Unit inspection

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Unit Inspection

Indirect tools: QIS, Stock statement, market reports, Accounts, Operation in the account etc. Direct tools: Unit Inspection, stock inspection etc.

What is Unit inspection?

Unit inspection means ensuring that the unit to which the bank has lent its funds is being run in a satisfactory manner. Its scope goes beyond stock statement scrutiny or even stock inspection. Unit inspection goes beyond arithmetical or physical correctness of the stocks. The scope of unit inspection covers ensuring whether there are orders on hand, licenses are renewed and taxes & statutory dues have been paid in time etc.

What is the Aim of Unit inspection?

To ensure that the security charged to the Bank: - Tallies with the statement. Is adequate to cover the advance. Is easily marketable at the value stated. Proper inventory control is exercised to avoid excessive stock.

The unit which is being inspected is: - Run in a proper manner. For the prescribed activities. In a profitable way. Observing all the stipulations of the business.

Modalities of unit inspection

The person undertaking the inspection has to remember that he is representing the Bank. Before the inspection

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During the inspection After the inspection

Preparation before the inspection Studying of: Stock statements Annual accounts Projections, QIS Operations in the account Correspondence with the party TOD limits sanctioned during the year Projections submitted at the time of availing of advance. Scrutiny note Comparison of projections with stock statement and annual accounts etc. Whether documents are in force? Whether any compliance is pending? Insurance policy. To conduct analysis of variance during the inspection. To study whether the assumptions underlying the business plan were appropriate. Compliance of terms of sanctions by the borrower. Whether any amount is overdue?

At the time for inspection

Whether all licenses has been renewed? Whether all statutory payments have been made on due dates? To confirm the proper upkeep of the various securities charged in favor of the bank such as machinery, equipment, furniture & fixture, premises etc. In case of pledged goods, ensure that they are stored in godowns as per the Bank’s requirement. Whether Bank’s hypothecation board has been displayed? Confirm the security arrangements at the premises, insurance, fire fighting arrangements etc. Observe the working atmosphere in the unit. To verify stock register, Returns and other relevant records.

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To verify order booking position. (UEOB-Unexecuted Order Book) To verify production records, ascertain capacity utilization. Verify level of stock holding at various stages. i.e. RM, WIP, FG. Whether stock of machinery spares is adequate?

After the inspection.

As soon as the inspection is over, the representative should finalize the report based on notes prepared before undertaking the inspection and observations made at the site. All the positive and negative angles should be brought out in the Report without fear or favor. The process of inspection should help in assessing the merits and weaknesses of the unit, the deviations if any and justifications thereof. This will also help the Bank in knowing the risk factors in a particular finance, and decide the credit rating.

Inspection Report

• Points to be covered: • Borrower. • Location. • Loan O/S. • Overdue. • Classification. • Position of security. • Max. Permissible Bank Finance. • Insurance. • Licenses & other statutory payments. • Inspection of stock-general points. • Storage. • Stock records. • Verification of stocks. • Inspection of Fixed Assets. • Inspection of Premises.

Conclusion

This handout aims to highlight some of the important points for conducting

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unit inspection. It is not possible to prepare a model guide of unit inspection due to complex factors such as nature of business, industry norms & practices, quantum of advance, relationship of the borrower with the bank etc. The performance of the borrowal unit is a major factor for the success of any Bank and unit inspection is one of the tools to gauge the performance.

Inspection:

I: Identify N: New / Old S: Security P: Permissions E: Exhibit of bank’s name board C: Condition T: Installation I: Insurance O: Operation N: Location

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Practical Tips for carrying out Inspection

Plant & Machinery

Sr. No.

1 Carry quotation, bill and installation report of equipment. 2 Verify machinery with reference to above. Confirm make, serial number,

Manufacturer and capacity. 3 Observe machinery condition & working. 4 Enquire about machinery spares, servicing, annual service contract etc. 5 Whether bank’s name board has been affixed / painted on the machinery? 6 Take photos of the equipment from front, rear & side. 7 Make sketch / layout of shop floor showing installation of various

equipments. 8 Enquire about machinery breakdown? 9 Whether machinery breakdown insurance has been taken? 10 Whether fire extinguishers have been installed near machinery? 11 In case of moving machinery, whether protective railing has been

installed?

Computer Sr. No.

1 Carry quotation, bill and installation report of computers system. 2 Verify monitors, key- boards, modems, CPU with reference to above. 3 Observe the atmosphere of the location. Is it dust free? Is it clean? 4 Whether computers are in working condition? 5 Enquire about servicing, AMC? Whether preventive maintenance is

carried out? 6 Whether earthing is proper and checked periodically by electrician? 7 Configuration can be checked by pressing pause key when computer is

booted and also from control manager---system. 8 Whether Anti-virus software has been installed? Is it updated

periodically? Is it original or pirated? 9 Whether UPS / voltage stabilizer has been installed? 10 Whether proper servicing is carried out? 11 Whether printers are in working condition?

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Vehicle

Sr. No.

1 Private (white number plate) Commercial (Yellow number plate) Tourist (t)

2 RTO Regd. No. MH-Maharashtra. 01-B’bay central, 02- Andheri, 03- Ghatkopar, 04- Thane

3 Verify Chassis number & Engine number of the vehicle. Take Pencil impression of Chassis number & Engine number.

4 Whether PUC is valid? 5 Verify Insurance policy, note down bank clause, permit, vehicle fitness

certificate. 6 Observe general condition of the vehicle. Colour, Body, Tyre condition

etc. 7 Note down the Kilo Meter reading. 8 Whether no claim discount has been given in the insurance policy? 9 Whether steering lock & petrol tank lock has been fitted? 10 Whether tourist permit has been obtained? 11 Insurance company does not entertain the claim if vehicle is used for

hire, racing unless specifically disclosed?

Shop Sr. No.

1 Verify Shop & establishment license, BMC permission, Weights & Scale license, Shutter license, Neon sign licenses, Health dept. permit, Drug license etc. depending on type of business.

2 Whether fire extinguishers have been installed and the same are in working condition?

3 Make sketch of shop layout, storage racks, Furniture. 4 Whether shutter center lock has been fitted in case length of the shutter

is more than say 8’-10’? 5 Enquire about area of the Godown & shop? 6 Select 2-3 racks at random & estimate the stock. 7 Compare the physical stock with sum insured in the policy. 8 Photographs should be taken in sequence. E.g. clockwise.

9.1 Ascertain how stock statement is prepared every month for submission to Bank?

9.2 Obtain detailed stock statement on yearly basis.

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10 Wine shop: Verify excise records for purchases, sales & stock. Refer daily brand wise stock register.

11 Chemist: Expired stock? Recruitment of Qualified D. Pharma assistant is compulsory. Note down the name of the said staff. Whether AC is installed?

12 Cloth merchant: Count number of Sarees, shirt pieces, trouser pieces, shirting rolls etc and estimate the stock value.

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Bank: Branch Post Disbursement Report Date of visit

Sr. No.

1 Name of the borrower

2 Constitution Proprietary firm / Partnership / Pvt. Ltd. / Public ltd.

3 Branches

4 Nature of business

5 Place of visit Office: Godown: Factory:

6 Telephone Office: Godown: Factory: Residence:

7 Name of the person met & Designation

8 Security offered Stock Rs. Debtors Rs. Property Rs. 9 Details of machinery offered as

security & other equipments

Description Original Cost WDV

10 Details of collateral security

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Description Original Cost WDV

11 Details of existing Loans Rs’000 Loan A/C

Loan Sanctioned on

O/S Due date Overdue

Principal Interest Total

CC Last 3 months Debit summations Credit summations Whether Credit summations are commensurate with CC

Limit?

12 Stock statement submission

is Regular / Irregular / Late / At a time

Last stock statement on record

13 Whether bank’s name board has been displayed?

14 Details of insurance policy Policy no. Sum insured Rs. Date of expiry Risk covered Property covered Whether S.I. is adequate?

15 Stock at the time of visit (Working sheet enclosed)

Rs.

16 Book debts as on > 90 days Rs. < 90 days Rs. 17 Creditors as on > 90 days Rs. < 90 days Rs.

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18 Staff strength at the time of visit

Office staff Labour

19 Visit Report in brief Attach separate sheet.

19.1 S&E Certificate valid up to 19.2 Business License valid up to 19.3 Safety measures 19.4 Whether LY Accounts,

IT Return is on record?

20 Inspection Team Name Designation Signature

Notes:

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Inspection Report-Term Loan Report No: IR /

Date Date of visit:

A Borrower: 1.0 Name

Constitution 2.0 Location:

Office

Telephone

Factory

Telephone

3.0 Loan A/C No: Branch: 4.0 Loan Details:

Term loan Security No. of installments Of Rs. p.m. From 5 O/S as on Term Loan

6 Overdue as on Installments No. of installments Interest Interest recd. Up to

7 Classification of loan as per RBI

guidelines as on 31-03- Standard / Sub-standard / Doubtful ( )

B Position of Security: RS.’000 1 Value of security O/S Unsecured Term loan 2 Original cost of

Date of purchase Less: Depreciation @ % for

months

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WDV as on Approx. Market value as on

3 Collateral security

C Insurance: 1 Assets covered Location Sum Insured Policy no. Expiry Actual value Excess / Shortage 2 Risks covered

3 Risks to be covered / Insured Fixed Assets

4 Whether Bank clause has been attached with Insurance policy?

Yes / No

D Licenses and other statuary payments: 1 Factory license renewed up to 2 Shop & establishment renewed up to 3 Rent paid up to On 4 Municipal Taxes paid up to On 5 Water charges paid up to On 6 Power / electricity charges paid up to On 7 Provident Fund paid up to On 8 ESIS paid up to On 9 Sales tax / VAT paid up to On 10 Sales tax VAT /Assessment completed up to 11 I.T. Return for P. Y. Filed on

12 Advance Tax for A.Y. (P.Y.)

Installment Paid up on

13 Income Tax Assessment completed up to 14 Excise duty returns submitted up to

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15 Whether P&L and B/S of P. Y. has been submitted to Bank

E Inspection of Fixed Assets: E-I Plant & Machinery , Furniture & Fixtures , Equipment etc 1 Whether list of Fixed Assets offered to

Bank as security is on record?

2 Whether various items are in working condition?

3 Whether in house periodic maintenance schedule has been laid down?

4 Whether service contracts have been entered into for major items?

5 Whether machinery spare parts are held in stocks?

If yes, whether useful? 6 Whether various items have been

numbered?

7 Whether fixed assets are verified periodically?

8 Are there any damaged / obsolete items of fixed assets?

9 Are there any physical safeguards against Theft or loss of tools and other movable equipment?

10 Whether the name plate indicating Bank’s hypothecation charge is fastened securely To or that the lending Bank’s name is painted on the machinery?

11 Whether boiler inspection has been carried out?

12 Original Cost Less: Depreciation WDV as on

13 Whether Fixed Assets Register has been maintained?

14 List of machinery inspected is attached

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E-II Building: 1 Whether flat, gala needs any repairs? 2 When it was painted last? 3 Whether building fitness certificate has

been obtained every year from civil / structural engineer?

4 Condition of flat / gala 5 Original cost RS. Year of Purchase Area

Market value approx. @ Rs. Rs.

Notes:

Name Name Name Name Borrower Designation Designation Designation

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Inspection Report- Cash Credit & Term Loan Report No: IR /

Date Date of visit:

A Borrower: 1.0 Name

Constitution 2.0 Location:

Office

Telephone

Factory

Telephone

3.0 Loan A/C No: Branch 4.0 Loan Details: 4.1 Term loan Security

No. of installments Of Rs. p.m. From 4.2 Cash Credit: Rs. Security: Due date: 5 O/S as on Term Loan Cash Credit

6 Overdue as on Installments No. of installments Interest Interest recd. Up to

7 Classification of loan as per RBI guidelines as on 31-03-

Standard / Sub-standard / Doubtful ( )

B Position of Security: RS.’000 1 Value of security O/S Unsecured Term loan Cash credit Total 2 Original cost of

Date of purchase Less: Depreciation @ % for

months

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WDV as on Approx. Market value as on

3 Stock Less: Creditors Debtors Less: Over 60

days

Sub-total Sub-total

Less: Margin @ % Drawing Power Outstanding as on Excess drawing

4 Max. Permissible Bank Finance Year ended As on Current Assets Less : Current liabilities Working capital gap Less: Promoters contribution

@ 25%

Max. Permissible Bank Finance Less: CC Limit sanctioned Excess borrowing

5 Collateral security

C Insurance: 1 Assets covered Location Sum Insured Policy no. Expiry Actual value Excess / Shortage 2 Risks covered

3 Risks to be covered / Insured Fixed Assets

Stocks

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4 Whether Bank clause has been attached with Insurance

policy? Yes / No

D Licenses and other statuary payments: 1 Factory license renewed up to 2 Shop & establishment renewed 3 Rent paid up to On 4 Municipal Taxes paid up to On 5 Water charges paid up to On 6 Power / electricity charges paid up to On 7 Provident Fund paid up to On 8 ESIS paid up to On 9 Sales tax / VAT paid up to On 10 Sales tax / VAT Assessment completed up to 11 I.T. Return for P. Y. Filed on

12 Advance Tax for A.Y. (P.Y.)

Installment paid up on

13 Income Tax assessment completed up to 14 Excise duty returns submitted up to 15 Whether P&L and B/S of P. Y. has been

submitted to Bank

E Inspection of stocks: E-I General: 1 Products manufactured and sold

2 Whether production is seasonal or throughout the year?

3 Whether demand is seasonal or throughout the year?

4 Main Items of: RM FG WIP

5 Factory works in Shifts. 6 No. Of fire extinguishers.

Whether in up to date condition? 7 Strength: Staff Workers

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E-II Storage:

1 Watch & ward arrangement Self managed / Outside agency

2 Whether Burglar Alarm has been installed?

3 Shop Floor Tidy / Clean / untidy / well laid out / clustered

4 Shop floor environment 5 Whether Bank’s name board has been

installed?

6 Whether stocks are stored in assigned in areas?

7 If yes, whether access to these areas is limited?

8 Whether storage capacity is adequate? 9 Whether material has been stored

properly?

10 Who is responsible for custody of stock? 11 Physical facilities available for storage? 12 Storage system adopted. Protection from

dust, dampness?

13 Stock & its life 14 Location / Area of Godown 15 Whether stock has been stored properly

to facilitate verification of same?

16 Who is responsible for custody of Godown keys?

17 Whether wire seal is used while closing Godowns?

E-III Stock Records: 1 Whether stock statements are submitted? 2 If yes, submission is regular / irregular /

late?

3 How many stock statements were submitted in last 12 months?

4 Basis of preparation of stock statements: book records/ physical?

5 Whether stock register is maintained? 6 If yes, whether up to date?

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E-IV Verification of stocks: 1 Whether norms have been laid down for

stock levels?

2 How often stocks is physically verified in a year?

3 Stocks as on List attached Rs. 4 Non-moving , damaged , obsolete stock Rs. 5 Over stock holding vis-à-vis consumption Rs.

F Inspection of Fixed Assets: F-I Plant & Machinery , Furniture & Fixtures , Equipment etc: 1 Whether list of Fixed Assets offered to

Bank as security is on record?

2 Whether various items are in working condition?

3 Whether in house periodic maintenance schedule has been laid down?

4 Whether service contracts have been entered into for major items?

5 Whether machinery spare parts are held in stocks?

If yes, whether useful? 6 Whether various items have been

numbered?

7 Whether fixed assets are verified periodically?

8 Are there any damaged / obsolete items of fixed assets?

9 Is there any physical safeguards agt. Theft or loss of tools and other movable equipment?

10 Whether the name plate indicating Bank’s hypothecation charge is fastened securely To or that the lending Bank’s name is painted on the machinery?

11 Whether boiler inspection has been carried out?

12 Original Cost Less: Depreciation

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WDV as on 13 Whether Fixed Assets Register has been

maintained?

14 List of machinery inspected is attached

F-II Building: 1 Whether flat, gala needs any repairs? 2 When it was painted last? 3 Whether building fitness certificate has

been obtained every year from civil / structural engineer?

4 Condition of flat / gala 5 Original cost Rs. Year of Purchase Area

Market value approx. @ RS. Rs.

Notes:

Name Name Name Name Borrower Designation Designation Designation

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Visit Report of Flat / Shop / House property

Sr. No.

Remarks

1.0 Bank 2.0 Branch 3.0 Loan A/C No. 4.0 Amount of Loan applied / Sanctioned Rs.

Disbursed on 5.0 Visited by

6.0 Date & time of visit 7.0 Address of flat / shop & Telephone no.

/ Mobile no.

8.0 Name of the Builder / Society 9.0 Person accompanied / contacted 10.0 Details of Property: 10.1 Area of the flat / shop & floor 10.2 No. Of Rooms 1 RK / 2 BHK / 3 BHK / 10.3 No of storeys / floors in the building Total no. of flats in

the building: 10.4 No. Of wings in the building 10.5 No. Of buildings in the complex /

society

10.6 Proximity from the nearest railway station

Kms. From Railway station.

10.7 Bus route to nearest railway station 10.8 Whether complex bus service is

available?

11.1 Whether flat / shop is fully constructed or under construction?

11.2 If under construction, level of progress of construction.

Up to Plinth / Slab ( % Of construction completed)

11.3 Date of latest commencement certificate Up to Slab

Entire structure

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12.1 If constructed, whether fully occupied? 12.2 If not % of occupation 12.3 Whether occupation certificate from

Municipal Authorities has been received?

No. & Date

12.4 Whether water pipeline has been approved by municipal authorities / CIDCO etc.?

12.5 Whether water supply is available 24 hours?

12.6 Whether Electricity company has approved electricity meters?

13.1 Whether the construction / present status of the building is satisfactory or not?

13.2 Whether building has been painted? 13.3 Whether drainage line has been

connected to Municipal drainage line?

13.4 Whether flat has been insured? 13.5 If yes, Policy no. & period

14.1 Whether society has been formed? 14.2 If no, whether application has been

made for registration?

14.3 If yes, whether conveyance has been done?

14.4 Whether completion certificate has been received from municipal authorities / CIDCO etc.?

15.0 Details of amenities provided:

15.1 Marble flooring 15.2 Electrical wiring Concealed / Casing –capping 15.3 Plumbing Concealed / Open 15.4 Intercom connection 15.5 Internet connection 15.6 Cable connection 15.7 Sliding windows 15.8 Grill 15.9

16.1 Whether flat is occupied / vacant?

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16.2 If flat is occupied, then by whom? 17.0 Whether the flat to be purchased is on

the floor, which is a result of the additional FSI obtained by the builder?

18.0 Other observations: 18.1 Security arrangement 18.2 Compound wall 18.3 Fire fighting equipment 18.4 Lift 18.5 Generator 18.6 Close circuit TV 18.7 Solar energy lighting 18.8 Recycling of toilet water for garden use. 18.9 Any other observations:

Signature of applicant / borrower

Signature of Branch officials

Signature of Branch officials

Name Name Name Designation Designation

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Vehicle Inspection Report Report No: Date: Time: A Borrower:

1 Name Address 2 Loan A/C No. Branch: 3 Loan Rs. Disbursed on: No. of installments of Rs. 4 Balance as on: RS. 5 Overdue: Installments Interest

B Vehicle Details:

1 Type of vehicle 2 Make Model 3 Vehicle No. 4 Engine No. Chassis No 5 R. C. Book 6 R. T. O. Tax paid up to 7 R.T.O. certificate for bank hypothecation 8 Any HPA Endorsement / remark 9 Fitness certificate valid up to 10 Permit No. Valid up to 11 Insurance Policy No Valid up to 12 Bill No. Date 13 Receipt No. RS. 14 Valuation report 15 Duplicate Key Obtained / not obtained 16 Bank’s Name Plate Displayed /

Not displayed 17 No claim discount (%) given in the policy % 18 Driving License No. Valid up to

C Comments in respect of condition of the Vehicle:

1 Body / Tin work 2 Colour 3 Pollution control checked on 4 Tyre condition 5 Accident details (Last 2 years)

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Hotel :

Visit Observations Date of visit Visited by

Sr. No.

Particulars / Observations

1.0 Hotel Renovation work status to be reviewed. (Separate report attached)

Sr. No.


2.0 Hotels in nearby area: Name & Grade Lodging

(Rooms) Restaurant Capacity

Veg./ non Veg

Distance From

(Km)

2.1 Dining 2.2 Dining 2.3 Dining 2.4 Dining 2.5 Dining 2.6 Dining 2.7 Dining

Sr. No.


3.0 Vehicles parked in the compound of the hotel: Type No. Time

3.1 Luxury Buses 3.2 ST Buses 3.3 Pvt. Cars 3.4 2 wheelers 3.5 Cycles 3.6

Sr. No.


4.0 Cleanliness: Location Observations Time

4.1 Compound

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4.2 Reception hall 4.3 Rooms 4.4 Restaurant 4.5 Kitchen 4.6 Stores

Sr. No.


5.0 Customers in the restaurants: Restaurant Capacity Occupied Time

5.1 Restaurant 5.2 5.3 5.4

Sr. No.


6.0 Rooms Occupied at the time of visit: Room No. Of rooms Occupied Time Non AC AC Deluxe Maharaja Conference Total

Sr. No.


7.0 Staff Strength: Category As per Muster On Duty

7.1 GM 7.2 Supervisors 7.3 Head Cook 7.4 Cook 7.5 Steward 7.6 Room service 7.7 Waiters 7.8 Kitchen helpers

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7.9 Sweepers 7.10 Watchman

Total

Sr. No.


8.0 Registers / Records: Name Observations

8.1 Customer Visit Register 8.2 In & Out Register 8.3 KOT 8.4 Power failure register 8.5 Muster / Attendance

cards

8.6 Stock register 8.7 Excise records (Liquor) 8.8 Billing register 8.9 Daily Cash book 8.10 Complaint book 8.11 8.12 8.13

Sr. No.


9.0 Security arrangement: Own staff / Contract 9.1 No. Of Security personnel: 9.2 On duty at the time of visit: 9.3 Name of the security

agency

9.4 Rate:

Sr. No.


10.0 Stock at the time of visit: (As per list) Rs.

10.1 Provision

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10.2 Ice cream 10.3 Cold drink 10.4 Beer 10.5 10.6 10.7

Total

Sr. No.


11.0 Fire Fighting Equipment: Type No.

11.1 Fire extinguishers 11.2 Sand Buckets 11.3 Water Sprinklers 11.4 11.5 11.6 11.7

Sr. No.


12.0 Hotel Equipment: Equipment Condition AMC

12.1 DG Set 12.2 Boiler 12.3 Solar system 12.4 EPABX 12.5 Credit card machine 12.6 AC 12.7 12.8 12.9 12.10

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Gymnasium:

Visit Observations Date of visit Visited by

Sr. No.


1.0 Gymnasiums in nearby area: Name & Grade No. of

Members Fee scale

Rs. Distance From (Km)

1.1 1.2 1.3 1.4 1.5 1.6 1.7

Sr. No.


2.0 Vehicles parked in the compound of the Gymnasium: Type No. Time

2.1 Cars 2.2 2 wheelers 2.3 2.4 2.5

Sr. No.


3.0 Cleanliness: Location Observations Time

3.1 Compound 3.2 Reception hall 3.3 Exercise Room 3.4 Equipments

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3.5 Steam bath 3.6 Massage room 3.7 3.8

Sr. No.


4.0 Customers in the Gymnasium: Scheme Capacity Present Time

4.1 4.2

Sr. No.


5.0 Staff Strength: Category As per Muster On Duty GM Supervisors Instructor Dietician Sweepers Watchman Total

Sr. No.


6.0 Registers / Records: Name Observations

6.1 Customer Visit Register 6.2 Members Cards 6.3 Suggestion book 6.4 Complaint book 6.5 Receipt book 6.6 Muster / Attendance

cards

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6.7 Billing register 6.8 Daily Cash book

Sr. No.


7.0 Security arrangement: Own staff / Contract 7.1 No. Of Security personnel: 7.2 On duty at the time of visit: 7.3 Name of the security

agency

Rate: 7.4 Observation about security

Sr. No.


8.0 Fire Fighting Equipment: Type No.

8.1 Fire extinguishers 8.2 Sand Buckets 8.3 Water Sprinklers 8.4

Sr. No.


9.0 Equipment: Equipment Condition Warranty AMC

9.1 Gymnasium 9.2 Weighing scale 9.3 Music system 9.4 EPABX 9.5 Credit card machine 9.6 Air Conditioners 9.7 9.8

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Notes:

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01 Jai Ambe Provision Stores.

Sr. No.

1.0 Location: 1.1 The shop is located at Charkop, Kandivali-W near Apna Bazar.

2.0 Banking Limits: 2.1 CC limit of Rs.5 Lacs

3.0 Business: 3.1 Grocery & General Stores 3.2 Area of the shop 250 sq. ft.

4.0 Major equipments installed in the shop: 4.1 Weighing scale 4.2 Refrigerator 4.3 Counters, Show cases and other furniture

5.0 Ownership: 5.1 Mr. Patel is the proprietor of the shop. 5.2 He is of 45 years of age.

6.0 Financial Data: 6.1 A/C of previous year shows sales of Rs.20 Lacs.

7.0 Security for the loan: 7.1 Stock & Book debts 7.2 Shop

8.0 GM has requested you to: 8.1 Visit the shop and submit your report. Prepare the checklist of

observations to be made at the time of visit. 8.2 Compile checklist for obtaining information from the borrower. 8.3 Give your comments on Strength, Weakness, Opportunity and Threats

(SWOT) of the borrower. 8.4 How you will verify stock & Book debts?

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02 Alok Wine Shop

Sr. No.

1.0 Location: 1.1 The shop is located at Dadar on Dr. B. A. road.


3.0 Business: 3.1 Wine mart. 3.2 Area of the shop 250 sq. ft. & Godown of 200 sq. ft.

4.0 Major equipments installed in the shop: 4.1 Deep fridge 4.2 Counters, Show cases and other furniture

5.0 Ownership: 5.1 Mr. Shah & Mr. Kothari are partners of the shop. 5.2 Both the partners are in the age group of 55-60 years.


7.0 Security for the loan: 7.1 Stock & Book debts. 7.2 Collateral security of LIC Policy.

8.0 GM has requested you to: 8.1 Visit the shop and submit your report. Prepare the checklist of



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03 Damodar Chemist.

Sr. No.

1.0 Location: 1.1 The shop is located at Borivali on L. T. Road.


3.0 Business: 3.1 Medical & General Stores 3.2 Area of the shop 750 sq. ft.

4.0 Major equipments installed in the shop: 4.1 Refrigerator 4.2 Counters, Show cases and other furniture

5.0 Ownership: 5.1 Mr. Damodar is the proprietor of the shop. 5.2 He is of 55 years of age. His son Aryan age 25 years helps him in the

business. 5.3 No. Of staff members: 15


7.0 Security for the loan: 7.1 Stock & Book debts 7.2 Shop

8.0 GM has requested you to: 8.1 Visit the Shop and submit your report. Prepare the checklist of



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04 Marathe Saree Emporium.

Sr. No.

1.0 Location: 1.1 The shop is located at Dadar on Ranade Road.

2.0 Banking Limits: 2.1 CC limit of Rs.15 Lacs 2.2 Term loan Rs.5 Lacs

3.0 Business: 3.1 Saree shop of exclusive Sarees. 3.2 Area of the shop 1000 sq. ft.

4.0 Major equipments installed in the shop: 4.1 Counters, show cases and other furniture.

5.0 Ownership: 5.1 Mr. Marathe is the proprietor of the shop. 5.2 He is of 65 years of age. His son Aryan age 35 years & his daughter in

law help him in the business. 5.3 No. Of staff members: 10


7.0 Security for the loan: 7.1 Stock & Book debts 7.2 Shop 7.3 Furniture & Fixtures in the shop.

8.0 GM has requested you to: 8.1 Visit the Shop and submit your report. Prepare the checklist of


(SWOT) of the borrower. 8.4 How you will verify stock?

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05 Sahani Petrol Pump

Sr. No.

1.0 Location: 1.1 The petrol pump is located at Bandra on Hill Road.


3.0 Business: 3.1 Petrol pump, Car service center etc. 3.2 Area of the petrol pump 1000 sq. ft.

4.0 Major equipments installed in the shop: 4.1 5 dispensing units of petrol & 1 dispensing unit of Diesel. 4.2 Storage tank of 30000 litres for petrol & 10000 litres for Diesel. 4.3 Counters, show Cases and other furniture 4.4 Petrol & Diesel is also sold on credit of 1 month to regular customers.

5.0 Ownership: 5.1 Mr. Sahani is proprietor of the shop. 5.2 He is of 55 years of age. 5.3 No. Of staff members: 20


7.0 Security for the loan: 7.1 Stock & Book debts

8.0 GM has requested you to: 8.1 Visit the Petrol pump and submit your report. Prepare the checklist of



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06 Sure Success Computer Classes

Sr. No.

1.0 Location: 1.1 The Class is located at Lokhandwala Complex, Andheri.

2.0 Banking Limits: 2.1 Term loan of Rs.35 Lacs

3.0 Business: 3.1 Computer Class. 3.2 Area of the shop 750 sq. ft.

4.0 Major equipments installed in the shop: 4.1 Computers, Printers etc. 4.2 Computer Trollies.

5.0 Ownership: 5.1 Mr. D’souza is the proprietor of the shop. 5.2 He is of 55 years of age. He is computer hardware engineer. 5.3 No. Of staff members: 10

6.0 Financial Data: 6.1 A/C of previous year shows Fee receipts of Rs.25 Lacs.

7.0 Security for the loan: 7.1 Computers. 7.2 Shop 7.3 Furniture & Fixtures.

8.0 GM has requested you to: 8.1 Visit the Class and submit your report. Prepare the checklist of


(SWOT) of the borrower. 8.4 How you will verify security?

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Unit inspection

Economy & Finance

stock inspection

inspection of stock

scope of unit inspection

aim of unit inspection

inspection of premises

process of inspection

model guide of unit

inspection report points