ANDHRA PRADESH STATE FINANCIAL CORPORATION: HYDERABAD

SPECIAL TERMS AND CONDITIONS OF THE SANCTION

(TERM LOANS)

01 a) Name of the unit : M/[Link] Digital Press

b) Correspondence Address & : [Link].13-3-663,

Location of the unit Khaja Nagar,
Anantapuramu Town & District

02 Loan Account No. : 52 8887 01

03 Amount of Term Loan : Rs.210.00 lakhs

(Rupees Two Hundred and Ten Lakhs Only)

04 (a) Constitution : Partnership Firm

(b) Names of partners : (i) Sri K. Mahammad, Managing Partner

(ii) Smt [Link]
(iii) Smt [Link]
(iv) Smt [Link]
(v) Sri [Link] Thousif, Managing Partner

05 Purpose of Term Loan :

The Corporation’s term loan of Rs.210.00 lakhs is to meet a part of cost of assets as
provided in the scheme, subject to the following limits:
([Link] lakhs)
Particulars Cost Loan @ 76.66%
Machinery & equipment 256.00 196.25
Erection expenses 1.00 0.75
Preliminary & pre-operative expenses 25.00 0n 17.00 13.00
Total 282.00 210.00

06 Period of term loan : 8 years with a moratorium period of one year

07 Repayment of term loan :

The principal amount shall be repaid at quarterly instalments on 1st March, 1st June, 1st
September and 1st December as under
The principal amount shall be repaid at quarterly instalments on 1st March, 1st June, 1st
September and 1st December as under.
(Rs. in lakhs)
[Link]. No. of Instalments Instalment Amount Total
1. 28 7.25 203.00
2. 1 7.00 7.00
29 210.00
 M/s Gemini Digital Press, Anantapuramu

Repayment shall commence after one year from the date of disbursement of any part of
the loan.

08 Rate of Interest:

Interest shall be paid on monthly basis at 16.50% p.a.

Special interest rebate / Concession:

The special interest rebate @ 2% p.a. and Special Interest Concession @ 0.5% p.a.
will be allowed as per the rules of the Corporation, for each month subject to the loan
account being regular at the end of the each quarter i.e. 31st March, 30th June, 30th
September, & 31st December strategy not implemented from the existing food
processing units.
The special interest rebate @ 2% p.a. an Special Interest Concession @ 0.5% p.a. will be
allowed as per the rules of the corporation, for each month subject to the loan account
being regular at the end of the each quarter i.e. 31st March, 30th June, 30th September,
and 31st December strategy not implemented from the existing food processing units.

Default clause:

Penal interest @ 2% p.a. shall be levied on the defaulted extent of principal, interest and
other expenses for the period during which such default continued.
Penal interest @2% p.a. shall be levied on the defaulted extent of principal, interest and
other expenses for the period during which such default continued.

09 Service charges and Upfront fee:

The company shall pay up-front fee @ 0.5% on term loan as required by the Corporation
before release of any part of the term loan. The company shall also pay the balance
service charges payable for the proposed term loan, before release of any part of the
loan. The company shall pay up-front fee @ 0.5% on term loan as required by the
corporation before release of any part of the term loan. the company

10 Premature Premium:

3% premium shall be charged for all advance payment of installments of principal,

exceeding two installments. Any intention to close the loan account shall be intimated 6
months in advance and make the payment with the required premature premium.
3% premium shall be charged for all advance payment of installments of principal,
exceeding two installments. Any intention to close the loan account shall be intimated 6
months in advance and make the payment with the required premature premium.

CONDITIONS TO BE COMPLIED WITH BEFORE EXECUTION OF SECURITY

DOCUMENTS:-

11 (a) Primary Security:

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 M/s Gemini Digital Press, Anantapuramu

The Corporation’s term loan shall be secured by way of equitable mortgage of leasehold
interest in land admeasuring 146.66 square yards and building bearing [Link].13-3-663,
Khaja Nagar, Anantapuramu Town and District along with hypothecation of machinery
& equipment as proposed in the scheme and all future acquisitions of fixed assets in
nature.
The corporation’s term loan shall be secured by way of equitable mortgage of leasehold
interest in land admeasuring 146.66 square yards and building bearing [Link].13-3-663,
Khaja Nagar, Anantapuramu Town and District along with Hypothecation of machinery
nature.

(b) Registered Lease Deed:

The firm shall submit registered lease deed for the unit premises for a minimum lease
period of 10 years in the prescribed format of the Corporation.

12 Collateral Security:

Primary security: the corporation’s term loan shall be secured by way of equitable
mortgage of leasehold interest in land admeasuring 146.66 square
The firm shall offer collateral security worth Rs.157.50 lakhs by way of urban
immovable properties including surplus value in the existing securities offered to their
existing units, to the satisfaction of the Corporation.
The collateral security holders also shall guarantee the repayment of Corporation’s term
loan together with interest in their individual capacity as co-obligants.

13 The firm shall complete the legal formalities and make the drawals of funds within 6
months from the date of sanction, failing which the term loan shall be cancelled.
The firm shall complete the legal formalities and make the drawals of funds with in 6
months

14 The Corporation reserves the right to stipulate any other condition or modify any
conditions stipulated which shall be binding on the borrowers.
CONDITIONS TO BE COMPLIED BEFORE INITIAL DISBURSEMENT:
15 Capital Clause:
a) The firm shall raise capital of Rs.108.00 lakhs and invest initially Rs.73.00 lakhs
before disbursement of any part of the Corporation’s term loan.

b) After compliance of the above, the term loan shall be released in proportion to
the capital raised and invested in the assets as proposed in the scheme.
After compliance of the above, the term loan shall be released in proportion to
the capital raised and invested in the assets as proposed in the scheme.

c) The total capital of Rs.108.00 lakhs brought in the scheme shall not be
withdrawn and the net effective capital shall be maintained at that level during
the tenure of the Corporation's term loan.
the total capital of Rs.108.00 lakhs brought in the scheme shall not be withdrawn

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 M/s Gemini Digital Press, Anantapuramu

16 The firm shall submit approval/validity of the following:

a) Entrepreneurs Memorandum Part-I from DIC, Anantapuramu.
b) Entrepreneurs Memorandum Part-I from DIC, Anantapuramu.
c) Power feasibility letter from APSPDCL for 56 HP.
d) Power feasibility letter from APSPDCL for 56 HP.
e) Trade license for operating digital printing press in the premises from
Ananthapuramu Municipal Corporation.
f) Trade license for operating digital printing press in the premises from
Ananthapuramu Municipal Corporation.

17 The firm shall submit copy of authorized dealership certificate from the principals
wherever the invoices / bills of machinery / equipment are raised by the dealers.

18 The firm shall commence operations on or before 01.06.2016 the date of

Commencement of Commercial Operations (DCCO) and intimate the same to the
Corporation as shown below:

The firm shall commence operations on or before 01.06.2016 the date of

Commencement of Commercial Operations (DCCO) and intimate the same to the
corporation as shown below:

Item Start Finish

Machinery & Equipment August, 2015 September, 2015
Erection of machinery/equipment October, 2015
Training & trial runs November, 2015
Opening of the lab to the public December,2015
Stabilisation of operations May, 2016
Date of Commencement of Commercial 01.06.2016
Operations

In the event of non-adherence of the above, the Corporation will have the right to review
and reappraise the project and withhold further disbursement of the loan until the
reappraisal of the project is approved by the Corporation. The conditions emanated out
of reappraisal shall be complied with by the borrower.

In the event of non-adherence of the above, the Corporation will have the right to review
and reappraise the project and withhold further disbursement of the loan until the
reappraisal of the project is approved by the corporation.

19 The eligible subsidy under CLCSS shall be assigned to the Corporation towards the term
loan. The eligible subsidy under CLCSS shall be assigned to the corporation towards the
term loan.
The eligible subsidy under CLCSS shall be assigned to the corporation towards the term
loan. the eligible subsidy under CLCSS shall be assigned to the corporation towards the
term loan.

20 In addition to the above special terms and conditions, other general terms and
conditions pertaining to Partnership Firms which are sent herewith will also be

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applicable and shall be deemed to have been incorporated in the mortgage deed
and other security document executed by the firm/guarantors.
In addition to the above special terms and conditions, other general terms and conditions
pertaining to partnership firms which are sent herewith will also be applicable and hsall
be deemed to have been incorporated in the mortgage deed and other security document
executed by the firm/guarantors.

-o0o-

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 M/s Gemini Digital Press, Anantapuramu

MEMORANDUM TO THE HEAD OFFICE SANCTION COMMITTEE MEETING

DATED: .09.2015

ITEM NO. OF THE AGENDA

APPLICATION FOR A TERM LOAN OF Rs.210.00 LAKHS FROM M/S. GEMINI

DIGITAL PRESS FOR SETTING UP OF A MULTI COLOUR DIGITAL PRINTING
UNIT AT ANANTHAPURAMU TOWN AND DISTRICT UNDER GOOD
ENTREPRENEURS (ASSOCIATED CONCERN) CATEGORY AND GENERAL LOAN
SCHEME– REG APPLICATION FOR A TERM LOAN OF Rs.210.00 LAKHS FROM
M/S. GEMINI DIGITAL PRESS FOR SETTING UP A MULTI COLOUR DIGITAL
PRINTING ENTREPRENEURS (ASSOCIATED CONCERN) CATEGORY UNDER
AND GENERAL LOAN SCHEME – REG.
===================================================================
1. a. Name of the unit name of the unit : M/s. Gemini Digital Press
b. Location & Address for : [Link] 13-3-663
correspondence location and Khaja Nagar,
address for correspondence Ananthapuramu Town& District
Pin Code:515 001
2. a. Partners : (i) Sri K. Mahammad, Mg Partner
(ii) Smt [Link]
(iii) Smt [Link]
(iv) Smt [Link]
(v) Sri [Link] Thousif, Mg Partner
b. Solvency of promoters : Rs. 4486.90 lakhs

3. a. Line of Activity : Digital Printing Press

b. Capacity : Unit full operating Operating

capacity capacity assumed
@ 40%
Albums Per Annum : 24000 9600
c. Revenue at Installed Capacity : Rs.672.00 Lakhs

d. Operating Capacity : 40%, 50% & 60% during 1st, 2nd and 3rd
year onwards.
4. a. Cost of the Project : Rs.318.00 lakhs

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 M/s Gemini Digital Press, Anantapuramu

b. Implementation Schedule :

Item Start Finish

Machinery & equipment August, 2015 September, 2015
Erection of equipment October, 2015
Training & trial runs November, 2015
Opening of the lab to the public December, 2015
Stabilisation of operations May, 2016
Date of Commencement of 01.06.2016
Commercial Operations

5. Financial Indicators :
Indicator Norm Proposed
Loan eligibility Maximum 85% 76.66% (GES Associated
Concern)
Debt Equity Ratio Maximum 2:1 1.94:1
Promoters’ contribution Minimum 22.50% 33.96%
Average DSCR for 8 years Minimum 1.55 1.90
Break Even Point Optimum 60% 32.97%
Internal Rate of Return Minimum 20% 31.93%
Loan Repayment Period 8 years 8 years
Moratorium Period 2 years 1 year
6. Collateral security The firm shall offer collateral security worth not
less Rs.157.50 lakhs being 75% of term loan.

The promoters are proposing to offer commercial

land and buildings bearing [Link]/1,
[Link]-3-678, Khaja Nagar, Ananthapuramu
Town, Ananthapuramu Dist and valued at
Rs.120.06 lakhs as per the Branch Valuation
Report dated 29.07.2015. For the shortfall, the
promoters shall offer other urban immovable
properties to the satisfaction of the Corporation.

7. Asset coverage
Primary asset coverage 122.38%
Including collateral security 197.38%

8. Risk factors:

Business risk:

 The firm proposes to set up a digital offset printing unit for printing photo albums. Now
a days every occasion is photographed to store the cherishing moments to view at a later

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 M/s Gemini Digital Press, Anantapuramu

date. With the advent of digital cameras, cell phone cameras, tablets, the possibilities for
taking photographs has become easy and never ending. However, for major occasions
like engagements, marriages, receptions, birthdays, cultural festivals, conferences etc.,
still professional photographers are engaged for taking photos and making photo albums.
 The firm proposes to set up a digital offset printing unit for printing photo albums. Now
a days every occasion is photographed to store the cherishing moments to view at a later
date. With the advent of digital camera, cell phone cameras, tablets, the possibilities for
taking photographs has become easy and never ending.

 The output of the proposed digital press is of high quality with good resolution and
makes the photographs appear with rich colour, glossy background and with proper
brightness. The firm is targeting high end customers who are presently utilizing these
services from Vijayawada as there is no unit in Anantapuramu or in the districts.

 The output of the proposed digital press is of high quality with good resolution and
makes the photographs appear with rich colour, glossy background and with proper
brightness. The firm is targeting high end customers who are presently utilizing these
service from Vijayawada as there is no unit in Anantapuramu or in the neighbouring
districts.

 There are good number of photo studios in Anantapuramu and also in the neighbouring
districts who will be the prospective customers expected to use the services of the instant
firm. The promoters are experienced in photographic field for more than two decades
and are running three photo studios and color labs in Anantapuramu Town. The
promoters are currently sending the works from high end customers to Vijayawada for
getting the job done.

 There are good number of photo studios in Anantapuramu and also in the neighbouring
districts who will be the prospective customers expected to use the services of the instant
firm.

Hence, risk is considered to be low.

Technological Obsolescence:

 The proposed digital printing machine uses laser technology for printing which is a well
established technology. The machine is proposed to be purchased from M/s Hewlett
Packard, reputed electronic equipment manufacturer. The equipment is in the market for
3 years and has proven performance. After sales service and spare parts support is
available from supplier.

 The proposed digital printing machine uses laser technology for printing which is a well
established technology. The machine is proposed to be purchased from Hewlett Packard,
reputed electronic equipment manufacturer. The equipment is in the market for 3 years
and has proven performance. After sales service and spare parts support is available
from supplier.

 Lot of research has undergone in electronic industry specifically in digital printing and
the advent of breakthrough technologies may pose technological obsolescence.

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 M/s Gemini Digital Press, Anantapuramu

However, the proposed equipment is proposed to be used in Tier-II town and hence the
latest advancements take time to reach the particular towns and surrounding districts.

 Lot of research has undergone in electronic industry specifically in digital printing and
the advent of breakthrough technologies may pose technological obsolescence.

The possibility of obsolescence in near future is moderate.

Industry risk:

 The proposed unit is first of its kind in Rayalaseema Region (nearest in Hyderabad,
Vijayawada) and enjoys early bird advantage.

 No competition is anticipated in the near future as the capital investment required is

high.

Entrepreneur risk:

 The Managing Partner Sri [Link] and the other partners are having vast
experience in photo color lab industry and can manage the affairs of the firm with the
help of skilled workers very easily.
 The Managing Partner Sri [Link] and the other partners are having vast
experience in photo color lab industry and can manage the affairs of the firm with her
help of skilled workers vary easily.

Hence the risk perceived in this aspect is low.

Financial risk:

 The promoters are financially well placed with an aggregate solvency of Rs.4486.90
lakhs and can bring in their margins for implementation of the project.
 The promoters are financially well placed with an aggregate solvency of Rs.4486.90
lakhs and can bring in their margins for implementation of the project.

 The firm is confident of procuring sufficient orders and meet the repayment obligations
without any difficulty.

 The firm is confident of procuring sufficient orders and meet the repayment obligations
without any difficulty.

 The viability of the project is established by assuming the operating capacity at 40%
during first year and also the charges for making of the albums is assumed
conservatively at a lesser price than prevailing Hyderabad rates.

 The viability of the project is established by assuming the operating capacity at 40%
during first year and also the charges for making of the albums is assumed
conservatively at a lesser price than prevailing Hyderabad rates.

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 M/s Gemini Digital Press, Anantapuramu

 The associate units of the promoters earlier availed 15 term loans from the Corporation
during the period 1989 to 2013 aggregating to Rs.314.37 lakhs for establishing the color
labs and further expansions and the outstanding is Rs.33.66 lakhs as on 31.07.2015. The
repayment track record is TR-2 & TR-3.

 The associate units of the promoters earlier availed 15 terms loans from the Corporation
during the period 1989 to 2013 aggregating to Rs.314.37 lakhs for establishing the color
labs and further expansions and the outstanding is Rs. 33.66 lakhs as on 31.07.2015. the
repayment track record is TR-2 & TR-3.

 The asset coverage including collateral security is 197.38%

 Titanic is the large stman made movi n g. o b j e c t i n t h e w o r l d . S h e i s a s l o n g

a s f o u r c i t y. b l o c k s a n d w i d e r t h a n a f o u r l a n e h i g h w a y . S o m e. p
e o p l e s a y s h e i s u n s i n k a b l e . N o e x p e n s e h a s. b e e n s p a r e d t o b u i
ldher

In view of the above, the risk perceived on the above fronts is low.

9. Exposure to the Group:

Particulars Amount (Rs in lakhs)

M/s Gemini Color Lab & Studio, Anantapuramu 2.43
M/s Gemini Digital Lab, Anantapuramu 3.88
M/s Gemini Digi Press, Anantapuramu 27.35
M/s Gemini Digital Press, Ananthapuramu (instant unit) 210.00
Total 243.66

10. Credit Rating:

The rating awarded to the project is “CR-3-Good Safety” which indicates that the
proposal is above the investible grade for the Corporation. The credit rating report is
enclosed to the memorandum as Annexure- 9.
The rating awarded to the project is “CR-3-Good Safety” which indicated that the
proposal is above the investible grade for the corporation. The credit rating report is
enclosed to the memorandum as Annexure-9.

11. Rate of Interest:

Credit Rating CR –3 - Good Safety

Rate of interest applicable BPLR + 0.50%
BPLR 13.50%
Rate of interest 14.00%

[Link]. Name of the unit Previous Rating Present Remarks

Rating
1. M/s. Gemini Digital Press New Unit CR-3 -

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 M/s Gemini Digital Press, Anantapuramu

Comments if any: -Nil-

12. CIBIL Data Base Verification:

CIBIL’s commercial report of borrower unit/ firm, associated unit/ firm on 10.08.2015
and the details are as under.
CIBIL’s commercial report of borrower unit/firm, associated unit/firm on 10.08.2015
and the details are as under.

i) Commercial Report of Borrower unit/ firm details:

[Link]. Name of the unit Remarks

1 M/s. Gemini Digital Press New Unit

ii) Commercial Report of Associated Unit / firm details:commercial report of

associated unit firm.

[Link]. Name of the unit Remarks

1 M/s Gemini Color Lab & Studio, All the associated units are
Anantapuramu financed by the Corporation,
M/s. Gemini Color Lab and Studio, CIBIL commercial report of
Anantapuramu associated unit/firms are not
2 M/s Gemini Digital Lab, Anantapuramu generated.
3 M/s Gemini Digi Press, Anantapuramu All the associated units are
financed by the corporation,
CIBIL commercial report of
associated unit/firms are not
generated.

iii) Consumer Details: Consumer report was taken on 04.07.2015 and the details are
as under:

CIBIL score-1 indicates insufficient information/ history to score.

13. Points for consideration:

The firm vide their letter dated 31.07.2015 is requesting to consider the proposal with
collateral security @ 50% of term loan as against 75% as per PSC decision.
The firm vide their letter dated 31.07.2015 is requesting to consider the proposal with
collateral security @ 50% of term loan as against 75% as per PSC decision.

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 M/s Gemini Digital Press, Anantapuramu

14. Conclusions and Recommendations:

 The proposal is from existing customers of the Corporation for setting up of

digital printing unit in leasehold premises at [Link].13-3-663, Khaja Nagar,
Anantapuramu Town under Good Entrepreneurs (Associated Concern) Category
and General Loan Scheme with cost of the project estimated at Rs.318.00 lakhs.
 The proposal is form existing customers of the corporation for setting up of
digital printing unit in leasehold premises at [Link].13-3-665, Khaja Nagar,
Anantapuramu Town under Good Entrepreneurs (Associated Concern) category
and General Loan Scheme with cost of the project estimated at Rs.318.00 lakhs.

 This is a partnership firm consisting of 5 partners belonging one family. Sri K.

Mahammed and Sri K. Afzal Thousif are the Managing Partners of the firm.

 The Managing Partner Sri [Link] is having two decades of experience in

running photo studio/color labs in Anantapuramu.

 The promoters are associated with the Corporation since 1989 and availed loans
aggregating to Rs.314.37 lakhs and the outstanding as on 31.07.2015 is Rs.33.66
lakhs for 3 associated units viz., M/s Gemni Colur Lab & Studio, M/s Gemini
Digital Lab with TR-2 repayment track record and M/s Gemini Digi Press with
TR-3 repayment track record.

 The promoters are associated with the corporation since 1989 and availed loans
aggregating to Rs.314.37 lakhs and the outstanding as on 31.07.2015 is Rs.33.66
lakhs for 3 associated units viz., M/s. Gemini Colur Lab & Studio, M/s. Gemini
Digital Lab with TR-2 repayment track record and M/s. Gemini Digi Press with
TR-3 repayment track record.

 The promoters are financially well placed and the aggregate solvency of the
partners is Rs. 4486.90 lakhs.

 There are number of photo studios in Anantapuramu and neighbouring districts

who are prospective customers expected to use the services of the instant firm
which is proposing to acquire the latest machine.

 The asset coverage including collateral security is 197.38%

 The techno-economic viability of the project is established.

The detailed appraisal note is annexed herewith for perusal.

In view of the above, the Head Office Sanction Committee is requested to sanction a term loan
of Rs.210.00 lakhs to M/s. Gemini Digital Press for setting up of digital printing unit at Khaja
Nagar, Anantapuramu Town & District under Good Entrepreneurs (Associated Concern)
Category and General Loan Scheme. In view of the above, the Head Office Sanction Committee
is requested to sanction a term loan of Rs.210.00 lakhs to M/s. Gemini Digital Press for setting
up of digital printing unit at Khaja Nagar, Anantapuramu Town and District under Good
Entrepreneurs (Associated Concern) Category and General Loan Scheme.

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 M/s Gemini Digital Press, Anantapuramu

If agreed to, the following resolution may be passed with or without modification:

Resolved to sanction a term loan of Rs.210.00 lakhs to M/s. Gemini Digital Press for setting up
a digital printing unit at [Link].13-3-663, Khaja Nagar, Anantapuramu Town & District under
Good Entrepreneurs (Associated Concern) Category and General Loan Scheme, as proposed in
the memorandum, subject to the special terms and conditions annexed, in addition to the general
terms and conditions as applicable to Partnership Firms.
Resolved to sanction a term loan of Rs.210.00 lakhs to M/s. Gemini Digital press for setting up
a digital printing unit at [Link].13-3-663, Khaja Nagar, Anantapuramu Town & District under
Good Entrepreneurs (Associate Concern) category and general loan scheme as proposed in the
memorandum, subject to the special terms and conditions annexed, in addition to the general
terms and conditions as applicable to partnership firms.

GENERAL MANAGER (PROJ-AD)

DETAILED APPRAISAL NOTE ON THE PROPOSAL FOR A TERM LOAN OF

Rs.210.00 LAKHS FROM M/S. GEMINI DIGITAL PRESS FOR SETTING UP OF A
MULTI COLOUR DIGITAL PRINTING UNIT AT ANANTHAPURAMU TOWN AND
DISTRICT UNDER GOOD ENTREPRENEURS (ASSOCIATED CONCERN)
CATEGORY AND GENERAL LOAN SCHEME– REG
==================================================================
Name of the unit : M/s. Gemini Digital Press

Location & Address for : [Link] 13-3-663, Khaja Nagar,

correspondence Ananthapuramu – 515 001.

Brief History:
The proposal is for setting up of digital printing unit in leasehold premises at Anantapuramu
Town.
The proposal is for setting up of digital printing unit in leasehold premises at Anantapuramu
Town.

This is a partnership firm consisting of 5 partners belonging to one family. Sri K. Mohammad
and Sri K. Afzal Thousif are the Managing Partners of the firm.
This is a partnership firm consisting of 5 partners belonging to one family. Sri [Link]
and Sri [Link] Thousif are the Managing Partners of the firm.

Out of the 5 partners, 3 partners in the proposed unit are having experience in running photo
studio/color labs in Anantapuramu by virtue of their association with M/s Gemini Colour Lab &
Studio, M/s Gemini Digital Lab and M/s Gemini Digi Press, which are assisted by the
Corporation.
Out of the 5 partners, 3 partners in the proposed unit are having experience in running photo
studio/color labs in Anantapuramu by virtue of their association with M/s. Gemini Colour Lab
and studio, M/s. Gemini Digital Lab, which are assisted by the corporation.

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 M/s Gemini Digital Press, Anantapuramu

The promoters are associated with the Corporation since 1989 and availed 15 loans aggregating
to Rs.314.37 lakhs and closed 12 loan accounts. The outstanding in the existing 3 loan accounts
as on 31.07.2015 is Rs.33.66 lakhs for 3 associated units viz., M/s Gemeni Colour Lab &
Studio, M/s Gemini Digital Lab with TR-2 repayment track record and M/s Gemini Digital
Press with TR-3 repayment track record.

The promoters are associated with the corporation since 1989 and availed 15 loans aggregating
to Rs. 314.37 lakhs and closed 12 loan accounts.

The cost of the project is Rs. 318.00 lakhs including working capital of Rs. 35.00 lakhs.
The cost of the project is Rs.318.00 lakhs including working capital of Rs.35.00 lakhs.

PSC DECISION DATED 24.03.2015:

The decision of the Committee vis-à-vis the compliance is given below:

The decision of the committee vis-à-vis the compliance is given below:
Decision Compliance
a. To process the proposal as per The proposal is processed as per norms applicable
norms applicable under Good under Good Entrepreneurs (Associated concern)
Entrepreneurs (Associated category and General Loan Scheme.
concern) category and General loan The proposal is processed as per norms applicable
scheme. under General Entrepreneurs Associated concern
category and General Loan Scheme.

b. To obtain collateral security @ The promoters shall offer collateral security worth
75% of loan by way of urban Rs. 157.50 lakhs @ 75% of the loan by way of urban
immovable properties including immovable properties including surplus value in the
surplus value in the existing existing collateral security.
collateral securities offered to the
existing loans of associated units to The promoters proposed to offer commercial land
the satisfaction of the corporation. and building (as per approval residential building)
at [Link]/1, [Link].13-3-678, Kaja Nagar,
Anantapur Town, Ananthaur Dist and valued at
Rs.120.06 lakhs as per the Branch Valuation Report
dated 29.07.2015. For the shortfall in collateral
security requirement, the promoters shall offer other
urban immovable properties to the satisfaction of
the Corporation.

c. To obtain registered lease deed for Suitable condition is stipulated in terms of sanction
the proposed unit building for loan in this regard.
period plus 2 years in the Suitable condition is stipulated in terms of sanction
prescribed format of the in this regard.
Corporation.

d. The Branch Manager shall study The branch manager submitted report on market
and submit report on the market potential dated 20.04.2015 and reported that the
potential for the proposed activity promoter reported that having 25 years experience
during appraisal. in The Branch Manager submitted report on market

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 M/s Gemini Digital Press, Anantapuramu

potential dated 20.04.2015 and reported that the

promoters are having 25 years experience in photo
printing and color lab, also the promoters are
already having customers portfolio like small
photographers in villages, mandals in and around
Rayalaseema Districts. This is the first of its kind in
Rayalaseema Districts; hence enough work orders
are anticipated.

e. The rate of interest shall be based The unit is rated at CR-3 Good Safety. As per the
on credit rating of the proposal. prevailing guidelines, the applicable rate of interest
The request of the firm for interest is BPLR plus 0.50% i.e.14.00 % p.a. (net) is
concession may be placed before applied.
The rate of interest shall be based
on credit rating of the proposal.
The request of the firm for interest
concession many be placed before
the competent authority. he
Tcompetent authority.

CONSTITUTION:

This is a Partnership firm registered with Registrar of Firms, Anantapuramu vide Registration
No.222 of 2014 dated 10.10.2014. Permanent Account Number of the firm is AANFG6060D.
The following are the partners, their profit/loss sharing ratio and solvency:
This is partnership firm registered with registrar of firms, Anantapuramu vide Registration
No.222 of 2014 dated 10.10.2014. Permanent Account Number of the firm is AANFG6060D.

S. No. Name of the partner % Profit / Loss Solvency

sharing (Rs in lakhs)
1 Smt. Kagitala Sabirabi 15% 277.86
2 Sri Kagitala Mahammad, Mg Partner 30% 1691.60
3 Smt. Kagitala Shabana 15% 614.80
4 Smt. Kagitala Shakeera 15% 1428.90
5 Sri Kagitala Afzal Thousif, Mg Partner 25% 473.74
Total 100% 4486.90

All the partners belong to one family. Sl. No.1 is mother of [Link].2 and [Link]. 3 is wife of
[Link].2 and [Link]. 4 is mother of [Link].5.
BACKGROUND OF THE PARTNERS:
S. Name of the Director Qualification Experience
No
1. Smt. Kagitala Sabirabi -  Partner in M/[Link] Color lab &
W/o Late [Link] Studio, Anantapuramu engaged in
[Link].13-3-680, printing and processing of color
Khaja Nagar, photographs.
Anantapuramu – 515 001
 Partner in M/[Link] Digital Lab,

15
 M/s Gemini Digital Press, Anantapuramu

DOB: 25.06.1949 Anantapuramu engaged in photo

Age: 66 Years processing and digital printing.
PAN - AHRPK0682N
2. Sri [Link] SSC  Managing partner of instant unit.
S/o Late [Link]
[Link].13-3-680,  Partner in M/[Link] Color lab &
Khaja Nagar, Studio, Anantapuramu engaged in
Anantapuramu- 515 001 printing and processing of color
photographs.
DOB: 20.07.1970
Age: 45 Years  Partner in M/[Link] Digital Lab,
PAN - AHHPM 2357 E Anantapuramu engaged in photo
Aadhar Card No.5615 1718 processing and digital printing.
8702
3. Smt. Kagitala Shabana [Link].  Partner in M/[Link] Color lab
W/o Sri [Link] & Studio, Anantapuramu engaged
[Link].13-3-680, in photo processing and digital
Khaja Nagar, printing.
Anantapuramu – 515 001
 Partner in M/[Link] Digi Press,
DOB: 20.10.1976 Anantapuramu engaged in offset
Age: 38 Years printing, manufacture of books
PAN - AHRPK 0683 P and book binding.
Aadhar Card No.2814 5599
5027  Partner in M/[Link] Digital Lab
Anantapuramu engaged in printing
and processing of color
photographs.

4. Smt. Kagitala Shakeera -  Partner in M/[Link] Digital lab

W/o Late [Link] Anantapuramu engaged in photo
[Link].13-3-680, processing and digital printing.
Khaja Nagar,
Anantapuramu – 515 001

DOB: 15.06.1973
Age: 42 Years
PAN - AHRPK 0685 M
Aadhar No. 9705 1491 9289

5. Sri [Link] Thousif [Link]  Partner in M/[Link] Digi Press,

S/o Late [Link] Anantapuramu engaged in offset
[Link].13-3-680, printing, manufacture of books
Khaja Nagar, and book binding.
Anantapuramu – 515 001

DOB: 05.02.1992
Age: 23 Years
PAN - AMSPT 4074 B
Aadhar No. 8771 8884 1933

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 M/s Gemini Digital Press, Anantapuramu

Solvency of the partners (Notarised):

1. Smt. K. Sabirabi ([Link] lakhs)

S. No. Property Location Value

A) Immovable Properties
i) Residential building in a land area of [Link]. 13-3-680, Khaja Nagar, 250.00
3.25 cents Anantapuramu
B) Movable properties:
i) Jewellery 8.40
C) Liquid Cash:
i) With friends & relatives 7.00
ii) On hand 15.00
iii) In Bank 0.50
Sub-total 22.50
Total 280.90
D) Less: Outstanding Liabilities
Secured – M/s Gemini Digital Lab 1.18
M/s Gemini Colour Lab 1.86 3.04
Total Net Worth 277.86

2. Sri K. Mohammad (Rs. in lakhs)

S. No. Property Location Value

A) Immovable Properties
i) Residential building in a land area of [Link]. 13-3-678, Khaja Nagar, 300.00
4.50 cents Anantapuramu
ii) Residential building in a land area of [Link]. 13-3-663, Khaja Nagar, 250.00
3.00 cents Anantapuramu
iii) Vacant plot admeasuring Ac. 1.44 cents [Link]. 286, Kottalapalli Cross, 800.00
Gooty Road, Anantapuramu
iv) Vacant plot admeasuring Ac. 2.10 cents Plot No. 4-7A, Rajiv Colony, 300.00
New Iscon Temple,
Anantapuramu
Sub Total 1650.00
B) Movable properties:
NIL
Sub Total
C) Liquid Cash:
i) With friends & relatives 10.00
ii) On hand 30.00
iii) In Bank 5.00
Sub-total 45.00
Total 1695.00
D) Less: Outstanding Liabilities
Secured – M/s Gemini Digital Lab 1.17
M/s Gemini Colour Lab 2.23 3.40
Total Net Worth 1691.60

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 M/s Gemini Digital Press, Anantapuramu

3. Smt. K. Shabana (Rs in lakhs)

. No. Property Location Value
A) Immovable Properties
i) Agricultural land admeasuring Ac. [Link]. 241/1, Kodimi, 600.00
12.11 cents Anantapuramu
B) Movable properties:
i) Jewellery 11.20
C) Liquid Cash:
i) With friends & relatives 7.00
ii) On hand 15.00
iii) In Bank 0.50
Sub-total 22.50
Total 633.70
D) Less: Outstanding Liabilities
Secured – M/s Gemini Digital Lab 1.17
M/s Gemini Digi Press 17.73 18.90
Total Net Worth 614.80

4. Smt. K. Shakeera
(Rs. in lakhs)
S. No. Property Location Value
A) Immovable Properties
i) Vacant plot admeasuring Ac. 1.44 cents [Link]. 286/2, Kottalapalli 800.00
Cross, Gooty Road,
Anantapuramu
ii) Agricultural dry land admeasuring [Link]. 241/1, Anantapuramu 600.00
Ac.12.11 cents Rural, Kodimi (V),
Anantapuramu Dist.
Sub Total 1400.00
B) Movable properties:
i) Jewellery 9.80
Sub Total 9.80
C) Liquid Cash:
i) With friends & relatives 7.00
ii) On hand 15.00
iii) In Bank 0.50
Sub-total 22.50
Total 1432.30
D) Less: Outstanding Liabilities
Secured – M/s Gemini Digital Lab 1.17
M/s Gemini Colour Lab 2.23 3.40
Total Net Worth 1428.90

5. Sri K. Afzal Thousif

(Rs. in lakhs)
S. No. Property Location Value
A) Immovable Properties

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 M/s Gemini Digital Press, Anantapuramu

i) Residential building in a land area of [Link]. 13-3-679, Khaja Nagar, 450.00

4.50 cents Anantapuramu
B) Movable properties:
i) Others (two wheeler) 0.75
C) Liquid Cash:
i) With friends & relatives 10.00
ii) On hand 20.00
iii) In Bank 7.50
Sub-total 37.50
Total 488.25
D) Less: Outstanding Liabilities
Secured – M/s Gemini Digi Press 14.51
Total Net Worth 473.74

The aggregate solvency of all the partners is Rs.4486.90 lakhs.

INCOME TAX ASSESSMENT DETAILS OF THE PARTNERS:

(Rs. in lakhs)
[Link]. Name of the Partner Assessment year Income Tax
1 Smt. K. Sabirabi 2013-14 5.05 0.32
2014-15 6.71 0.66

2 Sri K. Mahammad 2012-13 3.72 0.28

2013-14 6.46 0.74
2014-15 9.60 1.34

3 Smt. K. Shabana 2013-14 4.91 0.36

2014-15 6.01 0.55

4 Smt.K. Shakeera 2013-14 5.08 0.46

2014-15 5.51 0.50

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 M/s Gemini Digital Press, Anantapuramu

Working results of the associated units for the last three years:
i) Units financed by the Corporation

a) M/[Link] Color Lab & Studio, Anantapuramu, engaged in printing and

processing of color photographs. This is an existing profit making partnership firm
assisted by the Corporation which was established in the year 1989.
In the printing and processing of color photographs. This is an existing profit making
partnership firm assisted by the corporation which was established in the year 1989.

The present partners are Sri. K. Mahammad, Smt. K. Sabirabi and Smt. [Link]. The
repayment track record is classified as TR-2 (Very Good – 26 days). Working results of
unit for the last three years are as under:
The present partners are [Link], Smt. [Link] and Smt. [Link]. the
repayment track record is classified as TR-2
([Link] lakhs)
Year Income Net Profit * Depreciation Networth
2011-12 21.12 0.54 8.13 48.72
2012-13 15.50 0.52 9.58 55.15
2013-14 12.65 0.44 10.01 62.42
*After payment of interest and remuneration to partners.
The decrease in revenue generation is due to change in technology and customer
preferring non-tearable photographs.

Details of loans availed by the firm: ([Link] lakhs)

A/c. Code Amount Sanction Amt Amount O/s. as Arrears
No. Sanctioned Date Disb. on 31.07.2015
A/c-I 5.96 03.07.1989 5.14 A/c. Closed -
52839311 29.60 29.03.1993 28.31 A/c. Closed -
52839320 4.85 31.03.1999 4.46 A/c. Closed -
52839338 5.00 05.05.2000 5.00 A/c Closed -
52839346 22.55 13.03.2001 18.71 A/c. Closed -
52839354 9.13 22.11.2001 8.91 A/c. Closed -
52839362 10.00 21.12.2001 6.66 A/c. Closed -
52839371 29.60 30.07.2002 29.60 A/c. Closed -
52839389 15.00 31.03.2004 13.58 A/c. Closed -
52839397 35.00 19.11.2004 34.77 A/c. Closed -
52839222 10.00 24.11.2004 10.00 A/c Closed -
52868601 42.70 07.09.2010 42.11 2.43 -
Total 207.25 2.43

b) M/[Link] Digital Lab, Anantapuramu, engaged in photo processing,

servicing and digital printing. This is a partnership firm established in the year 2002 with
5 partners viz., Sri [Link] Tousif, Smt [Link], Smt [Link], Smt [Link]
and Smt [Link]. The repayment track record is classified as TR-2 (Very Good – 19
days).

Working Results of the unit for the last two years:

([Link] lakhs)

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 M/s Gemini Digital Press, Anantapuramu

Year Income Net Profit Depreciation Networth

2011-12 31.35 0.18 7.18 15.51
2012-13 17.92 0.11 6.53 16.35
2013-14 15.64 0.11 5.83 17.59
*After payment of interest and remuneration to partners.
Details of term loans availed by the firm: (Rs in lakhs)

A/c. Code Amount Sanction Amt Amount O/s. as Arrears

No. Sanctioned Date Disb. on 31.07.2015
52853217 53.50 14.07.2005 51.88 A/c Closed --
52872701 16.50 31.03.2011 16.50 3.88 --

c) Gemini Digi Press, Anantapuramu, engaged in offset printing, manufacture

books and book binding. This is a partnership firm established in the year 2013 with
Smt. K. Shabana and Sri K. Afzal Thousif as partners and availed financial assistance
from the Corporation. The repayment track record is TR-3 (Good).

Working results of the unit as under:

(Rs in lakhs)
Year Turnover Net Profit Depreciation Networth
2013-14 133.82 3.42 7.73 13.42

Details of term loan availed by the Firm:

(Rs in lakhs)
A/c. Code Amount Sanction Amt Amount O/s. as Arrears
No. Sanctioned Date Disb. on 31.07.2015
52882501 42.00 22.03.2013 38.74 27.35 2.96*
*The partners have given cheque for clearance of arrears (principal Rs.2.28 lakhs and
interest Rs.0.68 lakhs).

ELIGIBILITY CRITERIA UNDER GOOD ENTREPRNEURS (ASSOCIATED

CONCERN) CATEGORY:

Sri [Link], Smt [Link] and Smt [Link] are the partners of M/[Link] Colour
Lab & Studio (100% share) which qualifies as Good Entrepreneur. These 3 are also partners in
the proposed firm with 60% share in profit/loss ratio, as such the instant unit M/s Gemini
Digital Press can be classified as GE Associated Unit Category and eligible for concessions like
loan eligibility upto 85% and reduction in collateral security.
Sri [Link], smt. [Link] and shakeera are the partners of M/s. Gemini colour lab and
studio hundred percentage share which qualifies as good entrepreneur. These three units and
eligible for concessions like loan eligibility upto 85% and reduction in collateral security.

(M/s. Gemini Color Lab & Studio, Ananthapuramu)

[Link]. Eligibility Criteria Particulars/Details Compliance
1. Minimum Period of 3 years Complied. The unit has been
operation from the in operation since 1989.
date of commercial
Production.
2. Profitability 2 years Net profit & one Complied. The unit has been

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 M/s Gemini Digital Press, Anantapuramu

year cash profit for the earning net profit for the last
Last 3 years. 3 years.
3. Repayment of Loans Minimum 40% of Complied:
aggregate of all loans The firm availed term loans
availed from the aggregating to Rs.207.25
Corporation. lakhs and repaid is Rs.204.82
lakhs. Hence the repayment
of loans works out to 98.83%
4. Accumulated losses There shall not be There are no accumulated
accumulated cash losses cash losses as such. Hence
complied

5. Track Record The repayment record for Complied.

all closed / live accounts The firm paying interest and
for the last 3 years shall be installments regularly.
examined.

The simple average of The simple average of

default for all the loans of default for all the loans of the
the unit for principal and unit for principal and interest
interest shall not exceed is 26 days and repayment
30 days for last 3 years. track record is classified as
Shall be within TR-2. TR-2 (Very Good).

Pre-payments if any, shall

be treated as payments
made on due date.
The loan accounts of the unit
The loan accounts of the are regular at the end of each
unit shall be regular at the FY for the last 3 years.
end of each FY for the last
3 years (Excluding
principal fallen due and
interest debited during
March) and shall not be in
arrears as on date of
application.
The loan accounts of the
unit shall be regular at the
end of each FY for the last
three years excluding
principal fallen due and
interest as on date
application.

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 M/s Gemini Digital Press, Anantapuramu

6. Minimum assistance Rs. 207.25 lakhs Complied. The firm availed

earlier availed – term loans aggregating to
Rs.10.00 lakhs Rs.207.25 lakhs and repaid is
Rs.204.82 lakhs.
The firm availed term loans
aggregating to Rs.207.25
lakhs and repaid is Rs.204.82
lakhs.

ii) Units not financed by the Corporation : Nil

Details of loans availed from other institutions : Nil

Management:

Both the Managing Partners are having vast experience in photo color lab industry and can
manage the affairs of the firm with the help of family members and skilled workers. Both the
Managing partners are having vast experience in photo color lab industry and can manage the
affairs of the firm with the help of family members and skilled workers.

23
 M/s Gemini Digital Press, Anantapuramu

Due Diligence Report:

The Anantapuramu Branch conducted Pre-sanction cum Due Diligence inspection on
14.03.2015. The following are the observations:

i. Integrity The partners are having good reputation about

integrity in the market. The interest are having good
reputation about integrity in the market.

ii. Track record with the The partners belong to same family and associated with
corporation the Corporation since 1989 and repaying interest and
instalments regularly and the repayment track record is
TR-2, Very Good for 2 units and TR-3 Good for one
unit.
The partners belong to same family and associated with
the corporation since 1989 and repaying interest and
installments regularly.

iii. Management The Management profile indicates exceptionally high

competence/ Expertise level of competence and commitment evidenced by
their records.
The management profile indicates exceptionally high
level of competence and commitment evidenced by
their records.

iv. Experience in industry The Managing partner K. Mahammad, Smt.

[Link] are having 25 years experience in printing
and processing of photographs.

v. Payment record relating The promoters by and large have a good record in
to other lenders and meeting their financial commitments.
creditors:
vi. Length of relationship The promoters belong to same family and associated
with the Corporation with the corporation since 1989. The promoters by
and large have a good record in meeting their
financial commitments.

vii Credit Worthiness & The promoters are having ability to invest their
Solvency margins and can raise unsecured loans, if required
from their friends & relatives.

The aggregate solvency of the promoters is

Rs.4486.90 lakhs.

Technical aspects:

Scope of the project:

24
 M/s Gemini Digital Press, Anantapuramu

The project envisages setting up of a digital offset printing unit in leasehold premises at [Link].
13-3-663, Khaja Nagar, Anantapuramu.

The installed capacity of the digital printing press unit is 24000 colour photo albums per annum
and in terms of revenue of Rs.672.00 lakhs per annum. Each album on an average will have 30
sheets of A3 size, printed both sides on non-tearable sheets and laminated.

The operating capacity is assumed at 40%, 50%, and 60% during 1st, 2nd and 3rd year onwards
respectively, on 300 days p.a.

The cost of the project is Rs.318.00 lakhs including working capital of Rs.35.00 lakhs.

Location:

The unit is located at [Link].13-3-663, Khaja Nagar, Anantapuramu Town in leasehold premises.
The location is in the heart of the city and busy business centre. Number of color labs and photo
studios in the city are located in the area, who are the prospective customers for the unit. The
location has the required infrastructural facilities such as power, water, transportation facilities
and availability of skilled manpower.

Raw Materials:

The main raw material required is paper/sheets of different varieties viz. Light gloss/matt, non
tearable (light, heavy, pearl finish) silk touch, metallic etc. The other raw materials required
are inks of various colours, lamination film, cover material and packing material. The paper,
lamination film, cover material, packing material, etc. can be procured from dealers in
Hyderabad. The inks are supplied by the machinery supplier viz. M/s Hewlett Packard India
Sales [Link]., Bengaluru.

The total cost of material is Rs.105.00 lakhs during 1st year of operation at 40% capacity
utilization.

The promoters are regularly purchasing photographic paper and other materials from dealers in
Hyderabad and they can procure the required raw materials from the same suppliers for this unit
also.

Technology:

In digital Printing Press the inkjet cartridge is the center of the technology. The printer driver
located on the host computer converts the image to be printed into dots corresponding to the
resolution of the inkjet printer. A signal is sent from the computer to ink station cartridge in the
digital printer. Each cartridge has its own integrated circuit. The IC receives the signal from the
computer and routes it to one or more of many tiny ink nozzles. Heated vapor is used to expel
tiny drops of ink from the correct nozzles. Tens of thousands of ink drops are propelled toward
the substrate and received by the substrate each second. The quality of an inkjet image is
depending upon the correct match between ink and substrate (it is important to use paper and
ink manufactured by the same company as the printer itself) Ink refills and knock-off papers
lead to sub-par results. The shinier the surface, the better the image will look. It is important to

25
 M/s Gemini Digital Press, Anantapuramu

choose the right substrate in the printer driver’s dialog box when outputting to an inkjet printer
the amount of ink is altered based on the type of paper

Manufacturing Process:

Photos are shot on various occasions like marriages, wedding anniversaries, birthdays, get-
togethers, engagements, etc. and the soft copy with the markings of selected photographs is
given to the unit by the photo studios, professional photographers, freelancers, etc.

The photographs are grouped as per the occasions in serial order and sheet planning is done.
Then the photographs are arranged into sheets on the computer using softwares like photoshop,
coral draw, page maker, etc., and special effects are also made. The made up sheets are then
studied for correction of lighting, shadows and highlighting of bride & groom or important
persons. Then, the corrections are carried out.

The softcopy is then transferred to the digital printing machine where required paper is loaded
into the trays and the colours are selected.

The printed sheets are sent to embossing machine if embossing required and sheets are cut to
size on cutting machines and sent for lamination in lamination machine.

After lamination, the sheets are sent for binding section where binding takes place in binding
machines. The completed albums are packed as per the requirements of the customers.

Utilities:

Item Requirement
Power The connected load is 65 HP and the required contracted load is 45HP. The firm
is proposing to approach APSPDCL for the required contracted load. As the
load falls under LT category – II B, there may not be any problem in getting the
same.
In addition to the above, UPS of 30 KVA is provided in the scheme as a standby
source during power interruptions.
Water The water is required for domestic purpose and can be met from municipal
sources.
Man Power The total man power required is estimated at 33 Nos. consisting of 10 skilled, 10
Semi skilled and 5 unskilled workers and 1 Production Manager, Accountant,
Marketing & Administration – 5 Nos. and 2 Nos. for watch and ward. The firm
proposes to recruit the manpower required locally.
Effluents This line of activity is not listed in 60 polluting industries as declared by PCB
and no harmful effluents are generated.

Implementation Schedule:

Item Start Finish

Machinery & equipment August, 2015 September, 2015
Erection of equipment October, 2015
Training & trial runs November, 2015
Opening of the lab to the public December,2015

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 M/s Gemini Digital Press, Anantapuramu

Stabilisation of operations May, 2016

Date of Commencement of Commercial 01.06.2016
Operations

Performance of similar units:

The corporation financed only one unit viz. M/s Redin Digi Press, Warangal and the unit is
implemented in the month of September, 2014 and is working satisfactorily. The account is in
Standard category.

COST OF THE SCHEME:

Particulars Amount (Rs in lakhs)

Land & buildings Leasehold
Machinery & equipment 256.00
Erection expenses 1.00
Deposits 1.00
Preliminary & pre-operative expenses 25.00
Working capital margin 35.00
Total 318.00

NOTES ON COST OF THE SCHEME:

LAND & BUILDINGS:

The unit is proposed to be located in leasehold premises with land area of 146.66 square yards
with building and a total plinth area of 132.64 [Link] (G+1st floor) bearing [Link].13-3-663,
covered by [Link].1936/1, Khaja Nagar, Anantapuramu Town & District belonging to Sri K.
Mahammad, Managing partner of the firm. The firm is proposing to enter into a lease agreement
with the owner for a period of 10 years.

Ananthapuramu Branch vide letter dated 19.08.2015 reported that the building is adequate and
suitable for the proposed line of activity.

Building plan is approved by the Commissioner (FAC), Anantapuramu Municipal Corporation

vide Permit No. 48/2014/G1 dated 26.09.2014.

A condition is stipulated in the terms of sanction that the firm shall submit registered lease deed
for a period of 10 years in the prescribed format of the Corporation.

Also a condition is stipulated in terms of sanction that the branch engineer shall submit building
suitability certificate before first disbursement.

PLANT & MACHINERY:

The firm is proposing to undertake digital printing of photo albums. The machinery proposed
consists of

- HP Indigo 3550 Four Colour Digital Press from M/s Redingdon India Ltd., Chennai.

27
 M/s Gemini Digital Press, Anantapuramu

- UV Emboss Machine (LED UV) with print size 600mmx370mm from M/s 3S Graphic
Solutions, New Delhi.
- Split type 1.5 Ton “O” General make Air conditioning units with 4 KVA voltage
stabilizer – 6 Nos., from M/s SM Marketing, Ananthapuramu.
- 30 KVA Emerson Liebert UPS System from M/s EG Solutions, Ananthapuramu.
- ELGI make Air compressor Model: LG02100 from M/s Shalimar Foundry,
Secunderabad.
- Thermal lamination, Manual feed, PID temperature etc., and Wrapper machine from M/s
Macro Print Engineers (India) Private Limited, Coimbatore.
- CCTV System from EG Solutions, Ananthapuramu.
- HP Z230 MT Workstations from M/s Optonet Technologies Pvt Ltd., Secunderabad.
The proposed machinery is adequate for operating the digital printing press.

The total cost of proposed machinery is Rs.256.00 lakhs.

An amount of Rs.1.00 lakh is provided in the scheme towards erection expenses.

No contingency provision is made as the promoters have paid advance amount of Rs. 15.00
lakhs vide P.I/00401/14-15 dated 21.07.2015 to the main machinery supplier which is costing
Rs.209.10 lakhs and proposes to meet any escalation in cost from own sources.

Credentials of machinery supplier:

Digital press

The digital press is of Hewlett Packard make to be supplied by M/s Redingdon India Ltd., who
is authorized distributor of HP in India. M/s Redington India Ltd supplied similar machinery
with model to M/s Zoom Digital Press, Visakhapatnam (Model No.5500), M/s Phozo Digital
Press, Visakhapatnam (Model No.3550), M/s Aakruthi Digipress [Link], Hyderabad (Model
No.5500), M/s Sri Sivarama Digital Press, Rajahmundry (Model Nos.5500 &7600), M/s Zoom
Digital Press, Vijayawada (Model No.5600), M/s Aakruthi Printex Pvt Ltd., Vijayawada
(Model No.5600) M/s Redin Digital Press, Warangal amongst others.

As per the enquiries made all the above units are working satisfactorily and informed that the
performance is satisfactory.

Further, the Corporation assisted unit M/s Redin Digi Press, Warangal has also installed Model
No. 5600 and reported that the performance of the machinery is satisfactory.

Lamination machine

The lamination machine is proposed from M/s Macro Print Engineers (India) Pvt Ltd., an ISO
9001-2000 company, registered with Tamil Nadu Industrial Investment Corporation Ltd.

UV Emboss Machine

The UV Embossing machine (LED UV) is proposed M/s 3S Graphic Solutions, New Delhi is
the partner and distributor of COSMO films & GARWARE polyester for their complete range
of thermal laminating films and embossing machines.

28
 M/s Gemini Digital Press, Anantapuramu

Other machinery/equipment

Further, Epson Printer is of Fuji make, Air conditioners are of “O” General make, UPS of
Emerson Liebert make, DG set is of Kirloskar make. All the above makes are standard and
reputed in the market. The firm is proposing to purchase the above from the principals / their
authorized dealers.

A condition is stipulated in the terms of sanction that the firm shall submit copy of authorized
dealership certificate from the principals wherever the invoices / bills are raised by the dealers.

The list of machinery proposed is annexed to the Memorandum vide Annexure – 2

Cost Comparison:

It is informed by the promoters that for the Digital press, Fuji Epson printer etc., there are no
suppliers with similar specifications and expressed inability to submit comparative quotations.
Both are standard suppliers.

The prices are compared with those of M/s Redin Digi Press, Warangal, financed by the
Corporation and found to be reasonable.

DEPOSITS:

Particulars Amount (Rs. in lakhs)

Consumption Deposits to APSPDCL 0.50
Miscellaneous including rental deposit 0.50
Total 1.00

PRELIMINARY & PREOPERATIVE EXPENSES: ( Rs. in lakhs )

i) Considered for Loan Eligibility Amount

Interest during implementation 15.00
Insurance & trial run expenses etc 2.00
Sub-total 17.00
ii) Not Eligible for Loan
Service charges & Upfront fee to APSFC 2.40
Travelling & conveyance 3.00
Other expenses 2.60
Sub-total 8.00
Total 25.00

ESTIMATION OF WORKING CAPITAL REQUIREMENT DURING FIRST YEAR OF

OPERATION @ 40%:
(Rs. in lakhs)
Description Period Cost
Raw material & consumables 2 month 18.00
Wages & OE 1 month 2.00
Work-in-progress & finished goods 3 days 1.50
Sundry Debtors ½ month 13.50
Total 35.00

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 M/s Gemini Digital Press, Anantapuramu

The working capital requirement will be met by the partners of the firm from their own sources.

MEANS OF FINANCE:

Source Amount (Rs. in lakhs)

Partners’ capital 108.00
APSFC- Term Loan 210.00
Total 318.00

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 M/s Gemini Digital Press, Anantapuramu

Notes on Means of Finance:

a) The firm shall raise capital of Rs.108.00 lakhs and invest initially Rs.73.00 lakhs in the
fixed assets as proposed in the scheme and show a satisfactory proof thereof, before
disbursement of any part of the Corporation’s term loan.
b) After compliance of the above, the term loan shall be released in proportion to the
capital raised and invested in the assets as proposed in the scheme.

c) The total capital of Rs.108.00 lakhs brought in the scheme shall not be withdrawn and
the net effective capital shall be maintained at that level during the tenure of the
Corporation's term loan.

d) The Corporation’s term loan is reckoned at 76.66% on all the eligible assets as
applicable to GES (Associated Concern) Category.

Promoters’ Contribution:
The Promoters’ Contribution of Rs.108.00 lakhs in the proposed project cost of
Rs.318.00 lakhs works out to 33.96% and the same is satisfactory.
Debt Equity Ratio:
(Rs. in lakhs)
Debt Amount Equity Amount
APSFC term loan 210.00 Partners capital 108.00

The Debt-Equity ratio works out to 1.94:1 and the same is satisfactory.

Security & Loan Eligibility:

([Link] lakhs)
Particulars Cost Loan eligibility @ 76.66%
Machinery & equipment 256.00 196.25
Erection expenses 1.00 0.75
Preliminary & pre-op. expenses 25.00 0n 17.00 13.00
Total 282.00 210.00

The primary assets excluding preliminary & preoperative expenses works out to Rs.257.00
lakhs and the same covers 122.38% of the proposed term loan of Rs.210.00 lakhs.

The asset coverage including the value of collateral security of Rs.157.50 lakhs works out to
Rs.414.50 lakhs and the same covers 197.38% of the proposed term loan.

The loan is secured as below:

Primary Security:

The Corporation’s term loan shall be secured by way of equitable mortgage of leasehold interest
in land admeasuring 146.66 square yards and building admeasuring 2000 sft bearing [Link].13-3-
663, Khaja Nagar, Anantapuramu Town & District and hypothecation of machinery &
equipment as proposed in the scheme and all future acquisitions of fixed assets in nature.

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 M/s Gemini Digital Press, Anantapuramu

Registered Lease Deed:

The firm shall submit registered lease deed for the premises for a minimum lease period of 10
years in the prescribed format of the Corporation.

Collateral Security:

The firm shall offer collateral security worth not less than Rs.157.50 lakhs being 75% of the
loan by way of urban immovable properties to the satisfaction of the Corporation.

The firm is proposing to offer commercial building on land admeasuring 145.20 square yards
bearing [Link]/1, [Link]-3-678, Khaja Nagar, Ananthapuramu Town, Ananthapuramu
Dist belongs to Sri [Link], Managing Partner of the firm. The property is valued at
Rs.120.06 lakhs as per the Branch Valuation Report dated 29.07.2015. For the balance collateral
security requirement of Rs.37.44 lakhs, the firm shall offer other urban immovable properties to
the satisfaction of the Corporation.

The collateral security holder(s) shall guarantee the Corporation’s term loan as co-obligants in
their individual capacity, in case, the properties are owned by persons other than the promoters.

Suitable conditions are stipulated in terms of sanction.

Assumptions made in Profitability statement:

A) The installed capacity of the unit is 24000 numbers of albums p.a. and Rs.672.00 lakhs
p.a. by way of revenue.

B) The Operating capacity is assumed at 40%, 50% and 60% for 1st, 2nd and 3rd year
onwards.

C) i) The cost of raw materials @ 40% operating capacity during first year of
operation is estimated at Rs.105.00 lakhs and consumables Rs.2.00 lakhs p.a.

ii) The cost of utilities is indicated below at 40% operating capacity:

Utilities Cost/Rs. in lakhs

Power 45 HP 2.00

D) Wages and salaries are based on actual manpower requirement with annual increments.

E) Repairs and maintenance has been provided at Rs.6.00 lakhs in the first year and the
provision is progressively increased by 10% every year.

F) Interest per annum on term loan from APSFC is reckoned at 14.50% [Net].

G) Depreciation has been calculated on W.D.V. method on the following basis:

Nature of Asset Depreciation Rate

Machinery 15%

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 M/s Gemini Digital Press, Anantapuramu

H) Income-tax provision has been made as per the Rules in force after availing the benefits /
incentives under the Income-tax Act.

Assumptions made in Cash Flow statement:

The term loan of the Corporation is assumed to be repaid over a period of 8 years with a
moratorium period of 2 years.

Comments on Viability:
The financial projections are annexed to the Memorandum vide Annexure – 4 to 8. On
analyzing the same with the following indicators, it is felt that the project is a viable
proposition.

Breakeven Analysis:

The unit is expected to breakeven at 32.97% and cash break even at 21.50% at its installed
capacity. The break even calculations are based on the unit's working results in the 3rd year of
operation which is the optimum level of operation. The details are annexed to the memorandum
vide Annexure No.6.

Debt Service Coverage Ratio:

The average debt service coverage ratio for 8 years works out to 1.90 times and is satisfactory.
The maximum and the minimum DSCR are 2.74 and 1.66 times respectively. The loan period is
fixed at 8 years with a moratorium period of one year.

The detailed work sheet is annexed to the Memorandum vide Annexure-7.

Internal Rate of Return:

The project's I.R.R. for a period of 15 years works out to 31.93% and is satisfactory. The
assumptions made are as under:

1. Life of the project is assumed at 15 years.

2. The residual value of fixed assets at the end of 15th year is taken at 5% of the original value.
3. The realisable value of current assets is taken at 100%.
The detailed work sheet is annexed to the Memorandum vide Annexure-8.

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 M/s Gemini Digital Press, Anantapuramu

Sensitivity Analysis:
Sensitivity Analysis is done by increasing cost of materials, salaries & wages and power & fuel
by 5% and decreasing the revenue by 5%. The effect of such assumptions is as below:
Parameter Normal 5% increase in raw 5% decrease in
material, consumables, Sales revenue
salaries & wages
DSCR (Times) 1.90 1.72 1.62
BEP (%) 32.97 35.56 37.46
IRR (%) 31.93 28.20 25.80

The above indicates that the project is viable with adverse changes.

Market/Potential for the unit:

The firm proposes to set up a digital offset printing unit for printing photo albums. Now-a-days
every occasion is photographed to store the moment for cherishing the memories at a later date.
With the advent of digital cameras, cell phone cameras, palm tops, tablets there are easy and
never ending possibilities for taking photos. However, for major occasions like engagements,
marriages, receptions, birthdays, cultural festivals, conferences, etc. still professional
photographers are engaged for taking photos and making albums.
The output of the proposed digital press is of high quality with good resolution and makes the
photographs appear rich, glossy with proper lighting. The firm is targeting high end customers
who are presently utilizing these services from Hyderabad as no such unit is available in
Anantapuramu or in the neighbouring areas.

There are number of photo studios in Anantapuramu and also in the neighbouring districts who
are prospective customers expected to use the services of the instant firm. The promoters are
experienced in photographic field for more than two decades and are running three photo
studios and color labs in Anantapuramu. The promoters are currently sending the works from
high end customers to Hyderabad for getting the job done.

Branch Manager’s report dated 20.04.2015 informed that the promoters are in the line of photo
printing for the last 25 years and established very good clientele in Rayalaseema Region and
border Districts of Karnataka State. The promoters are also engaged in album making for the
last 20 years.

The Branch Manager further informed that the promoters are having good contacts with
realtors, builders, industrialists, educational institutions and other business people. The
promoters proposes to make double side album, light weight album, water proof album to cater
the needs of their customers.

The Branch Manager also contacted Sri VSN Murthy, Channel Partner for Andhra Pradesh &
Telangana States of the proposed supplier M/s Ridington India Limited, Chennai, who
confirmed that they have not supplied similar machine in the four districts of Rayalaseema
Region and border districts of Karnataka.

Hence, no problem is envisaged in getting the required number of orders.

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 M/s Gemini Digital Press, Anantapuramu

Licenses & Approvals:

The firm shall submit approval/validity of the following:

1. Entrepreneurs Memorandum No.28/022/22/01464/Part-I dated 28.10.2014 from DIC,

Anantapuramu.
2. Power feasibility letter from APSPDCL for 45 HP.
3. Trade licence from Ananthapuramu Municipal Corporation for operating digital press in
the premises.

Refinance availability : Yes

Whether APSFC Officers, Directors, if any,

are interested in the proposal : No
Whether promoters have earlier availed OTS,
if yes, details : No

********

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 M/s Gemini Digital Press, Anantapuramu

ANDHRA PRADESH STATE FINANCIAL CORPORATION: HYDERABAD

SPECIAL TERMS AND CONDITIONS OF THE SANCTION
(TERM LOANS)

01 a) Name of the unit : M/[Link] Digital Press

b) Correspondence Address & : [Link].13-3-663,

Location of the unit Khaja Nagar,
Anantapuramu Town & District

02 Loan Account No. : 52 8887 01

03 Amount of Term Loan : Rs.210.00 lakhs

(Rupees Two Hundred and Ten Lakhs Only)

04 (a) Constitution : Partnership Firm

(b) Names of partners : (i) Sri K. Mahammad, Managing Partner

(ii) Smt [Link]
(iii) Smt [Link]
(iv) Smt [Link]
(v) Sri [Link] Thousif, Managing Partner

05 Purpose of Term Loan :

The Corporation’s term loan of Rs.210.00 lakhs is to meet a part of cost of assets as
provided in the scheme, subject to the following limits:
([Link] lakhs)
Particulars Cost Loan @ 76.66%
Machinery & equipment 256.00 196.25
Erection expenses 1.00 0.75
Preliminary & pre-operative expenses 25.00 0n 17.00 13.00
Total 282.00 210.00

06 Period of term loan : 8 years with a moratorium period of one year

07 Repayment of term loan :

The principal amount shall be repaid at quarterly instalments on 1st March, 1st June, 1st
September and 1st December as under:
(Rs. in lakhs)
[Link]. No. of Instalments Instalment Amount Total
1. 28 7.25 203.00
2. 1 7.00 7.00
29 210.00

Repayment shall commence after one year from the date of disbursement of any part of
the loan.

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 M/s Gemini Digital Press, Anantapuramu

08 Rate of Interest:

Interest shall be paid on monthly basis at 16.50% p.a.

However, in case the Corporation's lending rates undergo change before the initial
disbursement is obtained by the borrower, the rate of interest prevailing on the date
of such initial disbursement will be charged, subject to the other terms and
conditions.

Special interest rebate / Concession:

The special interest rebate @ 2% p.a. and Special Interest Concession @ 0.5% p.a.
will be allowed as per the rules of the Corporation, for each month subject to the loan
account being regular at the end of the each quarter i.e. 31st March, 30th June, 30th
September, & 31st December.

Default clause:

Penal interest @ 2% p.a. shall be levied on the defaulted extent of principal, interest and
other expenses for the period during which such default continued.

09 Service charges and Upfront fee:

The company shall pay up-front fee @ 0.5% on term loan as required by the Corporation
before release of any part of the term loan. The company shall also pay the balance
service charges payable for the proposed term loan, before release of any part of the
loan.

10 Premature Premium:

3% premium shall be charged for all advance payment of installments of principal,

exceeding two installments. Any intention to close the loan account shall be intimated 6
months in advance and make the payment with the required premature premium.

CONDITIONS TO BE COMPLIED WITH BEFORE EXECUTION OF SECURITY

DOCUMENTS:-

11 (a) Primary Security:

The Corporation’s term loan shall be secured by way of equitable mortgage of leasehold
interest in land admeasuring 146.66 square yards and building bearing [Link].13-3-663,
Khaja Nagar, Anantapuramu Town and District along with hypothecation of machinery
& equipment as proposed in the scheme and all future acquisitions of fixed assets in
nature.

(b) Registered Lease Deed:

The firm shall submit registered lease deed for the unit premises for a minimum lease
period of 10 years in the prescribed format of the Corporation.

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 M/s Gemini Digital Press, Anantapuramu

12 Collateral Security:
The firm shall offer collateral security worth Rs.157.50 lakhs by way of urban
immovable properties including surplus value in the existing securities offered to their
existing units, to the satisfaction of the Corporation.
The collateral security holders also shall guarantee the repayment of Corporation’s term
loan together with interest in their individual capacity as co-obligants.

13 The firm shall complete the legal formalities and make the drawals of funds within 6
months from the date of sanction, failing which the term loan shall be cancelled.

14 The Corporation reserves the right to stipulate any other condition or modify any
conditions stipulated which shall be binding on the borrowers.
CONDITIONS TO BE COMPLIED BEFORE INITIAL DISBURSEMENT:
15 Capital Clause:
a) The firm shall raise capital of Rs.108.00 lakhs and invest initially Rs.73.00 lakhs
in the fixed assets as proposed in the scheme and show a satisfactory proof thereof,
before disbursement of any part of the Corporation’s term loan.

b) After compliance of the above, the term loan shall be released in proportion to
the capital raised and invested in the assets as proposed in the scheme.

c) The total capital of Rs.108.00 lakhs brought in the scheme shall not be
withdrawn and the net effective capital shall be maintained at that level during the tenure
of the Corporation's term loan.
16 The firm shall submit approval/validity of the following:
g) Entrepreneurs Memorandum Part-I from DIC, Anantapuramu.
h) Power feasibility letter from APSPDCL for 56 HP.
i) Trade licence for operating digital printing press in the premises from
Ananthapuramu Municipal Corporation.

17 The firm shall submit copy of authorized dealership certificate from the principals
wherever the invoices / bills of machinery / equipment are raised by the dealers.

18 The firm shall commence operations on or before 01.06.2016 the date of

Commencement of Commercial Operations (DCCO) and intimate the same to the
Corporation as shown below :

Item Start Finish

Machinery & Equipment August, 2015 September, 2015
Erection of machinery/equipment October, 2015
Training & trial runs November, 2015
Opening of the lab to the public December,2015
Stabilisation of operations May, 2016
Date of Commencement of Commercial 01.06.2016
Operations

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 M/s Gemini Digital Press, Anantapuramu

In the event of non-adherence of the above, the Corporation will have the right to review
and reappraise the project and withhold further disbursement of the loan until the
reappraisal of the project is approved by the Corporation. The conditions emanated out
of reappraisal shall be complied with by the borrower.

19 The eligible subsidy under CLCSS shall be assigned to the Corporation towards the term
loan.

20 In addition to the above special terms and conditions, other general terms and
conditions pertaining to Partnership Firms which are sent herewith will also be
applicable and shall be deemed to have been incorporated in the mortgage deed
and other security document executed by the firm/guarantors.

-o0o-

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 M/s Gemini Digital Press, Anantapuramu

ANNEXURE – 1

PROCESS TIME SHEET

Date of receipt of application at Branch 14.03.2015

Date of receipt of application at HO 16.03.2015

Date of PSC Meeting 24.03.2015

Date of Temporary Closure for non submission of 25.03.2015

IT returns, quotations for machinery and pruning
down the project cost.
Date of re-opening of file on submission of 19.08.2015
information viz., revised quotation for machine,
IT returns, CS valuation etc.

Date of draft Memorandum 24.08.2015

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 M/s Gemini Digital Press, Anantapuramu

LIST OF ENCLOSURES

S. NO. PARAMETER ANNEXURE NO.

1 Process Time Sheet 1

2 List of machinery – proposed 2

3 Enclosure to Economics of Working 3

4 Cost of Production & Profitability Statement 4

5 Cash Flow statement 5

6 Break-Even Analysis Statement 6

7 DSCR Statement 7

8 Internal Rate of Return Statement 8

9 RMD Rating 9

10 KYC - Risk categorization 10

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 M/s Gemini Digital Press, Anantapuramu

ANNEXURE-10

ANDHRA PRADESH STATE FINANCIAL CORPORATION

HEAD OFFICE: HYDERABAD
(ANDHRA DIVISION)

RISK MANAGEMENT DEPARTMENT

Name of the Unit : M/s Gemini Digital Press

Location of the Unit : [Link].13-3-663, Near Ganga Gowri Talkies,
Khaja Nagar,
Ananthapuram 515 001

Line of Activity : Multi Colour Offset Digital Printing Press

Rate of Interest : 14.50% p.a. (Net)
Term Loan : Rs.200.00 lakhs
(New Project)
Type of the Scheme General Loan Scheme
Classification of industry Printing
Size of the Industry Mfg. – Small Enterprise
Line of Activity Digital printing press
Proposed Term Loan Rs.200.00 lakhs
Purpose To set up the unit
Loan Account Code No. 52 8887 01

RATING SCORE FULL MARKS UNIT’S SCORE

Financial Risk Parameters 22 15.00
Business Risk Parameters 18 13.50
Industry Risk Parameters 10 7.00
Management Risk Parameters 26 10.00
Risk Mitigation Parameters 24 17.50
Total score 100 63.00
Grade Accorded “CR 4- Ordinary Safety’

REMARKS: -Nil-

ASST GENERAL MANAGER (RMD)

DEPUTY GENERAL MANAGER (RMD)

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 M/s Gemini Digital Press, Anantapuramu

Revision Status-1/09

ANDHRA PRADESH STATE FINANCIAL CORPORATION: HYDERABAD

RMD

CREDIT RATING MODEL-1

M/s. Gemini Digital Press, Ananthapuramu Dist

Summary Score Sheet for Credit Risk Rating –Term Loans of above Rs. 60.00 Lakhs

(New Projects)
Sl. No Parameter Full marks Unit’s Score
Financial Risk Parameters
i) Projected DER 5 2.00
ii) Internal Rate of Return 2 2.00
iii) Gross Average DSCR of the project 5 5.00
iv) Terms of Repayment 5 1.00
v) Stress tested DSCR 5 5.00
Aggregate Financial Risk Score 22 15.00
Business Risk Parameters
i) Technology 4 3.00
ii) Capacity Utlsn Vs BE Point 2 2.00
iii) Compliance of environment regulation 4 4.00
iv) User/Product Profile 2 1.00
v) Market net-work 4 2.00
vi) Location of the unit 2 1.50
Aggregate Business Risk Score 18 13.50
Industry Risk Parameters
i) Competition 2 1.50
ii) Industry Outlook (in industry cycle) 4 3.00
iii) Regulatory Risk 2 1.50
iv) Contemporary viz., WTO issues 2 1.00
Aggregate Industry Risk Score 10 7.00
Management Risk Factors
i) Integrity 4 2.00
ii) Track Record 3 0.00
iii) Management Competence /Expertise 5 3.00
iv) Experience in the industry 5 5.00
v) Payment record 4 0.00
vi) Length of relationship 5 0.00
Aggregate Management Risk Score 26 10.00

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 M/s Gemini Digital Press, Anantapuramu

Risk Mitigation
Sl. No Parameter Full marks Units Score
i) Value of CS 5 3.00
ii) Nature of CS 5 4.00
iii) PC Margins 5 5.00
iv) Default Ratio in the Portfolio 6 3.50
v) Solvency of the promoters 3 2.00
Aggregate Risk Mitigation Score 24 17.50
Total score of the Unit 100 63
Credit Rating Awarded “CR-4 – Ordinary Safety”

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 M/s Gemini Digital Press, Anantapuramu

ANNEXURE- 11
ANDHRA PRADESH STATE FINANCIAL CORPORATION – HYDERABAD
PROJECTS DEPARTMENT

Proposal for sanction of a Term Loan of Rs.210.00 lakhs to M/s Gemini Digital Press,
Anantapuramu

REVISED KYC-RISK-CATEGORISATION OF CUSTOMERS

[Link]. Customer Category Comments

Yes/ Not applicable
I HIGH RISK
1 Individuals and entities in various United Nations Not applicable
Security Council Resolutions (UNSCRs) such as
UN 1267 etc., or listed in the schedule to the
order under section 51 A of the Unlawful
Activities (Prevention) Act, 1967 relating to the
purposes of prevention of and for coping with
terrorist activities, or in watch lists issued by
Interpol and other similar international
organizations.
2 Persons / entities with dubious reputation as per Not applicable
public information available or commercially
available watch lists (including entities where
such persons have significant stake1).
3 Individuals and entities specifically identified by Not applicable
regulators, FIU and other competent authorities as
high-risk.
4 Politically exposed persons (PEPs) of foreign Not applicable
origin, customers who are close relatives of PEPs
and accounts of which a PEP is the ultimate
beneficial owner (including entities where such
PEPs have significant stake)
5 Non-resident customers, foreign nationals and Not applicable
Off-shore (foreign) corporation / business
(including entities where non-resident customers/
foreign nationals/ foreign entities have significant
stake).
6 Non face-to-face / Walk-in customers Not applicable
7 High net worth individuals Not applicable.

1
Significant stake is to be treated as under:
For partnership firms: All partners, irrespective of shareholding.
For unlisted companies: Shareholding is equal to or more than 10%
For listed companies : Shareholding is equal to or more than 24%

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 M/s Gemini Digital Press, Anantapuramu

[Link]. Customer Category Comments

Yes/ Not applicable
8 Firms with ‘sleeping partners’2 Not applicable
9 Companies having close family shareholding or Not applicable
beneficial ownership
10 Trusts, societies, charities, non-government Not applicable
organizations / not for profit organizations
(NGOs/NPOs), and organizations receiving
donations (excluding NPOs/NGOs promoted by
United Nations or its agencies)
11 Customers where due diligence of any of its Not applicable
members / constituents / partners/ underlying
beneficiaries having significant stake in the entity
is not possible

II MEDIUM RISK
12 Businesses having collections predominantly in Not applicable.
cash such as restaurants, petrol pumps, retail
shops, movie theaters, travel agency, etc.
13 Dealers in high value or precious goods (for e.g. Not applicable
jewel, gems, precious metals)
14 Partnership Firms (unregistered or in existence / Yes.
registration of less than 5 years)
15 Non-banking financial companies (other than Not applicable
those categorized as Low risk)
16 Persons and entities not categorized as Low or Not applicable.
High risks.

III LOW RISK

17 All borrowal customers (other than those Not applicable.
specifically categorized as high/medium risk)
where due diligence is done at the time of
granting the facilities.
18 Government departments and their agencies, Not applicable
Government owned/ controlled entities, public
sector enterprises, regulatory and statutory bodies.
19 Not for profit organisations (NPOs) / non Not applicable
government organisations (NGOs) promoted by
United Nations or its agencies
20 Significant and well established entities such as Not applicable
companies in the “Nifty” / “CNX100” lists of
NSE or “Sensex” / “A Category” of companies
listed on BSE.

2
A sleeping partner is one who contributes capital, shares profits and losses of the firm but takes no part
in the day to day management of the affairs of the firm, as evidenced from the partnership deed or
clearly implied by the course of their roles in the partnership business.

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 M/s Gemini Digital Press, Anantapuramu

[Link]. Customer Category Comments

Yes/ Not applicable
21 Individuals (other than high net worth) and Not applicable
entities whose identities and sources of wealth
can be easily identified (for e.g. salaried
employees, people belonging to lower economic
strata of the society).
22 Regulated entities such as scheduled banks, Not applicable
Indian branches of foreign banks, systemically
important NBFCs registered with RBI, venture
capital funds registered with SEBI, insurance
companies holding a valid certificate of
registration issued by IRDA, housing finance
companies regulated by National Housing Bank.

Risk Score Chart:

Score Range Risk category

Partnership Firms (unregistered or in existence / Medium Risk
registration of less than 5 years)

Signature of the Team Members

HOD- Projects Department

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 M/s Gemini Digital Press, Anantapuramu

COST OF THE SCHEME:

Particulars Amount (Rs in lakhs)

Land & buildings Leasehold
Machinery & equipment 256.00
Erection expenses 1.00
Deposits 1.00
Preliminary & pre-operative expenses 25.00
Working capital margin 35.00
Total 318.00

MEANS OF FINANCE:

Source Amount (Rs. in lakhs)

Partners’ capital 108.00
APSFC- Term Loan 210.00
Total 318.00

48