POST SANCTION SCRUTINY REPORT BEFORE ISSUING SANCTION COMMUNICATION(Format – 1 Part A & B) / DOCNO / IAF02
PAGE NO / 1 OF 8
DATE / 15.5.2012
KERALA FINANCIAL CORPORATION
HEAD OFFICE: THIRUVANANTHAPURAM
FORMAT – 1
(Part A)
ACCOUNTS & AUDIT DEPARTMENT
POST SANCTION SCRUTINY REPORT BEFORE ISSUING SANCTION COMMUNICATION
Name of Branch Office: PSS/Branch Name/Serial No./FY 2011-12
Date of PSS:
Sl.No. / Particulars / Observations
1. / Name and address of the concern for which the loan is sanctioned
2. / Name and address of Chief Promoter
3. / Registered Office & Phone Number
4. / Constitution
5. / In case the unit is in other district, has the BO obtained necessary permission from higher authorities for processing the application? Specify
6. / Existing unit or New Unit
7. / If it is an existing unit, specify how long they have been dealing with KFC
8. / Regarding the experience of the Chief Promoter / promoters in the proposed line of activity and about their other/ earlier business experience
9. / Proposed line of activity / product
10. / Whether party has remitted advance processing fee on or before registration
11. / Whether the loan file contains all the papers / documents required for the scheme as per the check list and whether the files are properly numbered.
12. / Whether the application form, bio-data format, photo and signature attestation format, Affidavit etc. are duly filled in and contains required details and signed / attested in all respects
13. / Whether promoters have submitted the copies of government issued identity cards or passport or Electoral card or Driving Licence or PAN Card or any document issued by government for confirming their identity
14. / Whether preliminary scrutiny was done before registering the application. Is it signed by all the Officers present and also by the promoters
15. / Amount applied and the Scheme under which it is applied
16. / Amount sanctioned and the scheme under which it is sanctioned
17. / Whether the Appraisal Note is signed by all the team members and BM / CM
18. / Whether the Confidential reports are obtained by the Appraisal team / FO about the promoters. Is there any adverse observation?
19. / Whether the credit reports from the banks of the promoters / co-obligants are obtained? Is there any adverse observation?
20. / Details of the CIBIL reports Consumer & Commercial Reports.
21. / Promoters existing liabilities with KFC
Loan No. / Arrears / Balance o/s
22. / Verification of internal credit rating done?
Whether any OTS/Compromise settlement facility availed earlier. If yes, give details
23. / Whether the verification of documents relating to the landed properties offered as securities done?
24. / Sanctioning Authority
25. / Total exposure i.e. Existing Principal o/s plus proposed loan
26. / Date of sanction (date of BLC / ZLC / GMLC / MDLC / EC / Board)
27. / Whether the sanction is within the delegated powers of the sanctioning authority
28. / Whether the file contains a copy of the concerned minutes duly signed by all the Officers present.
29. / Internal rating done as per guidelines.
30. / External rating for loans above Rs. 5 crores/micro finance obtained from approved agency.
31. / Whether there is any discrepancy regarding the provisions of interest rate and rebate as stipulated in the Appraisal note
32. / Cost of Project
33. / Means of Finance
34. / Promoters contribution and DER
35. / Whether collateral security offered / available asset coverage is sufficient or not
36. / Details of working capital tie up made.
37. / Compliance of KYC/AML norms
38. / Final observations of Audit Team
Seal & Sign of Audit Team
Reviewed by GM / Approved by CMD / Issued by MRKERALA FINANCIAL CORPORATION |Accounts & Audit Department / 8
2011-12 / [POST SANCTION SCRUTINY REPORT BEFORE ISSUING SANCTION COMMUNICATION]
Format – 1
(Part B)
LEGAL ASPECTS
(DOCUMENTS RELATING TO INDUSTRIAL LAND & COLLATERAL SECURITY)
SL.No. / FREE HOLD LAND / STATUS YES/No /
REMARKS
1 / Title deeds (original).2 / Prior deeds (original).
3 / Location Sketch/Certificate from Village Offices.
4 / Survey plan and measurement sketch from Village Office.
5 / Possession and Non attachment certificate from Tahsildar/Village Officer.
6 / Latest land tax receipt from Village Office.
7 / Certified copy of Thandaper Account Adangal extract from Village Office.
8 / Building tax certificate from local authority.
9 / Encumbrance certificate for 13 years. If the title deed is executed before the above period, EC from the date of title deed to a maximum period of 30 years. Documents mentioned in the E.C. and release deeds of charges if any noted in the E.C. verified based on Title Report.
10 / Bio data with photograph and signature duly attested by Gazetted officer (Borrowers Co-obligants/Directors of company/Partners of firm).
11 / Electoral Identity Card./Pan Card/Pass port/Driving licence (Promoters, co-obligants/guarantors, directors of company & partners of firm) for identification.
12 /
Whether prima-facie title of security properties verified.
13 /Whether the loan applied is in the permitted category as per the SFC’s Act.
/ /14 /
Valuation in the audited Financial Statement
Gross BlockNet Block / /
FOR UNITS IN LEASED LAND/HIRE PURCHASE PREMISES OR OUTRIGHT PURCHASE LANDS IN DEVELOPMENT AREA OR INDUSTRIAL ESTATES
LEASED LAND
1 / Original lease deed in proper stamp paper. If lease is for 1 year or more whether the deed is registered. Copy of land Tax / Building Tax receipt obtained.
2 / Title deeds plus village records and EC of the leased land for verification
HIRE PURCHASE PREMISES OF AN INDUSTRIAL AREA OR INDUSTRIAL ESTATES.
1 /
Original allotment letter.
2 / Hire purchase agreement(certified copy).3 / Certified copy of plan of the property.
4 / No objection certificate for mortgaging the building and plant and machinery.
OUTRIGHT PURCHASE FROM GOVERNMENT
1 /Allotment letter.
2 / Copy of agreement.3 / Certified copy of plan of the land.
4 / Certificate evidencing remittance of entire cost of the land and no objection certificate for mortgaging land, building, plant and machinery.
5 / Copies of chellans of remittance of land value.
6 / Undertaking to hand over Patta directly to KFC when issued by Government.
PARTNERSHIP FIRM
1 / Original partnership deed with all required clauses in proper stamp paper.
2 / Acknowledgement of registration with Registrar of Firms.
3 / Certified extract from Registrar of Firms.
4 / If the industrial land is not in the name of the firm, documents evidencing transfer of the assets to firm(Either through registered deed or by incorporating necessary provisions in the partnership deed).
5 / If any partner has been retired, amendment deed evidencing the same/reconstitution deed if any.
6 / Evidence of the settlement of accounts with retired partner, paper publication and registration of retirement with registrar of firms.
7 / Whether the Borrowing power envisaged in the Partnership Deed.
8 / Audited Financial Statements/Annual Reports for last 3 years.
COMPANY
1 /
Memorandum of Association.
2 / Article of Association.3 / Certificate of incorporation.
4 / No charge certificate from ROC or search report from company secretary.
5 / List of Share Holders and certificate regarding the details of present directors from ROC or search report from Company Secretary.
6 / Resolution empowering the Managing Director/Directors to apply for loan.
7 / Whether the sufficiency of paid up capitals/Reserve verified.
8 / Whether the Company has the Borrowing power as per Memorandum of Association and object of business checked.
9 / Audited Financial Statements/Annual Reports for last 3 years.
SOCIETIES
1 /
Certificate of Registration.
2 / Certified copy of resolutions of the governing Body and general Body.3 / Bye law of the Society.
4 / Borrowing Powers of the Society.
5 / List of Present executive members of the governing Board.(Certified by authority).
6 / Audited Financial Statements/Annual Reports for last 3 years.
TRUST
1 / Specify whether Private Trust or Public Trust
2 / Trust Deed (Original).
3 / Details of Trustees and Beneficiaries. Evidence to show that the trustees are entitled to avail loan and mortgage the trust properties.
4 / Audited Financial Statements/Annual Reports for last 3 years.
LEGAL DOCUMENTS TO BE CHECKED AT SANCTION STAGE
1 /
Legal scrutiny report and title clearance.
2 / Valuation report of security properties and identification report .3 / Legal compliance of condition before loan sanction
Reviewed by GM / Approved by CMD / Issued by MR
KERALA FINANCIAL CORPORATION |Accounts & Audit Department / 8
REPORT OF THE PRE DISBURSEMENT AUDIT(Format – 2 Part A & B) / DOCNO / IAF03
PAGE NO / 1 OF 4
DATE / 15.5.2012
FORMAT – 2
(Part A)
ACCOUNTS & AUDIT DEPARTMENT
REPORT OF THE PRE-DISBURSEMENT AUDIT OF Rs...... LAKHS IN THE CASE OF M/S...... ………………………………………………
Name of Branch Office: PA(D)/Branch Name/Serial No./FY 2011-12
Date of post-disbursement audit:
1. / Loan No.2. / Name of unit
3. / Existing unit or New unit
4. / Loan sanctioned with date
5. / Type of loan
6. / Date of Legal Clearance Certificate
7. / First or subsequent Disbursement
8. / Whether all the conditions in the sanction communication complied with before the disbursement. If the answer is no. specify the conditions which is not yet complied with
9. / Is any written undertaking obtained from the promoter regarding the compliance of hitherto non-complied conditions
10. / Is this (above) non-compliance of the condition detrimental to the interest of the Corporation.
11. / Is any condition waived? If yes, mention the waived condition and the authority who waived it.
12. / Amount proposed to be disbursed with the purpose for which it is going to be disbursed
13. / Eligible amount for disbursement as per norms
14. / Whether all the conditions i n the pre-sanction audit is complied with. If not give reasons.
15. / Whether all the conditions in the previous pre-disbursement audit is complied with.
16. / No. of disbursements effected with date, amount & purpose. (Disbursements effected during the audit period need be considered)
Sl.No. / Amount / Date / Purpose
17. / If it is a loan take over, specify the details like Bank, outstanding balance, asset classification etc.
18. / Whether necessary valuation conducted & report submitted (inclusive of utilization of previous disbursements)
19. / Whether there is any deviation or not. If yes, brief the deviation and about approval of the deviation.
20. / Whether all the bills/invoices and receipts for payment are received in the case of disbursements for plant & machinery.
21. / Whether the duly filled up stamped receipt obtained from the party and filed.
22. / Whether the assets created/mortgaged are insured & copy of policy obtained and Date of expiry of insurance policy.
23. / Other observations, if any:
Manager (Accounts & Audit)
Reviewed by GM / Approved by CMD / Issued by MRFormat – 2
(Part B)
LEGAL ASPECTS
Sl.No. / Documents Checked / Status Yes/No. / Remarks
PROPRIETARY / PARTNERSHIP
1 / Whether the sanction letter accepted by all concerned.
2 / Whether processing fee remitted.
3 / Whether title of properties cleared in the legal scrutiny report and all the required documents produced.
4 / Whether sufficiency of security for the loan sanctioned checked.
5 / Whether the loan agreement properly executed in the correct format and in stamp paper as per norms.
6 / Whether the title documents are properly deposited.
7 / Whether confirmation of deposit letter properly executed.
8 / Whether Hypothecation executed is in correct format and in stamp paper as per norms.
9 / Whether declaration adduced is duly notarised by Notary Public.
10 / Personal guarantee deed of all concerned executed in proper format and witnessed.
11 / Whether balance EC produced. Current Land Tax/building receipts available.
12 / Whether all Special conditions of sanction complied.
13 / Confirmation regarding non-existence of any statutory charges or other charges on the mortgaged assets obtained.
14 / Whether documents signed are duly stamped and property executed and signed by all concerned.
15 / Whether correct format is used for execution of security documents.
16 / Whether the title deeds and security deeds are kept in safe custody and proper book entry effected.
17 / Whether all the general conditions and special conditions of sanction are incorporated in the security documents.
18 / Whether all the pages of the security deeds are signed by authorised signatories/sealed and properly witnessed.
19 / Legal clearance certificate issued by Legal Department.
COMPANY
1 / Whether the security deeds are executed by authorised persons in accordance with the Memorandum and Articles of association.
2 / Whether the common seal is affixed as prescribed in the Articles of Association.
3 / Whether the person signing the documents are same as authorised by the concerned Board of the Company.
4 / Whether Form 8 & 13 filed and charge registered with ROC.
TRUST/SOCIETY
1 / Whether the Security deeds are executed by authorised persons and charge created are properly recorded with seal of concerned authorities.
CORPORATE GUARANTEE
1 / Whether Board Resolution from Guarantor Company has been obtained for guarantee.
2 / Whether necessary resolutions obtained from the company for execution of the security deeds and executed by authorised persons.
3 / Whether common seal of company affixed as per rules.
4 / Legal opinion obtained and guarantee has been duly stamped, executed by authorised persons.
Reviewed by GM / Approved by CMD / Issued by MR
PRE-AUDIT REPORT OF THE COMPROMISE SETTLEMENT PROPOSAL (Format – 3 ) / DOCNO / IAF04
PAGE NO / 1 OF 2
DATE / 15.5.2012
FORMAT - 3
ACCOUNTS & AUDIT DEPARTMENT
PRE-AUDIT REPORT OF THE COMPROMISE SETTLEMENT PROPOSAL OF
M/S. ……………………………………………………………………………
Name of Branch Office: PSS(CS)/Branch Name/Serial No./FY 2011-12
Date of pre-audit: