1. ~ AXIS BANK
Reference No: SAG/BLR/247 /2009-10
Date: 20.11.2009
M/s Kon Chern India Pvt Ltd
Flat 1-A, Prema Apartments, NO.50,
11th Main Road, Malleswaram,
Bangalore-560003
Attn: Mr. Kishore K Swamy
Dear Sir
Sub: Sanction of Cash Credit limit of Rs.25.00 Lacs under CGTMSE Scheme.
With reference to your application dated 23.10.2009, we are pleased to advise sanction of
working capital facility as per the following terms and conditions:
l. Facility
2. Limit
3. Purpose
4. Disbursement
5. Security
Cash Credit
Rs.25,00,0001- (Rupees Twenty Five lakhs only)
To meet the working capital requirements of the
com an .
Working capital
To be disbursed as per drawing power
Primary:
• Firstcharge (exclusive) on the current assets.
other Security :
1. CGTMSE Guarantee Cover.
2. 2 PDC for the limit sanctioned
6. Margin on stocks
and receivables (in
case of working
ca ital
7. Rate of interest
8. Tenor
9. Repayment
10. Processing Fee
25%
Receivables up to 60 days will be eligible for drawing
power calculations
PLR- 2.50%, presently at 12.25 % p.a.
a able monthl
12 months
Working Capital: On Demand
1.00% on the sanctioned amount of Rs25.00 lacs +ST
Annual Service Fee as levied b CGTMSE
Quarterly
11. Guarantee Fee
12. Stock statements (in
case of working
ca ital
13. Other condition(s) 1. Any excess drawing (other than what has been
specifically approved in the scheme) or irregularity on
account of non-payment of interestl charges 1
~ ill attract penal interest of 2% .a.
. tB~.t." ~_
SME CENTR NO.:1 adri Road, Anand i~ angalore- 560009. Tel: 080 - 22379900, Fax: 080 - 2205 85011 '..,~'
Regist~~h"" Cpp.samorthe,w" ,empie,Ne" UowG"deo, Em,b"dge,Ahmed.b.d - 380006. "' .../J01 e or Director " Ire ,??>"y~/

2. 14. Validity of sanction
General Covenants
2. The security charged to the Bank including stock,
fixed assets,etc. should be comprehensively insured
with BankClause and the policy document/a copy of
the policy document to be submitted for Bank's
record.
3. The working capital limits are sanctioned for a
period of 12 months, Le. till 18th November 2010. The
borrower should note to submit the requisite data for
renewal of limits atleast 45 days before the expiry.
Continuation of limits on a lapsed sanction would
attract Denal interest of 2%.
The sanction shall be valid for acceptance upto 3
months, during which time, the terms of the facility
would have to be accepted by the Borrower
a) The Bank will have the right to examine the books of accounts of the
firm/concern/company and to have the retail outlets/god owns inspected from time to
time by officers of the Bank and/or outside consultants. Any expensesincurred by the Bank
in thisregard will be borne by the firm/concern/company.
b) The Bank may at its sole discretion disclose such information to such institution(s) in
connection with the credit facilities granted to the firm/concern/company.
c) The Bank shall have the right to listthe defaulted borrowers' names and particulars on the
Website of CGTSI.
d) During the currency of the Bank's credit facilities, the firm/concern/company shall not,
without the prior approval of the Bankin writing: -
i) Effect any major change in itscapital structure.
ii) Formulate any scheme of amalgamation/ reconstruction.
iii) Invest by way of share capital in or lend or advance funds to or place deposits
with any other concern. Normal trade credit or security deposits in the usual
course of businessor advances to employees, etc., are, however, not covered
by thiscovenant.
iv) Undertake guarantee obligations on behalf of another firm/concern/company,
subsidiary.
v) Declare dividends (in case of companies) for any year except out of the profits
relating to that year.
vi) Grant loans to promoters/partners.
e) The firm/concern/company shall provide ancillary businesswherever possible to the Bank
such as CMS,SalaryAccounts, credit card acquisition business,etc.
f) The firm/concern/company should not make any drastic changes in its management set
up without the Bank's permission
Far KONCHEM INDIA PRIV~
D''kV _

3. g) The firm/concern/company will keep the Bank informed of the happening of any event,
likely to have a substantial effect on their production, sales, profits, etc., such as labour
problem. power cut, etc., and the remedial steps proposed to be taken by it.
h) The firm/concern/company will keep the Bank advised of any circumstances adversely
affecting the financial position of its subsidiaries/sisterconcerns (if any) including any
action, taken by any creditor against any of the subsidiaries.
i) The firm/concern/company should furnishto the Bank, every year, two copies of audited
financial statements immediately on being published/signed by the auditors.
j) Theborrower shall furnishan affidavit that it isa SSI.
k) The funds from the above-mentioned credit facilities. shall not be used for
adjustment/payment of any debt deemed bad or doubtful for recovery.
I) The above-mentioned credit facilities shall not be covered under scheme
operated/administered by DICGC or RBI. Govt, General insurer, any person or AOP
carrying on the business of insurance, guarantee, indemnity, other than the Credit
Guarantee Scheme of CGTSI.
m) Theborrower shall not avail any credit facilities from any other bank / lending institution.
n) The primary security charged for the above-mentioned credit facilities shall not be shared
with any other credit facility.
0) The credit facilities shall not be transferred/assigned by the borrower to any other entity
without permission of the bank. In case there is any transfer/assignment the loan shall be
recalled at the sole discretion of the bank.
p) TheSSIstatus of the borrower shall continue throughout the tenure of the loan. In case the
SSIstatusisextinguished the loan shall be recalled at the sole discretion of the bank.
q) TheBank'sSchedule of Charges for variousservicesisenclosed.
r) The Borrower(s) shall be deemed to have given their express consent to the Bank to
disclose the information and data furnished by them to the Bank and also those regarding
the credit facility/ies to the Credit Information Bureau (India) Ltd. ("CIBIL").upon signing the
copy of the sanction letter. The Borrower(s)and Guarantor(s) shall further execute such
additional documents as may be necessary for this purpose.
You are requested to return duplicate copy of this letter duly signed by you/the authorized
signatory(s) of the company and guarantors on all the pages as token of acceptance of the
terms and conditions of sanction and arrange for execution of loan/security documents at an
early date.
Yoursfaithfully,
For KON CHEM INDIA PRIVATE u~
D~~ ~
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4. ..
Acknowledgement
I/We have read the offer letter ref. no. SAG/BLR/247/2009-10 dtd. 20.11.2009 and
accept the same and agree to the terms and conditions.
Borrower Date and Signature
For KON CHEM INDIA PRIV~
M/s Kon Chern India Pvt Ltd
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