FORM "B"

1.01

Name of the Industrial Concern (in block letters)

1.02

Address and Telephone Nos. Telegraphic address Telex No.

1. Registered Office (in case of Corporate Bodies only)

2. Controlling (Head) Office

3. Factory: (existing and proposed)

4. Address for correspondence

5. Is the unit located in a backward area eligible for concessional finance from institutions/Central State subsidy.

1.03

Constitution :

1. State whether a proprietory/partnership/private limited/public limited concern or co-operative society. In the case of partnership and limited companies indicate the name of Managing Partner/Managing Director.

2. Date of incorporation/registration commencement of business (if the unit was purchased give details from whom and when purchased and for what consideration).

3. Name of the business house/group, if any, to which the concern belongs and the list of other companies in the same group. Details of associate subsidiary concern or concerns in which the promoters are interested.

4. Is the MRTP Act applicable to the company? If so, have you obtained the necessary clearance from the Government?

1.04

Industry

1. Name of the product (s) manufactured/to be manufactured and their uses.

2. Details of by-products, if any, and their uses.

3. Whether it is a small scale industry, if so, details of registration.

2.01

Management

Give bio-data of the main promoter including information on name, address, age, educational qualifications, past industrial/business experience, experience in the particular industry, write-up on the companies, if any, promoted by him or with which he is associated together with a copy of the latest balance sheet (to be furnished separately in respect of the main promoters duly signed by him). (Proforma I).

(Please enclose copies of Income Tax Returns of the promoter along-with copies of Assessment orders for the last three years)

2.02

In case the promoter is a limited company, furnish a write-up on the activities and past performance of the company and any other expansion programme(s)/diversification contemplated.

Enclosure:

1. Certified copies of Memorandum and Articles of Association of the promoter company.

2. Audited Balance Sheet and Profit and Loss account for the past two years of the promoter company(s).

3. Copy of Agreement(s), if any, entered into among the promoters.

2.03

Provide a list of directors alongwith a complete list of concern with which they are connected, as director, partner, proprietor, etc.

2.04

Particulars of existing key technical and executive staff giving their names, age, qualifications, salaries, length of service. (Proforma II). Enclose organisation chart showing the lines of authority).

2.05

Name(s) and address of banks(s) with whom enquiries maybe made regarding the applicant concern and the promoters. Authority letter from the promoter(s)/Company for Bank to discuss with the lending institution.

2.06

Whether any Government enquiry, proceedings or prosecution has been instituted against the unit or its proprietor, promoters or directors for any offences. If so, give details.

2.07

Details of pending litigation, if any, against and by the concern.

2.08

Indicate whether any of the promoters of directors have at any time declared themselves as insolvent.’

Brief history of the concern

3.01

State briefly, the history of the unit. In the case of new units state the reason for starting it. (In the case of existing units give two copies each of Balance Sheets and Profit and Loss Accounts for the last 3 years together with comments on adverse features of the working, if any. Please also furnish proforma Balance Sheet and Profit and Loss Account as on a recent date, if the last Balance Sheet is more than 6 months old).

3.02

Provide a list of shareholders under the heads promoters, other major groups, foreign collaborations and institutions owning or controlling 5% or more of equity shares, indicating the amount owned and business relationship, if any, with the company. Indicate NRI shareholding, if any. In case of preference shareholders, give a list of ten largest shareholders. Also give the number of equity shareholders and preference shareholders.

3.03

Give a note on the unit’s/company’s tax status viz., the year upto which the company has been assessed for income tax, the estimated unassessed liability, the concessions available and the basis on which provision for tax has been made. Provide details of unclaimed tax benefits, if any. A note on excise duty claims remaining unpaid against the unit/company may also be given.

3.04

Details of existing fixed assets (Proforma III).

3.05

Particulars of credit facilities enjoyed by the concern from banks(s) and other financial institutions (as per attached proforma IV).

3.06

Indicate the Bank (with address) from which it is proposed to avail of working capital.

Particulars of the project

4.01

Describe in detail the project for which financial assistance is required indicating whether it relates to expansion, modernisation/diversification or setting up of a new plant and specification of major products. (Enclose copy of the feasibility/project report, if any).

4.02

Details of capacity                                                                                     ________________________
                                                                                                                                     Proposed
     Present                                                                                                               I    II    III    IV    V

1. Licensed
   (quantity per day)
   (Registred)

2. Installed (-do-) @

3. Utilised

   1. Quantity

   2. As % of installed capacity

   3. Value

4. No. of working days in a year

5. No. of shifts

6. Employment (Nos.)

   1. Technical

   2. Administrative

   3. Supervisory

   4. Skilled workers

   5. Unskilled workers

@ In the case of existing unit, details of sectionwise capacity and reasons for under utilisation of capacity, if applicable in the past may be furnished.

Note:

The above particulars may be given for each product in case of multi-product units.

4.03

Manufacturing process

1. Explain briefly, the technical process employed/proposed to be employed. Indicate reasons for adopting/choosing the particular process. Also indicate whether the process is a continuous process or batch process.

2. explain briefly the possibilities of diversification in the product line in case of necessity, in future.

4.04

Has the proposed process ever been tried in the country? If so, where and with what results. Whether the process is patented. If so, details to be furnished.

Technical Arrangements

4.05

Explain the technical know-how arrangements made/proposed for the project, including performance guarantees/penalties.

4.06

In case any collaboration is involved, furnish a brief write-up on the period of collaboration agreement, the collaborator company indicating its activities, size and turnover, particulars of the existing plants, other projects in India and abroad set up with same collaboration, etc.

Enclosure:

1. Copies of published brochures highlighting the activities of the collaborator and balance sheet for the latest year.

2. Copy of collaboration agreement.

3. Fees payable and the manner in which payable.

4. Copy of the Government approval for availing of the services of foreign technicians, if any.

4.07

If there is no collaboration agreement, furnish full details of arrangement proposed to be made for obtaining technical advice and service needed for the implementation of the project. If it is an ancillary unit give details of the parent unit and the terms of agreement.

4.08

Particulars of the consultants as below:

1. Name of the consultants and their addresses

2. Fees payable and the manner in which payable

3. Scope of work assigned to them

4. Brief particulars of consultants including the organisational set-up, bio-data of senior personnel, names of directors/partners, particulars of work done in the past and work on hand.

1. Copy of agreement with the consultant.

2. Copy of the Government approval in case of foreign consultants.

4.09

Whether any of the company’s directors have any interest in consultant/collaborator firm. If so, details to be furnished.

4.10

Location and Land

Indicate location of the site, requirement of land for the project and the arrangement made therefor. Enumerate the locational advantages with reference to proximity to sources of raw materials, market, fuel, water power, transport, labour effluent disposal, etc.

4.11

Give the following particulars in respect of the land acquired/proposed to be acquired for the project and indicate the area of land required separately for:

1. Factory building

2. Ancillary building

3. Open storage space

4. Housing colony, if required, and

5. Future expansion and any other purpose (please specify).

   1. Total area and cost

   2. Basis for valuation

   3. Mode of payment

   4. When purchased/taken on lease

   5. Previous owners and their relationship, if any, with the promoters/directors

   6. If rented/leased/hire purchase, give details regarding the rent, period of lease/hire purchase, etc.

   7. Is it industrial land? If not, has it been converted for industrial use and necessary legal formalities complied with?

   8. Type of soil and load bearing capacity

   9. Availability of water at site.

Enclosure:

1. Copy of the sale/lease deed

2. Copy of the soil/water test report

3. Copy of the Government order converting the land into industrial land if applicable

4. Locational map

5. Site plan showing the contour lines, the internal roads, power receiving station, railway siding, tube wells, etc.

Building:

4.12

Explain the arrangements made/proposed for construction of the building and furnish particulars as per Proforma V.

4.13

Give the following particulars of architects:

1. Name of the architects/firms

2. Scope of work

3. Rates quoted and detailed estimate of expenses

4. Fees payble and manner in which payable

5. Time schedule

6. Penalties

7. Past experience of the architects in the similar work

Plant and Machinery

4.14  a)

Details of imported and indigenous plant and machinery acquired/to be acquired (as per Proforma VI). Explain the basis of selection of supplier of equipment and estimation of cost.

4.14  b)

If sub-contract of any portion of production is envisaged, the production stages in which the sub-contracting will be done. Details to indicate the availability of machinery with sub-contractors with adequate spare capacity.

4.15  a)

Arrangement made for procurement of the machinery particularly imported machinery and details of guarantees and penalties.

4.15  b)

Arrangement made for erection and commissioning of the plant.

Raw Material

4.16

Arrangements made/proposed for obtaining the raw materials such as name of the supplier, long term arrangements made, if any.

4.17

If raw materials are to be imported state the country of origin and state if import is controlled/free; if chanalised, name agency. Whether import licence obtained.

4.18

Give details of annual requirement and cost of various raw materials at installed capacity.

4.19

Are there any price or distribution controls on any of the items listed above? If so, give details.

4.20

In the case of raw materials which are in short supply, indicate the special arrangements which the company proposes to make for obtaining the indigenous and imported raw materials.

Power

4.21

1. Soruces of power and supply voltage
   

   - taken from Electricity Board
   

   -  own generation
   

   -  stand-by arrangements

2. Maximum demand

3. Connected load

4. Peak hour requirements

5. Energy consumption per year

6. Power tariff

7. Cost of power per annum at maximum capacity utilisation
   (give calculations)

Enclosure:

1. Copy of letter of sanction for power

2. copy of agreement with Electricity Board

3. Copy of the electrical lay out of the plant.

Water and other utilities such as fuel, steam and compressed air

4.22 a)

1. Indicate the requirements and suitability of water

2. Describe water treatment arrangements proposed

3. Capacities of tanks, reservoirs

4. Sources for supply of water arrangements proposed and water charges payable.

   b)

1. Requirements of steam

2. Capacity of the boiler

3. Arrangements proposed for steam

   c)

1. Requirements of compressed air

2. Arrangements proposed for compressed air

   d)

1. Requirement of fuel

2. Arrangements proposed for supply

Transport

Arrangement proposed for carrying raw materials and finished goods.

Effluent

4.23

Furnish full details of the value of the atmospheric, soil and water pollution likely to be created by the project and the measures proposed for control of pollution. Indicate whether necessary permission for the disposal of effluent has been obtained from the concerned authorities; if so, a copy of the certificate should be furnished.

4.24

Details of the arrangement made for quality control. If ISI specifications are followed, No. of ISI standards and the particulars thereof should be provided. Particulars of R and D activity proposed.

4.25

Schedule of implementation:

Describe how the design engineering, erection, installation and commissioning of the project will be carried out. Also indicate the progress made so far in the implementation of the project and furnish the schedule of implementation as follows:

Commencement Completion

1. Acquisition of land

2. Development of land

3. Civil works, factory building, machinery foundation, auxiliary building, administrative building, miscellaneous building.

4. Plant and machinery
   -  Imported - Placement of order
   -  Delivery at site
   -  Indigenous - Placement of order
   -  Delivery at site

5. Arrangements for power

6. Arrangements for water

7. Erection of equipment

8. Commissioning

9. Initial Procurement of raw materials and chemicals

10. Training of personnel

11. Trial runs

12. Commercial production.

Other projects of the concern

4.26

Give details of any other new/expansion projects which are under implementation or which the promoters propose to implement giving the estimated cost, means of financing and the present status.

5.

Cost of the project

Furnish estimates of cost of project under following heads.
Indicate the basis for arriving at the cost of project.

(Rupees in lakhs)

Rupee Cost	Rupee equivalent foreign exchange cost @	Already incurred	Proposed to be incurred	Total (1+2) or (3+4)
(1)	(2)	(3)	(4)	(5)

1. Land and site development

2. Buildings

3. Plant and Machinery
   - Indigenous
   - Imported

4. Import duty

5. Erection charges

6. Electrical Equipment and installation

7. ransportation charges

8. Other fixed assets (give details)

9. Effluent treatment position

10. Technical know- how and Engineering fees

11. Preliminary and Pre-operative expenses
    (Proforma VIIA)

12. Provision for contingencies (Proforma VII B)

13. Margin money for working capital (Proforma VIII)

Total cost of the project

@ Also give details of foreign currency and rate adopted for conversion into rupees.

6.01

Means of financing (furnish details of sources of finance for meeting the cost under following heads) :

1. Capital (specify resources contributing capital)

2. Reserves

3. Term loans (give full particulars)

4. Unsecured loans and deposits (indicate sources, rate of interest, repayment period, etc.)

5. Deferred payment arrangements including supplier’s credit, if any.

6. Government subsidies and grants/State incentives

7. Seed capital (indicate source)

8. Internal cash accruals

9. Other sources (specify)

   ---

   Total

   ---

(Give details of means of financing envisaged and the proposals for raising share capital and loans in separate proforma. Indicate in detail NRI investment, if any).

6.02

In case internal accruals are taken as source of finance explain the basis for estimation of internal accruals by means of a statement.

6.03

Briefly describe the arrangements so far made for raising the finance and the proposed arrangements

Enclosure: Copies of letters sanctioning assistance

6.04

Indicate sources of foreign exchange and arrangements, if any, made for obtaining foreign exchange.

6.05

Indicate sources from which expenditure already incurred has been financed.

6.06

Promoters’ contribution to the project cost as % of the total cost list of persons/firms who would be contributing to the promoters’ share of the capital and the respective amounts and the relationships

7.01

Financial assistance required from the Corporation/Bank

1. Rupee loan

2. Foreign currency loan (rupee equivalent at market rate)

3. Underwriting

   1. Equity capital

   2. Preference capital

   3. Debentures

4. Guarantee of foreign currency loan/deferred credit

5. Working Capital (give details in Proforma VIII)

6. Other forms of assistance like LCs, Guarantees, etc.

   ---

   Total

   ---

7.02

Repayment schedule of the loan

7.03

Details of securities to be offered

1. For term loan

   1. Land

   2. Buildings

   3. Plant and Machinery

      1. Indigenous

      2. Imported

   4. Others

   ---

   Total

   ---

2. For working capital

3. Details of Collateral security, if any.

4. Details of guarantor(s) (name, address, occupation and solvency of the guarantor).

8.

Market and selling arrangement (enclose copy of market survey report, if any, conducted by the company or independent consultants).

8.01

Give brief notes on market, possible competition from substitute products etc. Indicate the special features (regarding quality, price, etc.) of your products which would result in consumer preference for your products in relation to competitive products. Also furnish price trend of the products during the last 5 years and basis of price fixation by the concern.

8.02

furnish estimates of the existing and future demand/supply of products proposed to be manufactured.

8.03

Provide information regarding export possibilities and the nature of competition to be faced in foreign countries. In the case of existing units, if already exporting, furnish particulars of exports during the last 5 years.

8.04

If there is any export commitments/obligations stipulated by the government, indicate the details thereof alongwith arrangements proposed for meeting the same and the export incentives available.

8.05

Give international prices and landed costs of the proposed products.

8.06

List of principal customers and particulars of any firm arrangements entered into with them.

8.07

List of principal customers controls, restrictions etc., if any, on the selling prices, distribution, etc., in respect of products to be manufactured.

8.08

In case the company proposes to have any selling agency for any of its products, furnish the following particulars:

1. Name of the selling agent.

2. Commission/Remuneration

3. Special advantages/reasons for the appointment of sole selling agent.

4. Past experience in handling the same of similar products.

8.09

1. Details of pending order on hand in case of existing concern

2. Names of important existing customers and expected sales

3. Names of competitors

9.

Profitability and cash flow

9.01

Give cost of production and profitability estimates for the first five years of operations as per Proforma IX. Basis and assumptions for all calculations should be shown separately.

9.02

Based on the estimates of working results provide cash flow statements of the company as a whole, for five operating years of the project in Proforma X.

9.03

Projected Balance Sheet for five operating years for the company as a whole (in Proforma XI).

10.

Economic Considerations

10.1

Give the international/CIF/FOB Price of all inputs which can be imported.

10.02

Explain in detail the various duties, taxes and incentives applicable to the products:

1. Excise duty

2. Export duty

3. Export assistance

   1. replenishment licence

   2. duty draw back

   3. cash subsidy

   4. any other (specify)

10.03

Give brief write-up on the economic benefits to the country in general and the region in particular on account of the proposed project.

10.04

How far does the unit contribute to the establishment of ancillary industries in the region.

11.

Government consents

11.01

Indicate whether the various licences/consents required for the project have been obtained from the respective authorities, give details as follows:

1. Letter of intent/DGTD registration

2. Industrial licence

3. Capital goods clearance

4. Import licence

5. Foreign exchange permission

6. Approval for technical/financial collaboration

7. Clearance under MRTP Act

8. Consent of the Controller of Capital Issues

9. Pollution Control

10. Any other (specify)

Enclosure: Copies of licences/consents etc., received

11.02

Specify and special condition attached to the licences/consents and the undertaking given by the company in connection therewith.

1.

Bio-data of

2.

Full Name

3.

Age

4.

A.

Address :

Office

Residence

Telephone No.

B.

1. Whether the promoter/partner is

1. a member of minority community

2. a member of Scheduled Castes

3. a member of Scheduled Tribes

4. Ex-serviceman

5. Physically handicapped

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No

C.

Sex : Male/Female

5.

Academic Qualification :

6.

Experience : Years                                Employer

Designation/Functional Duty

Last Salary drawn

7.

Functional responsibilities in the unit :

8.

Capital/loan contribution in the unit :

1. At the beginning

2. At present

9.

Reasons for joining/establishing the unit (all motivating factors to be furnished).

10.

If associated as proprietor/partner/director/shareholder with concerns other than the applicant unit details* like

1. Name and address of the branch associates/identical concern

2. Activity of the concern : ** Functional responsibilities in the concern

3. Name of the associate concern’s bankers and their addresses

4. Aggregate credit facilities enjoyed by the concern

5. Security offered by the concern for its borrowings

6. Working results of the units for the past three years.

11.

Personal assets and liabilities :

1. Immovable property details like land/buildings, location, date of acquisition, cost, present value etc.

2. Other assets

3. Personal liabilities, if any.

12.

Any other information.

Place :

Signature

Date :

*

These details in respect of each associated concern should be furnished separately by way of enclosure.

**1.

Furnish audited Balance Sheet/Profit and Loss Accounts of these concerns for the last two years and brief write-ups on these concerns including information on the nature of business and size of turnover. Also furnish details of any litigations pending against/from proprietor/partners/directors.

2.

1. If the promoter is a limited company, furnish a brief write-up on the activities and past performance of the company and any other expansion programmes contemplated.

2. Give particulars of holding company such as names of subsidiary companies, paid-up capital of subsidiary (equity and preference) and percentage holding by the holding company respectively.

3.

Indicate the terms of agreement with the Managing Director/whole - time Director and the present status regarding the approval of the Central Government for the appointment.

4.

Product(s) manufactured and installed capacity for each product should also be indicated.

Name

Designation

Qualification
&
Experience

Any special achievement

(inventions/Research etc.)

Functional duties at the unit

Existing

Proposed

Structure

Type of Structure
(whether temporary)

Dimensions

Area Sq. mts.

Actual Cost/Rs.

Date of Erection

Name of the Institution

Limt sanctioned

Rate of interest

Purpose

Nature of charge

Balance outstanding

Nature and Value of security

Margin

Schedule of repayment

Defaults if any, in payment of interest and/or principal

1. Term loans

2. Other facilities
   Such as deferred
   payment etc.

3. Debenture @

4. Working capital

 Note :

Has any additional credit facility been sought from any bank or any other financial institutions? If so, please give details.

   @

In the case of convertible debentures please furnish terms of conversion and if debentures are privately placed, please furnish names of main holders.

Sr.No.

Description
of each Building

Type of construction

Average height of
each floor meter

Total floor area Sq. Mts.

Rate of construction
per building

Estimated cost of each

Expected
date of completion

NOTE :

1. Please enclose copy of the site plan of the land and blue prints of the buildings duly approved by Corporation/Municipality/Panchayat.

2. In case contract is awarded for construction of building, furnish details thereof such as name of contractor, amount of contract, etc.

3. Other approvals from Inspector of factories, Drug Controller, etc., if any should be enclosed.

4. Please enclose a plan showing layout of machinery.

Sr.No.

Name machinery and specification

Second hand/ new@

Name of manufacturer/ fabricator(Place and country of origin may be given in the case of imported equipment)

Date of acquisition/ date of placement of order actual/ expected

Expected date of delivery

Price* (Invoice price including taxes for indigenous machinery/ CIF price for imported machinery)

Estimated
expenditure (insurance/ freight, installation, import duty)

Total cost

Performance guarantee,if any

Remarks

1. Existing Machinery

   1. Indigenous

   2. Imported

2. Proposed to be acquired

   1. Indigenous

   2. Imported

      1. Quotation/Catalogues/Invoice and other details in respect of each machine to be furnished.

      2. @ If second hand machinery, valuation report regarding age, performance and value from competent valuers to be submitted. Also, please indicate reasons for going in for second hand machinery and its depreciated value.

      3. * In case of imported machinery

         1. Please indicate mode of payment and foreign currency price of the machinery.

         2. If machinery is to be imported under OGL, action taken.

         3. Details of import licence obtained should also be furnished.

Item of cost

Reasons for considering the cost as firm

(1)

            (2)                        (3)

(4)

1. Land 

2. Buildings

3. Plant and Machinery

- Imported 

- Indigenous 

- Stores and Spares

- Foundations and Installation 

4. Technical know-how fees etc.

5. Expenses on foreign technicians and training of Indian technicians abroad.

6. Miscellaneous fixed assets.

7. Preliminary and capital issue expenses

8. Pre-operative expenses

   ---

   Total

   ---

Contingency provision and the basis for calculations.

_{1st year of}

_{2nd year of}

_{3rd year of}

operation

operation

operation

_{1st year of}

_{2nd year of}

_{3rd year of}

operation

operation

operation

Notes :

1. The periods to be shown should be in relation to the annual projection for the relative item during that year.

2. If the cancelised item form a significant part of raw material inventory, they may be shown separately.

3. Spares not exceeding 5% of total inventory or those expected to be consumed within 12 months, whichever are lower, may be shown against item I (ii).

4. Other current liabilities [item II (v)] will include installments of term loans/liabilities due within one year.

Name of the unit

Construction period          

OPERATING YEAR                    

_{1st      2nd     3rd      4th      5th       6th     7th       8th}    

   _{year    year    year    year    year    year    year    year}   

Particular

Year 1

Year 2

Year 3

Year 4

Year 5

The State-level financial institutions and commercial banks have devised a common Application Form for the use of entrepreneurs seeking assistance from them for setting up new projects, undertaking expansion or diversification of existing activities or carrying out modernisation/rehabilitation of plants. It is essential that entrepreneurs should examine their projects from various aspects-especially the market and profitability aspects before deciding to set up the projects. A well conceived and worked out proposal, making necessary arrangements to take care or the various issues connected with the project, would reduce the processing time to the minimum possible and would facilitate their expenditious appraisal by by the institutions/banks.

2.

In general, the questions included in the Application Form are simple and straightforward. Nevertheless, certain doubts are likely to arise in format of this nature which is meant for use by different types of business/industrial organisations and industries. Also, the precise import of some of the financial terms used in the format may not be readily intelligible to all. Hence, we have thought of preparing these explanatory notes for the benefit of the users of this form. Entrepreneurs/executives are requested to go through these notes carefully before filling up the forms. If any further clarifications in respect of the questions are required, the nearest office of the institutions/banks may be contacted for guidance.

3.

It may be ensured that all enclosures required to be furnished, as indicated in the Application Form and as may be applicable in a particular case, are submitted along with the Application. For this purpose the checklist given at the end will be useful.

Q.1.02

Indicate the address, telephone number, telegraphic address and telex number of various offices of the Company. Also indicate the address for correspondence. Against 1.02(e) indicate whether the proposed unit is in a backward area eligible for State/Central Subsidy. If eligible for Central Subsidy indicate whether "A", "B" or "C" category district.

Q.1.03

In case of any proposal to change the Constitution indicate both the existing and proposed constitution as also the probable date of contemplated change. In case of SSI units enclose a copy of SSI registration Certificate.

Q.2.01

The institutions would like to have full information on the promoters such as age, educational qualifications, fields of specialisation, if any, and experience in industry or business etc. If the promoters are to be considered as technician entrepreneurs the reasons for doing so may be explained. The information against Q.2.01 may be furnished separately in respect of each of the main promoters.

Q.2.02

The question is applicable to expansion projects or diversification or new projects promoted by an existing company.

Q.2.03

Particulars of all the directors of the applicant concern (i.e., the company for which assistance is sought) may be given in the following proforma :

Q.2.04

Here give the bio-data of senior personnel already appointed and the minimum qualifications and experience expected of other senior personnel proposed to be recruited. Indicate the timing when the key personnel will be in position.

A chart showing the organisational set-up envisaged when the company goes into production, may be attached. The chart should indicate the functions of each department, the names and designations of officials (if appointed) heading the department, etc., and the strenght of the supporting staff.

Q.2.05

The institutions would like to have the bankers’ report on the applicant company, each of its promoters and inrespect of companies/firms with which they are actively associated (i.e., as Chairman, Managing Director, whole-time Director, Trustee, Managing Partner, etc.). For this purpose authorisation letter(s) may be completed in all the above cases and addresed to the bankers before submitting the applications, authorising them to disclose the relevant information to any or all of the financial institutions such as SFC/SIDC.

Copies of the letters (as per proforma) to banks may be enclosed with the Application.

In case of more than one bank, indicate the names of all banks with separate Authority Letter for each of them.

Q.2.06

Indicate date of enquiry, purpose and promoter’s explanation. &2.07

Q.3.02
&3.03

Not applicable for new Companies.

Q.3.06

In case the name of the banker is different from that mentioned in Q.2.05, indicate the reason for change.

Q.4

Furnish a detailed information as is possible on the project as the basic information will assist the institutions to assess the viability of the project. It is likely that some arrangements have already been made toward project implementation, such as acquisition of land, appointment of consultants etc. In such cases give full particulars of the arrangements made along with copies of relevant documents. Wherever the arrangements are not finalised give details of the arrangements proposed. It may be ensured that due consideration has been given to the various aspects of project implementation and operation and that satisfactory arrangements have been made therefor. The Questions in this section will serve as a check list in this regard.

Note:

It may be ensured that the particulars furnished in this section tally with details given in the project report. In case of any difference because of rethinking on the project or passage of time, make proper indications in the relevant places in the project report. For example, if the product-mix assumed in the project report is changed, please indicate revised product-mix, sales value etc., in appropriate places in the project report.

Q.4.02

Give the capacity in respect of each of the proposed products as indicated in the proforma.

Q.4.04

Name a few companies using the same process as proposed by the applicant and also elaborate on the major technical and/or other problems faced by the companies using the process.

Q.4.05

Technical arrangements include the arrangements made of obtaining know-how, basic design engineering, selection of equipment suppliers and contractors, construction/erection, supervision, trial runs and staff. Part of these jobs might be undertaken by the company itself and partly through collaborators and consultants. Explain in detail the arrangements made/proposed to be made for each of the services required for the project. Furnish details of the collaboration and consultants as required under Q.4.06 and Q.4.08.

Q.4.10

While selecting the site for the project, the advantages and disadvantages of the site might have been taken into consideration. Enumerate in detail the advantages and disadvantages which were weighted by the unit before selecting the site and also highlight each of the factors which were considered most advantageous for the project, such as good transport facilities, nearness to market, availability of raw materials, water, power, labour, etc. For instance, in explaining the transport facilities that might be available for the project, describe the National and State highways passing nearby specifying the distances from the site of important business centres, nearest railway station, whether the railway line is on the broadgauge or on meter-gauge etc. Furnish data/information collected by the company to establish the suitability of the site with reference to rainfall, floods, cyclones, earthquakes, etc.

Describe in detail the topography of the land, elevation with reference to nearest highway etc.

Q.4.11

The area of land required for the project may be given separately for (a) factory building (b) ancillary building (c) open storage space (d) housing colony (e) area required for future expansion and (f) any other purposes to be specified. The following information may be furnished under each head:

1. Total area and cost therefor including conveyance charges. If the cost is higher than the current market price explain the reasons for such variation.

2. When the land is acquired/proposed to be acquired from a number of owners, indicate the area and the cost of each plot.

3. It is likely that part of the cost of land is payable in deferred installments or in kind, such as by issue of shares. Indicate the amounts paid in different forms such as cash, other than cash, deferred payments, etc. In case the land is taken on lease basis give separately the amounts of initial premium and the annual lease rent.

4. If the land is acquired/proposed to be acquired from any of the promoters/directors of the company or their relatives give full particulars such as the relationship, area of plot, cost etc. Also indicate the date of acquiring and price paid and expenses incurred by the promoter/director etc.

5. If the land for the project has been earlier used for agricultural purposes, it may be necessary to obtain the permission of the State Government for converting it into non-agricultural land. Contact the Industries Department of the State Government and obtain the approval of the competent authority and enclose a copy of such approval with the Application.

6. This information will be available from the soil test report for the plot. If it has been carried out, this may be got done through a proper agency. The Department of Agriculture of the State Government, University, etc. may be of some help in this matter.

Q.4.12

It may be explained how the buildings are proposed to be constructed i.e., whether through a contractor, by the unit’s own organisation, etc. In case the buildings are to be constructed through contractors, describe the process of selection of the contractor(s) and the reasons for selecting the contractors(s).

Q.4.13

If no Architect is proposed to be appointed, please give reasons why such an appointment is not considered necessary. While giving the past experience of the architect also give details of important works handled by them and the fees charged therefor.

Q.4.14

Here, explain how the (i) machienry/equipment and (ii) machinery/equipment suppliers have been selected. The equipment might have been selected on the advice of collaborators, turn-key contractors, technical advisers/consultants, promoters, etc. Similarly, the machienry/ equipment suppliers might have been suggested by the collaborators, consultants, etc., or selected through competitive bids. Give full details including degree of sophistication/obsolescence of the main equipment; and also explain the advantages of selecting the supplier(s).

Q.4.16
&4.19

The detailed specification preferably including any industrial standard of raw materials to required by the unit should be indicated. Price fluctuation of major raw materials during the last 3 years may be furnished indicating source of data.

Q.4.21

Furnish particulars of the electrical sub-station from which power would be made available, its distance from plant site, progress in extending the supply line, voltage at which power would be made available and other terms such as how the cost of extending the supply line would be borne, etc. Standby arrangements are generally meant only for meeting emergency situations. Such arrangements may be explained indetail, giving the capscity of the generator and the equipment proposed to be operated with the standby generator.

1. Give details of electricity tariff payable to the Electricity Board.

2. Cost of own generated power, if any, need not be included here, as expenditure incurred on self-generation will need to e covered elsewhere.

Q.4.22

1. Explain in detail the proposed arrangements for obtaining the water requirements for the project. In case of tube-wells, give the number of tube-wells proposed to be sunk and their capacities. If water is to be drawn from river, etc., give particulars regarding water flow in the river during monsoon and lean season, the length of the pipe line, number of reservoirs and their capacities, etc. Also explain whether the water has been analysed and found suitable for the use by the unit. If any water treatment is proposed, explain the arrangements envisaged and the capital cost thereof against 4.22 (a) (ii).

2. Give information separately regarding the requirements and sources of supply of compressed air, furnace oil, coal, etc.

Q.4.25

The proposed Schedule of implementation may be given separately for each activity indicated in this question. Also, give a brief write-up on the physical progress made as at the time of application for assistance.

It will be necessary to support the schedule of implementation by a bar diagram indicating the major activities. In the case of large projects, it will be advantageous to prepare a PERT Chart showing the implementation schedule and the critical path.

Q.4.26

If the promoters and/or the applicant company is planning to take up any more schemes either simultaneously with this project or in the near future, give particulars of such scheme(s), indicating, inter alia, the project cost, proposed means of financing and the arrangements made for meeting that cost of the scheme(s) and personnel for implementing and operating the project.

Q.5

Cost mentioned in this item should tally with that mentioned against item 4.11

Q.5.10

The technical know-how and engineering fees payable to foreign/Indian technical collaborators, consultants, etc. may be indicated here. Recurring annual payments in the form of royalty need not be shown here, but they should be included in the profitability statements.

Q.5.11

The estimated pre-operative expenses until the company goes into commercial production (according to the schedule of implementation) may be indicated here under the appropriate sub-heads. Interest and commitment charges may be calculated on the basis of expected drawals of funds depending upon the schedule of construction.

Q.5.12

The project cost estimates should include a contingency provision to meet any unforeseen expenses or expenses omitted inadvertently from the estimates. This provision is, however, not meant for taking care of the escalation in prices which can be anticipated at the time of estimating the cost of the project. Such escalation may be provided while arriving at the costs of various items such as buildings, machinery and equipment, etc. Contingency is also meant to take care of cost escalation which cannot be anticipated.

Contingency provision is normally made at a minimum of 10% of the cost of non-firm items in the project cost. Cost of items which have already been acquired or for which firm agreements have been entered into may be considered as firm cost items. All other expenses may be treated as non-firm cost items.

Q.5.13

The bulk of the working capital requirements is normally provided by the commercial banks. But a part of the working capital which is meant for providing the margin for bank borrowings is to be included as part of the project cost.

Q.6.02

In the case of existing companies, cash generation from the existing activities may be available for financing part of the project cost. This amount may be shown against "internal cash accruals" in the means of finance. It should be clearly established that the availability of internal accruals as envisaged is assured, by giving relevant facts and figures.

Q.6.04

Indicate here, separately the amount of foreign exchange proposed to be obtained from different sources, such as foreign currency loans from IDBI/IFC/ICICI, free foreign exchange from Government of India, import from Rupee payment area, Government to Government Credit, Suppliers’ credit, etc.

Q.6.06

The Total contribution which will be brought in by the promoter group may be shown here. Contribution from SIDC/SIIC etc., which form part of the promoters’ contribution, may be indicated clearly. 

Q.8

The entrepreneur shall ensure that there is a reasonable market potential for the product before taking decision to set up facilities for its manufacture. The fact that industrial licence etc., have been given by Government does not necessarily mean that the market aspect has been fully examined. The unit would be well advised to undertake a comprehensive market survey to establish the market potential to the satisfaction of the banks/institutions. The questions in this section are designed to elicit fuller information on the market prospects for the company’s products and the related issues.

Q.8.01

While answering this question, described the product, its major uses and present and future market prospects. If the product is a new one, intended to substitute an existing product, explain the special qualities/features of the product vis-a-vis the existing product which would be substituted. Bring out clearly the advantages of the unit’s product vis-a-vis the products of its competitors.

Q.8.02

Give data on the present installed capacity likely to materialised in each of the next few years and current production and expected production for the next few years. Figures of existing capacity and production would be available from publications like the Monthly Statistics of Production (published by the Central Statistical Organisation), Guidelines to Industries (by DGTD etc.) Some of the sources for the estimates of future demand are publications of the Planning Commission, DGTD, Chambers of Commerce and Industry, State Directorates of Industries, State Industrial Development Corporations, etc. There are a number of Consultancy organisations in the country which would also be able to undertake a detailed market study on behalf of the applicant.

Q.8.03

If it is proposed to export a part of the production (either because of a stipulation in to the industrial licence or for any other reason), give data regarding the export market, international prices during the last 2/3 years, etc. The information may include figures of the country’s export of the product to the various countries for the past few years and projected export demand made by the Export Promotion Councils, Development Councils, Trade Development Authority, etc.

Q.8.06

If the bulk of the production is expected to be sold to a few consumers, or the product is sophisticated and having limited market, please indicate the long-term arrangements, if any, made with such consumers of dealers in the products.

Q.10

The purpose of this section is to assess the economic benefits from the project accruing to the country, particularly in terms of foreign exchange earnings.

Furnish the international prices (f.o.b. prices for exports and c.i.f. for imports )of the finished product and of the major material inputs such as raw materials, etc. It is not necessary that the company should be importing or exporting the commodities. The figures of international prices are required by the institutions for calculating the benefits accruing to the country by indigenously producing or by exporting the products abroad.

The data for this purpose could be obtained from export promotion councils, industry associations, leading importers/exporters, foreign trade journals, etc., and the sources from which data have been obtained may be indicated in your replies.

Against Q.10.04 explain the company’s assessment in detail of the scope for ancillary industries to come up in the area as a result of the setting up of the proposed project.

Q.11

If any special conditions have been imposed in any of the approvals mentioned under these questions, please indicate how far these conditions have been complied with and steps taken to comply with the same. If the company has made any representation for deletion/waiver of the stipulation, copies of correspondence exchanged may be enclosed.