BOI - New Letter

8/10/2019 BOI - New Letter

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Ref: HO:TAD:2013-14:279

HEAD OFFICE

Technical ppraisal Dept

tar

House.G5

G

bck

Ba nd raX uk Complex.

Bandra East),

Mumbai

400 051

Phone 6684632FAX ffi6846W

30

headoff [email protected]

Date

:

21.01.2014

MIS Webcon Consulting (India) Ltd.

Chatte ee International Centre,

4 h Floor, 33-A J L Nehru Road,

Kolkata-700071, WB.

Dear Sir,

Renewal of vour empanelment on our Bank s approved panel

of Consultants for Techno Economic Appraisal.

We refer to your application received on 20.01.2014 through our Kolkata Zonal

)

Office, requesting for renewal of empanelment on our Bank s approved panel of TEV

Study consultants.

2. We have considered your request favourably and are pleased to inform you that

we have renewed your name on our Bank s approved panel for the following:

Industry

Tvpe of service Proiect Size

ManufacturingIService Technoeconomic viability study

All

3. The format in which study report is to be submitted and the minimum coverage

expected in the report shall be advised to you by our Zonal Office at the time of

assigning the job and the same will have to be meticulously followed by you while

executing assignment for our Bank.

4. Please note that services of consultants are availed only and only in case of

exigencies when bank s in-house services are not available. Hence being on the panel

of consultants of Bank of India, does not guarantee assignments during the period of

empanelment.

5.

This empanelment is valid for a period of one year from the date of issue of this

letter and needs to be renewed thereafter annually as prescribed.

6

Please note that Bank shall be within its right to initiate suitable action against you

in the event of any professional misconduct/ negligence etc. while handling the matter

entrusted to you, including by filing complaint with Institute of Chartered Accountants1

lnstitute of Engineers etc.

7. Please acknowledge receipt of this letter.

Yours truly,

-14

Kapila)

General Manager


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.

PPR IS L FEE FOR EXTER N L GENCY

Wherever appraisal work

is

to:be referredto an external agl?ncy consultant, the

charges

/

terms of paymentetc of the agency / consultant will have to be negotiated by

the Bank before. hand and the concurrence of the proponent / borrower for bearing

such expenditure will have to be obtained in writing ( preferably the concerned amount

be got.deposited by the proponent in his deposit amunt with Bank's. lien marked on it .

Only thereafter an am'gnment shall be entrusted to an external agency

/

consultant.

negotiated with thereof will be as per the terms of approval by the appropriate

authoiii. Allowing the propqnents / borrowers to negotiate the fees with the agencies/

consultants should bedlscouraged. The scope of asslgnment for the external agency/

consultant should be advised by the Bank In writing. Report shoulj be obtained diredly

(not through the customer) and payment to the consultant should be made by ~ani c.

T V STUDY COVER GE SCCOPE OF WORK

TEVS report should normally cover the following aspects specifically, depending

upon the availability of inputs:

i

Promoters their background

-

only objective assessment of promowrs

and their background based on their experience, existing operations and

professional qualifications etc to be given. Relevance of these to the

proposedventure n case of new units to be brought out.

ii

Project cost Means of finance

.

Financial analysis In case of exijtlng units with a view to ascertaining

-.

~nvesbble urplus, expected cash. accruals during the implementation of

the proposed new expansion diienification project. Other aspects to be

studied include inventory and receivable leve s maintained- vis-a-vis

normative requlremenk and/or industry standards.

iv)

Plant and Machlnery : coyments on condition, t~alancingjadequacyof

existlng/proposed machinery,

technological

level, suppliers of machinery

etc should be given. In case of second hand machinery, availability of

chartered engineer's certificate on age of nla;:hinery, condition of

machinery, reasonabiilty.of cost, residual life and availability of spares etc

shoul'd also be seen and commented upon.

v)

Infrastructure : availability of the required infrast'ucture, arrangements

made/proposed andadequacy thereof

vi) .

Raw materials

:

equired rawmateriais, quantitative requirements based

on yield data, sources of supply, cost of raw materiz~ls nd their availability

position etc

vii)

Products: main p'roduct(s) to be.,manufactured, bye-products and wastes

etc. Quantitative projectlons (where avaiiable/possible) proposed selling

prices vis-a-vis current mar,ket'pricesetc


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viii) Market Marketing Arrangements

:

Demand supply data/position. Other

competitors in the industry, imported substitutes, targeted consumer

segment

ix)

.Assessment of Working capital requirements

x)

A sw sm en t of Term Loan requlrement

xi)

SWOT analysis includin g risk factors and risk m itigants

xi i) Concluding comments on technical feasibility and economic' viability

including BEP analysis, DSCR calculations, I R calculations and sensitivity

analysis on

sl s

and major inputs. Debt sewicing capacity of the project

at diffe ren t DSCR levels may be work.& ou t where the pro jec t DSCR is

lower than the benchmark flgure for the limits sought by the

proponentlbonower.

The above list is indicative only, the officer concerned would decide oncase to

case basis and based on the nature o f the p roject, availability o f inputs an d purpose of

repor t (new finance or review or restructuring), as to w hich are the p oints to

be

covered no t covered.

The purpose of T N Study is to aid the sanctioning authcrity to arrive at an

informed udgm ent

as

regards acc@ ptabillty f the project for lending or investment,

purposes and to enable thls, the echnical Officer should, as clearly as possible, gi ve a

conclusive v iew on th e techn ica l commerc ia l f inanc ia l aspec ts o f th e

project stu die d. Where the flaws noticed in the projec t are correctable, effort should

be made t o suggest ways and means In the TW S Report to make th e projec t bankable.

Projects lnvolving technological hks will nave to be norma lly dealt w l h in the

venturedpital f inance route.

I n

exceptional cases where such a project is. belng

contemplated by an erlstin g bor rower o f our Bank having adequate cash accruals, the

project (with technological risk) may be made banh ble to the extent ofsurpius debt

sew iang ca pauty ava ilable from existing operations even though the v iabliity aspect of

the projec t on stand alone basis would still remaln unestablished conclusively.

On the part of the recipient / user of the T N S Report,

it

is expected- that a

thorough study of the report be made before arriving at a conclusior~on the viability of

the project instead of asingle point reference only

to

the final paragraph of the T N S

Report. While the concluding paragmph will ce rtainly give an broad idea about. the

viability of the project, many subjective observations assumptions leading to such

conciusion in the final paragraph ar e normally spread over, th e report and may no t

necessalily be summ arlzed in the last paragraph to avoid re petitlon as also to keep the

concluding remark sufficiently brief.

T N S report shoul 'd not cover aspects like the need for collateral security etc.

and other ben efits t o the bank, and the professional opinion expressed by the office r?

should. be purely on the projec t aspects, leaving other aspects 'to the credit o*cers

/

sanctioning autho rity to take administrative decision.


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Annexure t o Branch Circular

No

9 9 / 1 0

dt

20.04.2005

ANNEXURE A

INFO RM AT ION TO BE SENT FOR TEVS

1. Project Feasibility Report submitted by the proponents, in case of

new/expansion/di.versification

projects. The report should include th e following:

vi)

Write-up Industrial License

/

SSI Registration/ FDA Approval and/or

any other licente/ permission required for manufacture of the proposed

products.

vii) Memo randum Artides of Aaoclation, Certificate o f Incorpora tion and

Certificate of Commencement o f Business where applicable

viii) .Bio data of ,promo ters including their background, qualifications,

exoerience, oresent occuoatlon. detalis of technical/Manaaerial ~ers on ne l.

ix)

x

xi)

xii)

xiii

f

xiv)

xvi)

xvii)

requirem en~a vallabll ity f ldlled labour.

Cost of project Means o f inance

Copies o f registrationJapprovals/clearances (eg. Power sanction,

Mun icipal corp ora tion clearances for factory/buildin j construc tion, NA

Permislon,

pollution

control au thorities approval, etc.)

Details o f land (location, area, price, site p lan etc.)/ buildi,ng.

plan/architect's estimate4 availability of infrastructure like roads,'

powe rlwater, effluen t disposal arrangements, etc. at the location. Total

pow erlw ater requirem ent and sources.

Details of plant and

machinery

(names of suppliers, cost, capacity,

powe r/fuel requirements, w hether pe rformance guarantee/back up

maintenance arrangements available>plant lay ou t

Project implementation schedule; ,Arrangements for

supervision/consultants, subcontracting i f any

Details o f the process rejebions /saap/bye products; arrange men ts for

process know how, techhical wllaboration/assistance; Buy back,

arrangements if any

Assumptions considered in profitabiiity projections, their basis and

supporting

documents where available. Quantitative requirements of raw

material wit h Its sources, and prices. Opening/closing stocks o f raw

materials/WIP/Finished Goods; production and sales both i n terms o f

quan tity and value. Installed Qpacity, utiiisation envisaged, projected

financial statements including cost o f production ant1 profitability, costing

'o f each product, DSCR calculations. Projected Balance Sheets and Funds

Flow statement

Detalled calc ulatio ns~ for xcise duty, depreciation, interest and taxes.

Market survey Report where available for the product .W stlng

/

projected demand and supply position. Compe titors, their locations,

instatled capaaties, selling prices, market share, etc. Product

specifications, uses, standards applicable, marke t segm ents targeted, etc.

List of proposed customers/whether tie ups madf/terrns of payment,

pending orders on hand.

2

Application in relevant forma ts wit h CMA data wherever a pplicable.

3. I n .case of existing borrowers where no new/expansion/diversification project is

being considered, a copy of last sanctioned proposal may be pravided.

4. Profitability

/

balance sheet /cash flow projections submitted by the existing

borrowers along with working notes (working notes to indude assumptions

considered in profitability projections, their basis and supporting documentswhere

available; quantitative requirements of raw material with its sources and prices; i

open ing/ciosing stocks of raw materials/WIP/Finished Good:, bo th in term s of

quan tity and value; production and sales both in' te rm s of quantity and value.

Installed capacity, utilisation envisaged, projected financial stalzments including cost

of production and profitability, costing o f each product, DSCR calculations)


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