.32 9188.01 16636.00
TOL/TNW 1.98 2.12 2.30 1.51
Net Working Capital 1935.85 2436.46 3381.80 5627.00
Current Ratio 1.35 1.36 1.30 1.39

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COMMENTS ON FINANCIAL POSITION:

Sales: Sales increased by 51 % in 2004-05 as compared to previous years.

Profits: Net profit improved considerable by about 248 % to Rs.2647.96 lacs. Cash profits
increased from Rs.10.40 crores in 2003-04 to Rs.32.08 crores in 2004-05.

Tangible Net Worth : TNW improved from Rs.51.14 crores as on 31.03.2004 to Rs.91.88
crores as on 31.03.2005 , due to induction of fresh capital and retention of profits. The
Company has also raised share application money of Rs.1.99 crores , which will be
converted into paid up capital in 2005-06.

NWC increased by Rs.9.46 crores to Rs.33.82 crores in 2004-05. Current Ratio at 1.30:1
as on 31.03.05 was at satisfactory level.

15. WORKING RESULTS OF CURRENT YEAR:

The Company has achieved net sales of Rs. lacs up to 30/06/2005 (3 M) against the
estimated sales of Rs. lacs for the year 31/03/2006.

The Company has earned a net profit of Rs. lacs up to 30/06/2005.

16. DETAILS OF REQUEST MADE BY THE PARTY AND RECOMMENDATION MADE

BY THE BRANCH/ REGIONAL OFFICE:

The Company has requested for sanction of corporate loan of Rs. 1000.00 lacs to meets its
future capital plan, day to day maintenance of plant and machineries and have a sufficient
liquidity to avail opportunity benefits in day to day business besides on going expansion
plans. The said loan is proposed to be repaid after 5 years with a moratorium period of 1
year. The Branch has recommended for the same. However, the R.O has recommended for
sanction of corporate loan of Rs. 1000.00 lacs for a period of 5 years @ 8% p.a.

17. ASSESSMENT OF CREDIT REQUIREMENTS:

The key financial indicators reflect a sufficient and satisfactory financial position:
(Rs. lacs)
Particulars 2003 2004 2005
Net Sales 13249.72 15045.42 23180.15
Profit after tax 541.05 761.97 2647.96
Cash Profit 774.51 1040.64 3208.60
Dividend paid - 180.00 281.00

The operational data reveals that the sales of the company are on increasing trend from
year to year. To meet the increased / projected sales turnovers regular expansion /
technical up gradation in house facility is part of its corporate policy.

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Investments made in fixed assets supports the ideology of the company as under:
(Rs. in lacs)
Particulars 2003 2004 2005
Incremental raise in fixed assets 537.00 2509.00 8414.00
Incremental raise in long term loans 147.00 526.00 4303.00
Own source 4099.54 5114.32 9188.01

The Company plans to have adequate liquidity to meet long-term capital expenditure,
pending rising of long-term loans / resources.

The Company has submitted its future plans as per Annexure II, which reveals as under:
(Rs. in lacs)
Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 2009-10
Sales 33010.00 41390.00 49620.00 56940.00 62670.00 69020.00
Profit after tax 4143.00 5058.00 6311.00 7271.00 7741.00 8434.00
Fixed Assets 20758.00 21096 22411.00 24819.00 28771.00 35033.00
Term Loan 13096.00 9367.00 6026.00 3086.00 804.00 225.00
DSCR 1.68 1.57 2.11 2.79 3.99 21.22
AVERAGE DSCR COMES AT 2.79
18. Credit Risk Rating (As per ICRA Module): As per annexure III (in hard copy only)

Credit risk rating of the Company has been worked out on ICRA module on the basis of the
Balance Sheets for last four years, year ended on 31/03/2004:
(On Scale of 1 – 10)
Year: 31/03/2004
Financial Risk Score 4.6
Management Risk Score 4.0
Business Risk Score 4.3
Borrower Risk Score 4.3
Modified Borrower Risk Score 4.3 i.e. B+
Indication of Risk Score No Immediate Concern Required

As per credit risk rating, the strength and weakness in the financials of the Company
are as under:

Strength:

Sales Growth 1.0 (At the scale of 1-10)

Liquidity 1.0 (At the scale of 1-10)

Weakness:

Profitability 4.6 (At the scale of 1-10)

Leverage 5.5 (At the scale of 1-10)

19. COMPLIANCE STATUS WITH LENDING POLICY OF THE BANK:

A. EXPOSURE CEILING:
(Rs. in lacs)

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 Exposure Exposure Ceiling as Exposure permissible Credit Exposure in the Investment
per RBI norms as per CRM Guidelines account
Amount % of CF* Amount % of CF* Existing Proposed

Single Company 5958.44 15% 3972.29 10% Nil 1000.00 Nil

/ unit / account
Group# 15889.17 40% 7944.58 20% -- 1000.00 Nil

B. Sectoral Deployment: Permissible Exposure:

As per loan policy the exposure to the individual segment / sector has been approved to
10% of Net Bank Credit as of 31/03/2005 i.e. Rs. 298300.00 lacs and permissible exposure
comes to Rs. 29830.00 lacs where as our present exposure in this segment (Pharma
sector) is Nil as on 29/04/2005. Therefore the proposed exposure will be well with in the
permissible ceiling.

C. Credit Risk Management (CRM) Compliance:

(i) Financial Parameters:
Standards prescribed Actuals as per Audited Justification for
As per CRM policy B/S dt. 31/03/05 deviation if any
TOL/TNW 4:1 (INDUSTRY) 2.30

Current Ratio 1:25 (INDUSTRY) 1.30

(ii) Credit Risk Rating:

The proposal is for corporate loan. Looking to good reputation and performance. Interest
rate is being proposed at 8% p.a. keeping in view of market trend.

20. OBSERVATIONS:

21. RECOMMENDATIONS:

In view of the forgoing, the Committee of Director is requested to sanction the credit
facilities in favour of M/s. IND-SWIFT LABORATORIES LIMITED, as under on terms &
condition mentioned in Annexure- I.
(Rs. in lacs)
Nature of Facility Proposed limits Period Rate of Interest

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 Funded Limits:
5 years (Including 8.00% p.a. on
Corporate Loan 1000.00 Moratorium of 1 yr) monthly rest

Submitted for approval,

Asstt. General Manager Dy. General Manager

Executive Director Managing Director

ANNEXURE-I

TERMS AND CONDITIONS

ACCOUNT : M/s. IND-SWIFT LABORATORIES LIMITED

BRANCH : CHANDIGARH

1. Purpose : To meet long term capital expenditure.

2. Amount of facility : Rs.1000.00 Lacs.

3. Period : Five years Including moratorium period of One Year.

4. Repayment Schedule:

The loan will be repaid in 48 equal monthly installments of Rs. 20.83 lacs each after a
moratorium period of 1 year from the date of disbursement. Interest to be paid on as and
when debited basis.

5. Rate of interest : @ 8.00 % P.A. with monthly rest.

6. Overdue Interest : @ 6.00%

7. Processing charges : As per circular

8. Collateral Security :

I) First charge on fixed assets of the company having W.D.V of. Rs. 6664.00 Lacs as on
31/03/2004 on pari-passu basis with other term lenders.

II) 48 Post Dated Cheques for equated monthly installment of Rs. 20.83 lacs towards monthly
repayment of principal and 60 PDC for payment of interest amount, favoring “The Bank of
Rajasthan Ltd.,

12
9. A Letter of authority should be taken from the party/borrower requesting the Bank to
issue pay order in the name of party’s banker for account of the party.

10. Necessary board resolution of the company, for acceptance of the terms & conditions of
sanction and verification of signatures of authorized persons and documentation be
obtained. DP note be executed in favour of The Bank of Rajasthan Ltd. Jaipur.

11. Prior to release of term loan NOC from existing Banks/Fi’s be taken
(execute undertakings to obtain NOC form existing first charge holders and create mortage
security within a period of 6 months from the date of first disbursement.failing which
additional intrest of 0.5% will br charged with retrospective effect from the date of
disbursement till obtention of NOCs and completion of Mortage formality to the stisfaction of
BOR.
12. The Branch to obtain a report from the main banker, as of a latest date, stating the
account to be “STANDARD ASSET” and a CA certificate mentioning latest o/s of all other
working capital financing banks and term loans accounts, to ensure that all working capital
accounts and term loan accounts are regular with no overdue, before the release of the
facility.

13. The sanction remains valid for 3 month.

14. In terms of C.O. Circular No.5587 Dated 16.11.'99, the borrower should submit an
irrevocable undertaking that:

a) There has never been any litigation initiated against the borrowing Company / its
directors associate concerns, by any financiers / banks / financial institutions.

b) The borrower should undertake that as a precondition of loans / advances given to them
by the Bank, that in case of default in the repayment of principal and/or interest, the Bank or
the RBI will have an unqualified right to disclose or publish their names in such a manner
and through such medium as the Bank or RBI may deem fit.

15. In terms of Circular No.54/Law/ 08/6583 /2002 Dated 4.12.2002, an undertaking /

declaration / confirmation from the borrower and guarantors should also be obtained for
taking their consent for disclosure of information by the Bank.

16. The Bank reserves its right to withheld disbursement / cancel the limits, part or full in
event of failure on the part of the borrower in complying all / any of the terms and conditions
stipulated by the Bank. The Bank also reserves its right to modify, amend, and cancel any
of the terms and conditions of advance at any time.

17.The borrower should keep the Bank informed of all the happenings / events which are
likely to have adverse impact on its business and financial position.

18. Certificate of compliance of terms and conditions, as advised vide C.O. Circular No.50/
Advg/ 15/5206/98 dated 18.4.1998 be submitted within a maximum period of three months
from the date of disbursement of credit facilities.

19. In terms of C.O. Circular No.47/Advg/29/4391/95 Dt. 9/08/95, terms & conditions should
conveyed to the borrower and its written acceptance be obtained and keep on records.

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20. The Bank shall have right to charge penal interest in case of non-compliance of any of
the terms and conditions of sanction on the part of the borrower.

21. Guidelines contained in Circular No.54/Advg/26/6437/2002 Dated 7.8.2002 regarding

“Common deficiencies observed in review / monitoring of accounts” should be followed.

22. All the instructions / guidelines contained in “Manual on Advances” circulated along with
Circular No.54/Advg/32/6560/2002 Dated 1.10.2002 should be followed / complied with.

23. The accounts having sanctioned limit (Funded + Non funded) Rs. 10 Lac & above are
subject to Monthly Monitoring in terms CO Circular Letter No. 54/ADVG/110/2002
Dt.16/08/2002 & Circular No. 54/ADVG/ 33/6510/2002 Dt. 01/10/2002.

24. Securities charged / assets financed by the Bank to be insured for full value and
covering all possible risks, in the joint names of the Bank and the borrower, at the
borrower's cost as per instructions issued by the Bank from time to time in this respect.

25. A Search Report be obtained from the ROC at the time of each revision / fresh sanction
and expenses in this regard are to be borne by the borrower. A certificate of registration of
charge be obtained from R.O.C. & a copy thereof be sent to C.O. & R.O for reference &
record. Instructions in this regard as per Bank's manual No.10 circulated vide C.O. Circular
No.49/Misc/38/4973/97 Dated 16.6.1997 should be followed.

26. Branch should ensure strict compliance of all the terms & conditions of sanction and
observations made in the memorandum before release of the facility.

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