[On the Letterhead of USFBL]
Sanction Letter
Ref No: SCF /2021-2022/1 Date: 29/03/2022
To
M/S SHRI KRISHNA AIRTECH
H NO: 5-32/7, I.E.KUKATPALLY, BALANAGAR, RANGA REDDI, TELANGANA, 500072
Kind Attn: Mr. Sanjay Kumar Agarwal - Proprietor
Dear Sir/Madam,
Sub: Proposal for finance facility against invoices raised by you/SYSKA
on SYSKA LED Lights Pvt Ltd (“the Anchor”).
This has reference to our discussion on the captioned subject. We are pleased to
send you our offer in accordance to the approval received from our Credit
Committee. The terms and conditions of the sanction are as follows:
Borrower SHRI KRISHNA AIRTECH (“Borrower ”)
Bank Unity Small Finance Bank Limited (“Bank”)
Scheme Name Vendor Finance- SYSKA LED Lights Pvt Ltd
Type of Facility BOE Backed Bill Discounting/
Financing against invoices raised SYSKA LED Lights Pvt
Ltd (“Vendor Finance Facility”)
Purpose Bill Discounting Facility backed by BOE
Facility Amount Financial assistance not exceeding Rs. 30,000,000.00__]
(Rupees Three Crores Only) (herein referred to as the
“Facility”)
Margin NIL
Revolving 90 days from the date of each disbursement
Tenure
Invoice 11.0 % p.a. front ended, subject to change as may be
Discounting communicated by the Bank.
Charges In case of pre-payment, the excess interest amount will
be refunded.
Delayed ROI+ 2.0 % p.a. default interest on the overdue
Payment amounts for the period of delay to be borne by Borrower.
Charges The Delayed Payment Charges shall be over and above
the Invoice Discounting Charges charged on the Facility.
Recourse to the In the event of any rejection/short payment from the
Borrower Anchor, the Principal Amount along with interest, charges
and all other costs shall be recovered from Borrower.
Overdue/ The Bank shall have a right to set off any outstanding /
outstanding - over dues of the Borrower from any other facility availed
Setoff/ by the Borrower.
adjustment
Processing Fees 0.10% or Rs. 30,000_/- (non refundable) plus applicable
taxes to be paid upfront at the time of acceptance of the
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[On the Letterhead of USFBL]
Sanction Letter for the period From 29/03/2022 to
28/03/2023
Processing Fees to be credited in favour of Bank in the
following accounts details:
Beneficiary UNITY SMALL FINANCE BANK
Name LIMITED
Bank Name YES BANK LIMITED
IFSC Code YESB0CMSNOC
Virtual
Account No. CENFINPROFEE01
Legal Charges NA
Other Costs Borrower shall pay or reimburse Bank in respect of:
(i) Taxes if any;
(ii) Stamp duty or other charges payable on any of
the Transaction Documents as per applicable law;
(iii) Any Legal fees and expenses relating to
enforcement of any of the Transaction
Documents.
Further Bank shall have the right to recover all such costs
from the Escrow account, if any, in case the same remains
unpaid.
Security The Borrower shall ensure that the Facility (together with
all principal interest, liquidated damages, fees costs,
charges, expenses and other monies and all other
amounts stipulated and payable to the Bank) shall be
secured by:
1. DPN AND LETTER OF CONTINUITY
2. Personal Guarantee of Proprietor
3. 5 UDCs
If at any time during the existence of this Facility, the
Bank is of the opinion that the Security provided has
become inadequate to cover the Facility then the
Borrower/ Guarantor shall provide and furnish to the
Bank, to the satisfaction of the Bank, such additional
security as may be acceptable to the Bank to cover such
deficiency.
The security creation shall be a condition precedent to the
disbursement of the Facility Amount.
The security created shall be perfected within 15 (fifteen)
days from the date of creation of security.
Repayment The repayment would be through direct payment from the
Mode Anchor through registration of Power of Attorney / direct
payment to Bank’s bank account.
Or
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The Borrower shall ensure that all the Receivables from
the Anchor shall be paid into the Escrow Account opened
by the Borrower in favour of the Bank.
Documentation The Borrower shall provide the following:
1. MOA and AOA/Partnership Deed/any other
constitutional document of the Borrower;
2. Certificate of Incorporation/Registration;
3. KYC documents;
4. Sanction Letter duly accepted by the Borrower;
5. Board Resolution/Partnership Letter /LLP resolution/
HUF resolution for availing the Facility;
6. Copy/s of relevant invoices raised by the Borrower on
and duly accepted by the Anchor;
7. Copy of the Purchase Order;
8. Vendor Authorization Letter;
9. 5 Cheques favoring the Bank along with covering letter;
10. Signature Verification Letter of the Borrower;
11. Power of Attorney and Covering Letter for Power of
Attorney (wherever needed);
12. Undertaking for statutory dues;
13. RTGS letter; and
14. Any other document as specified by the Bank from
time to time.
15. USL sub-ordination of INR. 31.26 lakhs
16.DPN and letter of Continuity
17. Capital Retention undertaking of INR 109.60 lakhs
Cancellation of The Bank has a right to unconditionally cancel the
Facility Facility:
i. In case the Facility/parts of the Facility is not
utilized by the Borrower, and /or
ii. In case of deterioration in the loan accounts in any
manner whatsoever and/or
iii. In case of non-compliance of terms and conditions
of sanction.
Notwithstanding the above, the Bank without assuming
any liability shall be entitled to revoke, cancel, alter,
modify or change at any time any of the facilities
sanctioned at its sole discretion without assigning any
reason for the same. Likewise Bank shall be entitled to
alter, modify or change at any time any of the terms and
conditions of the sanction at its sole discretion without
assigning any reasons.
Information & a) Borrower will complete the documentation formalities
Other Covenants to the satisfaction of the Bank.
b) In the event of default the amount outstanding would
be first appropriated, at the discretion of the Bank,
towards the penal interest, normal interest and then
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[On the Letterhead of USFBL]
towards principal outstanding.
c) The Facility Amount would not be utilised for the
following purposes:
Capital market activities including
subscription/purchase of shares.
Repayment of dues of Promoters/Group Companies.
Extending Loans to Associate/Group Companies.
In real estate business activities.
Any purpose prohibited by RBI/FEMA
Any other speculative business.
d) The Borrower hereby agrees & gives consent for the
disclosures to the Bank of all or any such :
i. information & data relating to the Borrower;
i. information and data relating to any credit or loan
availed/ to be made available by the Borrower with
respect to the data relating to the
Borrower/Guarantor;
ii. obligations assumed/to be assumed by the
Borrower in relation to the credit facility(ies);
iii. default if any, committed by the Borrower in
discharge of the Borrower’s obligations hereunder
or under any Transaction Documents, as the Bank
may deem appropriate and necessary, disclose and
furnish to Credit Information Bureau Limited
(“CIBIL”) or any other agency authorized by
Reserve Bank of India (“RBI”) in this behalf.
The Borrower declares that the information and data
furnished by the Borrower to the Bank are true and
correct.
The Borrower undertakes that CIBIL or any other agency
so authorized may use/process the said information and
data disclosed by the Bank in the manner as may be
deemed fit by them. CIBIL or any other agency so
authorized may furnish for consideration the processed
information, data and products thereof prepared by them
to banks, Financial Institutions (“FIs”) or other credit
granters or registered users as may be specified by RBI in
this behalf.
The Borrower shall bear all costs, expenses and charges
in relation to the Facility including but not limited to the
Expenses
payment of relevant stamp duty and registration charges
for Facility / Security documents.
Rate of interest (invoice discounting consideration) may vary as per market
condition and will be decided by the Bank. Validity of the offer is 30(thirty) days
from the date of this letter.
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We request you to kindly return the duplicate copy of this Sanction Letter, duly
signed as a token of your acceptance, supported by certified copies of the
resolution duly passed by the Board of Directors along with relevant resolutions
of the shareholders under section 180 (1) (a) and 180 (1) (c) of the Companies
Act, 2013, as applicable, for acceptance of the said Facility.
Yours faithfully,
We acknowledge the contents of this offer
For Unity Small Finance Bank Limited and we are agreeable to the terms and
conditions herein:
For SHRI KRISHNA AIRTECH
Authorized Signatory
Name: Gunda Ashok Reddy
Designation: Relationship Manager
Authorized Signatory
Name: Sanjay Kumar Agarwal
Designation: Proprietor
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