SITE INSPECTION -CUM- COLLATERAL INSPECTION REPORT

Name and Address of the Company Constitution and Year of Establishment Name of Proprietor / Partner / Director Date of Visit Business Activities Administrative Office Visited Branches and Other offices Godown Visit / Contact No Stocks Stored at (location along with address and approx value of stocks) Group Companies / Address & Contact No Banking details of Group Companies PAN Details of Borrower and Group Companies

Books of Accounts Maintained at Manual / Through systems If systems, what program is adopted Control Systems integrating the branches / godown / other administrative offices Are the book upto date Stock Register maintained and is it upto date Are the goods excisable Excise Duty Reference Name of Statutory Auditors Any important event in last one year in the unit

Financials of the borrower

Audited 31.03.2012 Rs.in lakhs i) Sales ii) Purchases iii) Closing Stock iv) Sundry Debtors v) Sundry Creditors Cash Sale : Credit Sale

Audited 31.03.2011 Rs. in lakhs

Audited 31.03.2010 Rs. in lakhs

Sales and Purchase as per VAT returns (Rs. In lacs) Dec 2012 Sales Purchases

Nov 2012

Sales

Purchases

Oct 2012

Sales

Purchases

Sep 2012

Sales

Purchases

Details of Banking and other credit facilities available as on Name of Banks / Financial Institutions Standard chartered Bank Others Funded Sanctioned Utilized (Amount in Lacs) Non Funded Sanctioned Utilized

Total Comment on whether the outstanding are mentioned in the stock statements-

Stock as on Description As per stock records as on .. As per statement submitted to SCB_________ (Amount in Lacs) Deviation

Details on Physical Verification of Stock Details of slow moving stock Basis of valuation of Stock Details of Scrap Generation: Stacking and Storing of Stocks Internal control towards movement of stocks

Receivables as on (Amount in Lacs) Particulars Less than 90 days 91 days to 120 days More than 120 days Total Debtors

As per Books of Accounts

As per statement submitted to SCB

Deviation

The Top 5 Customers are as under:-

Customer

Sales from upto

% of total sales

(Amount in Lacs) Out % of Total standing Outstanding as on

Analysis of the Debtors and recoverability based on records available Creditors as on Particulars Less than 90 days 91 days to 120 days More than 120 days Total Creditors Amount in Lacs

Transactions with related parties (Group Companies/Firms): Financial Ratios and Analysis Synopsis as on date of report and comparison with previous years figures Particulars Purchases Sales Debtors Creditors Analysis for above Calculation of Drawing Power as on Particulars A Stock Total Stock Less: Unpaid Net Stock Less: Margin @ 25% Loanable Value (A) B Debtors Total book debts Less: Debts > 90 days Net debts Amount in Lacs QoQ QoQ QoQ QoQ

Less: Margin @ 25% Loanable Value (B) Total (A) + (B) Fund based Sanctioned Limits Total SCB share O/s balance as on SCB O/s bal as on Business model Location/Country India Exports Mode of procuring business 1) Agents 2) Direct contact with manufacturers 3) Own Marketing Team Main raw materials used Manufacturing process Details of Insurance policies Name of Insurance company Policy Number & Bank Clause/Location Location Expiry Date Amount in Lacs Volume

General Observations Condition of Plant & Machinery Level of automation Activity levels at time of visit

STOCK VERIFICATION
1. Whether stock records have been verified with stock statements on a random basis 2. Description of stock declared Major items 3. Verification of books of accounts, Purchase and sales invoices to ascertain the movement of stock comment on the

movement 4. Bifurcation of closing stock as on 08/02/2013 at various locations / godowns as declared by the borrower 5. Other stocks i) Goods received on letter of credit ii) Goods received under bank guarantee iii) Goods on consignment basis iv) Stock received on job work v) Others 6. Whether the last year end stock as per As per Balance sheet balance sheet and as per statement given to As per Bank Statement the bank tally? 7. Stock in transit / goods with third parties 8. Comments on holding level of inventory 9. Observation on Quality of stock (to include methods of storage, safety and security protection from rain, moisture, dust, pilferage etc) 10. Physical verification of stock on sample basis covering not less than 20% of the value i) Locations visited ii) Difference if any on physical verification compared to the register 11. Whether the major of stock is in line with the business activity 12. Comments on inventory control Reg maintenance of books, Bin cards, if any and procedure adopted for deployment of stock 13. Verification of valuation of stocks i) Comment on valuation adopted by the company ii) Comment whether valuation is done according to the business carried on by the

company iii) Whether applicable accounting standards are followed 14. Slowing moving and damaged items 15. Insurance i) Whether the goods are fully insured for specific risk ii) Extent of Insurance cover available iii) Whether policies are in force iv) Whether banks clause is included v) Whether additional risk like riot and strike etc are included in the policy vi) Whether the location of the goods are properly stated in the policy with door no, survey no, municipal no etc vii) Whether the goods sent for processing or to sub-contractors are insured / transit insurance obtained viii) Whether amount covered is adequate 16. Risk perception and risk management 17.Was there any discrepancy between stock statement as on 31/01/2013 with stock register

VERIFICATION OF BOOK DEBTS / CREDITORS

1.Book debts as percentage of sales 31.03.2011 31.03.2012 31.01.2013

2. Book debts identified as recoverable as on 31/01/2013 3. Doubtful of recovery 4. Book debts collection mechanism put in use 5. Whether there are any disputes in respect of any book debts

6. Observation as to the quality of book debts 7. Is there any discrepancy on verification of the books accounts with stock statements as on 31/01/2013 8. Whether a random checking Debtors, balances Tally? 9. Whether level of sundry creditors is commensurate with the business / past trends 10. Independent verification of outstanding balances of at least 20% of the debtors

GENERAL CHECK LIST

1. Whether the turnover and the activity level in the account is brisk and is in line with what is reported in the financial statement?

2 Whether the sale proceeds and purchases are routed through the account?

3. Whether borrowers record maintenance of stock / accounting is satisfactory Please comment on deficiencies

4. Whether random physical inspection now conducted represents a correct position of the entire stock?

5. Whether stocks are properly stored

6. Any other observations

EXECUTIVE SUMMARY

1 2 3 4 5 6 7 8 DECLARATION: We have no direct or indirect interest in this valuation. This has been carried out as requested by Standard Chartered Bank and has not been influenced by any person whosoever.

Audit Visit Information

Officials from Audit Firm Date of Visit Person Contacted along with address and number Location Visited For Chartered Accountants

Partner Place : Date :