Jabalpur Zone

MAGALMAY BLDG 1STFLR, OPP TELEPHONE EX 1STFLR WRIGHT

TOWN, JABALPUR - 480002
Tel: FAX-0761-2411352, 2480061,2480068
Email:

AX31/ADV/1379/2023-24 Date: 19/03/2024

To,
Branch Manager
Bank of Maharashtra
JHRC Branch
Jabalpur Zone
Sanction No. ZLCC/ZM/32/DLOD/2023-24
Product Code 6962-7326 (Drop line
OD)
Dear Sir/Madam, BSR Activity Code 38035

Re: Proposal of Jabalpur Hospital And Research Centre Pvt Ltd for Credit facility/ies

The captioned request was placed before the competent authority. The committee in its meeting held on
16/03/2024, has accorded the sanction as under:-

Facility : Drop line OD (New)

Limit Rs. 500.00 Lakh (Rs. Five Crore Only)
Purpose FOR BUSINESS PURPOSE
Primary Security Charge on properties by way of Equitable Mortgage:
1) Eq. Mortgage of commercial property (hospital building), Unit no 2, P/o Div
Plot No 869, 870/2, 872/1 Anand Talkies Road Napier Town Jabalpur. Property
in the name of JHRC through director Sh. Rahesh B. Deerawani. Property in
the name of owner through sale deed dated 26.08.2004 registration date
25.01.2007, Deed NO 3237. Total Area 2877 Sq.ft.
2) Eq. Mortgage of commercial property (hospital building) Bungalow no 361
and 361/1 part of Diversion Plot No 869, 870/2 and 872/1 Sheet No 255, Unit
no 2A, Mauza Subhaash Nagar Napier Town Haldar Compound RI Cir 1
Jabalpur. Property in the name of Smt. Pooja Dhirawani w/o Sh. Prakash
Deerawani. Total area 2025 sq ft. Property in the name of owner through sale
deed dated 09.06.1998 registration date 09.06.1998, Deed NO 5352.
3) Eq. Mortgage of commercial property (hospital building) Bungalow no 361
and 361/1 part of Diversion Plot No 869, 870/2 and 872/1 Sheet No 255, Unit
no 2B, Mauza Subhaash Nagar Napier Town Haldar Compound RI Cir 1
Jabalpur. Property in the name of Sh. Rajesh Dhirawani Sh. Dinesh Dhirawani
and Sh. Prakash Deerawani. Total area 2334 Sq. Ft. Property in the name of
owner through sale deed dated 09.06.1998 registration date 09.06.1998, Deed
NO 3025.
4) Eq. Mortgage of commercial property (hospital building phase-2,part of
Diversion Plot No 869, 870/2 and 872/1, Unit no 3, Mauza Subhaash Nagar
Napier Town Haldar Compound RI Cir 1 Jabalpur. Property in the name of Dr.
Pragya Dhirawani W./o Dr. Rajesh Dhirawani through sale deed no. 5544
dated 09/06/1998. Total area 2086 Sq. Ft.
5) Eq. Mortgage of commercial property (hospital building phase-2,part of
Diversion Plot No 869, 870/2 and 872/1, Unit no 3A, Mauza Subhaash Nagar
Napier Town Haldar Compound RI Cir 1 Jabalpur. Property in the name of Dr.
Prachi Dhirawani W./o Dr. Prachi Dhirawani through sale deed No. 3037 dated

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 15/09/1998. Total area 2005 Sq. Ft.
Margin 50 %
RLLR ( 9.30 %)+BSS ( 0.50 %)+Spread( 2.30 %)-Collateral Concession ( 0.00 %)
Rate of Interest +Additional Premium ( 0.00 %) = Effective ROI Value is 12.10 % p.a. with monthly
rest
Repayment Tenor : 84 Months

Moratorium Period : -- NIL

Repayment Period : -- 84 Months

Repayment Amount : --

Repayment in 28 Quarterly Equal / Unequal instalments (Customized repayment is

also allowed) of Rs. 1785714.28 per quarter plus Interest as and when applied.
The Drawing Power to be reduced quarterly from 1st Quarter and the Overdraft will
be completely liquidated by 28th Quarter i.e. 19/03/2031 (date).
The Quarterly schedule of repayment is given as under:
Year Reduction Amount (per Quarter) No of Quarters Total
2025 1785714.28 4.00 7142857.12
2026 1785714.28 4.00 7142857.12
2027 1785714.28 4.00 7142857.12
2028 1785714.28 4.00 7142857.12
2029 1785714.28 4.00 7142857.12
2030 1785714.28 4.00 7142857.12
2031 1785714.28 4.00 7142857.12
84
Review Annual
Processing Charges 0.35% p.a + GST.

Service Charges for all facilities

Account Handling charges Above Rs 1.00 Crore to Rs 25.00 Crore: 0.40% P.A.
Min : Rs. 45000/-
Max : Rs 125000/
Mortgage Charges Above Rs 1.00 crore to Rs 10 Crore – Rs.100 per lakh max Rs
15,000/- + GST.
Commitment Charges Above Rs. 1 Crore:
New Sanction:
Working Capital: limits if not utilised within 3 months:- 0.50%
p.a.to be recovered at quarterly intervals @0.125%.
Delayed Review (Due to non-submission 12-15 months: 1% p.a. over & above applicable rate of interest
of renewal data including Audited Balance for quarter above 15 months: 2% p.a. over & above applicable
sheet by the borrower) rate of interest for each quarter.
Other Charges as applicable As per HO guidelines

I) Personal Guarantee:
Sr No Name of the Guarantors Net Worth as on 31.03.2023 (In Lakh)
1 Dr. Rajesh Dhirawani 512.36
2 Shri Prakash Dhirawani 403.10
3 Dr. Pragya Dhirwani 442.61

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 4 Shri Dinesh Dhirwani 443.00
5 Mrs. Pooja P Dhirawani 114.11
6 Mrs. Prachi D Dhirawani 151.92

A. Specific terms and condition :-

1. For property having area 2334 SqFt- diversion khasra be rectified and name of Mr. Prakash Dhirawani
to be added.
2. Diversion of the property be modified to commercial as per the use of the property.
3. Branch to ensure to obtain Resolution of the firm for availment of Credit facility from our Bank duly
signed by all directors.
4. Branch to ensure to obtain Post sanction Due Diligence report from third party agency as
per new MSME guidelines.
5. Branch Manager, JHRC to ensure that ROC charge of the facility is noted within
stipulated time.
6. Branch to ensure to obtain CA certified Capital infusion of the promoter in the business as
on date.
7. Undertaking to be obtained from the promoters and Guarantor that all the credit facility
availed will be in standard category during entire tenure of advances.
8. Disbursement will be made only after completion of security, documentation and formalities
in respect of mortgage creation.
9. Branch to ensure that Sales /Receipts proceeds are routed through our account only.
10. Legal vetting, and legal audit be done before disbursement.
11. Undertaking to be obtained that funds will not be utilized for any speculative purpose.
12. An unconditional acceptance to the terms and conditions of sanction from the borrower
and guarantors should be obtained.
13. Before disbursement of the facility branch should ensure that mortgaged charge should be
created on property and charge noted latest property extract should be kept on record.
14. Branch Should Link the CIF of Promoters and Guarantors, so it will be reflected in
Consumer ClBIL report of Promoters/Guarantors.
15. All other terms and conditions as per annexure to be complied.
16. Branch Manager to ensure is provided facilities like payment of challans, POS machine, QR codes
and switch over to our account entirely.
17. Legal opinion be obtained regarding continuation of old account number.
18. Insurance be obtained from our channel partner during renewal.
19. Date of Charge be amended for fresh sanction of OD LAP.
20. Signed copy of application form and PI form be forwarded to ZO.
21. Charge satisfaction be obtained for facilities already closed but still reflecting open.
22. CA certificate regarding payment of all statutory dues till date be obtained.
23. Any Deviation/discrepancy/non-compliance to be immediately brought to the notice of
SanctioningAuthority.

Standard Terms and Conditions as per Annexure.

Yours faithfully,

Ashutosh Singh Sengar

Chief Manager
JABALPUR ZONE
Date: 19/03/2024
Place: JABALPUR
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 STANDARD TERMS AND CONDITIONS
Sr.No For Drop-line Overdraft Facility
01 Stock statement should be submitted once in six months to confirm working of the unit and level of
activity. However the same should not be reckoned for DP purpose.
02 After disbursement of facility, branch to ensure all sales transaction including cash sales to be
routed through cash credit account only and not through any other current account.
03 The facility is subject to review within 12 months
04 Overdraft is not permitted under the scheme.

Other General terms and conditions:

1. The company/firm shall submit an undertaking to the effect that it will:
A. Not utilize the working capital finance for acquisition of fixed assets and for speculative
purposes.
B. Obtain NOC from the Bank for availing of credit facilities from other Banks / Fls for further
expansion of business, taking up new business activity or setting up / investing in a subsidiary
whether in the same business line or related business.
C. Submit a certificate at the end of every quarter furnishing details of accounts opened with other
Bank/s or it shall submit nil certificate if no account is opened during the quarter.
D. In case of shortfall in estimated profitability/cash accrual it will make good the shortfall
immediately by infusion of additional capital and / or long term sources and this support will be kept
valid during the currency of bank finance. The company/firm should also undertake to maintain
satisfactory TOL/TNW ratio, Current Ratio, Net Working Capital failing which penal interest @1%
may be charged for the period of default.
E. Maintain the level of unsecured loans estimated and accepted if any at the time of sanction
throughout the currency of the bank finance.
F. Not transfer / invest funds from the facility/ies availed from the Bank in whatsoever manner in
any other concern.
2. The company/firm/trust shall submit a declaration stating that:
A. They have no objection for disclosure of the names of Company/ directors/ firm/ partners/
proprietor/ trustees of the trust/ guarantors to RBI/CIBIL.
B. The payment to small investors (if public deposit is accepted) is up to date and dues to MSE
suppliers are paid on time.
C. It is not a company/firm in which any of the directors of other banks hold substantial interest or is
interested as a Director/Partner or Guarantor.
D. The directors of the company/partners/proprietor of the firm/ trustees of trust are not directors /
relatives of directors of bank.
E. No litigation (other than arising in normal course of business) is pending against the Company/
directors/ firm/ partners/ proprietor/ trustees/ guarantors/ group concerns.
F. They are not related to any of the Senior officials of the Bank.
The company/ firm should maintain adequate books of accounts, as per applicable accounting
3. practices and standards, which should correctly reflect its financial position and scale of operations
and should not radically change its accounting system without notice to the Bank.
The company/firm should submit to the Bank such financial statement as may be required by the
4. Bank from time to time in addition to the set of such statements to be furnished by the company/
firm to the Bank as on the date of publication of the company/ firms annual accounts.
The company/firm should not induct into its Board a person whose name appears in the wilful
5. defaulters list of Credit Information Companies. In case such a person is already on the Board of
the borrowing company, it would take expeditious and effective steps for removal of that person
from its Board. Nominee directors are excluded for this purpose.
The company/firm shall keep the Bank informed of any circumstance adversely affecting the
6. financial position of subsidiaries/ group companies or companies in which it has invested, including
any action taken by any creditor against the said companies legally or otherwise.

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 The company/firm shall deal with our Bank/ Banks under consortium/ multiple banking arrangement
exclusively, shall not open current account(s) with any other Bank without our permission. The
7. company/ firms entire business relating to their activity including deposit, remittances, bills/ cheque
purchase, non-fund based transactions including LCs and BGs, Forex transactions, merchant
banking, any interest rate or currency hedging business etc. should be restricted only to the
financing banks under consortium/ multiple banking arrangement.
Fund Based limits both in Working Capital and Term Loan, should be regulated through an Escrow
8.
mechanism as agreed among banks to avoid any kind of diversion of funds.
The company/firm shall keep the Bank informed of the happening of any event likely to have a
9. substantial effect on their profit or business: for instance, if, the monthly production or sales are
substantially less than what had been indicated, the company/ firm shall immediately inform the
Bank with explanations and the remedial steps taken and / or proposed to be taken
The company/firm shall not effect any change in its capital structure where the shareholding of the
existing promoter(s) gets diluted below current level or 51% of the controlling stake (Whichever is
10. lower), without prior permission of the Bank-for which 60 days prior notice shall be required. In case
of limited liability partnerships and partnerships firms “promoters would mean managing partners
for the purpose of this covenant
No commission/ consideration to be paid by the company/ firms to the guarantors for guaranteeing
11.
the credit facilities sanctioned by the Bank to the company/ firms.
The company/ firm will utilise the funds for the purpose they have been lent. Any deviation will be
12.
dealt with as per Bank/ RBI guidelines
Promoters shares in the borrowing entity should not be pledged to any Bank/ NBFC/Institution
13.
without Banks consent
The undernoted covenants will be subject to prior notice being given by the company/ firm and
being agreed to by the Bank. If the Bank turns down the company/ firms request but the later still
goes ahead, the Bank shall have the right to call up the facilities sanctioned
i. Formulating any scheme of amalgamation or reconstruction.
ii. Undertaking any new project, implementing any scheme of expansion/ diversification or capital
expenditure or acquiring fixed assets (except normal replacement indicated in funds flow statement
submitted to and approved by the Bank) if such investment results into breach of financial
covenants or diversion of working capital funds to financing of long term assets.
iii. Investing by way of share capital in or lending or advancing funds to or placing deposits with any
other concern including group companies. (Normal trade credit or security deposits in the ordinary
course of business or advances to employees can, however, be extended). Such investment
should not result in breach of financial covenants relating to TOL/Adj. TNW and current ratio agreed
upon at the time of sanction.
iv. Entering into borrowing arrangement either secured or unsecured with any other bank, financial
institution, company or otherwise or accepting deposits which increases indebtedness beyond
permitted limits, stipulated if any at the time of sanction.
v. Undertaking any guarantee or letter of comfort in the nature of guarantee on behalf of any other
company (including group companies)
vi. Declaring dividends for any year except out of profits relating to that year after making all due
and necessary provisions and provided further that such distribution may be permitted only if no
event of default/ breach in financial covenant is subsisting in any repayment obligations to the
Bank.
14. vii. Creating any charge, lien or encumbrance over its undertaking or any part thereof in favour of
any financial institution, bank, company, firm or persons.
viii. Selling, assigning, mortgaging or otherwise disposing of any of fixed assets charged to the
Bank. However, fixed assets to the extent of 5% of gross block may be sold in any financial year
provided such sale does not dilute FACR below minimum stipulated level. (Not applicable for
unsecured loans)
ix. Entering into any contractual obligation of a long term nature or which, in the reasonable
assessment of the Bank, is detrimental to lenders interest, viz. acquisitions beyond the capability of
borrower as determined by the present scale of operations or tangible net worth of the company/
firm/ net means of promoters etc. leveraged buyout etc.
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 x. Changing the practice with regard to remuneration of Directors by means of ordinary,
remuneration or commission, scale of sitting fees etc. except where mandated by any legal or
regulatory provisions.
xi. Undertaking any trading activity other than the sale of products arising out of its own
manufacturing operations. (Not applicable in case of finance is for trading activity only)
xii. Permitting any transfer of the controlling interest or making any drastic change in the
management set-up including resignation of promoters directors.
xiii. Repaying monies brought in by the promoters/ directors/ principal shareholders and their
friends and relatives by way of deposits/ loans/ advances. Further, the rate of interest, if any,
payable on such deposits / loans/ advances should be lower than the rate of interest charged by
the Bank on its term loan and payment of such interest will be subject to regular repayment of
instalments of term loans granted/ deferred payment guarantees executed by the Bank or other
repayment obligations, if any, due from the company/ firm to the Bank.
xiv. Approaching capital market for mobilizing additional resources either in the form of debt
or equity.
Documentation
15. The credit limits shall be released after completing documentation. If the branch is under concurrent
audit, then concurrence of the auditor to be obtained at the time of disbursement
In respect of accounts with exposure of Rs. 50 lakhs and above, upon completion of
16. documentation, the same shall be subject to verification by law officer/ panel advocate before
release of facilities. In case of consortium/ JLA vetting by LLC be obtained.
Certified copy of the resolution passed at the Board meeting of the Company authorizing borrowal
17. of credit limits from the Bank and execution of the loan documents be obtained. Further the copy of
board resolution stating that borrowings of the company are within the total borrowing powers as
per MoA/AoA be kept on record.
Our charge / modification of charge shall be registered with ROC wherever applicable within the
prescribed period. Further our charge on the property/ies/hypothecated securities by way of
18. mortgage/hypothecation should also be registered with CERSAI. Before creation of our charge with
CERSAI it should be ensured that no prior charge is created / is in existence on the property/ies
/securities which is proposed for mortgage/ hypothecation to avoid multiple charges on the same
property/security and to prevent fraudulent transactions
Legal opinion on the immovable properties offered as primary / collateral shall be obtained from our
19. panel advocate to ensure valid and enforceable mortgage. Mortgage / documentation formalities
shall be completed under due legal advice. In case the account is under consortium /JLA, copy of
such opinion obtained by the lead bank from their panel advocate/LLC be held on record
Valuation report of the immovable / movable fixed assets to be mortgaged / hypothecated shall be
obtained from the Banks approved valuer. In case of exposure above Rs. 5.00 crore, valuation from
2 panel valuers shall be obtained, and if there is material variation between the two valuations,
20. lower of the two shall be considered.
In case the account is under consortium /JLA, copy of such reports obtained by the lead bank from
their panel valuers be held on record
All securities charged to the Bank shall be insured against all risks for the full value at the
21. Companys/firms cost and the policy shall remain in the joint names of the company/firm and Bank
with banks clause duly incorporated therein.
Where pledge of shares is stipulated it should be ensured that the bank does not hold shares of an
22. amount exceeding 30% of the paid up share capital of that company or 30% of banks paid up
capital and reserves whichever is less.
In case of advance under consortium, the facility shall be operative subject to formal admission of
our Bank as member of consortium & completion of Joint Documentation by consortium OR
23. execution of individual documents by obtaining letter for ceding pari-passu charge on primary and
collateral security along with NOC from consortium leader/ members if specifically permitted in the
sanction.
Restrictive Covenant
The company/ firm is prohibited from using the facility amount or any part thereof for any purpose

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 24. other than for which it has been sanctioned and in case of violation, the bank has a right to recall
the facility amount or any part thereof at once not withstanding anything contrary to the above or
any other agreement
The company/ firm should not make any drastic change in their management set up without the
25.
Banks permission.
The sanction accorded by the Bank does not vest in any right to claim any damages against the
26.
Bank for any reasons whatsoever
The Company shall not declare any dividend unless satisfactory arrangements are made for debt
27.
servicing.
Bank Reserves the unqualified right (that / to)
In case of default in repayment of the loan/ advances or in the payment of interest thereon or any
of the agreed instalments of the loan on due date(s) by the borrower, the Bank and / or the RBI
28. will have an unqualified right to disclose or publish the company/ firms name or the name of the
company/ firm/ unit and its directors/ partners/ proprietors as defaulters/ wilful defaulters in such
manner and through such medium as the Bank or RBI in their absolute discretion may think fit.
Bank will have right to examine at all times the company/ firms books of accounts and to have the
29. company/ firms factories inspected from time to time by officer(s) of the Bank and/ or qualified
auditors and / or technical experts and or management consultants of the Banks choice. Cost of
such inspection shall be borne by the company/ firm.
The Bank will have the right to share credit information as deemed appropriate with Credit
30.
Information Companies (CICs) or any other institution as approved by RBI from time to time.
To assign/shift a part /full of the advance to any bank/FI without notice to the company/firm by way
31.
of participations
To charge / continue to charge interest as indicated at monthly rests and to review rate of interest /
32. commission and other terms applicable from time to time and to modify the same at the sole
discretion of the Bank and to give notice at any time and thereafter to charge such other rate of
interest as the Bank may decide.
To charge higher rate of interest on downgrading of the rating on default in repayment of any loan
33. instalment and/ or servicing of interest in any loan account (including working capital) for any month
and to recall the entire advance if the default continues subsequently
To review and re price the credit exposure in case external rating of applicant company/firm is
34.
downgraded.
In the event of default in repayment to the Bank or if cross default has occurred, the Bank will have
35. the right to appoint its nominee on the Board of Directors of the company/ firm to look after its
interests
In stressed situation or restructuring of debt, the regulatory guidelines provide for conversion of
36. debt to equity. The Bank shall have the right to convert loan to equity or other capital in accordance
with the regulatory guidelines
After provision for tax and other statutory liabilities, unless expressly permitted otherwise, the Bank
37.
will have a first right on the profits of the company/ firm for repayment of amounts due to the Bank
In the event of default, or where signs of inherent weakness are apparent, the Bank shall have the
38. right to securitise the assets charged and in the event of such securitization, the Bank will suitably
inform the company/ firm(s) and guarantor(s)
Cancel the limits (either fully or partially) unconditionally, without prior notice in case of occurrence
of all or any of the following events :
a) The limits / part of the limits are not utilized.
b) Deterioration in the loan account in any manner whatsoever
39. c)Non-compliance of terms and conditions of sanction
d) Any other reason which the bank considers appropriate to cancel the facility
Borrowers Consent Letter for Unequivocal and Unconditional accord in this regard to be submitted /
obtained. (Applicable for sanctioned limits of Rs. 10 lakhs and above.)
Branch shall ensure that :
Confidential report/s on company/ firm from all existing banker/s is / are obtained and kept on
40. record. Alternatively a certificate from the statutory auditors or chartered accountant firm of the
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 company / firm stating that all accounts of the company/firm with all the existing banks are in order
and are standard is obtained and kept on record.
All un-rectified inspection / audit / credit audit / stock audit / concurrent audit / APR comments are
41.
rectified prior to disbursement / release of enhanced facilities in case of existing borrowers.
All necessary regulatory / statutory and mandatory clearances / approvals such as environmental,
42. forest, rehabilitation, pollution control etc are in place at the time of disbursement wherever
applicable.
Latest personal information forms duly filled in by the directors / partners/ proprietor/ trustees
43. /guarantors and Net worth details supported by relevant tax returns / duly certified by their auditors
are obtained.
Charges:
Processing charges / Upfront Fees / Supervision / Inspection / Commitment / Amendment / NOC
issuance charges etc wherever applicable shall be collected as per the Banks guidelines unless
specifically waived / concession is granted.
Processing fee is to be recovered on annual basis for review renewal of working capital facility. For
44.
annual review of Term Loan with limit Rs. 1 crore and above, Rs. 25000 shall be recovered.( Also
applicable for review rollover of short term loans)
All other charges as per extant guidelines of the bank and Service Charge rules will be recovered
(wherever applicable) unless specifically waived / concession is granted.
Each of the following events will attract penal interest, over and above the normal interest rate
applicable in account :
I. Non-compliance of terms of sanction @ 1.00% p.a.
II. Non-creation of security @ 1.00% p.a.
III. Late / non submission of monthly stock / receivables statements beyond expected due date
45. every month @ 1% for period of default.
IV. In case of payment default; for the period of overdue interest/ instalment in respect of Term
Loan accounts and over-drawings above the drawing power/ limit on account of interest /
devolvement of Letter of Credit/ Bank Guarantee, insufficient stocks and receivables etc. in case of
Fund Based Working Capital accounts @ 2% on the portion of overdrawings.
Where simultaneous defaults are observed under various heads where penal interest is applicable,
the maximum penal interest to be charged over and above the normal applicable rate of interest
shall be restricted to 2% p.a.
Monitoring
The Branch should reconfirm the External Rating of the company/firm before disbursement of the
46. fresh credit facility. If there is any down-gradation from the last reported rating, the same should be
brought to the notice of sanctioning authority prior to disbursement
The company/firm shall submit to the Bank, every year, audited annual accounts within a period not
47. exceeding 6 months / three months (in case of listed companies) from the close of the previous
accounting year. Similarly quarterly results wherever applicable shall also be submitted within 45
days from the end of the last quarter
In respect of accounts with exposures above Rs. 5 crores, external rating as required under Basel
48. III to be renewed every year from an approved rating agency failing which penal interest of 1% shall
be charged for the period of default. Wherever the external rating is downgraded, additional interest
@ 25bps shall be charged per notch downgrading.
Proper sign board should be displayed / painted on the factory premises / go downs at a
49.
conspicuous place giving clear notice of the Banks charge over the assets of the unit.
Field authorities shall make visit to unit/s of the company/firm including registered / corporate offices
once in 3 months. Visit Report be kept on record. Pre and Post sanction visit reports with end use
50. certificate, verifying the end-use be held on record. Pre sanction visit of the properties offered as
principal / collateral securities be made and report thereof be held on record confirming the
acceptability of the valuation given by the valuer of those properties.
End use certificate from the company/firm be obtained certifying that funds have been used for the
purpose for which the facilities have been sanctioned. Where the accounts of the company/firm are
51. subject to audit, the end use certificate should be obtained from the auditors of the company/firm. In
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 case of branches under concurrent audit, end use certificate from concurrent auditor shall also be
obtained in respect of disbursement of loans and advances of above Rs. 10.00 Lakhs. The
branches shall send the confirmation of end use to the sanctioning authority.
Zonal Office/Branch to study the balance sheets of sister concerns, as far as possible on a common
52. date else balance sheet not older than nine months to analyse interlocking of funds, diversion of
funds etc. Any material negative observation revealed from above exercise shall be reported to the
sanctioning authority
The branch should submit “Certificate of Compliance of Terms and Conditions of sanction” to the
53.
Zonal Office prior to disbursement.
In case of shortfall in NWC, Zonal Office / Branch shall monitor the account closely and confirm that
54. applicant has infused adequate funds by way of capital or long term sources ( in manner acceptable
to the bank) in order to meet the NWC shortfall. Improvement in NWC shall be verified from
quarterly results duly certified by Chartered Accountant/Auditors of the company/firm.
The company/ firm shall submit a certificate at the end of every quarter, furnishing details of
55. accounts opened with other banks. If no such account is opened, a nil certificate should be
submitted.
56. A certificate from CA stating that all statutory dues are paid up to date be obtained.
57. All the facilities sanctioned are subject to annual review
In case of MBA/ Consortium/ JLA, exchange of information should be ensured at Quarterly intervals
58.
and Banks guidelines shall be adhered to strictly ( Wherever applicable )
Field authorities shall adhere to extant guidelines and instructions on obtaining / Sharing of
59. Information relating to credit, derivatives and un-hedged foreign currency exposure for borrowers
availing credit facilities under consortium / multiple banking arrangement / Joint lending
arrangement before release of credit facility.
Banks policy on un-hedged foreign exchange exposure shall be adhered to strictly in case of un-
60.
hedged foreign exchange exposure.
Additional Interest as stipulated in HO circular no. AX1/Cr. Mon/Cir. No.24/2014-15 dated 26.03.15
61. on un-hedged Foreign Currency exposure to the borrower enjoying total exposure of Rs.10.00
crore and above be recovered on getting the information from TIBD on quarterly basis.
62. This Sanction is valid for 90 days from date of sanction.

Kindly note: QMR/HMR are treated as Financial Follow up Reports.

Key Points : Considering the current Lending Policy guidelines and as per the Master Circular on Interest
on Advances dated 11th July 2005, penal interest is not considered for following events:
Event Rationale
Non-submission of Audited Audited Balance Sheet is a part of document to be submitted
1. Balance Sheet within 6 months( for Review Renewal and non renewal of Working Capital
3months for Limited companies) limits within 12 months attracts Penal Interest(mentioned in
of end of financial year Point No. 14, Page No. 1)
2. Non Submission of FFR Non submission does not attract any penaltyAs per the
statements master circular stated above.(mentioned in Point No. 2, Page
No. 1)

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