The Chief Manager,Punjab National Bank,Phase-7, S.A.S Nagar,Mohali (PB)

Dear Sir,

SUB: - Cash Credit Limit– Rs. 25.00 lacs

INTRODUCTION-BUSINESS

“Bharat Securetech.” is a proprietorship firm having its office at shop No. 4

Sohana, Opposite Sec-78, SAS Nagar, Mohali (Pb). The said firm is being

Promoted by Mr. Swaran Dass a proprietor since July-2015. The firm is engaged in

the activities of trading and Installing of various security devices & system as per

the requirement of customers.The said firm is also registered under Punjab Vat Act,

2005 and Central Sales Tax Act, 1956 u/s 7(1)/7(2) with the Registration no

03532187354.

INTRODUCTION –PROPRIETOR

1. Mr. Ashutosh Choudhary, aged 35 years and a bachelor of

engineering in Electronics and communication (B.Tech) started his carrier in 2006

as software developer in M/s Alien Softnet Software Development (India) P Ltd.

During the year 2008-2010 he work in ICICI Prudential, Mumbai as IT Specialist

and done technical & application tech issues of their customers and also done man

y other project related to system.

In February 2010 to Nov-2014 he has shifted to La mode International and

has worked as senior marketing manager and look after the planning,

marketing, preparing and executing related activities for the company and

also dealing with print, online and television media and developed training

programs for the people in marketing team.

Nov-2014 onward he has worked in M/s India Softect Pvt. as Sr. Marketing

and Sales Manager and develop websites and also configure financial

gateway.

FINANCIAL POSITION

The brief financials of the firm are as follows: (Rs. In lacs)

PRODUCT RANGE

The major products being traded by Bharat Securetech

are as follow:

CCTV Camera

DVR

Video door phone

Bruglar Alarm

Fire panel

Access Control

Biometric.

LIST OF MAJOR CUSTOMERS

1. Pharmastar Int’l Trading Corporation, Philippines,

2. AMB HK Enterprises, Philippines.

3. Phil Rx, Philippines.

4. Cinpha Medical, Ivory Coast

Particular Actual 2015-16

Sales 22.57PBIT 2.25PAT 2.15Net worth 10.65

5. Ayuman Pharma Ltd, Cameroon

6. Damass Co. Ghana

7. Visa Pharma, Togo

8. Medikon Pharmaeuticals, Armenia

MARKETING SETUP

As said above in view of the same the firm have signed different agreements with

various Companies (Importers & Distributors) for sales of its formulation internationally.

In view of the growing market, we are also associating with other Merchant Exporters and

Sourcing Companies in India for outsourcing their products under private label etc. As per

the order received from them, the firm have decided to expand their product range and

manufacturing activities under its own manufacturing facility in same name Nishchay Lifesciences Inc.The world is fast moving towards biobetter / biosimilar products and as a result of this

trend the market for these products is increasing at double folds than its present market. In

this context we are in – licensing technology and formulation for two biobetter products viz.

Erythropoetin and peglayted filgrastim. Presently there are only seven manufacturers of

these products in India.

Presently we have done manufacturing/Job work activities on contract basis for the party on their sites by using their Plant & Machinery & Equipments but now we have proposed to setup our own manufacturing unit by installing new Plant & Machinery with the Annual installed capacity of Tablet-600.00 lacs, Amp 60.00 lacs, PFS 30.00 lacs & Vials 30.00 lacs to meet the ever increasing demand in the Market.

PROPOSAL FOR EXPANSION:

As we have been running our business under loan license arrangements since last 05

years and have established our contacts with various buyers of the products internationally

and domestically. In view of the increase demand of our products and confirm orders in

hand, we have decided to start up with our own manufacturing unit at C-65,

Chanalon,Focal Point S.A.S Nagar, Kurali (Pb.) in rented building. We also wish to add

biobetter / biosimilar products in this facility

In this facility we need granulation equipments, testing equipments, packaging

equipments, filling line, washing line, air handling units, batch coding machine, water

treatment plant, effluent treatment plant etc. After installation of these equipments and

production, we are expecting to increase our sales and turnovers.

As we have been running Job Work unit of Pharmacy Product for the last 6-7 years and

have established our contacts with various Manufacturers & Buyers of our products

domestically and internationally. In view of increased in demand of our products and

confirm order in our hand. We have proposed to setup our own manufacturing unit with the

installed capacity of Tablet-600.00 lacs, Amp 60.00 lacs, PFS 30.00 lacs & Vials 30.00

lacs p.a respectively to meet the ever increasing demand in the Market. We also wish to

add bio better/biosimilar products in this facility.

For the same, we need SS Pass Boxes Static, Sampling Booth both active & inactive

isolated, Dispensing Booth both active & inactive isolated, Air handling units with outdoors

and Duct Connections, Sampling Tools, Hot Air oven, Electronic Balance, Mass Mixer SS

316 Vessel, Cabinate, Multimill, Oscillating Grinder , Tray Dryer, Tablet Compression

Machine with die punch sets, Tablet Die Punch Storage Cabinet, SS Stirrer with SS

Vessel Disintergration Apparatus, Vernier Callipers, Bilister Alu-Alu with Die Sets, SS

Storage Containers, Control Panel AHU’S and Power Controlling of all Machines, RO

(water management) Effluent Treatment Plant, Spectrophotometer, Fuming hood, Stability

Chamber, Dynamic Pass Boxes and Chemicals and Glass wares etc.

FINANCIAL PROPOSAL TO THE BANK

a) FINANCIAL PROJECTIONS The brief financials of the firm for Estimated & Projected level are as follows:

(Rs. in laces)Particular Estimated

2016-17Projected2017-18

Sales 125.00 127.00PBIT 11.12 12.53PAT 7.74 9.15Net worth 15.19 20.26

Firm has Estimated & Projected Sale of Rs.125.00 laces & Rs. 127.00 laces during the F.Y 2016-17 & 2017-18 respectively and already achieved sale of Rs.22.57 laces upto 31.03.2016.

Firm will easily achieve the volume of Rs. 125.00 laces & Rs.127.00 laces on the basis of increase demand of our products & confirmed order in hand.

We have confirmed order in hand for during the F.Y.2016-17 & F.Y. 2017-18 which shall increase our capacity utilization as a result of which our sale shall be increase to 125.00 laces & 127.00 laces respectively from the existing level.

a) WORKING CAPITAL LIMIT

For the purpose of enhanced level of running of business operation & getting regular orders from our customers. We require enhanced working capital limits. The brief justification is as follows:

(Rs. In lacs)Particulars/Years  2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Estimated Projected Projected Projected Projected ProjectedTotal Current Assets (Form-IV-9) 42.46 47.93 53.38Other Current Liabilities (other than bank borrowings (Form-IV-14) 4.79 4.81 5.06Working Capital Gap (WCG) (1-2) 37.67 43.12 48.32 Min. stipulated net working capital: (25% of total Current Assets) 10.61 11.98 13.34 Actual / Projected net working capital (Form-III-45) 12.67 18.12 23.32Item-3 minus Item-4 27.06 31.14 34.98Item-3 minus Item-5 25.00 25.00 25.00 Max. permissible bank finance (item-6 or 7, whichever is lower) 25.00 25.00 25.00

WORKING CAPITAL JUSTIFICATION

We have considered the following inventory norms while calculating MPBF

Particulars/YearAudited

31.03.2014

Estimated

31.03.2015

Projected

31.03.2016

Holding Periods(in months)

Raw Material - 1.40 1.40

Work in Progress - 1.00 0.94

Finished Goods 1.20 1.96 1.77

Receivables-Domestic - 2.50 2.50

Receivables-Exports 2.10 1.48 1.30

Sundry Cred. 4.60 1.00 1.51

Raw Material: - The firm envisages level of holding at 1.40 Months for the F.Y 14-15 respectively and it takes about 40-50 days to receive the material from Supplier. Further the orders are normally placed at reasonable time in advance as there cannot be any discontinuity in the supplies. On that basis, we have estimated the Raw Material at 42 days.Work in Progress: - The firm envisages level of holding at 1 Months for the F.Y 14-15 respectively and it takes about 30 days to convert the raw material into finished goods. Therefore, we have estimated the Raw Material at 30 days .

Finished goods: - Once the Pharma Product is ready for sale, we have to stock material for at least 40-60 days as our experience in the line of business shows that we should maintain average stock of 40-60 days. Therefore, we have been estimated & projected the level of holding for 60 days.

Sundry Debtors: - We have Domestic buyers for our Products and services. Customers

have standard procedures of 75 days payment.

Sundry creditors: We have considered sundry creditors at 30-45 days for the F.Y 16-17.

Also please find enclosed detailed CMA showing Working Capital limit requirement for the year 2016-17

SECURITIES

1. Primary Security:For working capital limits – Hypothication of stocks and book debts.

Your are kindly requested to kindly

Sanction Cash Credit Limit of Rs 25.00 Lacs

Allow us concession of 50% in processing charges.

Kind Regards,

Bharat Securetech

Proprietor