M/s SWASTIK POLYMERS

11th March, 2013

To
The Chief Manager
Bank of India,
Vapi.

Dear Sir,
Sub: Application for Take over Cum Enhancement of C.C. from Rs. 20.00 lacs to Rs. 50.00 lacs &
Fresh Term Loan of Rs. 26.25 Lacs.

With reference to the above cited subject we seek an opportunity to apprise you that the firm has
approached your esteemed Bank for the application for take over cum enhancement of CC from
Rs. 20.00 Lacs to Rs. 50.00 Lacs & fresh Term Loan of Rs. 26.25 Lacs.

Introduction of the Firm: -

M/S Swastik Polymer, a partnership firm, was incorporated by Shri Ravi R. Jain and Shri Ramesh D.
Maisheri in the Year 1998, having the manufacturing unit at Plot No 58, Survey No 342/3, Bharat
Industrial Estate, Bhimpore, Daman (U.T. of D & D). The New Partnership Firm has commenced on
and from 1st April 2009. The firm is in Manufacturing of PVC Lay Flat Tubings and other plastic
products. The product is quite remarkable for its multiple uses in various application of packaging
covering & manufacturing of different utility products.

Products overview:

M/S Swastik Polymers offers a wide range of high quality different types of PVC Lay Flat Tubings
and other plastic products. These products will be appreciated in this market owing to their
durability and high strength.

Application/Uses & features of the Products:

PVC LAY LAT TUBING:

Used for packing the material.
Used in manufacturing of bags.
Used in manufacturing of inflated toys.
Used in adhesive tape & Stickers.

Features:
Durability
Longer life
High strength
Available in various colour
Available in both forms transparent and opaque.
 M/s SWASTIK POLYMERS
Introduction of Proprietor :-

Shri Mahavir Rikhabchand Jain

Shri Mahavir Rikhabchand Jain is a graduate, residing at 103, Mithun Park B, Ajit Nagar, Chala,
Daman Road, Vapi. He is in the same industry since 1998.

Shri Shakalchand Rikabchand Jain

Shri Shakalchand Rikhabchand Jain residing at 38, Dudheshwar Society ,Ajwa Road , Vadodara
Gujarat -390019 He is commerce graduate with excellent experience in the same industry He
started his carrier with M/s Punisha Plastic industries Baroda .

Location of the Project: -

Office Address:-
Plot No 58, Survey No 342/3, Bharat Industrial Estate, Bhimpore, Daman-396210

Location Advantages:-
Bhimpore is well-developed industrial area with many big industries set up; as such
Skilled, Semiskilled and Unskilled labour are easily available.

Bhimpore, is very close to connected with N.H. 8 and also near to Vapi Railway station,
so necessary transportation is available at reasonable rates.

The Location of the company is in the well-developed industrial area having good
infrastructure facilities.

Sources of utilities, power, man power etc.:-

Power: The firm have sufficient power connection supply to utilize the maximum
capacity of the production.

Transportation: Bhimpore, Daman is well connected to rail & road ways. Hence
transportation of any material from firm to outside or from outside to the firm will not
be a problem.

Water: In our business water is required for production. It is easily available required for
human consumption which is easily available.

Communication: STD, ISD, FAX, Mobile and Internet facilities are available in the area.

Man Power: The company will appoint following category of employees:

 M/s SWASTIK POLYMERS

Category No. of Emp.

Accountant 1
Machine Operator 4
Production 1
Supervision 1
Skilled Labour 8
Unskilled Labour 6
Total 21

Raw materials:

Raw Materials required: -

Following are the list of raw materials required for the production process
Pvc resin
DOP
Tin Stabilizer
CPO
Appoxy
Industrial Scenario

Plastic Industry & Market Overview

The plastics processing industry is prominent in every aspect of modern life. As new
polymers and composite materials are introduced by the chemical industry, the industry is
constantly refining and adding products to those that have been made over many decades.
In its early years, the plastics industry greatly benefited from the substitution of plastic for
other materials including various metals, wood, paper, glass, cardboard and natural fibers,
etc. However, as a mature industry, the possibilities for substitution are limited, leading to
greater dependence on economic growth and the expansion of demand in plastic's existing
markets. The industry is also vulnerable to volatility in the global price of oil and gas feed
stocks, used by the chemical industry to produce its raw and semi-finished materials.
The leading markets for plastics are in packaging, building and construction and the
automotive/transport industries, all of which have generally been buoyant. However, a
number of other industries which use some form of plastic, e.g. the textile, clothing,
electrical, electronic, mechanical engineering and agricultural industries, have experienced a
profound downturn in demand, as they struggle to adjust to changes in the market for their
products and against a rising tide of imports.

Justification for fund based working capital:-

 M/s SWASTIK POLYMERS

The cash credit limit will be needed by the Firm as the proprietor is presently engaged in
manufacturing of PVC Lay Flat Tubings and other plastic products. In the name of M/s.
Swastik Polymers Looking for the growth and demand of the product Proprietor of the firm
has decided to expand his business and for production the firm requires the raw materials to
be purchased in bulk for their production process. Many suppliers do not provide the raw
material on credit basis therefore the firm has to purchase the same on cash. For that
purpose the firm has requested raise the cash credit from Rs. 20.00 Lacs to Rs.50.00 Lacs.

Sales: - (Rs. in Lacs)

Particulars 2011-12 2012-13 2013-14 Accepted for assessment
31.03.2014
Audited Estimated Projected Projected
Net sales 323.32 375.05 414.43 375.05
Total 323.32 375.05 414.43 375.05

Comments:
The Firm has achieved sales of Rs.323.32 Lacs for the F.Y. 2011-2012. The Firm estimated
sales of Rs. 375.05 for the F.Y. 2012-13, firm have already achieved sales of Rs.343.17 Lacs up
to Feb 2013. The firm has projected sales for the F.Y 2013-2014 is 414.43 which will be easily
achievable.

Holding Level Accepted for

(period in 31.03.2012 31.03.2013 31.03.2014 assessment
months) 31.03.2013
Particulars Audited Estimated Projected
Raw Material 1.14 1.10 1.10 1.10
Finished goods 0.10 0.13 0.13 0.13
Receivables 3.47 3.35 3.15 3.35
Creditors 2.67 1.70 1.70 1.70

PRODUCTION PROCESS

1. Raw Material
2. Dry Blend
3. Compound
4. Lay Flat Tubing

PVC DRY Blend

The process is very simple PVC Resin,DOP,Polyflex,Stabilizer, & Anti Blowing Agents are taken in
required proportions and then kept the same in High speed Mixer which mix all the
 M/s SWASTIK POLYMERS
components together and gather to form PVC Dry blend in Blend form. This is packed in25 Kgs. per
Bag and it is sold in the market.

PVC Compound

The Dry Blend (which is As per above Process) Passed through a extruder by pouring at hoper and
after passing melting through zone they are converted in to wire at die neck and it is cooled by
passing through water tank and with the help of paradise, it is cutted in granulate form. The said
granules are packing in 25kgs. Per bag and it is delivered to customer as per order.

PVC LAY FLAT TUBING

The said Granulate (formed through above process) Passed through the film extruders with the
help of Hooper and after passing through melting zone from point of die it is pulled up and
through take up winders for different sizes compressor and air rings are used and finally it is
winded up in roll form and after getting packed it is sold In the market.

CHARGEABLE CURRENT ASSETS (Rs. in Lacs)

Accepted for
31.03.2012 31.03.2013 31.03.2014 assessment
Particulars Audited Estimated Projected 31.03.2013
Raw Material 25.51 29.47 31.56 29.47
Finished goods 2.52 3.75 4.14 3.75
Receivables 93.52 104.70 108.79 104.70
Total 121.55 137.92 144.49 137.92
(Rs. in Lacs)
Other Current 31.03.2012 31.03.2013 31.03.2014 Accepted for
Assets: assessment
Particulars Audited Estimated Projected 31.03.2013
Cash & Bank balance 2.43 3.50 3.41 3.50
Other Current Assets 6.46 9.89 11.70 9.89
Total 8.89 13.39 15.11 13.39

(Rs. in Lacs)
OTHER CURRENT Accepted
LIABILITIES: 31.03.2012 31.03.2013 31.03.2014 for
Particulars Audited Estimated Projected assessment
31.03.13
Creditors 59.88 45.55 48.78 45.55
Other current liabilities 11.91 15.09 17.40 15.09
Total 71.79 60.64 66.18 60.64
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(Rs. in Lacs)
NWC AND CURRENT Accepted for
RATIO: 31.03.2012 31.03.2013 31.03.2014 assessment
31.03.13
Particulars Audited Estimated Projected
NWC 50.09 40.67 43.43 40.67
Current Ratio 1.62 1.37 1.37 1.37

MPBF (Maximum Permissible Bank Finance)

(Rs. in Lacs)
Sr. Particulars 2013 2014
(Rs. In Lacs) (Rs. In Lacs)
1 Total Current Assets 151.31 159.60
Other Current Liabilities (other than bank 60.64 66.18
2 borrowings)
3 Working Capital Gap (WCP) (1-2) 90.67 93.43
4 Minimum stipulated Net Working Capital - 25% of 37.83 39.90
total current assets other than Export Receivables
5 Actual/projected net working capital 40.67 43.43
6 Item 3 minus item 4 52.84 53.53
7 Item 3 minus item 5 50.00 50.00
Maximum permissible bank finance (item 6 or 7 50.00 50.00
8 whichever is less)
Excess borrowings, if any representing short fall in
9 NWC (4-5) - -
Comment:
As per the above assessment MPBF works out at Rs. 50.00 Lacs for the F.Y. 2012-13 and F.Y.
2013-14. The firm has requested for Rs. 50.00 Lacs.
Justification for Term Loan (For LAND)
The firm is requested for term loan for purchase of land for the firm. The firm is engaged in
manufacturing of PVC Flat Tubing and other plastic products at Plot No 58, Survey No 342/3,
Bharat Industrial Estate, Bhimpore, Daman-396210 which is on rental basis and present the
firm wants to purchase this land for the own premises. So here the firm is requested to bank
for the term loan of Rs 26.25 Lacs for purchase of same land.
Securities offered:
Primary Security:-

Cash Credit: Hypothecation of Stocks & Book Debts.

Personal Guarantee: -
1. Shri Mahavir R. Jain
2. Shri Sankalchand R. Jain
3. Smt. Sushila M. Jain
 M/s SWASTIK POLYMERS

We hope you will consider our proposal favourably at your earliest and oblige us.

Thanking You,
Yours Truly,

For, M/s Swastik Polymers

Partner