Appendix 2A

TO BE STAMPED AS A PLEDGE
AGREEMENT AS PER LOCAL STAMP
ACT) – Applicable to all states
except Andhra Pradesh

FACILITY CUM PLEDGE AGREEMENT

This Agreement executed at the place and date specified in the Schedule by the person(s)
described in the said Schedule (hereinafter referred to as the “Borrower”, which expression shall
unless repugnant to the context or subject otherwise requires include his/ her /their respective
heir(s), executor(s) and administrator(s) and assigns) in favour of

Axis Bank Limited, a public limited company incorporated under the Companies Act 1956 and
licensed as a Bank under the Banking Regulation Act, 1949 and having its registered office at
“Trishul”, 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellisbridge, Ahemdabad-
380006 and a branch office as specified in the Schedule (hereinafter called the "Bank” which
expression shall include its successors and assigns)

WHEREAS the Borrower is engaged in agricultural activities/ operations, trading agricultural

processed commodities/selling agricultural inputs viz. fertilizers, seeds, pesticides and other non
-agri commodities viz. Base Metal etc and is in possession of harvested agricultural crops /
processed agricultural commodities/ agricultural inputs viz. fertilizers, seeds, pesticides or other

Version: BB/COM/LPA/ Apr 24/Ver 1.03

non-hazardous non-agricultural commodities for its own benefit and has requested the Bank to
grant financial assistance for the purpose(s) as specified in the Schedule.

NOW THIS AGREEMENT WITNESSTH AS UNDER:

1. General Interpretation

In this Agreement, unless the context otherwise requires:

a) singular includes plural and vice versa.

b) the headings are inserted for the sake of convenience only and shall not affect the
interpretation of the provisions hereof.
c) the sanction letter more particularly described in the Schedule is a part and parcel of this
d) Agreement and shall be read in conjunction with this Agreement.

2. Definitions

a) “Balance Due to the Bank” means and includes the principal amount of the Facility from time
to time advanced to the Borrower, interest, penal charges thereon as set out herein and all
costs, charges, commissions and expenses, including incremental taxes, interest tax and any
other related and consequential charges and taxes, insurance premium which the Bank may
have paid or incurred, including in connection with the commodities and also the incidental
or other charges debited by the Bank to the account of the Borrower in accordance with the
rules, or usage of the Bank.
b) "Commodities" means the harvested agricultural crops /agricultural processed commodities/
agricultural inputs viz. fertilizers, seeds, pesticides etc, and other non-hazardous non-
agricultural commodities (viz. Base Metal) which shall be pledged by the Borrower with the
Bank.
c) "Facility" means the financial assistance granted by the Bank to the Borrower and more
particularly described in the schedule.
d) “Schedule” means the schedule annexed of this Agreement, which forms a part of the
Agreement.
e) "Authorized representative of Joint Liability Groups (JLGs)" shall refer to persons who shall
be storing the Commodities in the warehouses on behalf of the Farmers.
f) “Warehouse” or a “Godown”, by whatever name called is a storage area, where the
commodities pledged/to be pledged to the Bank are stored.
g) “WDRA" means the Warehousing Development and Regulatory Authority established under
the Warehousing (Development And Regulation) Act, 2007
h) “Repositories” means an entity that has received a certificate of registration from the
Authority for creation and management of electronic negotiable warehouse receipts and
include National E- Repository Limited (NERL) and CDSL Commodity Repositories Limited
(CCRL)

Version: BB/COM/LPA/ Apr 24/Ver 1.03

i) “Negotiable Warehouse Receipt” means a warehouse receipt under which the goods
represented therein are deliverable to the depositor or order, the of endorsement which has
the effect of transfer of goods represented thereby and the endorsee for which takes a good
title;
j) “Electronic Negotiable Warehouse Receipt (eNWR) ” means a negotiable warehouse receipt
issued in an electronic form by warehouseman of WDRA accredited Warehouse
k) “Repository Participant– Account Maintenance” means as per WDRA guidelines, a Repository
may appoint one or more entities as Repository Participants for carrying all or any of the
following core activities of repository such as enabling the transfer of electronic Negotiable
Warehouse Receipts; on-boarding the users of a Repository; To identify through
documentary and/ or physical verification, on behalf of the Repository, the identity, and
address of the depositor in whose favor a warehouseman intends to issue an electronic
Negotiable Warehouse Receipt; To facilitate the opening, management, and closing of
accounts of users on the Repository;
l) “Warehouseman” means any person who is granted a certificate of registration in respect of
any warehouse or warehouses by the Authority or an accreditation agency for carrying on the
business of warehousing
m) “Repository Platform” is a web based application developed and maintained by the
repositories, which provides an end to end solution for all the transactions related to
electronic warehouse receipt
n) Multi Commodity Exchange Clearing Corporation Limited,( MCXCCL) a company
incorporated and registered under the provisions of the Companies Act, 1956 and a Clearing
Corporation duly recognized by the Government of India under the provisions of Securities
Contract (Regulations) Act, 1956. MCXCCL is established to undertake the activity of clearing
and settlement of trades in securities or other instruments or products that are dealt with or
traded on a recognized stock Exchange
o) “Multi Commodity Exchange of India” is the recognised commodity exchange in India.
p) “ComRIS” is the web bases application developed and maintained by MCXCCL, which is
only an electronic record of ownerships and record of transfers of commodities held by the
participants at the corresponding warehouse/s. The ComRIS inter-alia has facility for noting
of pledge and thus has the feature to facilitate pledge finance against commodities stores in
approved warehouses/vaults.
q) “ComRIS Account” shall mean the account of Borrower opened through the ComRIS
Participant in electronic system of ComRIS which , reflects the record of ownership and lien
(if any) of Commodities including the details of commodities quantity, place of storage,
transactions, transfers, validity certification and other parameters as may be prescribed by
MCXCCL from time to time.
r) “e-Pledge Lot” shall mean noting of lien on the electronic credit balance of commodities in
ComRIS account of a borrower by the Pledgee in accordance with the process prescribed or as
may be prescribed by MCXCCL from time to time
s) “ComRIS Participants” shall mean an entity who has been permitted by MCXCCL to open
and maintained ComRIS accounts of Borrower in accordance with the process and on the terms
and conditions as may be prescribed by the MCXCCL from time to time

Version: BB/COM/LPA/ Apr 24/Ver 1.03

3. Terms of the Facility
1) The Bank shall maintain/cause to be maintained the Facility account in the name of the
Borrower for entering the particulars of the said Facility for the time being (hereinafter
referred to as the said "Account”).
2) The Borrower shall each be entitled to the Facility of a maximum amount equivalent to the
value of the Commodities pledged by the Borrower from time to time with the Bank. Such
value shall be based on the amount of commodities supplied by the Borrower, as evidenced
in the warehouse receipt/storage receipt and other documents deposited by the
Borrower/Collateral Manager or unencumbered eNWR/ePledge Lot depicting in the
beneficiary account/COMRIS account of the borrower with ComRIS Participants / Repository
Participant – Account Maintenance and evidencing the pledge of commodities to the Bank
and the market price offered for the said commodities, from time to time. Notwithstanding
the above the maximum amount of credit line available to the Borrower shall not exceed
Rupees ________. In case of JLGs, the maximum amount of credit line provided to individual
farmers within the overall limit of JLG shall not exceed Rs. 10 lakhs. The price of the
commodity considered for disbursement of a warehouse receipt/storage receipt/
eNWR/ePledge lot, shall be at the sole discretion of the Bank.
3) a) The Bank at the request of the Borrower has agreed to grant / granted credit facility as
described in the Schedule with full power to the Bank from time to time to renew or reduce
or enhance the limit (as and when the Borrower/Collateral Manager deposits warehouse
receipts/storage receipts or unencumbered eNWR/ePledge lot depicting in the beneficiary
account/COMRIS account of the borrower with ComRIS Participants / Repository Participant
– Account Maintenance duly endorsed in favour of the Bank evidencing the pledge of
commodities to the Bank) or altogether withdraw the facility on the terms and conditions
appearing herein.
b) The Bank shall have an unconditional right to cancel the undrawn/unavailed/unused
portion of the Loan at any time during the subsistence of the Loan, without any prior notice
to the Borrower, for any reason whatsoever. In the event of any such cancellation, all the
provisions of this Agreement and all other related documents shall continue to be effective
and valid and the Borrower shall repay the outstanding dues under the loan duly and
punctually as provided herein.
4) The Borrower shall pay interest on said facility as specified in the Schedule, which shall be
paid along with the repayment of the Facility as specified herein.
5) The Borrower shall pay ‘the Balance due to the Bank’ on demand from the Bank. Without
prejudice to the right of the Bank to demand the balance due to the Bank at any time, the
Borrower hereby agrees to repay all amount(s) drawn and/or outstanding under the said
account on the date(s) as stipulated together with interest, penal charges and other amounts
payable under this Agreement
6) The Borrower hereby deposits and agrees to deposit with the Bank the warehouse
receipt/storage receipt slips/eNWR/ePledge lot and such other documents as sought by the
Bank either directly or through Collateral Manager or agent with an intention to create a
pledge on the commodities described in the schedule and such future commodities of the
Borrower against which the Borrower intends to avail the Facility, from time to time thereon.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

7) In case of eNWR/ePledge lot Borrower will require to follow the process mentioned below in
order to create valid pledge in favor of the Bank:
a) The Borrower shall deposits the commodity in the WDRA accredited warehouse/MCX
accredited Warehouse where the warehouseman generates the electronic Negotiable
Warehouse Receipt in the repository platform/ electronic credit balance of commodities
in ComRIS. This eNWR/ePledge Lot should reflects as electronic balance in the
Beneficiary account/COMRIS account of the borrower opened with the Repository
Participant – Account Maintenance (RP – Account Maintenance) )/Comris Participant.
b) The Borrower shall then submit the request for pledge of eNWR/ePldge Lot to the Bank
through Comris Participant /RP – Account Maintenance with an intention to create a
pledge on the commodities described in the schedule and such future commodities of the
Borrower against which the Borrower intends to avail the Facility, from time to time
thereon
c) The Borrower shall submit the unencumbered eNWR/ePledge Lot depicting in the
beneficiary account/COMRIS account of the borrower with Comris Participant
/Repository Participant – Account Maintenance and evidencing the commodities pledged
to the Bank and the market price offered for the said commodities.
8) The Borrower agrees that all warehouse receipt/storage receipt slips/ eNWR/ePledge Lot and
such other documents, which the Borrower may from time to time pledge to the Bank against
which the Bank provides the Borrower credit facilities, are to be held by the Bank as
continuing securities for all the credit facilities granted, banking accommodation and/or
expenses which Bank may make or incur to or for the Borrower in connection therewith and
all other liabilities to the Bank, present and future and the Bank is to be at liberty to exercise
all rights (if any) of the Borrower (unpaid sellers of the said agricultural crops /agricultural
processed commodities/ agricultural inputs/Non-Agri Commodities, without further
reference to the Borrower to sell, insure, warehouse or otherwise deal with the said
agricultural crops /agricultural processed commodities/ agricultural inputs/Non-Agri
Commodities or to sell or to deal with the same as though Bank is the absolute owners thereof
and the Bank is expressly authorized by the Borrower to refuse to deliver the said agricultural
crops /agricultural processed commodities/ agricultural inputs/Non-Agri Commodities
covered by the respective warehouse receipt/storage receipt slips/ eNWR/ePledge Lot
(whatever be their tenor). The Borrower agree that the Bank’s accounts of sale and accounts
of expenses shall be accepted by the Borrower as conclusive evidence of the Correctness of
matters there in written and the Borrower declare that this instrument and Bank’s right
hereunder shall in no way be affected by the Borrower’s death or any change in Borrower’s
name, style or constitution.
9) The Borrower agrees that the Bank and its authorized agents shall be exempt from all
liabilities for any loss or damages due to the deterioration of the said agricultural crops
/agricultural processed commodities/ agricultural inputs/ Non-Agri Commodities howsoever
caused to the Borrower’s delay, mistake, omission or misinterpretation, or otherwise
howsoever.
10) The Borrower hereby acknowledges to have deposited the Commodities with the
warehouse/Collateral Manager more particularly described in the schedule, absolutely
belonging to the Borrower, which the Borrower is competent to pledge and hereby pledge as

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 continuing security for the due payment of the amounts that may be due from time to time
to the said Bank in respect of the Facility with interest and all charges during the existence of
this Agreement notwithstanding-
a) The existence of a credit balance or “Nil” balance in the accounts at anytime or any partial
payment or fluctuation of accounts or
b) Any loan(s) or any parts thereof have been repaid either after demand has been made by
the Bank or otherwise or has not been so repaid on demand.
11) The Borrower shall ensure that at any point of time, during the currency of the facility, the
receipt wise total outstanding including the eNWR/ePledge Lot (including interest accrued till
date) as a percentage of the market value of the commodities pledged should not exceed
82.5% In case of shortfall in the security cover of the Facility, the Borrower shall furnish
additional security or deposit funds within 5 days of being served a notice to replenish with
the original margin level as stipulated in the schedule. In case, the borrower does not bring
in additional security or funds within the stipulated time, the Bank may offload the
commodities, directly or through an agent, in part or full, at its discretion to ensure
maintenance of the requisite margin. The loss if any from this action would be to the
borrower’s account. However, during the notice period or any time during the currency of
the facility, if the total outstanding (including interest accrued till date) as a percentage of the
market value of the commodities pledged touches 90 % due to commodity price volatility,
Bank may immediately initiate disposal of the commodities on the same day directly or by
appointing an agent. The Banks Decision and action shall final as regards such disposal. The
Bank may offload the commodities in part or full at its discretion. All the expense of the agent,
if any, appointed shall be borne by the borrower.
12) The Borrower(s) hereby constitute and appoint the Bank as its attorney in its name and on its
behalf to execute and do all acts and things in connection with the pledge of the pledged
goods and/or the enforcement/sale thereof as may be required by the Bank and also to do
all such other acts and things for giving effect to the provisions of this Agreement and powers
reserved to the Bank. The Borrower agrees and undertakes to ratify and confirm all and
whatsoever the Bank shall lawfully do or cause to be done by virtue of this clause.
13) The Borrower confirms that it is a farmer(s)/farmer (other than individual) into the business
of ____________________/authorized representative of farmers mentioned in schedule
(Joint Liability Groups-JLGs)/food and agro-based processing unit(s) with original investment
in Plant & Machinery upto Rs. __________ /agri-input dealer(s)/commission
agent(s)/arthia(s)/trader(s) and not a defaulter to any Bank /financial institution and the
Facilities hereby obtained will be utilized for agricultural purposes only as per sanctioned
terms.
14) The Borrower shall co-ordinate with such Agent or a Collateral Manager as may be appointed
by the Bank for administering the Facility availed by the Borrower.
15) The Borrower shall accept as conclusive proof of the sum or sums owed by the Borrower to
the Bank any statement of account made by the Bank and duly signed by any authorized
signatory of the Bank.
16) In case the Borrower fails or defaults to comply with any of the terms of said Facility and/or
this Agreement, including schedules, by any reason whatsoever borrowers shall be liable to
pay the Bank penal charges at the rate(s) stipulated in Schedule on the balance due to the

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Bank from the date of default of failure till payment. Provided that the Bank may from time
to time in accordance with the Bank’s policy suitably and prospectively revise the said penal
charges.
17) In case the Borrower is more than one individual, each one or any of them is authorized and
empowered by the other(s) of them to admit and acknowledge his/their liability to the Bank
by any payment into the account(s) or by way of express writing in any manner or otherwise
and any such admission and acknowledgement of the liability by one or more of them shall
be construed to have been made on behalf of each one of them and all the Borrowers shall
be jointly and severally liable to the Bank. In case of default by the borrower, the borrower
undertakes, agrees to co-operate with the Bank for smooth disposal of the commodities
pledged, even if the price being realized is less than the price considered for funding or the
current market price. The price of the disposal as decided by the Bank shall be acceptable to
the borrower and shall not be challenged.
18) The Borrower hereby agrees and undertakes that no such person whose name is appearing
in the list of Wilful defaulters shall be inducted on its board and that in case, such a person is
found to be on its Board, it would take expeditious and effective steps for removal of such
person from its Board.
19) The Borrower hereby acknowledges and agrees that the Bank has a right to award a separate
mandate to our Auditor or any independent Auditor, as the Bank may deem fit with a view to
obtain a specific certificate regarding diversion /siphoning of funds by the Borrower. The
Borrower agrees and undertakes to co-operate with such Auditors and provide the necessary
information and/or documents as may be required by such Auditors. The Borrower also
agrees and undertakes to bear all the expenditure in respect of obtaining the said Certificate
and agrees to indemnify and keep the Bank indemnified in this regard.
20) The interest payable by the Borrower shall be subject to the changes based on guidelines /
directive issued by RBI to banks from time to time and the changes made by the Bank.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

4. Dealing with the Commodities

a) The Borrower shall not, without previous permission in writing of the Bank, sell or otherwise
part with the possession/ownership of the commodities. Where with such permission of the
Bank the commodities is sold or disposed off by the Borrower, the value of such produce sold
shall be paid forthwith to the Bank towards repayment of the Facility.
b) It shall be the duty of the Borrower to safeguard and diligently manage the commodities and
do everything that is necessary to preserve, protect and maintain the quality of the
commodities. Whenever required by the Bank, the Borrower shall do everything necessary
for transferring to and effectively vesting in the Bank or any of its officers or nominees titled
to the commodities. The Borrower shall keep the Bank informed of the true condition of the
commodities.
c) The Borrower hereby expressly undertakes to hold the commodities in trust for and as agent
of the Bank until full repayment of all the balance due to the Bank including interest, cost and
expenses of the Bank. The Borrower(s) further agrees to deal with and dispose of the
Commodities in the manner instructed by and under the supervision and control of the Bank,
its agents, officers or nominees.
d) The Borrower shall insure/ensure insurance of the pledged commodities as may be required
by the Bank against loss or damage by fire and other risks as may be required by the Bank
and shall bear all costs, expenses, charges, levies, taxes, fees etc. payable in connection with
the pledged commodities, their storage in the warehouse/godown, insurance thereof,
provision of security and/or the taking of any action for protection/preservation thereof,
protection of the Bank’s interest therein, as also all costs, expenses and charges payable in
connection with the enforcement of the pledge and sale thereof. In the event the Bank is
required to pay any amounts in this regard the same shall form part of the Balance due to the
Bank and the Borrower(s) shall promptly reimburse the said amounts to the Bank on receipt
of notice in this regard. Any such insurance shall be in the name of the Bank/ assigned to the
Bank as required by the Bank. It shall be also lawful for but not obligatory upon the Bank to
insure the commodities by debit to the Borrower's account. The proceeds of any such
insurance shall, at the discretion of the Bank either applied towards replacement of the
commodities or towards the satisfaction of the balance due to the Bank.
e) The Borrower hereby declares and confirms that the commodities are free from
encumbrances and has not been offered/does not constitute security for any loan /advance
availed by the Borrower from any other person or institution.
f) The Borrower shall be responsible for the quantity and quality of the pledged commodities
as also for the correctness of any statements/documents furnished to the Bank in connection
with the pledged commodities, as also for any loss, damage, shortage or deterioration of the
pledged commodities owing to any cause whatsoever. The Borrower agrees that the Bank
shall not be held liable of any loss, damage or depreciation of the said commodities or any
additions substitutions that may be made there to undergo while in possession nor shall the
Bank aforesaid be held liable in case of theft, burglary, loss by fire, floods, earthquakes,
enemy, warfare civil commotion and riots and the like and authority herein contained in favor
of the Bank to enable them to sell and transfer the said property, goods, documents,
securities etc., is hereby declared to be irrevocable during the currency thereto, and the

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Borrower hereby consents that the terms and conditions herein before stipulated shall apply
notwithstanding the Borrower accounts with the said Bank at any of their offices any be
bought to credit or the credit given fully exhaust and notwithstanding any settlement of
account and the Borrower hereby admit that the Bank’s rules of Business have been read
by/read over and explained to the Borrower and all the borrower transactions with the said
Bank shall be governed by those rules howsoever they may be changed, altered or modified
or added to from time to time.
g) The Borrower shall punctually pay all outgoing/ charges in respect of the said commodities
and of the premises wherein the commodities is stored.
h) The Bank and its officers or authorized persons shall be entitled at anytime or from time to
time, without notice to the Borrower but at the Borrower’s risks and expenses and if so
required as attorneys of Borrower(s) for and in the name of Borrower, to enter and remain
at any place or places where the commodities shall be and to inspect and take inventories
and or to take possession of, recover and receive the commodities or appoint any receiver/s
of the commodities and or to sell by public auction or private contract or otherwise dispose
off or deal with all or any part of commodities and to enforce, realize, settle, compromise
and deal with any of the rights aforesaid without being bound to exercise any of these powers
or being liable for any loss in the exercise thereof and without the Bank’s rights and remedies
of suit against the Borrower and to apply the net proceeds of such sale/s in or towards the
liquidation of the balance due to the Bank and the Borrower hereby agrees to accept the
Bank’s account regarding sale/s and or realizations as final and to pay any shortfall or
deficiency therein shown.
i) The Borrower shall adhere to the rules and regulations stipulated in the WDRA/MCX and shall
ensure compliance with the provisions of WDR Act/Security Contract Act including
amendments thereof from time to time
j) The Bank shall at all times have a paramount charge, lien and right of set off on all monies,
securities, deposits and other assets and properties belonging to the Borrower with the Bank.
Without prejudice to any other rights available to the Bank, the Bank shall be entitled to set
off, adjust or otherwise appropriate any of the aforesaid monies, securities deposits or any
other assets and properties towards payment or liquidation of any other monies which are
due or may become due from the Borrower whether solely or jointly with any other person(s)
as Principal Borrower or as Guarantor.
k) The Borrower has paid and undertakes to pay in future all rents, insurance and all other
charges regularly to the warehousing corporation/private warehouses/godowns without
allowing the charges to fall in arrears. In the event of the failure of the Borrower to pay the
same, the Borrower authorizes the Bank to pay the same along with interest on the
Borrower's behalf by debiting the current/ savings/ cc/ loan account as the case may be.

5. Events of Default
An event of default shall be deemed to have occurred if the Borrower (a) commits a breach
of any of the terms and conditions in this Agreement including in the Schedule annexed
hereto and /or the sanction letter or any written terms agreed thereon (b) fails to pay any
installment or any other payment on the due dates and such failure continues for 5 days; or
(c) makes assignment for the benefit of creditors or the Commodities are attached or any

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 regulatory restraint is levied thereon by the appropriate government or other authorities as
the case may be, or a receiver is appointed thereof or insolvency proceedings are instituted
against the Borrower; or (d) where any information mentioned by the Borrower) to the Bank
is found to be incorrect or incomplete in any material facts stated therein
6. Upon occurrence of any of the Events of default, without prejudice to the other rights, the
Bank is entitled to declare the Facility/Balance due to the Bank immediately due and payable
and upon the Borrower failing to make the said payments within 5 days from the date of
margin call notice or within 10 days for any other irregularities thereof, the Bank may enforce
its security and exercise any other right remedy which may be available to it under the
applicable laws. The Borrower agrees that the Bank is at liberty to enforce the pledged
Commodities and sell the same at prevailing market price without any reference to the
minimum support price (MSP). In such an event the Borrower confirms that the bank shall
not be liable to pay to the borrower the differences, if any between the prevailing market
price and the MSP.
7. In the event the commodities under this Agreement are in jeopardy (as determined by the
Bank in its sole discretion) for any reason whatsoever, the Bank shall be entitled to enforce
the pledge and sell the pledged Commodities in any manner and the sale proceeds shall be
utilized towards reduction of the balance due to the Bank. In case of eNWR/ePLedge Lot the
Bank shall revoke the pledge in the repository platform/Exchange COMRIS system and
transfer the balances from beneficiary account/COMRIS account to its own account in the
repository platform/Exchange COMRIS system. The Bank shall then sell the pledged
commodities in any manner and the sales proceeds shall be utilized towards reduction of the
balance due to the Bank. The Borrower hereby authorizes the Bank/it’s
agents/representatives to remove the pledged Commodities or any part thereof, from any
warehouse/godown that the same may be stored or be lying in and transfer/shift the same
to any other warehouse/godown or any other place as the Bank may, in its sole discretion,
deem fit. The Borrower hereby authorizes the Bank/its agents/representatives to
sign/endorse/discharge any warehouse receipts/eNWR/ePledge Lot or any other documents
or writings and do all acts and deeds as may be required for the purpose.
8. Nothing contain herein above shall affect, limit or take away the right of the Bank to recover
personally from the Borrower or from their properties or guarantor or their properties, the
Balance due to the Bank notwithstanding that all or any of the commodities may not have
been sold or realized. The security of Commodities shall not prejudice or affect any other
rights and remedies of the Bank.
9. Severability
If any term or provision or this Agreement should be declared invalid by a court of competent
jurisdiction, the remaining terms and provisions of this Agreement shall remain unimpaired
and be in full force and effect.
10. Assignment
The Borrower shall not have any right to assign its obligations under this Agreement, however
the Bank has the right to transfer, assign, securitize or sell in any manner, in whole in part,
the outstanding and dues to any third party without reference or intimation to the Borrower
and any such transfer/assignment/ sale/securitization shall conclusively bind the Borrower
and all other persons.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

11. CIBIL Clause
The Borrower understands that as a pre condition, relating to grant of the Facility to the
Borrower and furnishing of guarantee in relations thereto, the Bank requires consent of the
Borrower of the credit facilities granted/ to be granted by the Bank for the disclosure by the
Bank of information relating to the Borrower, any credit facilities availed of / to be availed,
by the Borrower, obligations as assumed by the Borrower in relation thereto and default, if
any, committed in discharge thereof. Accordingly, the Borrower hereby agrees and gives
consent for the disclosure by the Bank of all or any such:
a. Information and data relating to Borrower
b. The information or data relating to Borrower's obligations in any credit facility
granted/ to be granted by the Bank
c. Default, if any committed by Borrower in discharge of the Borrower's obligation
as the Bank may deem appropriate and necessary to disclose and furnish to Credit
Information Bureau (India) Ltd. and any other agency authorized in this behalf by
RBI.
The Borrower declares that the information and data furnished by Borrower to the Bank
are true and correct. The Borrower undertakes that –
1. The Credit Information Bureau (India) Ltd. and any other agency so authorized may use,
process the said information and date disclosed by the Bank in the manner as deemed fit
by them and
2. The Credit Information Bureau (India) Ltd. and other agency so authorized may furnish
for consideration, the processed information and data or products thereof prepared by
them, to Banks/Financial Institutions and other credit grantors or registered users, as may
be specified by the Reserve Bank of India in this behalf.
12. The Borrower hereby gives specific consent to the Bank/Lender for disclosing / submitting
the ‘financial information’ as defined in Section 3 (13 ) of the Insolvency and Bankruptcy Code,
2016 ( ‘Code’ for brief ) read with the relevant Regulations/ Rules framed under the Code, as
amended and in force from time to time and as specified there under from time to time, in
respect of the Credit/ Financial facilities availed from the Bank/ Lender, from time to time, to
any ‘Information Utility’ ( ‘IU’ for brief ) as defined in Section 3 ( 21 ) of the Code, in
accordance with the relevant Regulations framed under the Code, and directions issued by
Reserve Bank of India to the banks from time to time and hereby specifically agree to
promptly authenticate the ‘financial information submitted by the Bank/Lender, as and when
requested by the concerned ‘IU’ .
13. All disputes, differences and / or claim or questions arising out of these presents or in any
way touching or concerning the same or as to constructions, meaning or effect thereof or as
to the right, obligations and liabilities of the parties hereunder shall be referred to and settled
by arbitration, to be held in accordance with the provisions of the Arbitration and Conciliation
Act, 1996 or any statutory amendments thereof, of a sole arbitrator to be nominated by the
Lender/Bank, and in the event of death, unwillingness, refusal, neglect, inability or
incapability of a person so appointed to act as an arbitrator, the Lender/Bank may appoint a
new arbitrator to be a sole arbitrator. The arbitrator shall not be required to give any reasons

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 for the award and the award of the arbitrator shall be final and binding on all parties
concerned. The arbitration proceedings shall be held at
Mumbai/Delhi/Kolkata/Bangalore/Chennai/Kochi. The arbitral procedure shall be conducted
in English.
14. Repo rate would be declared by the Bank on a monthly basis and shall be displayed at the
AXIS BANK website. Subsequent disbursements would be at the respective Repo of the month
in which funds are drawn. The applicable external benchmark rate would be applicable to
the entire loan facility including the existing bills (which have been disbursed but unpaid).
15. Axis Bank can change the reset frequency for the Commodity Pledge loans once in 3
months or as decided by the Bank, whichever is earlier.
16. Borrower is deemed to have noticed the changes in the rate of interest whenever the changes
in Repo are displayed / notified at/by the branch or website/published in the
newspaper/made through entry of interest charged in passbook/statement of account sent
to the borrower.
17. In case of my/our failure to repay the loan, I/we hereby authorize the Bank to publish my/our
photographs in the print media under the title of a defaulter of loan. I am also aware that the
right to publish the photograph shall solely be with the Bank and the Bank shall have the
discretion to publish the photographs of all or selected defaulters.
18. The borrower hereby confirm that he/she has not deposited commodity in the
godown/warehouse more than the limit prescribed issued by the State
Government/Department of Consumer Affairs in this regard and is in compliance with all
existing rules and regulations, as applicable.

19. Penal Charges and Other Charges :-

• All amounts in default for payment, due to delay or non-payment of EMI/Installment or

interest thereon including any costs, charges and expenses or due to occurrence of any
other Event of Default as per Sec.[5] shall be debited to the loan/drawal account and in
such case Bank shall also levy the penal charges and other charges as applicable and
prescribed in the sanction letter and loan agreement in the said loan/drawal account
for the period of default without there being any need to assign a reason for the same,
which shall be paid by the Borrower.

• However, if Borrower fails to make the payment of above said amounts in default for
payment or the penal charges and other charges levied by the Bank within 90 days from
the due date of such payments, in that case said loan/drawal account shall be classified
as Non Performing Asset (“NPA”).

• In order to regularise the said loan/drawal account, the Borrower shall be liable to pay all
the above mentioned amounts in default and/or penal chargesand other charges, as the
case may be, [on immediate basis].

Version: BB/COM/LPA/ Apr 24/Ver 1.03

20) Fair Practice Code:-

• The Fair Practice Code for the Lenders as published on the Axis Bank's website, shall
apply to the Loan. Copy of the Fair Practice Code for lenders as available on the Bank's
website.

https://www.axisbank.com/docs/default-source/default-document-library/fair-practice-
code-for-lenders.pdf

21) (a) RBI vide its guidelines (reference no. RBI/2021-2022/125

DOR.STR.REC.68/21.04.048/2021-22) on ‘Prudential Norms on Income Recognition, Asset
Classification and Provisioning, pertaining to Advances – Clarifications’ dated 12-11-2021 has
clarified and/or harmonized certain aspects of the extant Regulatory guidelines. The
Borrower agrees, undertakes and confirms that the Bank has brought the following
clarifications to the notice of the Borrower and the Borrower confirms of having been
apprised of as follows:

1.1 Additional terms and conditions:

• Interest for the Warehouse receipt Finance will be due and charged on every last day of
the month from the date of disbursement.
• Principal repayment will be due on the maturity of said warehouse receipt finance along
with the interest for the broken period (i.e., difference between last month end interest
application and maturity of the loan).
• I understand that if I do not pay my dues on the above-mentioned date, my account will
be considered as ‘Overdue’ from the end of that date.

1.2 Classification as Special Mention Account (SMA) and Non-Performing Asset (NPA)

(i) Dues: shall mean the principal / interest / any charges levied on the loan account
which are payable within the period stipulated as per the terms of sanction of the
credit facility.

(ii) Overdue: shall mean the principal / interest / any charges levied on the loan
account which are payable, but have not been paid within the period stipulated as
per the terms of sanction of the credit facility. In other words, any amount due to
the bank under any credit facility is 'overdue' if it is not paid by the due date fixed
by the bank.

(iii) Relevance of the principle of 'First In First Out' (FIFO) in appropriation of

payments into the Borrower’s account: The principle of FIFO i.e. 'First In, First Out'
accounting method is relevant to arrive at the number of days overdue for
determining the SMA/NPA status. The FIFO principle assumes that the oldest
outstanding dues in the loan account needs to be cleared first. The FIFO method

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 thus requires that what is due first must be paid by the Borrower first. For example,
if in any loan account as on 01-02-2021, there are no overdues and an amount of
INR X is due for payment towards principal instalment / interest / charges, any
payment being credited on or after 01-02-2021 in the loan account will be used to
pay off the dues outstanding on 01-02-2021.

Assuming that nothing is paid / or there is partial payment (INR Y) of dues during
the month of February, the overdue as on 01-03-2021 will be INR X - INR Y.

Additionally, an amount of INR Z becomes due as on 01-03-2021. Now any payment

partial payment into the account on or after 01-03-2021 will be first utilized to pay
off the partial due of 01-02-2021 (INR X - INR Y). If there is more recovery than the
INR X - INR Y, then after recovering dues of 01-02-2021, the remaining amount will
be treated as recovery towards due of 01-03-2021.

(iv) Age of oldest dues:

The age of oldest dues is reckoned in days from the date on which the oldest
payment is due and continues to remain unpaid. In the aforesaid illustration, if the
dues relating to 01-02-2021 remain unpaid till 01-03-2021, the age of the oldest
dues is reckoned as 29 days on 02-03-2021.

(b) Classification as Special Mention Account (SMA) and Non-Performing Asset (NPA)

Lending institutions will recognize the incipient stress in loan accounts, immediately on
default, by classifying them as Special Mention Accounts (SMA). The basis of
classification of SMA / NPA category shall be as follows:
Loans other than revolving facilities Loans in the nature of cash credit / overdraft
SMA Sub Basis for classification – SMA Sub- Basis for classification – Outstanding balance
categories Principal or interest categories remains continuously in excess of the
payment or any other sanctioned limit or drawing power, whichever
amount wholly or partly is lower, for a period of:
overdue
SMA 0 Up to 30 days NA NA
SMA 1 More than 30 days and SMA 1 More than 30 days and
Up to 60 days Up to 60 days
SMA 2 More than 60 days and SMA 2 More than 60 days and
Up to 90 days Up to 90 days

(c) Non-performing Asset:

Non-Performing Asset (NPA) is a loan or an advance where:

(i) Interest and/or instalment of principal remains overdue for a period of more than
90 days in respect of a term loan,

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 (ii) The account remains 'out of order' as indicated below, in respect of an Overdraft /
Cash Credit (OD / CC),
(iii) The bill remains overdue for a period of more than 90 days in the case of bills
purchased and discounted,
(iv) The instalment of principal or interest thereon remains overdue for two crop
seasons for short duration crops
(v) The instalment of principal or interest thereon remains overdue for one crop
season for long duration crops.
(vi) The amount of liquidity facility remains outstanding for more than 90 days, in
respect of a securitisation transaction undertaken in terms of the Reserve Bank of
India (Securitisation of Standard Assets) Directions, 2021.
(vii) in respect of derivative transactions, the overdue receivables representing positive
mark-to-market value of a derivative contract, if these remain unpaid for a period
of 90 days from the specified due date for payment.

(d) ‘Out of Order’ Status:

An account shall be treated as 'out of order' if:

(i) the outstanding balance in the CC/OD account remains continuously in excess of the
sanctioned limit/drawing power for 90 days, or
(ii) the outstanding balance in the CC/OD account is less than the sanctioned limit/drawing
power but there are no credits continuously for 90 days, or the outstanding balance in
the CC/OD account is less than the sanctioned limit/drawing power but credits are not
enough to cover the interest debited during the previous 90 days period.

Illustrative movement of an account to SMA category to NPA category based on delay I non-payment
of dues and subsequent upgradation to Standard category at day end process:
Due date of Payment date Payment covers Age of SMA /NPA SMA since NPA NPA Date
payment oldest dues categorisation date / SMA categorization
in days class date
01.01.2022 01.01.2022 Entire dues upto 0 NIL NA NA NA
01.01.2022
01.02.2022 01.02.2022 No Payment or Partly 1 SMA-0 01.02.2022 NA NA
paid dues of
01.02.2022
01.02.2022 02.02.2022 No Payment or Partly 2 SMA-0 01.02.2022 NA NA
paid dues of
01.02.2022
01.03.2022 Dues of 01.02.2022 not 29 SMA-0 01.02.2022 NA NA
fully paid 01.03.2022
is also due at EOD
01.03.2022
Dues of 01.02.2022 1 SMA-0 01.03.2022 NA NA
fully paid, Due for
01.03.2022 is not paid
at EOD 01.03.2022
No payment of full 31 SMA-1 01.02.2022/ NA NA
dues of 01.02.2022 and 03.03.2022
01.03.2022 at EOD
03.03.2022
Dues of 01.02.2022 1 SMA-0 01.03.2022 NA NA
fully paid, due for
01.03.2022 not fully

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 paid at EOD
01.03.2022
01.04.2022 No payment of dues of 60 SMA-1 01.02.2022/ NA NA
01.02.2022, 02.04.2022
01.03.2022 and
amount dues on
01.04.2022 at EOD
01.04.2022
No payment of dues of 61 SMA 2 01.02.2022 NA NA
01.02.2022 till /
01.04.2022 at 02.04.2022
EOD02.04.2022
01.05.2022 No payment of dues of 90 SMA 2 01.02.2022 NA NA
01.02.2022 till /
01.05.2022 at EOD 02.04.2022
01.05.2022
No payment of dues of 91 NPA NA NA 02.05.2022
01.02.2022 till
01.05.2022 at EOD
02.05.2022
01.06.2022 01.06.2022 Fully paid dues of 93 NPA NA NPA 02.05.2022
01.02.2022 at EOD
01.06.2022
01.07.2022 01.07.2022 Paid entire dues of 62 NPA NA NPA 02.05.2022
01.03.2022 &
01.04.2022 at EOD
01.07.2022
01.08.2022 01.08.2022 Paid entire dues of 32 NPA NA NPA 02.05.2022
01.05.2022 &
01.06.2022 at EOD
01.08.2022
01.09.2022 01.09.2022 Paid entire dues of 1 NPA NA NPA 02.05.2022
01.07.2022 &
01.08.2022 at EOD
01.09.2022
01.10.2022 01.10.2022 Paid entire dues of 0 Standard NA NA STD from
01.09.2022 & Account with 01.10.2022
01.10.2022 No Overdues

(e) The Borrower agrees and acknowledges that the manner of classification and illustrations
of SMA and NPA as provided in sub-clauses (a) to (d) above in which the Bank is required
to classify accounts as SMA / NPA as per the various applicable regulations and guidelines
issued by RBI from time to time and:

(i) the same is liable to change / be modified as per the requirements of the RBI guidelines
in the matter issued from time to time. Any such change shall be intimated by the Bank
to the Borrower from time to time and the Borrower agrees and acknowledges that
such intimation shall accordingly modify the manner and illustrations provided herein
without a need for further amendment to the Agreement or require specific
acknowledgment of the Borrower; and

(ii) the Bank shall have the right to classify the account of the Borrower with the Bank as
SMA / NPA as per the applicable regulations / guidelines issued by RBI from time to
time even though the manner of classification and the illustrations thereof are not set
forth in this Agreement or the Sanction Letter(s).

Version: BB/COM/LPA/ Apr 24/Ver 1.03

22) Politically exposed person
For individuals
The Borrower agrees that he/she is not a politically exposed person (PEP) and further undertakes
to inform Axis Bank in the event that he/she and/or any of their family members /close relatives
becomes a PEP. In such an event, the Bank will obtain approval from its senior management to
continue the business relationship and subject the account to the Customer Due Diligence
measures as applicable to the customers of PEP category including enhanced monitoring on an
ongoing basis.

Definition -Politically exposed persons are individuals who are or have been entrusted with
prominent public functions in a foreign country, e.g., Heads of States or Governments, senior
politicians, senior government/judicial/military officers, senior executives of state-owned
corporations, important political party officials, etc.

For non individuals

The Borrower agrees that none of its Director/Partner/Trustee/Office

Bearer/Promoter/Authorised Signatory/Beneficial owner in the organisation or any of their
family members /close relatives is/are a politically exposed person (PEP) and further undertakes
to inform Axis Bank in the event that either of them becomes a PEP. In such an event, the Bank
will obtain approval from its senior management to continue the business relationship and
subject the account to the Customer Due Diligence measures as applicable to the customers of
PEP category including enhanced monitoring on an ongoing basis.

Definition -Politically
exposed persons are individuals who are or have been entrusted with
prominent public functions in a foreign country, e.g., Heads of States or Governments, senior
politicians, senior government/judicial/military officers, senior executives of state-owned
corporations, important political party officials, etc.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Schedule

Terms and Conditions

1. Place of Agreement
2. Date of Agreement
3. Details of the borrower
Name of the Borrower Address
Village:
Tehsil:
District:
Telephone No.
Village:
Tehsil:
District:
Telephone No.
4. Address of the Branch Axis Bank Ltd. ________________ Branch
office of the Bank ___________________________________
___________________________________

5. Commodity/ Margin

Purpose • For pursuing Agricultural activities (in case of farmers/JLGs)

6.
• For the conduct of business (in case of farmers other than
individuals, food and agro-based processing units, agri-input dealers,
cooperatives, others, etc., )
7 Amount of Credit Facility Rs.__________(Rupees _______________________________)
8 Nature of the Facility Credit Line against Pledge of Warehouse/Storage Receipts/
eNWR/ePledge Lot
9 Processing fee ________% + service Tax as applicable to be to be collected upfront
before disbursement OR __________% + service tax collected for each
tranche of disbursement.
10 Prepayment charges
1. Prepayment charges (0.50% exclusive of GST) of the amount
being prepaid only if prepayment is within one month from the date of
disbursement. Otherwise Nil.
2. Prepayment penalty is not applicable in case of loan against
electronic Negotiable Warehouse Receipt (eNWR).

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 3. In case of Micro and Small Enterprises (MSE) customers, no
prepayment charges are applicable if;
a. Loan amount is up to Rs.50 Lakhs under Fixed rate loans, or
b. Loans with floating interest rates (irrespective of the loan limit)

11 Rate of Interest At ……% above Repo Rate (the Repo Rate applicable at present being
__% p.a.) i.e., presently at the rate of........ percent per annum or at
such other rate as the Bank may fix from time to time, in relation to
the Repo Rate,” payable on due date along with the principal amount.
12. Penal Charges • Financial Default*: 8% p.a. above applicable interest rate on
the outstanding amount (subject to the aggregate not
exceeding Rs. 1,00,000/- per instance).
• Non-Financial Default**: 1% p.a. above applicable interest
rate / commission from the date of each non-financial default
on the outstanding amount of fund-based credit facilities and
non-fund-based facilities (as applicable).
• There shall be no capitalisation of Penal Charges.
• The said Penal Charges will be subject to GST as per applicable
law on Goods and Service Tax in India, and GST will be
charged separately.
• *Financial Default includes all types of payment or financial
defaults/irregularities with respect to your Loan Account.
• **Non-Financial Default includes breach of any other
obligation(s)/covenant(s) with respect to your Loan Account.

In case of the following irregularity/ies.

1. Any non-payment of amount due in respect of the facility/margin
call on due date.
2. Any breach of the terms and conditions stipulated in the facility and
pledge agreement or any other document.
3. Any representations or undertakings given by borrower are found
to be false or incorrect.

13 Valuation of Commodity The value of the commodity as security shall be the lower of the
following:

1. Value of goods as reflected in the warehouse receipt/storage

receipt/ eNWR.

2. Value of the goods based on the average price prevailing in the

nearest mandi on the day previous to the date of disbursement.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 3. Price cap provided by the Bank from time to time for various
commodities

For Base Metals:

Lower of the following:
1. MCX Spot price (Landing premium/discount if applicable)
2. MCX (near month daily settlement price (Landing premium discount
if applicable)
3. Price cap as fixed by the Bank from time to time
14. Security Primary:
Pledge of Warehouse Receipts /Storage Receipts/ eNWR/ ePledge Lot
with the licensed repositories under WDRA evidencing the pledge of
commodities in favour of the Bank
Collateral:

Personal guarantee etc.

15. Maximum tenor The tenure of the loan shall be …… months. The validity of the facility
against a Warehouse Receipt/Storage Receipt/ eNWR to expire by the
end of the month in which new crop arrives (harvesting season). In
case of any commodity having multiple harvesting seasons, the tenure
of the intermittent crop also needs to expire by the end of the month
in which new main crop arrives. The above tenors are subject to the
maximum duration as specified by the Bank for each commodity.

For Base Metal: 12 months

16 Repayment Terms Interest: Interest will be charged and will fall due on monthly intervals.

Principal: Principal repayment along with interest (from application

date) on due dates, i.e., at the end of tenure of each disbursement.

17 Other Conditions ➢ In case of private warehouse/godown/ silo warehouse, value &

Quality of stocks will be certified by Collateral Manager,
appointed by the Bank.
➢ In case of eNWR/ ePledge Lot, the value and quality of stocks
will be certified by the warehouseman.
➢ The Memorandum & Articles of Association of the company
should have the provision for borrowing against pledge
(Applicable, if the borrower is a Company).

➢ Company to provide Board resolution for this sanction

specifying the authorized signatory for execution of loan
documents (Applicable, if the borrower is a Company).
Version: BB/COM/LPA/ Apr 24/Ver 1.03
➢ The stocks pledged to us are to be exclusively charged to our
Bank and the borrower should furnish an undertaking that the
stocks pledged to us will not be included in the stock
statements submitted to the existing Bankers, if any.

➢ The Borrower shall ensure that at any point of time, during the
currency of the facility, the receipt wise total outstanding
(including interest accrued till date) as a percentage of the
market value of the commodities pledged should not exceed
82.5%. In case of outstanding exceeds 82.5 %, the Borrower
shall furnish additional security or deposit funds within 5 days
of being served a notice to replenish with the original margin
level as stipulated in the schedule. In case, the borrower does
not bring in additional security or funds within the stipulated
time, the Bank may offload the commodities, directly or
through an agent, in part or full, at its discretion to ensure
maintenance of the requisite margin. The loss if any from this
action would be to the borrower’s account. However, during
the notice period or any time during the currency of the facility,
if the total outstanding (including interest accrued till date) as
a percentage of the market value of the commodities pledged
touches 90 % due to commodity price volatility, Bank may
immediately initiate disposal of the commodities on the same
day directly or by appointing an agent. The Banks Decision and
action shall final as regards such disposal. The Bank may offload
the commodities in part or full at its discretion. All the expense
of the agent, if any, appointed shall be borne by the borrower.
➢ Providing PDCs towards repayment of the loan.
➢ Pre-stacked stock will not be financed. The same can be
considered only if the borrower agrees to pay the de-stacking
and restacking expenses.
➢ Warehouse / Storage Receipts/ eNWR/ ePledge Lot should be
kept valid during the currency of the facility.
➢ Inspection of the Commodity stocked will be conducted at least
once in a month by the Bank officials.
➢ QC charges, fumigation charges and other charges if any,
wherever required are to be borne by the borrower.
➢ Repo Rate would be declared by the Bank on a monthly basis
and shall be displayed at the Axis Bank website. Subsequent
disbursements would be at the respective Repo rate of the
month in which funds are drawn.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 ➢ The maximum funding price for commodities will be within the
price cap decided by the Bank from time to time.
18. Sanction Letter Ref. No.________________ dated ____________

The contents of the document have been explained to me in ___________ language and I/we
have understood the same.

IN WITNESS WHEREOF the Borrower has hereunto put his hand and seal on

_____________________

In case the Borrower is an Individual:

_____________________

_____________________ ______________________
Borrower’s Signature Borrower’s Initial

[Note: Both the signature and the initials to

be obtained on this page from the
individual or a power of
attorney holder of the individual. Clause to
be suitably modified if the document is
being executed by the power of attorney
holder of the borrower with following
statements “In case the Security Provider is
an individual executing through the
Security Provider’s power of attorney
holder” and “Borrower’s Power of Attorney
Holder’s Signature” “Security Provider’s
Power of Attorney Holder’s Initial”]

In case the Borrower is a company:

_________________________

_________________________

_________________________

Version: BB/COM/LPA/ Apr 24/Ver 1.03

Authorised Signatory Signature Authorised Signatory Initial

[Note: Both the signature and the initials to be obtained on this page]

THE COMMON SEAL OF [______________________________]

Name & Signature/thumb impression

Authorized Signatory on behalf of the Bank

____________________

having its registered office at

[____________________] has been hereunto
affixed pursuant to the resolution of its board of
directors passed at the meeting held on
[_______] day of [________], [_______] in the
presence of [____________________________],
its [_____________________].

[Note : To be suitably modified based on

the Articles of Association of the company.]

In case the Borrower is a partnership firm:

Name :_____________________________

Place of business :_____________________________

Signed and delivered on behalf of the

Borrower by its partners:

(a) Mr./Ms. _________________________________

_______________________________
Signature

___________________
Initial

(b) Mr./Ms. ________________________________

_______________________________

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Signature
___________________
Initial

(c) Mr./Ms.________________________________

_______________________________

Signature
___________________
Initial

(d) Mr./Ms.________________________________

_______________________________

Signature
___________________
Initial

(e) Mr./Ms.________________________________

_______________________________

Signature
___________________
Initial

[Note: Both the signature and the initials to

be obtained on this page. It is advisable
that all partners of the partnership firm
execute this Agreement, however all the
parties may authorize the designated

Version: BB/COM/LPA/ Apr 24/Ver 1.03

partner to sign this Agreement in
accordance with the partnership deed.]

In case the Borrower is a Proprietorship

Concern:

For M/s. _______________________

___________________

(Proprietor Signature)

__________________
(Proprietor Initial)

[Note: Both the signature and the initials to be obtained on this page]

In case the Borrower is a HUF:

For ___________________, a Hindu Undivided Family

_______________________________
(Karta Signature)

___________________ ______
(Karta Initial)

[Note: Both the signature and the initials to

be obtained on this page. To be executed
by the Karta of the HUF.]

In case the Borrower is a Trust/Society:

For ____________________________, acting as the

______________ of the Borrower, authorized under
resolution dated _________________ passed
by______________________________of the Borrower.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

__________________________

[insert designation]
Signature

___________________
[insert designation]

Initial

[Note: Both the signature and the initials to be obtained

on this page. Clause to be suitably modified based on the
bye laws of the trust/ society.]

Name & Signature/thumb impression

Authorized Signatory on behalf of the Bank

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Appendix 2B

FACILITY AGREEMENT

This Agreement executed at the place and date specified in the Schedule by the person(s)
described in the said Schedule (hereinafter referred to as the “Borrower”, which expression shall
unless repugnant to the context or subject otherwise requires include his/ her /their respective
heir(s), executor(s) and administrator(s) and assigns) in favour of

Axis Bank Limited, a public limited company incorporated under the Companies Act 1956 and
licensed as a Bank under the Banking Regulation Act, 1949 and having its registered office at
“Trishul”, 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellisbridge, Ahemdabad-
380006 and a branch office as specified in the Schedule (hereinafter called the "Bank” which
expression shall include its successors and assigns)

WHEREAS the Borrower is engaged in agricultural activities/ operations, trading agricultural

processed commodities/selling agricultural inputs viz. fertilizers, seeds, pesticides etc and is in
possession of harvested agricultural crops / processed agricultural commodities/ agricultural
inputs viz. fertilizers, seeds, pesticides and other non-agricultural commodities viz. Base Metal etc
for its own benefit and has requested the Bank to grant financial assistance for the purpose(s) as
specified in the Schedule.

NOW THIS AGREEMENT WITNESSTH AS UNDER:

1. General Interpretation
In this Agreement, unless the context otherwise requires:

(a) singular includes plural and vice versa.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 (b) the headings are inserted for the sake of convenience only and shall not affect the
interpretation of the provisions hereof.
(c) the sanction letter more particularly described in the Schedule is a part and parcel of this
Agreement and shall be read in conjunction with this Agreement.

2. Definitions

a) “Balance Due to the Bank” means and includes the principal amount of the Facility from time
to time advanced to the Borrower, interest, penal charges thereon as set out herein and all
costs, charges, commissions and expenses, including incremental taxes, interest tax and any
other related and consequential charges and taxes, insurance premium which the Bank may
have paid or incurred, including in connection with the commodities and also the incidental
or other charges debited by the Bank to the account of the Borrower in accordance with the
rules, or usage of the Bank.
b) "Commodities" means the harvested agricultural crops /agricultural processed commodities/
agricultural inputs viz. fertilizers, seeds, pesticides etc and other non-hazardous non-agricultural
commodities deposited by the Borrower with the warehouse.
c) "Facility" means the financial assistance granted by the Bank to the Borrower and more
particularly described in the schedule.
d) “Schedule” means the schedule annexed of this Agreement, which forms a part of the
Agreement.
e) "Authorized representative of Joint Liability Groups (JLGs)" shall refer to persons who shall be
storing the Commodities in the warehouses on behalf of the Farmers.
f) “Warehouse” or a “Godown”, by whatever name called is a storage area, where the
commodities pledged/to be pledged to the Bank are stored.
g) "WDRA" means the Warehousing Development and Regulatory Authority established under
the Warehousing (Development And Regulation) Act, 2007
h) Repositories means an entity that has received a certificate of registration from the Authority
for creation and management of electronic negotiable warehouse receipts and include
National E- Repository Limited (NERL) and CDSL Commodity Repositories Limited (CCRL)
i) “Negotiable Warehouse Receipt” means a warehouse receipt under which the goods
represented therein are deliverable to the depositor or order, the of endorsement which has
the effect of transfer of goods represented thereby and the endorsee for which takes a good
title;
j) “Electronic Negotiable Warehouse Receipt (eNWR) ” means a negotiable warehouse receipt
issued in an electronic form by _warehouseman of WDRA accredited Warehouse_and
management of electronic negotiable warehouse receipts
k) “Repository Participant– Account Maintenance” means as per WDRA guidelines, a Repository
may appoint one or more entities as Repository Participants for carrying all or any of the
following core activities of repository such as enabling the transfer of electronic Negotiable
Warehouse Receipts; on-boarding the users of a Repository; To identify through documentary
and/ or physical verification, on behalf of the Repository, the identity, and address of the
depositor in whose favor a warehouseman intends to issue an electronic Negotiable
Warehouse Receipt; To facilitate the opening, management, and closing of accounts of users
on the Repository;
l) Repository Participant – Pledgee means entities for carrying out core activity of enabling the
pledge or removal of the pledge, e-auction of electronic Negotiable Warehouse Receipts.
These entities are Scheduled Commercial Bank as listed under Schedule 2 (as amended) of
the Reserve Bank of India Act, 1934, or financial institution licensed under the Banking
Regulation Act, 1949 and the Reserve Bank of India Act, 1934; Such other financial
intermediaries which are permitted by RBI for the purpose of carrying on the business of lending
and borrowing; Any custodian as defined by SEBI

Version: BB/COM/LPA/ Apr 24/Ver 1.03

m) “Warehouseman” means any person who is granted a certificate of registration in respect of
any warehouse or warehouses by the Authority or an accreditation agency for carrying on
the business of warehousing
n) Repository Platform: Repository platform is a web based application developed and
maintained by the repositories, which provides an end to end solution for all the transactions
related to electronic warehouse receipt
(d) Multi Commodity Exchange Clearing Corporation Limited,( MCXCCL) a company
incorporated and registered under the provisions of the Companies Act, 1956 and a Clearing
Corporation duly recognized by the Government of India under the provisions of Securities
Contract (Regulations) Act, 1956. MCXCCL is established to undertake the activity of
clearing and settlement of trades in securities or other instruments or products that are dealt
with or traded on a recognized stock Exchange
(e) “Multi Commodity Exchange of India” is the recognised commodity exchange in India.
(f) “ComRIS” is the web bases application developed and maintained by MCXCCL, which is
only an electronic record of ownerships and record of transfers of commodities held by the
participants at the corresponding warehouse/s. The ComRIS inter-alia has facility for noting
of pledge and thus has the feature to facilitate pledge finance against commodities stores in
approved warehouses/vaults.
(g) “ComRIS Account” shall mean the account of Borrower opened through the ComRIS
Participant in electronic system of ComRIS which , reflects the record of ownership and lien
(if any) of Commodities including the details of commodities quantity, place of storage,
transactions, transfers, validity certification and other parameters as may be prescribed by
MCXCCL from time to time.
(h) “e-Pledge Lot” shall mean noting of lien on the electronic credit balance of commodities in
ComRIS account of a borrower by the Pledgee in accordance with the process prescribed or
as may be prescribed by MCXCCL from time to time
(i) “ComRIS Participants” shall mean an entity who has been permitted by MCXCCL to open
and maintained ComRIS accounts of Borrower in accordance with the process and on the
terms and conditions as may be prescribed by the MCXCCL from time to time

3. Terms of the Facility

19) The Bank shall maintain/cause to be maintained the Facility account in the name of the
Borrower for entering the particulars of the said Facility for the time being (hereinafter
referred to as the said "Account”).

20) The Borrower shall each be entitled to the Facility of a maximum amount equivalent to the
value of the Commodities deposited by the Borrower with the warehouse, from time to
time. Such value shall be based on the amount of commodities supplied by the Borrower
as evidenced in the warehouse receipt /storage receipt and other documents deposited
by the borrower/Collateral Manager or unencumbered eNWR/ePledge Lot depicting in
the beneficiary account/COMRIS account of the borrower with ComRIS Participants /
Repository Participant – Account Maintenance and evidencing the pledge of
commodities to the Bank and the market price offered for the said commodities, from time
to time. Notwithstanding the above the maximum amount of credit line available to the
Borrower shall not exceed Rupees ________. In case of JLGs, the maximum amount of
credit line provided to individual farmers within the overall limit of JLG shall not exceed Rs.
10 lakhs. The price of the commodity considered for disbursement of a warehouse
receipt/storage receipt/ eNWR/ePledge lot, shall be at the sole discretion of the Bank.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

21) a) The Bank at the request of the Borrower has agreed to grant / granted credit facility as
described in the Schedule with full power to the Bank from time to time to renew or reduce
or enhance the limit (as and when the Borrower/Collateral Manager/ WDRA registered
warehouse deposits warehouse receipts/storage receipts or unencumbered
eNWR/ePledge lot depicting in the beneficiary account/COMRIS account of the borrower
with ComRIS Participants / Repository Participant – Account Maintenance duly endorsed
in favour the Bank evidencing the pledge of commodities to the Bank or altogether
withdraw the facility on the terms and conditions appearing herein.
b) The Bank shall have an unconditional right to cancel the undrawn/unavailed/unused
portion of the Loan at any time during the subsistence of the Loan, without any prior notice
to the Borrower, for any reason whatsoever. In the event of any such cancellation, all the
provisions of this Agreement and all other related documents shall continue to be effective
and valid and the Borrower shall repay the outstanding dues under the loan duly and
punctually as provided herein.

22) The Borrower shall pay interest on said facility as specified in the Schedule, which shall be
paid along with the repayment of the Facility as specified herein.

23) The Borrower) shall pay ‘the Balance due to the Bank’ on demand from the Bank. Without
prejudice to the right of the Bank to demand the balance due to the Bank at any time,
the Borrower hereby agrees to repay all amount(s) drawn and/or outstanding under the
said account on the date(s) as stipulated together with interest, penal charges and other
amounts payable under this Agreement.

24) The Borrower hereby acknowledges to have deposited the Commodities with the
warehouse/Collateral Manager more particularly described in the schedule, absolutely
belonging to the Borrower, notwithstanding-
a) The existence of a credit balance or “Nil” balance in the accounts at anytime or any
partial payment or fluctuation of accounts or
b) Any loan(s) or any part thereof has been repaid either after demand has been made
by the Bank or otherwise or has not been so repaid on demand.

25) In case of eNWR/ePledge lot Borrower will require to follow the process mentioned below
in order to create valid pledge in favor of the Bank:
(a) The borrower shall deposits the commodity in the WDRA accredited warehouse/
MCX accredited Warehouse where the warehouseman generates the electronic
Negotiable Warehouse Receipt in the repository platform / electronic credit balance
of commodities in ComRIS.. This eNWR/ePledge Lot should reflects as electronic
balance in the Beneficiary account/COMRIS account of the borrower opened with
the Repository Participant – Account Maintenance (RP – Account Maintenance)
/Comris Participant.
(b) The borrower shall then submits the request for pledge of eNWR/ePldge Lot to the
Bank through Comris Participant RP – Account Maintenance with an intention to
create a pledge on the commodities described in the schedule and such future
commodities of the Borrower against which the Borrower intends to avail the
Facility, from time to time thereon
(c) The Borrower shall submit the unencumbered eNWR ePledge Lot depicting in the
beneficiary account/COMRIS account of the borrower with Comris Participant

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 /Repository Participant – Account Maintenance and evidencing the commodities
pledged to the Bank and the market price offered for the said commodities.
26) The Borrower shall ensure that at any point of time, during the currency of the facility, the
warehouse receipt /storage receipt wise total outstanding including eNWR ePledge Lot
(including interest accrued till date) as a percentage of market value of the commodities
deposited with the warehouse should not exceed 82.5%. In case of shortfall in the security
cover of the Facility, the Borrower shall furnish additional security or deposit funds within 5
days of being served a notice to replenish with the original margin level as stipulated in the
schedule. In case the borrower does not bring in additional security or funds within the
stipulated time, the Bank may offload the commodities, directly or through an agent, in
part or full, at its discretion to ensure maintenance of the requisite margin. The loss if any
from this action would be to the borrowers account. However, during the notice period or
any time during the currency of the facility, if the total outstanding (including interest
accrued till date) as a percentage of the market value of the commodities deposited with
the Bank touches 90 % due to commodity price volatility, Bank may immediately initiate
disposal of the commodities on the same day directly or by appointing an agent. All the
expense of the agent, if any, appointed shall be borne by the borrower. The Banks decision
and action shall final as regards such disposal.
27) The Borrower(s) hereby constitute and appoint the Bank as its attorney in its name and on
its behalf to execute and do all acts and things in connection with the commodities and/or
the enforcement/sale thereof as may be required by the Bank and also to do all such
other acts and things for giving effect to the provisions of this Agreement and powers
reserved to the Bank. The Borrower agrees and undertakes to ratify and confirm all and
whatsoever the Bank shall lawfully do or cause to be done by virtue of this clause.
28) The Borrower confirms that it is a farmer(s)/farmer (other than individual) into the business
of ____________________/authorized representative of farmers mentioned in schedule (Joint
Liability Groups-JLGs)/food and agro-based processing unit(s) with original investment in
Plant & Machinery upto Rs. __________ /agri-input dealer(s)/commission
agent(s)/arthia(s)/trader(s) and not a defaulter to any Bank /financial institution and the
Facilities hereby obtained will be utilized for agricultural purposes only as per sanctioned
terms.
29) The Borrower shall co-ordinate with such Agent or a Collateral Manager as may be
appointed by the Bank for administering the Facility availed by the Borrower.
30) The Borrower shall accept as conclusive proof of the sum or sums owed by the Borrower to
the Bank any statement of account made by the Bank and duly signed by any authorized
signatory of the Bank.
31) In case the Borrower fails or defaults to comply with any of the terms of said Facility and/or
this Agreement, including schedules, by any reason whatsoever borrowers shall be liable
to pay the Bank penal charges at the rate(s) stipulated in Schedule on the balance due
to the Bank from the date of default of failure till payment. Provided that the Bank may
from time to time in accordance with the Bank’s policy suitably and prospectively revise
the said penal charges.
32) In case the Borrower is more than one individual, each one or any of them is authorized
and empowered by the other(s) of them to admit and acknowledge his/their liability to
the Bank by any payment into the account(s) or by way of express writing in any manner
or otherwise and any such admission and acknowledgement of the liability by one or more
of them shall be construed to have been made on behalf of each one of them and all
the Borrowers shall be jointly and severally liable to the Bank. In case of default by the
borrower, the borrower undertakes & agrees to cooperate with the Bank for smooth
disposal of the commodities deposited, even if the price being realized is less than the
price considered for funding or the current market price. The price of the disposal as
decided by the Bank shall be acceptable to the borrower and shall not be challenged.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

33) The Borrower hereby agrees and undertakes that no such person whose name is
appearing in the list of Wilful defaulters shall be inducted on its board and that in case,
such a person is found to be on its Board, it would take expeditious and effective steps for
removal of such person from its Board.
34) The Borrower hereby acknowledges and agrees that the Bank has a right to award a
separate mandate to our Auditor or any independent Auditor, as the Bank may deem fit
with a view to obtain a specific certificate regarding diversion /siphoning of funds by the
Borrower. The Borrower agrees and undertakes to co-operate with such Auditors and
provide the necessary information and/or documents as may be required by such
Auditors. The Borrower also agrees and undertakes to bear all the expenditure in respect
of obtaining the said Certificate and agrees to indemnify and keep the Bank indemnified
in this regard.
35) The interest payable by the Borrower shall be subject to the changes based on guidelines
/ directive issued by RBI to banks from time to time and the changes made by the Bank.

4. Dealing with the Commodities

a) The Borrower shall not, without previous permission in writing of the Bank, sell or otherwise
part with the possession/ownership of the commodities. Where with such permission of the
Bank the commodities is sold or disposed off by the Borrower, the value of such produce
sold shall be paid forthwith to the Bank towards repayment of the Facility.
b) It shall be the duty of the Borrower to safeguard and diligently manage the commodities
and do everything that is necessary to preserve, protect and maintain the quality of the
commodities Whenever required by the Bank, the Borrower shall do everything necessary
for transferring to and effectively vesting in the Bank or any of its officers or nominees titled
to the commodities. The Borrower shall keep the Bank informed of the true condition of the
commodities.
c) The Borrower hereby expressly undertakes to hold the commodities in trust for and as agent
of the Bank until full repayment of all the balance due to the Bank including interest, cost
and expenses of the bank. The Borrower(s) further agrees to deal with and dispose of the
Commodities in the manner instructed by and under the supervision and control of the
Bank, its agents, officers or nominees.
d) The Borrower shall insure/ensure insurance of the commodities as may be required by the
Bank against loss or damage by fire and other risks as may be required by the Bank and
shall bear all costs, expenses, charges, levies, taxes, fees etc. payable in connection with
the commodities, their storage in the warehouse/godown, insurance thereof, provision of
security and/or the taking of any action for protection/preservation thereof, protection of
the Bank’s interest therein, as also all costs, expenses and charges payable in connection
with the enforcement of the commodities and sale thereof. In the event the Bank is
required to pay any amounts in this regard the same shall form part of the Balance due to
the Bank and the borrower(s) shall promptly reimburse the said amounts to the Bank on
receipt of notice in this regard. Any such insurance shall be in the name of the Bank/
assigned to the Bank as required by the Bank. It shall be also lawful for but not obligatory
upon the Bank to insure the commodities by debit to the Borrower's account. The proceeds
of any such insurance shall, at the discretion of the Bank either applied towards
replacement of the commodities or towards the satisfaction of the balance due to the
Bank.
e) The Borrower hereby declares and confirms that the commodities are free from
encumbrances and has not been offered/does not constitute security for any loan
/advance availed by the Borrower from any other person or institution.
f) The Borrower shall be responsible for the quantity and quality of the commodities as also
for the correctness of any statements/documents furnished to the Bank in connection with

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 the commodities, as also for any loss, damage, shortage or deterioration of the
commodities owing to any cause whatsoever. The Borrower agrees that the Bank shall not
be held liable of any loss, damage or depreciation of the said commodities or any
additions substitutions that may be made there to undergo while in possession nor shall the
Bank aforesaid be held liable in case of theft, burglary, loss by fire, floods, earthquakes,
enemy, warfare civil commotion and riots and the like and authority herein contained in
favor of the Bank to enable them to sell and transfer the said property, goods, documents,
securities etc., is hereby declared to be irrevocable during the currency thereto, and the
Borrower hereby consents that the terms and conditions herein before stipulated shall
apply notwithstanding the Borrower accounts with the said Bank at any of their offices any
be bought to credit or the credit given fully exhaust and notwithstanding any settlement
of account and the Borrower hereby admit that the Bank’s rules of Business have been
read by/read over and explained to the Borrower and all the borrower transactions with
the said Bank shall be governed by those rules howsoever they may be changed, altered
or modified or added to from time to time.
g) The Borrower shall punctually pay all outgoing/ charges in respect of the said commodities
and of the premises wherein the commodities is stored.
h) The Bank and its officers or authorized persons shall be entitled at anytime or from time to
time, without notice to the Borrower but at the Borrower’s risks and expenses and if so
required as attorneys of Borrower(s) for and in the name of Borrower, to enter and remain
at any place or places where the commodities shall be and to inspect and take inventories
and or to take possession of, recover and receive the commodities or appoint any
receiver/s of the commodities and or to sell by public auction or private contract or
otherwise dispose off or deal with all or any part of commodities and to enforce, realize
settle, compromise and deal with any of the rights aforesaid without being bound to
exercise any of these powers or being liable for any loss in the exercise thereof and without
the Bank’s rights and remedies of suit against the Borrower and to apply the net proceeds
of such sale/s in or towards the liquidation of the balance due to the Bank and the
Borrower hereby agrees to accept the Bank’s account regarding sale/s and or realizations
as final and to pay any shortfall or deficiency therein shown.
i) The Bank shall at all times have a paramount charge, lien and right of set off on all monies,
securities, deposits and other assets and properties belonging to the Borrower with the
Bank. Without prejudice to any other rights available to the Bank, the Bank shall be entitled
to set off, adjust or otherwise appropriate any of the aforesaid monies, securities deposits
or any other assets and properties towards payment or liquidation of any other monies
which are due or may become due from the Borrower whether solely or jointly with any
other person(s) as Principal Borrower or as Guarantor.
j) The Borrower has paid and undertakes to pay in future all rents, insurance and all other
charges regularly to the warehousing corporation without allowing the charges to fall in
arrears. In the event of the failure of the Borrower to pay the same, the Borrower authorizes
the Bank to pay the same along with interest on the Borrower's behalf by debiting the
current/ savings/ cc/ loan account as the case may be.
k) The Borrower shall adhere to the rules and regulations stipulated in the WDRA/MCX and
shall ensure compliance with the provisions of WDR Act /Security Contract Act including
amendments thereof from time to time
l) The Borrower has paid and undertakes to pay in future all rents, insurance and all other
charges regularly to the warehousing corporation/private warehouses/godowns without
allowing the charges to fall in arrears. In the event of the failure of the Borrower to pay the
same, the Borrower authorizes the Bank to pay the same along with interest on the
Borrower's behalf by debiting the current/ savings/ cc/ loan account as the case may be.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 5. Events of Default
An event of default shall be deemed to have occurred if the Borrower (a) commits a
breach of any of the terms and conditions in this Agreement including in the Schedule
annexed hereto and /or the sanction letter or any written terms agreed thereon (b) fails to
pay any installment or any other payment on the due dates and such failure continues for
5 days; or (c) makes assignment for the benefit of creditors or the Commodities are
attached or any regulatory restraint is levied thereon by the appropriate government or
other authorities as the case may be, or a receiver is appointed thereof or insolvency
proceedings are instituted against the Borrower; or (d) any information mentioned by the
Borrower) to the Bank is found to be incorrect or incomplete in any material facts stated
therein or (e) where any information mentioned by the Borrower to the ComRIS
Participants / Repository Participant – Account Maintenance and warehouseman and
eNWR/ ePledge Lot generated basis thereof if found to be incorrect or incomplete or
invalid in any material facts stated therein”
6. Upon occurrence of any of the Events of default, without prejudice to the other rights, the
Bank is entitled to declare the Facility/Balance due to the Bank immediately due and
payable and upon the Borrower failing to make the said payments within 5 days from the
date of margin call notice or within 10 days for any other irregularities thereof, the Bank
may enforce its security and exercise any other right remedy which may be available to it
under the applicable laws. The Borrower agrees that the Bank is at liberty to enforce the
Commodities and sell the same at prevailing market price without any reference to the
minimum support price (MSP). In such an event the Borrower confirms that the bank shall
not be liable to pay to the borrower the differences, if any between the prevailing market
price and the MSP.
7. In the event the Commodities under this Agreement are in jeopardy (as determined by
the Bank in its sole discretion) for any reason whatsoever, the Bank shall be entitled to sell
the Commodities in any manner and the sale proceeds shall be utilized towards reduction
of the balance due to the Bank. In case of eNWR/ePLedge Lot the Bank shall revoke the
pledge in the repository platform/Exchange COMRIS system and transfer the balances
from beneficiary account/COMRIS account to its own account in the repository platform/
Exchange COMRIS system. The Bank shall then sell the pledged commodities in any
manner and the sales proceeds shall be utilized towards reduction of the balance due to
the Bank. The Borrower hereby authorizes the Bank/it’s agents/representatives to remove
the Commodities or any part thereof, from any warehouse/godown that the same may
be stored or be lying in and transfer/shift the same to any other warehouse/godown or
any other place as the Bank may, in its sole discretion, deem fit. The Borrower hereby
authorizes the Bank/its agents/representatives to sign/endorse/discharge any warehouse
receipts/storage receipt/eNWR/ ePledge Lot or any other documents or writings and do
all acts and deeds as may be required for the purpose.
8. Nothing contain herein above shall affect, limit or take away the right of the Bank to
recover personally from the Borrower or from their properties or guarantor or their
properties, the Balance due to the Bank notwithstanding that all or any of the commodities
may not have been sold or realized. The security of Commodities shall not prejudice or
affect any other rights and remedies of the Bank.
9. Severability If any term or provision or this Agreement should be declared invalid by a court
of competent jurisdiction, the remaining terms and provisions of this Agreement shall
remain unimpaired and be in full force and effect.
10. Assignment The Borrower shall not have any right to assign its obligations under this
Agreement, however the Bank has the right to transfer, assign, securitize or sell in any
manner, in whole in part, the outstanding and dues to any third party without reference or

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 intimation to the Borrower and any such transfer/assignment/ sale/securitization shall
conclusively bind the Borrower and all other persons.
11. CIBIL Clause
The Borrower understands that as a precondition, relating to grant of the Facility to the
Borrower and furnishing of guarantee in relations thereto, the Bank requires consent of the
Borrower of the credit facilities granted/ to be granted by the Bank for the disclosure by
the Bank of information relating to the Borrower, any credit facilities availed of / to be
availed, by the Borrower, obligations as assumed by the Borrower in relation thereto and
default, if any, committed in discharge thereof. Accordingly, the Borrower hereby agrees
and gives consent for the disclosure by the Bank of all or any such:
a. Information and data relating to Borrower
b. he information or data relating to Borrower's obligations in any credit facility
granted/ to be granted by the Bank
c. Default, if any committed by Borrower in discharge of the Borrower's obligation as
the Bank may deem appropriate and necessary to disclose and furnish to Credit
Information Bureau (India) Ltd. and any other agency authorized in this behalf by
RBI.
d. The Borrower declares that the information and data furnished by Borrower to the
Bank are true and correct.
The Borrower undertakes that –
e. The Credit Information Bureau (India) Ltd. and any other agency so authorized may
use, process the said information and date disclosed by the Bank in the manner as
deemed fit by them and
f. The Credit Information Bureau (India) Ltd. and other agency so authorized may
furnish for consideration, the processed information and data or products thereof
prepared by them, to Banks/Financial Institutions and other credit grantors or
registered users, as may be specified by the Reserve Bank of India in this behalf.
12. The Borrower hereby gives specific consent to the Bank/Lender for disclosing / submitting
the ‘financial information’ as defined in Section 3 (13 ) of the Insolvency and Bankruptcy
Code, 2016 ( ‘Code’ for brief ) read with the relevant Regulations/ Rules framed under the
Code, as amended and in force from time to time and as specified there under from time
to time, in respect of the Credit/ Financial facilities availed from the Bank/ Lender, from
time to time, to any ‘Information Utility’ ( ‘IU’ for brief ) as defined in Section 3 ( 21 ) of the
Code, in accordance with the relevant Regulations framed under the Code, and
directions issued by Reserve Bank of India to the banks from time to time and hereby
specifically agree to promptly authenticate the ‘financial information submitted by the
Bank/Lender, as and when requested by the concerned ‘IU’ .
13. All disputes, differences and / or claim or questions arising out of these presents or in any
way touching or concerning the same or as to constructions, meaning or effect thereof or
as to the right, obligations and liabilities of the parties hereunder shall be referred to and
settled by arbitration, to be held in accordance with the provisions of the Arbitration and
Conciliation Act, 1996 or any statutory amendments thereof, of a sole arbitrator to be
nominated by the Lender/Bank, and in the event of death, unwillingness, refusal, neglect,
inability or incapability of a person so appointed to act as an arbitrator, the Lender/Bank
may appoint a new arbitrator to be a sole arbitrator. The arbitrator shall not be required to
give any reasons for the award and the award of the arbitrator shall be final and binding
on all parties concerned. The arbitration proceedings shall be held at
Mumbai/Delhi/Kolkata/Bangalore/Chennai/Kochi. The arbitral procedure shall be
conducted in English.
14. Repo would be declared by the Bank on a monthly basis and shall be displayed at the
AXIS BANK website. Subsequent disbursements would be at the respective Repo of the
month in which funds are drawn. The applicable external benchmark rate would be

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 applicable to the entire loan facility including the existing bills (which have been disbursed
but unpaid).
15. Axis Bank can change the reset frequency for the Commodity Pledge loans once in 3
months or as decided by the Bank, whichever is earlier.
16. Borrower is deemed to have noticed the changes in the rate of interest whenever the
changes in Repo are displayed / notified at/by the branch or website/published in the
newspaper/made through entry of interest charged in passbook/statement of
account sent to the borrower.
17. In case of my/our failure to repay the loan, I/we hereby authorize the Bank to publish
my/our photographs in the print media under the title of a defaulter of loan. I am also
aware that the right to publish the photograph shall solely be with the Bank and the Bank
shall have the discretion to publish the photographs of all or selected defaulters.
18. The borrower hereby confirm that he/she has not deposited commodity in the
godown/warehouse more than the limit prescribed issued by the State
Government/Department of Consumer Affairs in this regard and is in compliance with all
existing rules and regulations, as applicable.

19. Penal Charges and Other Charges :-

• All amounts in default for payment, due to delay or non-payment of EMI/Installment or

interest thereon including any costs, charges and expenses or due to occurrence of any
other Event of Default as per Sec.[19] shall be debited to the loan/drawal account and
in such case Bank shall also levy the penal charges and other charges as applicable and
prescribed in the sanction letter and loan agreement in the said loan/drawal account
for the period of default without there being any need to assign a reason for the same,
which shall be paid by the Borrower.

• However, if Borrower fails to make the payment of above said amounts in default for
payment or the penal charges and other charges levied by the Bank within 90 days from
the due date of such payments, in that case said loan/drawal account shall be classified
as Non Performing Asset (“NPA”).

• In order to regularise the said loan/drawal account, the Borrower shall be liable to pay all
the above mentioned amounts in default and/or penal charges and other charges, as the
case may be, [on immediate basis].

35) Fair Practice Code:-

• The Fair Practice Code for the Lenders as published on the Axis Bank's website, shall
apply to the Loan. Copy of the Fair Practice Code for lenders as available on the Bank's
website.

https://www.axisbank.com/docs/default-source/default-document-library/fair-practice-
code-for-lenders.pdf

36).(a) RBI vide its guidelines (reference no. RBI/2021-2022/125

DOR.STR.REC.68/21.04.048/2021-22) on ‘Prudential Norms on Income Recognition, Asset
Classification and Provisioning, pertaining to Advances – Clarifications’ dated 12-11-2021 has
clarified and/or harmonized certain aspects of the extant Regulatory guidelines. The Borrower

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 agrees, undertakes and confirms that the Bank has brought the following clarifications to the
notice of the Borrower and the Borrower confirms of having been apprised of as follows:

1.3 Additional terms and conditions:

• Interest for the Warehouse receipt Finance will be due and charged on every last day of
the month from the date of disbursement.
• Principal repayment will be due on the maturity of said warehouse receipt finance along
with the interest for the broken period (i.e., difference between last month end interest
application and maturity of the loan).
• I understand that if I do not pay my dues on the above-mentioned date, my account will
be considered as ‘Overdue’ from the end of that date.

1.4 Classification as Special Mention Account (SMA) and Non-Performing Asset (NPA)

(v) Dues: shall mean the principal / interest / any charges levied on the loan account
which are payable within the period stipulated as per the terms of sanction of the
credit facility.

(vi) Overdue: shall mean the principal / interest / any charges levied on the loan
account which are payable, but have not been paid within the period stipulated
as per the terms of sanction of the credit facility. In other words, any amount due
to the bank under any credit facility is 'overdue' if it is not paid by the due date fixed
by the bank.

(vii) Relevance of the principle of 'First In First Out' (FIFO) in appropriation of payments
into the Borrower’s account: The principle of FIFO i.e. 'First In, First Out' accounting
method is relevant to arrive at the number of days overdue for determining the
SMA/NPA status. The FIFO principle assumes that the oldest outstanding dues in the
loan account needs to be cleared first. The FIFO method thus requires that what is
due first must be paid by the Borrower first. For example, if in any loan account as
on 01-02-2021, there are no overdues and an amount of INR X is due for payment
towards principal instalment / interest / charges, any payment being credited on
or after 01-02-2021 in the loan account will be used to pay off the dues outstanding
on 01-02-2021.

Assuming that nothing is paid / or there is partial payment (INR Y) of dues during the
month of February, the overdue as on 01-03-2021 will be INR X - INR Y.

Additionally, an amount of INR Z becomes due as on 01-03-2021. Now any payment

partial payment into the account on or after 01-03-2021 will be first utilized to pay
off the partial due of 01-02-2021 (INR X - INR Y). If there is more recovery than the INR
X - INR Y, then after recovering dues of 01-02-2021, the remaining amount will be
treated as recovery towards due of 01-03-2021.

(viii) Age of oldest dues:

The age of oldest dues is reckoned in days from the date on which the oldest
payment is due and continues to remain unpaid. In the aforesaid illustration, if the
dues relating to 01-02-2021 remain unpaid till 01-03-2021, the age of the oldest dues
is reckoned as 29 days on 02-03-2021.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

(f) Classification as Special Mention Account (SMA) and Non-Performing Asset (NPA)

Lending institutions will recognize the incipient stress in loan accounts, immediately on
default, by classifying them as Special Mention Accounts (SMA). The basis of
classification of SMA / NPA category shall be as follows:

Loans other than revolving facilities Loans in the nature of cash credit / overdraft
SMA Sub Basis for classification – SMA Sub- Basis for classification – Outstanding
categories Principal or interest categories balance remains continuously in excess of
payment or any other the sanctioned limit or drawing power,
amount wholly or partly whichever is lower, for a period of:
overdue
SMA 0 Up to 30 days NA NA
SMA 1 More than 30 days and SMA 1 More than 30 days and
Up to 60 days Up to 60 days
SMA 2 More than 60 days and SMA 2 More than 60 days and
Up to 90 days Up to 90 days

(g) Non-performing Asset:

Non-Performing Asset (NPA) is a loan or an advance where:

(viii) Interest and/or instalment of principal remains overdue for a period of more than
90 days in respect of a term loan,
(ix) The account remains 'out of order' as indicated below, in respect of an Overdraft /
Cash Credit (OD / CC),
(x) The bill remains overdue for a period of more than 90 days in the case of bills
purchased and discounted,
(xi) The instalment of principal or interest thereon remains overdue for two crop seasons
for short duration crops
(xii) The instalment of principal or interest thereon remains overdue for one crop season
for long duration crops.
(xiii) The amount of liquidity facility remains outstanding for more than 90 days, in respect
of a securitisation transaction undertaken in terms of the Reserve Bank of India
(Securitisation of Standard Assets) Directions, 2021.
(xiv) in respect of derivative transactions, the overdue receivables representing positive
mark-to-market value of a derivative contract, if these remain unpaid for a period
of 90 days from the specified due date for payment.

(h) ‘Out of Order’ Status:

An account shall be treated as 'out of order' if:

(iii) the outstanding balance in the CC/OD account remains continuously in excess of the
sanctioned limit/drawing power for 90 days, or
(iv) the outstanding balance in the CC/OD account is less than the sanctioned limit/drawing
power but there are no credits continuously for 90 days, or the outstanding balance in the
CC/OD account is less than the sanctioned limit/drawing power but credits are not
enough to cover the interest debited during the previous 90 days period.

Illustrative movement of an account to SMA category to NPA category based on delay I non-payment
of dues and subsequent upgradation to Standard category at day end process:

Version: BB/COM/LPA/ Apr 24/Ver 1.03

Due date of Payment date Payment covers Age of SMA /NPA SMA since NPA NPA Date
payment oldest dues categorisation date / SMA categorization
in days class date
01.01.2022 01.01.2022 Entire dues upto 0 NIL NA NA NA
01.01.2022
01.02.2022 01.02.2022 No Payment or Partly 1 SMA-0 01.02.2022 NA NA
paid dues of
01.02.2022
01.02.2022 02.02.2022 No Payment or Partly 2 SMA-0 01.02.2022 NA NA
paid dues of
01.02.2022
01.03.2022 Dues of 01.02.2022 not 29 SMA-0 01.02.2022 NA NA
fully paid 01.03.2022
is also due at EOD
01.03.2022
Dues of 01.02.2022 1 SMA-0 01.03.2022 NA NA
fully paid, Due for
01.03.2022 is not paid
at EOD 01.03.2022
No payment of full 31 SMA-1 01.02.2022/ NA NA
dues of 01.02.2022 and 03.03.2022
01.03.2022 at EOD
03.03.2022
Dues of 01.02.2022 1 SMA-0 01.03.2022 NA NA
fully paid, due for
01.03.2022 not fully
paid at EOD
01.03.2022
01.04.2022 No payment of dues of 60 SMA-1 01.02.2022/ NA NA
01.02.2022, 02.04.2022
01.03.2022 and
amount dues on
01.04.2022 at EOD
01.04.2022
No payment of dues of 61 SMA 2 01.02.2022 NA NA
01.02.2022 till /
01.04.2022 at 02.04.2022
EOD02.04.2022
01.05.2022 No payment of dues of 90 SMA 2 01.02.2022 NA NA
01.02.2022 till /
01.05.2022 at EOD 02.04.2022
01.05.2022
No payment of dues of 91 NPA NA NA 02.05.2022
01.02.2022 till
01.05.2022 at EOD
02.05.2022
01.06.2022 01.06.2022 Fully paid dues of 93 NPA NA NPA 02.05.2022
01.02.2022 at EOD
01.06.2022
01.07.2022 01.07.2022 Paid entire dues of 62 NPA NA NPA 02.05.2022
01.03.2022 &
01.04.2022 at EOD
01.07.2022
01.08.2022 01.08.2022 Paid entire dues of 32 NPA NA NPA 02.05.2022
01.05.2022 &
01.06.2022 at EOD
01.08.2022
01.09.2022 01.09.2022 Paid entire dues of 1 NPA NA NPA 02.05.2022
01.07.2022 &
01.08.2022 at EOD
01.09.2022
01.10.2022 01.10.2022 Paid entire dues of 0 Standard NA NA STD from
01.09.2022 & Account with 01.10.2022
01.10.2022 No Overdues

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 (i) The Borrower agrees and acknowledges that the manner of classification and illustrations
of SMA and NPA as provided in sub-clauses (a) to (d) above in which the Bank is required
to classify accounts as SMA / NPA as per the various applicable regulations and guidelines
issued by RBI from time to time and:

(i) the same is liable to change / be modified as per the requirements of the RBI guidelines
in the matter issued from time to time. Any such change shall be intimated by the Bank
to the Borrower from time to time and the Borrower agrees and acknowledges that such
intimation shall accordingly modify the manner and illustrations provided herein without
a need for further amendment to the Agreement or require specific acknowledgment
of the Borrower; and

(ii) the Bank shall have the right to classify the account of the Borrower with the Bank as
SMA / NPA as per the applicable regulations / guidelines issued by RBI from time to time
even though the manner of classification and the illustrations thereof are not set forth in
this Agreement or the Sanction Letter(s).

37) Politically exposed person

For individuals
The Borrower agrees that he/she is not a politically exposed person (PEP) and further
undertakes to inform Axis Bank in the event that he/she and/or any of their family
members /close relatives becomes a PEP. In such an event, the Bank will obtain approval
from its senior management to continue the business relationship and subject the
account to the Customer Due Diligence measures as applicable to the customers of PEP
category including enhanced monitoring on an ongoing basis.

Definition -Politically exposed persons are individuals who are or have been entrusted
with prominent public functions in a foreign country, e.g., Heads of States or
Governments, senior politicians, senior government/judicial/military officers, senior
executives of state-owned corporations, important political party officials, etc.

For non individuals

The Borrower agrees that none of its Director/Partner/Trustee/Office

Bearer/Promoter/Authorised Signatory/Beneficial owner in the organisation or any of their
family members /close relatives is/are a politically exposed person (PEP) and further
undertakes to inform Axis Bank in the event that either of them becomes a PEP. In such
an event, the Bank will obtain approval from its senior management to continue the
business relationship and subject the account to the Customer Due Diligence measures
as applicable to the customers of PEP category including enhanced monitoring on an
ongoing basis.

Definition -Politically exposed persons are individuals who are or have been entrusted
with prominent public functions in a foreign country, e.g., Heads of States or
Governments, senior politicians, senior government/judicial/military officers, senior
executives of state-owned corporations, important political party officials, etc.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Schedule

Terms and Conditions

1. Place of Agreement
2. Date of Agreement
Details of the
3. borrower

Address
Name of the Borrower Village:
Tehsil:
District:
Telephone No.
Village:
Tehsil:
District:
Telephone No.
4. Address of the Branch Axis Bank Ltd. ________________ Branch
office of the Bank ___________________________________

5 Commodity/Margin:

6 Purpose • For pursuing Agricultural activities (in case of

farmers/JLGs)
• For the conduct of business (in case of farmers other
than individuals, food and agro-based processing units,
agri-input dealers, cooperatives, others, etc.,)
7 Amount of Credit Rs.__________(Rupees _______________________________)
Facility
8 Nature of the Facility Credit Line against deposit of Warehouse/storage
Receipts/ eNWR/ePledge Lot
9 Processing fee ________% + service Tax as applicable to be to be
collected upfront before disbursement OR __________% +
service tax collected for each tranche of disbursement.
10 Prepayment charges
1. Prepayment charges (0.50% exclusive of GST) of the
amount being prepaid only if prepayment is within one
month from the date of disbursement. Otherwise Nil.
2. Prepayment penalty is not applicable in case of loan
against electronic Negotiable Warehouse Receipt
(eNWR).
3. In case of Micro and Small Enterprises (MSE)
customers, no prepayment charges are applicable if;
a. Loan amount is up to Rs.50 Lakhs under Fixed
rate loans, or

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 b. Loans with floating interest rates (irrespective of
the loan limit)

11. Rate of Interest At ……% above Repo Rate (the Repo Rate applicable at
present being __% p.a.) i.e., presently at the rate of........
percent per annum or at such other rate as the Bank may
fix from time to time, in relation to the Repo Rate,”
payable on due date along with the principal amount.
12 Penal charges • Financial Default*: 8% p.a. above applicable
interest rate on the outstanding amount (subject
to the aggregate not exceeding
Rs. 1,00,000/- per instance).
• Non-Financial Default**: 1% p.a. above
applicable interest rate / commission from the
date of each non-financial default on the
outstanding amount of fund-based credit
facilities and non-fund-based facilities (as
applicable).
• There shall be no capitalisation of Penal
Charges.
• The said Penal Charges will be subject to GST as
per applicable law on Goods and Service Tax in
India, and GST will be charged separately.
• *Financial Default includes all types of payment
or financial defaults/irregularities with respect to
your Loan Account.
• **Non-Financial Default includes breach of any
other obligation(s)/covenant(s) with respect to
your Loan Account.

In case of the following irregularity/ies.

1. Any non-payment of amount due in respect of the
facility/margin call on due date.
2. Any breach of the terms and conditions stipulated in
the facility agreement or any other document.
3. Any representations or undertakings given by borrower
are found to be false or incorrect.
13 Valuation of the The value of the commodity as security shall be the lower
Commodities of the following:

1. Value of goods as reflected in the warehouse

receipt/eNWR

2. Value of the goods based on the average price

prevailing in the nearest mandi on the day
previous to the date of disbursement.

3. Price cap provided by the Bank from time to time

for various commodities

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 For Base Metals:
Lower of the following:
1. MCX Spot price (Landing premium/discount if
applicable)
2. MCX (near month daily settlement price (Landing
premium discount if applicable)
3. Price cap as fixed by the Bank from time to time
13 Security Primary:
Deposit of Warehouse Receipts /Storage Receipts
eNWR/ ePledge Lot with the licensed repositories under
WDRA evidencing the pledge of commodities with lien
noted in favour of the Bank
Collateral:
Personal guarantee etc. ,
13. Maximum tenor The tenure of the loan shall be …… months. The validity
of the facility against a Warehouse Receipt/Storage
Receipt/ eNWR to expire by the end of the month in
which new crop arrives (harvesting season). In case of
any commodity having multiple harvesting seasons, the
tenure of the intermittent crop also needs to expire by
the end of the month in which new main crop arrives. The
above tenors are subject to the maximum duration as
specified by the Bank for each commodity.

For Base Metal: 12 months

14. Repayment Terms Interest: Interest will be charged and will fall due on
monthly intervals.

Principal: Principal repayment along with interest (from

application date) on due dates, i.e., at the end of tenure
of each disbursement.
15. Other Conditions ➢ In case of private warehouse/godown/ silo/WRDA
registered warehouse, value & Quality of stocks will
be certified by Collateral Manager, appointed by
the Bank.
➢ In case of eNWR/ ePledge Lot, the value and quality
of stocks will be certified by the warehouseman.
➢ The Memorandum & Articles of Association of the
company should have the provision for borrowing
against pledge (Applicable, if the borrower is a
Company).
➢ Company to provide Board resolution for this
sanction specifying the authorized signatory for
execution of loan documents (Applicable, if the
borrower is a Company).
➢ The stocks pledged to us are to be exclusively
charged to our Bank and the borrower should furnish

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 an undertaking that the stocks pledged to us will not
be included in the stock statements submitted to the
existing Bankers, if any.
➢ The Borrower shall ensure that at any point of time,
during the currency of the facility, the warehouse
receipt /storage receipt wise/ eNWR/ ePledge Lot
wise total outstanding (including interest accrued till
date) as a percentage of market value of the
commodities deposited with the warehouse should
not exceed 82.5%. In case of outstanding exceeds
82.5 %, the Borrower shall furnish additional security or
deposit funds within 5 days of being served a notice
to replenish with the original margin level as
stipulated in the schedule. In case the borrower does
not bring in additional security or funds within the
stipulated time, the Bank may offload the
commodities, directly or through an agent, in part or
full, at its discretion to ensure maintenance of the
requisite margin. The loss if any from this action would
be to the borrowers account. However, during the
notice period or any time during the currency of the
facility, if the total outstanding (including interest
accrued till date) as a percentage of the market
value of the commodities deposited with the Bank
touches 90 % due to commodity price volatility, Bank
may immediately initiate disposal of the commodities
on the same day directly or by appointing an agent.
All the expense of the agent, if any, appointed shall
be borne by the borrower. The Banks decision and
action shall final as regards such disposal
➢ Providing PDCs towards repayment of the loan.

➢ Pre-stacked stock will not be financed. The same can

be considered only if the borrower agrees to pay the
de-stacking and restacking expenses.
➢ Warehouse / Storage Receipts/ eNWR/ ePledge Lot
should be kept valid during the currency of the
facility.
➢ Inspection of the Commodity stocked will be
conducted at least once in a month by the Bank
officials.
➢ QC charges, fumigation charges and other charges
if any, where ever required are to be borne by the
borrower
➢ Repo Rate would be declared by the Bank on a
monthly basis and shall be displayed at the Axis
Bank website. Subsequent disbursements would be
at the respective Repo rate of the month in which
funds are drawn.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 ➢ The maximum funding price for commodities will be
within the price cap decided by the Bank from time
to time.

16. Sanction Letter Ref. No.________________ dated ____________

The contents of the document have been explained to me in ___________ language and
I/we have understood the same.

IN WITNESS WHEREOF the Borrower has hereunto put his hand and seal on

_______________________

In case the Borrower is an Individual:

_____________________

_____________________ ______________________
Borrower’s Signature Borrower’s Initial

[Note: Both the signature and the initials to

be obtained on this page from the
individual or a power of
attorney holder of the individual. Clause to
be suitably modified if the document is
being executed by the power of attorney
holder of the borrower with following
statements “In case the Security Provider is
an individual executing through the
Security Provider’s power of attorney
holder” and “Borrower’s Power of Attorney
Holder’s Signature” “Security Provider’s
Power of Attorney Holder’s Initial”]

In case the Borrower is a company:

_________________________

_________________________

_________________________
Authorised Signatory Signature Authorised Signatory Initial

[Note: Both the signature and the initials to be obtained on this page]

THE COMMON SEAL OF [______________________________]

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Name & Signature/thumb impression

Authorized Signatory on behalf of the Bank

____________________

having its registered office at

[____________________] has been hereunto affixed
pursuant to the resolution of its board of directors
passed at the meeting held on [_______] day of
[________], [_______] in the presence of
[____________________________], its
[_____________________].

[Note : To be suitably modified based on

the Articles of Association of the company.]

In case the Borrower is a partnership firm:

Name :_____________________________

Place of business :_____________________________

Signed and delivered on behalf of the

Borrower by its partners:

(f) Mr./Ms. _________________________________

_______________________________
Signature

___________________
Initial

(g) Mr./Ms. ________________________________

_______________________________
Signature
___________________
Initial

(h) Mr./Ms.________________________________

_______________________________

Signature
___________________
Initial

(i) Mr./Ms.________________________________

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 _______________________________

Signature
___________________
Initial

(j) Mr./Ms.________________________________

_______________________________

Signature
___________________
Initial

[Note: Both the signature and the initials to

be obtained on this page. It is advisable
that all partners of the partnership firm
execute this Agreement, however all the
parties may authorize the designated
partner to sign this Agreement in
accordance with the partnership deed.]

In case the Borrower is a Proprietorship

Concern:

For M/s. _______________________

___________________

(Proprietor Signature)

__________________
(Proprietor Initial)

[Note: Both the signature and the initials to be obtained on this page]

In case the Borrower is a HUF:

For ___________________, a Hindu Undivided Family

Version: BB/COM/LPA/ Apr 24/Ver 1.03

_______________________________
(Karta Signature)

___________________ ______
(Karta Initial)

[Note: Both the signature and the initials to

be obtained on this page. To be executed
by the Karta of the HUF.]

In case the Borrower is a Trust/Society:

For ____________________________, acting as the

______________ of the Borrower, authorized under resolution
dated _________________ passed
by______________________________of the Borrower.
__________________________

[insert designation]
Signature

___________________
[insert designation]

Initial

[Note: Both the signature and the initials to be obtained on

this page. Clause to be suitably modified based on the
bye laws of the trust/ society.]

Name & Signature/thumb impression

Authorized Signatory on behalf of the Bank

____________________

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 SUPPLEMENTAL AGREEMENT

THIS SUPPLEMENTAL AGREEMENT is made and entered by and between on _____day of _____
year

“Borrower”, which expression shall, unless repugnant to the context or meaning thereof, be
deemed to mean and include its successors and permitted assigns) of the OTHER PART;

AND

Axis Bank Limited, a banking company carrying on its banking business under the Banking
Regulation Act, 1949 and incorporated under the Companies Act, 1956 and having its registered
office at Ahmedabad and its corporate office at Axis house, C-2, Wadia International Centre,
P.B.Marg, Worli, Mumbai 400025 (hereinafter referred to as “the Bank” which term shall include
unless the context be repugnant to its successors and assigns in business) of the ONE PART.

The Parties to this Agreement are hereinafter individually referred to as a "Party" and collectively
as "Parties".

WHEREAS by Facility Cum Pledge Agreement dated [____________] entered into between the
Bank and the “Borrower” (hereinafter referred to as the Principal Agreement), “Borrower” has
inter-alia agreed to avail Loan from the Bank against pledge of warehouse receipts/storage
receipts which are more particularly described in the Principal Agreement and the Bank has
accepted the same subject to the terms contained therein.

AND WHEREAS in terms of clauses for “Definitions, Terms of the Facility, Dealing with the
Commodities, Event of Default, Event of Jeopardy and Schedule of the Principal Agreement, the
Principal Agreement can be modified, amended or altered with the consent of both the Parties,
and thus, the Parties hereby agree to execute this separate agreement, being supplemental of

Version: BB/COM/LPA/ Apr 24/Ver 1.03

Principal Agreement whereby Bank extends the facility against electronic Negotiable Warehouse
Receipt.

Now, the Borrower and the Bank has agreed to further amend the Principal Agreement and
include obligations of the Parties for the facility as hereunder set forth in this Supplemental
Agreement.

In consideration of both Parties mutually agreeing to execute this Supplemental Agreement, THIS
AGREEMENT WITNESSETH AS UNDER:

1. Parties hereby agree that Clause no. 2, under the heading ‘definition’ in the Principal
Agreement shall stand modified and replaced as under-

2.g "WDRA" means the Warehousing Development and Regulatory Authority established
under The Warehousing (Development And Regulation) Act, 2007

2.h “ Repositories” means an entity that has received a certificate of registration from the
Authority for creation and management of electronic negotiable warehouse receipts and
include National E- Repository Limited (NERL) and CDSL Commodity Repositories Limited
(CCRL)

2.i “Negotiable warehouse receipt” means a warehouse receipt under which the goods
represented therein are deliverable to the depositor or order, the of endorsement which
has the effect of transfer of goods represented thereby and the endorsee for which takes
a good title;

2.j “electronic negotiable warehouse receipt ” means a negotiable warehouse receipt

issued in an electronic form by warehouseman of WDRA accredited Warehouse

2.k. Repository Participant – Account Maintenance means as per WDRA guidelines, a

Repository may appoint one or more entities as Repository Participants for carrying all or
any of the following core activities of repository such as enabling the transfer of electronic
Negotiable Warehouse Receipts; on-boarding the users of a Repository;
To identify through documentary and/ or physical verification, on behalf of the
Repository, the identity, and address of the depositor in whose favor a warehouseman

Version: BB/COM/LPA/ Apr 24/Ver 1.03

intends to issue an electronic Negotiable Warehouse Receipt; To facilitate the opening,
management, and closing of accounts of users on the Repository;

2.l “Warehouseman” means any person who is granted a certificate of registration in

respect of any warehouse or warehouses by the Authority or an accreditation agency for
carrying on the business of warehousing

2.m “Repository Platform” platform is a web based application developed and

maintained by the repositories, which provides an end to end solution for all the
transactions related to electronic warehouse receipt

2.n Multi Commodity Exchange Clearing Corporation Limited,( MCXCCL) a

company incorporated and registered under the provisions of the Companies Act,
1956 and a Clearing Corporation duly recognized by the Government of India
under the provisions of Securities Contract (Regulations) Act, 1956. MCXCCL is
established to undertake the activity of clearing and settlement of trades in
securities or other instruments or products that are dealt with or traded on a
recognized stock Exchange “Multi Commodity Exchange of India” is the recognised
commodity exchange in India.

2.o. “ComRIS” is the web bases application developed and maintained by

MCXCCL, which is only an electronic record of ownerships and record of transfers
of commodities held by the participants at the corresponding warehouse/s. The
ComRIS inter-alia has facility for noting of pledge and thus has the feature to
facilitate pledge finance against commodities stores in approved
warehouses/vaults.
2.p. “ComRIS Account” shall mean the account of Borrower opened through the
ComRIS Participant in electronic system of ComRIS which , reflects the record of
ownership and lien (if any) of Commodities including the details of commodities
quantity, place of storage, transactions, transfers, validity certification and other
parameters as may be prescribed by MCXCCL from time to time.
2.q. “e-Pledge Lot” shall mean noting of lien on the electronic credit balance of
commodities in ComRIS account of a borrower by the Pledgee in accordance with
the process prescribed or as may be prescribed by MCXCCL from time to time
2.r. “ComRIS Participants” shall mean an entity who has been permitted by
MCXCCL to open and maintained ComRIS accounts of Borrower in accordance
with the process and on the terms and conditions as may be prescribed by the
MCXCCL from time to time

Version: BB/COM/LPA/ Apr 24/Ver 1.03

2. Parties hereby agree that Clause no. 3, under the heading ‘Terms of Facility’ in the
Principal Agreement shall stand modified as under-

3.2. The Borrower shall each be entitled to the Facility of a maximum amount equivalent to
the value of the Commodities pledged by the Borrower from time to time with the Bank. Such
value shall be based on the amount of commodities supplied by the Borrower, as evidenced
in the warehouse receipt/storage receipt and other documents deposited by the
Borrower/Collateral Manager or unencumbered eNWR/ePledge Lot depicting in the
beneficiary account/COMRIS account of the borrower with ComRIS Participants /Repository
Participant – Account Maintenance and evidencing the pledge of commodities to the Bank
and the market price offered for the said commodities, from time to time. Notwithstanding
the above the maximum amount of credit line available to the Borrower shall not exceed
Rupees ________. In case of JLGs, the maximum amount of credit line provided to individual
farmers within the overall limit of JLG shall not exceed Rs. 10 lakhs. The price of the
commodity considered for disbursement of a warehouse receipt/storage receipt/
eNWR/ePledge lot, shall be at the sole discretion of the Bank.

3.3 a) The Bank at the request of the Borrower has agreed to grant / granted credit facility as
described in the Schedule with full power to the Bank from time to time to renew or reduce
or enhance the limit (as and when the Borrower/Collateral Manager deposits warehouse
receipts/storage receipts or unencumbered eNWR/ePledge lot depicting in the beneficiary
account/COMRIS account of the borrower with Repository Participant – Account Maintenance
duly endorsed in favour of the Bank evidencing the pledge of commodities to the Bank) or
altogether withdraw the facility on the terms and conditions appearing herein.

3.6 The Borrower hereby deposits and agrees to deposit with the Bank the warehouse
receipt/storage receipt slips/eNWR/ePledge lot and such other documents as sought by the
Bank either directly or through Collateral Manager or agent with an intention to create a
pledge on the commodities described in the schedule and such future commodities of the
Borrower against which the Borrower intends to avail the Facility, from time to time thereon.

Introduction of clause 3.7 In case of eNWR/ePledge lot Borrower will require to follow the
process mentioned below in order to create valid pledge in favor of the Bank:

i) The borrower shall deposits the commodity in the WDRA accredited warehouse /MCX
accredited Warehouse where the warehouseman generates the electronic Negotiable
Warehouse Receipt in the repository platform/ electronic credit balance of commodities in
ComRIS. This eNWR/EPledge Lot should reflects as electronic balance in the Beneficiary
account /COMRIS account of the borrower opened with the Repository Participant – Account
Maintenance (RP – Account Maintenance)/ Comris Participant.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

ii) The borrower shall then submits the request for pledge of eNWR/ePldge Lot to the Bank
through Comris Participant /RP – Account Maintenance with an intention to create a pledge
on the commodities described in the schedule and such future commodities of the Borrower
against which the Borrower intends to avail the Facility, from time to time thereon

iii) The Borrower shall submit the unencumbered eNWR/ePledge Lot depicting in the
beneficiary account /COMRIS account of the borrower with Comris Participant /Repository
Participant – Account Maintenance and evidencing the commodities pledged to the Bank and
the market price offered for the said commodities.

Clause 3. shall therefore stand modified accordingly.

3. Parties hereby agree that, under the clause heading ‘Dealing with the Commodities’ in
the Principal Agreement shall stand modified as under-

17.i The Borrower shall adhere to the rules and regulations stipulated in the WDRA/MCX
and shall ensure compliance with the provisions of WDR Act/Security Contract Act including
amendments thereof from time to time

4. Parties hereby agree that Clause, under the heading ‘Events of default’ in the Principal
Agreement shall stand modified as under-

An event of default shall be deemed to have occurred if the Borrower (a) commits a
breach of any of the terms and conditions in this Agreement including in the Schedule
annexed hereto and /or the sanction letter or any written terms agreed thereon (b) fails
to pay any installment or any other payment on the due dates and such failure continues
for 5 days; or (c) makes assignment for the benefit of creditors or the Commodities are
attached or any regulatory restraint is levied thereon by the appropriate government or
other authorities as the case may be, or a receiver is appointed thereof or insolvency
proceedings are instituted against the Borrower; or (d) where any information mentioned
by the Borrower) to the Bank is found to be incorrect or incomplete in any material facts
stated therein

5. Parties hereby agree that below Clause, in the Principal Agreement shall stand modified
as under-

In the event the Commodities under this Agreement are in jeopardy (as determined by
the Bank in its sole discretion) for any reason whatsoever, the Bank shall be entitled to
enforce the pledge and sell the pledged Commodities in any manner and the sale
proceeds shall be utilized towards reduction of the balance due to the Bank. In case of

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 eNWR ePLedge Lot the Bank shall revoke the pledge in the repository platform/Exchange
COMRIS system and transfer the balances from beneficiary account /COMRIS account to its
own account in the repository platform/Exchange COMRIS system. The Bank shall then sell
the pledged commodities in any manner and the sales proceeds shall be utilized towards
reduction of the balance due to the Bank. The Borrower hereby authorizes the Bank/it’s
agents/representatives to remove the pledged Commodities or any part thereof, from any
warehouse/godown that the same may be stored or be lying in and transfer/shift the
same to any other warehouse/godown or any other place as the Bank may, in its sole
discretion, deem fit. The Borrower hereby authorizes the Bank/its agents/representatives
to sign/endorse/discharge any warehouse receipts/eNWR/ePledge Lot or any other
documents or writings and do all acts and deeds as may be required for the purpose.

6. Parties hereby agree that schedule of the Principal Agreement shall stand modified as
under-

Valuation of Commodity The value of the commodity as security shall be the lower of the
following:

4. Value of goods as reflected in the warehouse receipt/storage

receipt.

5. Value of the goods based on the average price prevailing in the

nearest mandi on the day previous to the date of disbursement.

6. Price cap provided by the Bank from time to time for various
commodities

For Base Metals:

Lower of the following:

1. MCX Spot price (Landing premium/discount if applicable)

2. MCX (near month daily settlement price (Landing premium discount if
applicable)
3. Price cap as fixed by the Bank from time to time
Security Primary:

Pledge of Warehouse Receipts /Storage Receipts/ eNWR/ ePledge Lot

with the licensed repositories under WDRA evidencing the pledge of
commodities in favour of the Bank

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Collateral:

Personal guarantee etc.

Other Conditions Following condition is added

➢ In case of eNWR/ ePledge Lot, the value and quality of stocks will
be certified by the warehouseman.

➢ Warehouse / Storage Receipts/ eNWR/ ePledge Lot should be kept valid

during the currency of the facility.

Nature of the Facility Credit Line against Pledge of Warehouse/Storage Receipts/ eNWR/ePledge
Lot

Maximum tenor The tenure of the loan shall be …… months. The validity of the facility against
a Warehouse Receipt/Storage Receipt/ eNWR to expire by the end of the
month in which new crop arrives (harvesting season). In case of any
commodity having multiple harvesting seasons, the tenure of the
intermittent crop also needs to expire by the end of the month in which new
main crop arrives. The above tenors are subject to the maximum duration as
specified by the Bank for each commodity.

For Base Metal: 12 months

7. It is further agreed that save and except the above mentioned addition and/or
modification of the terms, conditions and stipulations, warranties, confirmations,
responsibilities as stated and agreed to by both the Parties, the Principal Agreement shall
continue to be in force. This Supplemental Agreement shall form an integral part of the
Principal Agreement and be deemed to be incorporated and shall always be read in
conjunction with the Principal Agreement. This Supplemental Agreement shall not be
considered as substitution, suspension or termination of the Principal Agreement, except
if the contrary is specifically stated herein above.

8. Parties agree that in case of any conflict between the terms of this Supplemental
Agreement and the Principal Agreement, this Supplemental Agreement shall prevail only

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 with respect to the terms and conditions and the subject matter that are specifically
contemplated under this Supplemental Agreement.

9. Axis Bank can change the reset frequency for the Commodity Pledge loans once in 3 months or as
decided by the Bank, whichever is earlier

9. (a) RBI vide its guidelines (reference no. RBI/2021-2022/125

DOR.STR.REC.68/21.04.048/2021-22) on ‘Prudential Norms on Income Recognition, Asset
Classification and Provisioning, pertaining to Advances – Clarifications’ dated 12-11-2021 has
clarified and/or harmonized certain aspects of the extant Regulatory guidelines. The
Borrower agrees, undertakes and confirms that the Bank has brought the following
clarifications to the notice of the Borrower and the Borrower confirms of having been
apprised of as follows:

1.5 Additional terms and conditions:

• Interest for the Warehouse receipt Finance will be due and charged on every last day of
the month from the date of disbursement.
• Principal repayment will be due on the maturity of said warehouse receipt finance along
with the interest for the broken period (i.e., difference between last month end interest
application and maturity of the loan).
• I understand that if I do not pay my dues on the above-mentioned date, my account will
be considered as ‘Overdue’ from the end of that date.

1.6 Classification as Special Mention Account (SMA) and Non-Performing Asset (NPA)

(ix) Dues: shall mean the principal / interest / any charges levied on the loan account
which are payable within the period stipulated as per the terms of sanction of the
credit facility.

(x) Overdue: shall mean the principal / interest / any charges levied on the loan
account which are payable, but have not been paid within the period stipulated as
per the terms of sanction of the credit facility. In other words, any amount due to
the bank under any credit facility is 'overdue' if it is not paid by the due date fixed
by the bank.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 (xi) Relevance of the principle of 'First In First Out' (FIFO) in appropriation of
payments into the Borrower’s account: The principle of FIFO i.e. 'First In, First Out'
accounting method is relevant to arrive at the number of days overdue for
determining the SMA/NPA status. The FIFO principle assumes that the oldest
outstanding dues in the loan account needs to be cleared first. The FIFO method
thus requires that what is due first must be paid by the Borrower first. For example,
if in any loan account as on 01-02-2021, there are no overdues and an amount of
INR X is due for payment towards principal instalment / interest / charges, any
payment being credited on or after 01-02-2021 in the loan account will be used to
pay off the dues outstanding on 01-02-2021.

Assuming that nothing is paid / or there is partial payment (INR Y) of dues during
the month of February, the overdue as on 01-03-2021 will be INR X - INR Y.

Additionally, an amount of INR Z becomes due as on 01-03-2021. Now any payment partial
payment into the account on or after 01-03-2021 will be first utilized to pay off the partial
due of 01-02-2021 (INR X - INR Y). If there is more recovery than the INR X - INR Y, then
after recovering dues of 01-02-2021, the remaining amount will be treated as recovery
towards due of 01-03-2021.

(xii) Age of oldest dues:

The age of oldest dues is reckoned in days from the date on which the oldest payment is
due and continues to remain unpaid. In the aforesaid illustration, if the dues relating to 01-
02-2021 remain unpaid till 01-03-2021, the age of the oldest dues is reckoned as 29 days
on 02-03-2021.

(j) Classification as Special Mention Account (SMA) and Non-Performing Asset (NPA)

Lending institutions will recognize the incipient stress in loan accounts, immediately on
default, by classifying them as Special Mention Accounts (SMA). The basis of
classification of SMA / NPA category shall be as follows:
Loans other than revolving facilities Loans in the nature of cash credit / overdraft
SMA Sub Basis for classification – SMA Sub- Basis for classification – Outstanding balance
categories Principal or interest categories remains continuously in excess of the
payment or any other sanctioned limit or drawing power, whichever
amount wholly or partly is lower, for a period of:
overdue
SMA 0 Up to 30 days NA NA
SMA 1 More than 30 days and SMA 1 More than 30 days and
Up to 60 days Up to 60 days
SMA 2 More than 60 days and SMA 2 More than 60 days and

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Up to 90 days Up to 90 days

(k) Non-performing Asset:

Non-Performing Asset (NPA) is a loan or an advance where:

(xv) Interest and/or instalment of principal remains overdue for a period of more than
90 days in respect of a term loan,
(xvi) The account remains 'out of order' as indicated below, in respect of an Overdraft /
Cash Credit (OD / CC),
(xvii) The bill remains overdue for a period of more than 90 days in the case of bills
purchased and discounted,
(xviii) The instalment of principal or interest thereon remains overdue for two crop
seasons for short duration crops
(xix) The instalment of principal or interest thereon remains overdue for one crop
season for long duration crops.
(xx) The amount of liquidity facility remains outstanding for more than 90 days, in
respect of a securitisation transaction undertaken in terms of the Reserve Bank of
India (Securitisation of Standard Assets) Directions, 2021.
(xxi) in respect of derivative transactions, the overdue receivables representing positive
mark-to-market value of a derivative contract, if these remain unpaid for a period
of 90 days from the specified due date for payment.

(l) ‘Out of Order’ Status:

An account shall be treated as 'out of order' if:

(v) the outstanding balance in the CC/OD account remains continuously in excess of the
sanctioned limit/drawing power for 90 days, or
(vi) the outstanding balance in the CC/OD account is less than the sanctioned limit/drawing
power but there are no credits continuously for 90 days, or the outstanding balance in
the CC/OD account is less than the sanctioned limit/drawing power but credits are not
enough to cover the interest debited during the previous 90 days period.

Illustrative movement of an account to SMA category to NPA category based on delay I non-payment of
dues and subsequent upgradation to Standard category at day end process:

Version: BB/COM/LPA/ Apr 24/Ver 1.03

Due date of Payment date Payment covers Age of SMA /NPA SMA since NPA NPA Date
payment oldest dues categorisatio date / SMA categorizatio
in days n class date n
01.01.2022 01.01.2022 Entire dues upto 0 NIL NA NA NA
01.01.2022
01.02.2022 01.02.2022 No Payment or Partly 1 SMA-0 01.02.2022 NA NA
paid dues of
01.02.2022
01.02.2022 02.02.2022 No Payment or Partly 2 SMA-0 01.02.2022 NA NA
paid dues of
01.02.2022
01.03.2022 Dues of 01.02.2022 29 SMA-0 01.02.2022 NA NA
not fully paid
01.03.2022 is also due
at EOD 01.03.2022
Dues of 01.02.2022 1 SMA-0 01.03.2022 NA NA
fully paid, Due for
01.03.2022 is not paid
at EOD 01.03.2022
No payment of full 31 SMA-1 01.02.2022 NA NA
dues of 01.02.2022 /
and 01.03.2022 at EOD 03.03.2022
03.03.2022
Dues of 01.02.2022 1 SMA-0 01.03.2022 NA NA
fully paid, due for
01.03.2022 not fully
paid at EOD
01.03.2022
01.04.2022 No payment of dues of 60 SMA-1 01.02.2022 NA NA
01.02.2022, /
01.03.2022 and 02.04.2022
amount dues on
01.04.2022 at EOD
01.04.2022
No payment of dues of 61 SMA 2 01.02.2022 NA NA
01.02.2022 till /
01.04.2022 at 02.04.2022
EOD02.04.2022
01.05.2022 No payment of dues of 90 SMA 2 01.02.2022 NA NA
01.02.2022 till /
01.05.2022 at EOD 02.04.2022
01.05.2022
No payment of dues of 91 NPA NA NA 02.05.2022
01.02.2022 till
01.05.2022 at EOD
02.05.2022
01.06.2022 01.06.2022 Fully paid dues of 93 NPA NA NPA 02.05.2022
01.02.2022 at EOD
01.06.2022
01.07.2022 01.07.2022 Paid entire dues of 62 NPA NA NPA 02.05.2022
01.03.2022 &
01.04.2022 at EOD
01.07.2022
01.08.2022 01.08.2022 Paid entire dues of 32 NPA NA NPA 02.05.2022
01.05.2022 &
01.06.2022 at EOD
01.08.2022
01.09.2022 01.09.2022 Paid entire dues of 1 NPA NA NPA 02.05.2022
01.07.2022 &
01.08.2022 at EOD
01.09.2022
01.10.2022 01.10.2022 Paid entire dues of 0 Standard NA NA STD from
01.09.2022 & Account with 01.10.2022
01.10.2022 No Overdues

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 (m) The Borrower agrees and acknowledges that the manner of classification and illustrations
of SMA and NPA as provided in sub-clauses (a) to (d) above in which the Bank is required
to classify accounts as SMA / NPA as per the various applicable regulations and guidelines
issued by RBI from time to time and:

(i) the same is liable to change / be modified as per the requirements of the RBI guidelines
in the matter issued from time to time. Any such change shall be intimated by the Bank
to the Borrower from time to time and the Borrower agrees and acknowledges that
such intimation shall accordingly modify the manner and illustrations provided herein
without a need for further amendment to the Agreement or require specific
acknowledgment of the Borrower; and

(ii) the Bank shall have the right to classify the account of the Borrower with the Bank as
SMA / NPA as per the applicable regulations / guidelines issued by RBI from time to
time even though the manner of classification and the illustrations thereof are not set
forth in this Agreement or the Sanction Letter(s).

10) Politically exposed person

For individuals
The Borrower agrees that he/she is not a politically exposed person (PEP) and further
undertakes to inform Axis Bank in the event that he/she and/or any of their family
members /close relatives becomes a PEP. In such an event, the Bank will obtain approval
from its senior management to continue the business relationship and subject the
account to the Customer Due Diligence measures as applicable to the customers of PEP
category including enhanced monitoring on an ongoing basis.

Definition -Politically exposed persons are individuals who are or have been entrusted
with prominent public functions in a foreign country, e.g., Heads of States or
Governments, senior politicians, senior government/judicial/military officers, senior
executives of state-owned corporations, important political party officials, etc.

For non individuals

The Borrower agrees that none of its Director/Partner/Trustee/Office

Bearer/Promoter/Authorised Signatory/Beneficial owner in the organisation or any of
their family members /close relatives is/are a politically exposed person (PEP) and further
undertakes to inform Axis Bank in the event that either of them becomes a PEP. In such
an event, the Bank will obtain approval from its senior management to continue the
business relationship and subject the account to the Customer Due Diligence measures as
Version: BB/COM/LPA/ Apr 24/Ver 1.03
 applicable to the customers of PEP category including enhanced monitoring on an
ongoing basis.

Definition -Politically exposed persons are individuals who are or have been entrusted
with prominent public functions in a foreign country, e.g., Heads of States or
Governments, senior politicians, senior government/judicial/military officers, senior
executives of state-owned corporations, important political party officials, etc.

IN WITNESS WHEREOF both the Parties hereunto put its hand and seal on the date and year first
herein above written.

Signed and Delivered by )

the Withnamed )
Borrower )
In presence of )
_______________ )

Signed and Delivered by )

the With named )
Axis Bank Ltd. )
In presence of )
Its Authorised Signatory, )
_______________ )

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 SUPPLEMENTAL FACILITY CUM PLEDGE AGREEMENT

This Agreement executed at the place and date specified in the Schedule by the person(s)
described in the said Schedule (hereinafter referred to as the “Borrower”, which expression shall
unless repugnant to the context or subject otherwise requires include his/ her /their respective
heir(s), executor(s) and administrator(s) and assigns) in favour of

Axis Bank Limited, a public limited company incorporated under the Companies Act 1956 and
licensed as a bank under the Banking Regulation Act, 1949 and having its registered office at
“Trishul”, 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellisbridge, Ahemdabad-
380006 and a branch office as specified in the Schedule (hereinafter called the "Bank” which
expression shall include its successors and assigns)

WHEREAS:

1. The Borrower was sanctioned Commodity Loan, under the CLWF Scheme, aggregating to Rs.
____________/- (Rupees ____________only) by the Bank (hereinafter referred to as the “Credit
Facilities”) vide its sanction letter no. ___________ dated ______________ & for the further
facility/limit by way of enhancement in CLWF limit to the extent of Rs. ____________________/-
(Rs. _____________________ only) by Bank vide sanction letter no ______________________ dated
______________________ & to make aggregate limit/s of Rs. __________________________/-
(Rupees _______________________ Only) (hereinafter called the “Principal Sanction Letter”).

2. In consideration of the said sanction the borrower has entered into a Facility Cum Pledge
Agreement dated ________ (hereinafter referred to as the “Principal Facility Cum Pledge
Agreement”). The Borrower had also executed the under mentioned loan/security
documents.
i. Facility cum Pledge Agreement
ii. DP Note
iii. DP delivery cum waiver letter
iv. Declaration cum indemnity bond.

3. By the said Facility Cum Pledge Agreement dated________ executed by the Borrower, the
Borrower has created charge by way of Pledge in favour of the Bank, as and by way of security
for the above-referred credit facilities of present and future movable assets, that is, the pledge
of Warehouse receipts described in general terms in the Schedule attached to the Facility
Cum Pledge Agreement (all of which are hereinafter called “Pledged Property”).
4. At the request of the borrower, the Bank has agreed to provide finance to the borrower
against the pledge of agri commodities Numbers, within the sanctioned limit and has agreed
to execute the necessary documents as mandated by the Bank. By virtue of providing finance
against the agri commodities Numbers and revision of the Principal Sanction Letter, it has
become necessary to amend the Principal Facility Cum Pledge Agreement, which the
Borrower has agreed to do.

5. At the request of the Borrower, the Bank has agreed to provide additional / enhance the
Credit line warehouse finance facility, including against agri commodities Numbers Numbers
under the said CLWF Scheme over and above the outstanding amount to the Borrower and
have sanctioned the said facility to the Borrower vide its Sanction Letter No.
___________________ dated ___________________ (hereinafter referred to as the “Enhanced
Sanction Letter”), as under:-

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 S.No Nature of facility Existing limits Revised limits

1 CLWF limit

*Interchangeable with CLWF limit against pledge of physical stock

The aforesaid additional/enhanced limit/s is/are sanctioned on the specific condition that the
same should be secured by extension of charge on the Pledged property covered by the
Principal Facility Cum Pledge Agreement shall continue to be a security for the Bank for the
additional/enhanced limit together with interest, additional interest, expenses, costs and all
other monies payable by the Borrower to the Bank and the Borrower agrees that all other terms
and conditions in the Principal Facility Cum Pledge Agreement shall apply to the additional/
enhanced limit.

6. By virtue of this enhancement and revision of the Principal Sanction Letter, it has become
necessary to amend the Principal Facility Cum Pledge Agreement, which the Borrower has
agreed to do.
7. Considering the provision of finance against pledge of agri commodities Numbers and
enhancement in the facility, the borrower agrees that the terms of the facility shall be as per
the supplemental agreement.

The parties hereto have agreed to execute this Supplemental Agreement as under:

NOW THIS AGREEMENT WITNESSETH AS UNDER:

1) The Borrower agrees and confirms that this Agreement is and shall be supplemental to the
said Principal Facility Cum Pledge Agreement dated _______ and shall always be read in
conjunction with the same and with all the agreements already executed.

2) The Borrower agrees and confirms that the borrowing Limit of Rs.___________ /- stated in
the Schedule of the said Principal Facility Cum Pledge Agreement and in all other places
in the said Principal Facility Cum Pledge Agreement shall stand modified to
Rs._______________/-

3) The rate of interest applicable for the revised aggregate limit shall be ________% above
Repo Rate which will be reset once in 3 months or as decided by the bank (Repo Rate
applicable at present being __% p.a.) i.e., presently at the rate of ________ % per annum)
whichever is earlier in relation to the Repo rate for CLWF limits”.

4) It is hereby agreed that the figure of Rs.__________/-appearing in the said Principal Facility
Cum Pledge Agreement shall stand revised to Rs.___________/-(Rs. __________________
Only) and the figure of At ……% above Repo Rate (the Repo Rate applicable at present
being __% p.a.) i.e., presently at the rate of........ percent per annum or at such other rate
as the Bank may fix from time to time, in relation to the Repo Rate for CLWF limit (Physical
stock) which will be reset once in 3 months or as decided by the Bank, whichever is earlier
and that all other terms and conditions in the Principal Facility Cum Pledge Agreement
shall remain unchanged and shall continue to be applicable to the revised limits and be
binding on the Borrower.

a) The Borrower acknowledges and agrees that the Bank has/shall have sole discretion to:
i.allow Temporary Overdrafts in the account for meeting the temporary mismatches;
ii.allow operations beyond sanctioned limits i.e. granting excesses etc.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 iii.honour cheques in the account for other than agreed purposes;
iv.allow any additional facilities on regular or ad-hoc basis;
v.allow drawings in the account after classifying it as NPA.

The Borrower also undertakes and agrees that they shall not be entitled to claim any of
the above as a matter of right even if the same are allowed by the Bank at any point of
time at their sole discretion. In such event, the Borrower hereby waives the requirement of
notice of withdrawal of any such facility stated above in this clause.

5) The Borrower agrees and declares that all the schedules, covenants and stipulations
contained in the said Principal Facility Agreement and to be performed and observed by
the Borrower shall be applicable to the enhanced facility as herein mentioned and be
binding on and enforceable against the Borrower as if all the provisions contained in the
Principal Facility Agreement were reiterated and reproduced herein.

6) The Borrower confirms and agrees that except for the above modification all the terms
and conditions, covenants, stipulations including all the provisions and schedules
contained in Principal Facility Agreement executed by the borrower will hold good without
any change and shall form part of this Supplemental Agreement.

7) The Parties hereby agree that save and except the terms and conditions hereinafter
specified for the above said substitution in this supplemental agreement, all the other terms
and conditions as contained in the Principal Facility Agreement shall remain unchanged
and shall continue to be applicable to the said extension of charge in favour of the Bank
and be binding on the Borrower irrespective of the contents of this supplemental
agreement.

8) The Borrower understand that as a pre-condition, relating to grant of the loans/

advances/other fund based and/or non fund based credit facilities to the Borrower, the
Bank requires the consent of the Borrower for the disclosure by the bank of, information
and data relating to the Borrower, of the credit facility availed of/to be availed, by the
Borrower. Obligations assumed/to be assumed, by the Borrower(s) in relation thereto and
default, if any, committed by the Borrower in discharge thereof.

Accordingly, the Borrower hereby agree and give consent for the disclosure by the Bank of all
or any such:
(a) information and data relating to us
(b) the information or data relating to any credit facility availed of/to be availed by
us and
(c) default, if any, committed by us, in discharge of our such obligations,
as the Bank may deem appropriate and necessary to disclose and furnish to Credit
Information Bureau (India) Ltd. and any other agency authorised in this behalf by RBI

We, declare that the information and data furnished by us to the Bank are true and correct.

We, undertake that:

the Credit Information Bureau (India) Ltd, and any other agency so authorised may use,
process the said information and data disclosed by the Bank in the manner as deemed
fit by them and
the Credit Information Bureau (India) Ltd. and any other agency, so authorised may furnish
for consideration, the processed information and data or products there of prepaid

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 by them, to Banks/FIs and other credit grantors or registered users, as may be
specified by the Reserve bank in this behalf.

9) That all the terms and conditions, covenants, stipulations, clauses including all the
provisions contained in the Principal Facility Agreement executed by the borrower shall
remain unchanged and shall apply mutatis mutandis to this Supplemental Agreement
also.

10) All disputes, differences and / or claim or questions arising out of these presents or in any
way touching or concerning the same or as to constructions, meaning or effect thereof or
as to the right, obligations and liabilities of the parties hereunder shall be referred to and
settled by arbitration, to be held in accordance with the provisions of the Arbitration and
Conciliation Act, 1996 or any statutory amendments thereof, of a sole arbitrator to be
nominated by the Lender/Bank, and in the event of death, unwillingness, refusal, neglect,
inability or incapability of a person so appointed to act as an arbitrator, the Lender/Bank
may appoint a new arbitrator to be a sole arbitrator. The arbitrator shall not be required to
give any reasons for the award and the award of the arbitrator shall be final and binding
on all parties concerned. The arbitration proceedings shall be held at
Mumbai/Delhi/Kolkata/Bangalore/Chennai/Kochi. The arbitral procedure shall be
conducted in English.

11) The Borrower hereby gives specific consent to the Bank/Lender for disclosing / submitting
the ‘financial information’ as defined in Section 3 (13 ) of the Insolvency and Bankruptcy
Code, 2016 ( ‘Code’ for brief ) read with the relevant Regulations/ Rules framed under the
Code, as amended and in force from time to time and as specified there under from time
to time, in respect of the Credit/ Financial facilities availed from the Bank/ Lender, from
time to time, to any ‘Information Utility’ ( ‘IU’ for brief ) as defined in Section 3 ( 21 ) of the
Code, in accordance with the relevant Regulations framed under the Code, and
directions issued by Reserve Bank of India to the banks from time to time and hereby
specifically agree to promptly authenticate the ‘financial information submitted by the
Bank/Lender, as and when requested by the concerned ‘IU’ .

12) Penal Charges and Other Charges :-

• All amounts in default for payment, due to delay or non-payment of EMI/Installment or

interest thereon including any costs, charges and expenses or due to occurrence of any
other Event of Default as specified in the sanction letter & loan agreement shall be debited
to the loan/drawal account and in such case Bank shall also levy the penal charges and
other charges as applicable and prescribed in the sanction letter and loan agreement in
the said loan/drawal account for the period of default without there being any need to
assign a reason for the same, which shall be paid by the Borrower.

• However, if Borrower fails to make the payment of above said amounts in default for payment
or the penal charges and other charges levied by the Bank within 90 days from the due date
of such payments, in that case said loan/drawal account shall be classified as Non
Performing Asset (“NPA”).
• In order to regularise the said loan/drawal account, the Borrower shall be liable to pay all the
above mentioned amounts in default and/or penal charges and other charges, as the case
may be, [on immediate basis]

Version: BB/COM/LPA/ Apr 24/Ver 1.03

13) Fair Practice Code:-

• The Fair Practice Code for the Lenders as published on the Axis Bank's website, shall
apply to the Loan. Copy of the Fair Practice Code for lenders as available on the Bank's
website.

https://www.axisbank.com/docs/default-source/default-document-library/fair-practice-
code-for-lenders.pdf

14.).(a) RBI vide its guidelines (reference no. RBI/2021-2022/125 DOR.STR.REC.68/21.04.048/2021-

22) on ‘Prudential Norms on Income Recognition, Asset Classification and Provisioning,
pertaining to Advances – Clarifications’ dated 12-11-2021 has clarified and/or harmonized
certain aspects of the extant Regulatory guidelines. The Borrower agrees, undertakes and
confirms that the Bank has brought the following clarifications to the notice of the Borrower
and the Borrower confirms of having been apprised of as follows:

1.7 Additional terms and conditions:

• Interest for the Warehouse receipt Finance will be due and charged on every last day of
the month from the date of disbursement.
• Principal repayment will be due on the maturity of said warehouse receipt finance along
with the interest for the broken period (i.e., difference between last month end interest
application and maturity of the loan).
• I understand that if I do not pay my dues on the above-mentioned date, my account will
be considered as ‘Overdue’ from the end of that date.

1.8 Classification as Special Mention Account (SMA) and Non-Performing Asset (NPA)

(xiii) Dues: shall mean the principal / interest / any charges levied on the loan account
which are payable within the period stipulated as per the terms of sanction of the
credit facility.

(xiv) Overdue: shall mean the principal / interest / any charges levied on the loan
account which are payable, but have not been paid within the period stipulated
as per the terms of sanction of the credit facility. In other words, any amount due
to the bank under any credit facility is 'overdue' if it is not paid by the due date fixed
by the bank.

(xv) Relevance of the principle of 'First In First Out' (FIFO) in appropriation of payments
into the Borrower’s account: The principle of FIFO i.e. 'First In, First Out' accounting
method is relevant to arrive at the number of days overdue for determining the
SMA/NPA status. The FIFO principle assumes that the oldest outstanding dues in the
loan account needs to be cleared first. The FIFO method thus requires that what is
due first must be paid by the Borrower first. For example, if in any loan account as
on 01-02-2021, there are no overdues and an amount of INR X is due for payment
towards principal instalment / interest / charges, any payment being credited on
or after 01-02-2021 in the loan account will be used to pay off the dues outstanding
on 01-02-2021.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Assuming that nothing is paid / or there is partial payment (INR Y) of dues during the
month of February, the overdue as on 01-03-2021 will be INR X - INR Y.

Additionally, an amount of INR Z becomes due as on 01-03-2021. Now any payment

partial payment into the account on or after 01-03-2021 will be first utilized to pay
off the partial due of 01-02-2021 (INR X - INR Y). If there is more recovery than the INR
X - INR Y, then after recovering dues of 01-02-2021, the remaining amount will be
treated as recovery towards due of 01-03-2021.

(xvi) Age of oldest dues:

The age of oldest dues is reckoned in days from the date on which the oldest
payment is due and continues to remain unpaid. In the aforesaid illustration, if the
dues relating to 01-02-2021 remain unpaid till 01-03-2021, the age of the oldest dues
is reckoned as 29 days on 02-03-2021.

(n) Classification as Special Mention Account (SMA) and Non-Performing Asset (NPA)

Lending institutions will recognize the incipient stress in loan accounts, immediately on
default, by classifying them as Special Mention Accounts (SMA). The basis of
classification of SMA / NPA category shall be as follows:

Loans other than revolving facilities Loans in the nature of cash credit / overdraft
SMA Sub Basis for classification – SMA Sub- Basis for classification –
categories Principal or interest categories Outstanding balance remains
payment or any other continuously in excess of the
amount wholly or sanctioned limit or drawing power,
partly overdue whichever is lower, for a period of:
SMA 0 Up to 30 days NA NA
SMA 1 More than 30 days and SMA 1 More than 30 days and
Up to 60 days Up to 60 days
SMA 2 More than 60 days and SMA 2 More than 60 days and
Up to 90 days Up to 90 days

(o) Non-performing Asset:

Non-Performing Asset (NPA) is a loan or an advance where:

(xxii) Interest and/or instalment of principal remains overdue for a period of more than
90 days in respect of a term loan,
(xxiii) The account remains 'out of order' as indicated below, in respect of an Overdraft
/ Cash Credit (OD / CC),
(xxiv) The bill remains overdue for a period of more than 90 days in the case of bills
purchased and discounted,
(xxv) The instalment of principal or interest thereon remains overdue for two crop
seasons for short duration crops
(xxvi) The instalment of principal or interest thereon remains overdue for one crop season
for long duration crops.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 (xxvii) The amount of liquidity facility remains outstanding for more than 90 days, in
respect of a securitisation transaction undertaken in terms of the Reserve Bank of
India (Securitisation of Standard Assets) Directions, 2021.
(xxviii) in respect of derivative transactions, the overdue receivables representing
positive mark-to-market value of a derivative contract, if these remain unpaid for a
period of 90 days from the specified due date for payment.

(p) ‘Out of Order’ Status:

An account shall be treated as 'out of order' if:

(vii) the outstanding balance in the CC/OD account remains continuously in excess of the
sanctioned limit/drawing power for 90 days, or
(viii) the outstanding balance in the CC/OD account is less than the sanctioned
limit/drawing power but there are no credits continuously for 90 days, or the outstanding
balance in the CC/OD account is less than the sanctioned limit/drawing power but credits
are not enough to cover the interest debited during the previous 90 days period.

Illustrative movement of an account to SMA category to NPA category based on delay I

non-payment of dues and subsequent upgradation to Standard category at day end
process:

Due date Payment Payment covers Age of SMA /NPA SMA NPA NPA Date
of date oldest categorisat since categorizat
payment dues in ion date / ion
days SMA class
date
01.01.202 01.01.2022 Entire dues upto 0 NIL NA NA NA
2 01.01.2022
01.02.202 01.02.2022 No Payment or 1 SMA-0 01.02.202 NA NA
2 Partly paid dues of 2
01.02.2022
01.02.202 02.02.2022 No Payment or 2 SMA-0 01.02.202 NA NA
2 Partly paid dues of 2
01.02.2022
01.03.202 Dues of 01.02.2022 29 SMA-0 01.02.202 NA NA
2 not fully paid 2
01.03.2022 is also
due at EOD
01.03.2022
Dues of 01.02.2022 1 SMA-0 01.03.202 NA NA
fully paid, Due for 2
01.03.2022 is not
paid at EOD
01.03.2022
No payment of full 31 SMA-1 01.02.202 NA NA
dues of 01.02.2022 2/
and 01.03.2022 at 03.03.202
EOD 03.03.2022 2
Dues of 01.02.2022 1 SMA-0 01.03.202 NA NA
fully paid, due for 2
01.03.2022 not fully

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 paid at EOD
01.03.2022
01.04.202 No payment of 60 SMA-1 01.02.202 NA NA
2 dues of 01.02.2022, 2/
01.03.2022 and 02.04.202
amount dues on 2
01.04.2022 at EOD
01.04.2022
No payment of 61 SMA 2 01.02.202 NA NA
dues of 01.02.2022 2/
till 01.04.2022 at 02.04.202
EOD02.04.2022 2
01.05.202 No payment of 90 SMA 2 01.02.202 NA NA
2 dues of 01.02.2022 2/
till 01.05.2022 at 02.04.202
EOD 01.05.2022 2
No payment of 91 NPA NA NA 02.05.202
dues of 01.02.2022 2
till 01.05.2022 at
EOD 02.05.2022
01.06.202 01.06.2022 Fully paid dues of 93 NPA NA NPA 02.05.202
2 01.02.2022 at EOD 2
01.06.2022
01.07.202 01.07.2022 Paid entire dues of 62 NPA NA NPA 02.05.202
2 01.03.2022 & 2
01.04.2022 at EOD
01.07.2022
01.08.202 01.08.2022 Paid entire dues of 32 NPA NA NPA 02.05.202
2 01.05.2022 & 2
01.06.2022 at EOD
01.08.2022
01.09.202 01.09.2022 Paid entire dues of 1 NPA NA NPA 02.05.202
2 01.07.2022 & 2
01.08.2022 at EOD
01.09.2022
01.10.202 01.10.2022 Paid entire dues of 0 Standard NA NA STD from
2 01.09.2022 & Account 01.10.202
01.10.2022 with No 2
Overdues

(q) The Borrower agrees and acknowledges that the manner of classification and illustrations
of SMA and NPA as provided in sub-clauses (a) to (d) above in which the Bank is required
to classify accounts as SMA / NPA as per the various applicable regulations and guidelines
issued by RBI from time to time and:

(i) the same is liable to change / be modified as per the requirements of the RBI guidelines
in the matter issued from time to time. Any such change shall be intimated by the Bank
to the Borrower from time to time and the Borrower agrees and acknowledges that such
intimation shall accordingly modify the manner and illustrations provided herein without
a need for further amendment to the Agreement or require specific acknowledgment
of the Borrower; and
(ii) the Bank shall have the right to classify the account of the Borrower with the Bank as
SMA / NPA as per the applicable regulations / guidelines issued by RBI from time to time
even though the manner of classification and the illustrations thereof are not set forth in
this Agreement or the Sanction Letter(s).

15) Politically exposed person

For individuals

Version: BB/COM/LPA/ Apr 24/Ver 1.03

The Borrower agrees that he/she is not a politically exposed person (PEP) and further undertakes
to inform Axis Bank in the event that he/she and/or any of their family members /close relatives
becomes a PEP. In such an event, the Bank will obtain approval from its senior management to
continue the business relationship and subject the account to the Customer Due Diligence
measures as applicable to the customers of PEP category including enhanced monitoring on an
ongoing basis.

Definition -Politically exposed persons are individuals who are or have been entrusted with
prominent public functions in a foreign country, e.g., Heads of States or Governments, senior
politicians, senior government/judicial/military officers, senior executives of state-owned
corporations, important political party officials, etc.

For non individuals

The Borrower agrees that none of its Director/Partner/Trustee/Office Bearer/Promoter/Authorised
Signatory/Beneficial owner in the organisation or any of their family members /close relatives is/are
a politically exposed person (PEP) and further undertakes to inform Axis Bank in the event that
either of them becomes a PEP. In such an event, the Bank will obtain approval from its senior
management to continue the business relationship and subject the account to the Customer Due
Diligence measures as applicable to the customers of PEP category including enhanced
monitoring on an ongoing basis.

Definition -Politically exposed persons are individuals who are or have been entrusted with
prominent public functions in a foreign country, e.g., Heads of States or Governments, senior
politicians, senior government/judicial/military officers, senior executives of state-owned
corporations, important political party officials, etc.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Schedule
Terms and Conditions
1. Place of Agreement
2. Date of Agreement
3. Details of the borrower
Name of the Borrower

4. Address of the Branch Axis Bank Ltd. __________ Branch

office of the Bank
5. Commodity/ Margin
As per attached Annexure I
Purpose • Working capital for the conduct of business.
6. • For pursuing Agricultural activities (in case of farmers/JLGs)
• For the conduct of business (in case of farmers other than individuals,
food and agro-based processing units, agri-input dealers,
cooperatives, others, etc., )
Existing Facility Rs. ____________/- + Enhancement Facility Rs.
7 _________/-. Aggregate Limit/s Rs. ____________/- (Rupees
Amount of Credit Facility __________Only)
8 Nature of the Facility Credit Line against Pledge of Warehouse/Storage Receipts

9 Processing fee _________% + Goods and Service Tax (GST) collected to be paid upfront/
for each tranche of disbursement.
10 Prepayment charges
1. Prepayment charges (0.50% exclusive of GST) of the amount being
prepaid only if prepayment is within one month from the date of
disbursement. Otherwise Nil.
2. Prepayment penalty is not applicable in case of loan against
electronic Negotiable Warehouse Receipt (eNWR).
3. In case of Micro and Small Enterprises (MSE) customers, no
prepayment charges are applicable if;
a. Loan amount is up to Rs.50 Lakhs under Fixed rate loans, or
b. Loans with floating interest rates (irrespective of the loan limit)

11 Rate of Interest At ……% above Repo Rate (the Repo Rate applicable at present being
__% p.a.) i.e., presently at the rate of........ percent per annum or at such
other rate as the Bank may fix from time to time, in relation to the Repo
Rate,” payable on due date along with the principal amount.
12. Penal charges • Financial Default*: 8% p.a. above applicable interest rate on
the outstanding amount (subject to the aggregate not
exceeding Rs. 1,00,000/- per instance).

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 • Non-Financial Default**: 1% p.a. above applicable interest rate
/ commission from the date of each non-financial default on
the outstanding amount of fund-based credit facilities and
non-fund-based facilities (as applicable).
• There shall be no capitalisation of Penal Charges.
• The said Penal Charges will be subject to GST as per applicable
law on Goods and Service Tax in India, and GST will be
charged separately.
• *Financial Default includes all types of payment or financial
defaults/irregularities with respect to your Loan Account.
• **Non-Financial Default includes breach of any other
obligation(s)/covenant(s) with respect to your Loan Account.

In case of the following irregularity/ies.

1. Any non-payment of amount due in respect of the facility/margin
call on due date.
2. Any breach of the terms and conditions stipulated in the facility
and pledge agreement or any other document.
3. Any representations or undertakings given by borrower are found
to be false or incorrect.
13 Valuation of Commodity
The value of the commodity as security shall be the lower of the
following:

1. Value of goods as reflected in the warehouse receipt/storage

receipt.

2. Value of the goods based on the average price prevailing in the

nearest mandi on the day previous to the date of disbursement.

3. Price cap provided by the Bank from time to time for various
commodities
14. Security CLWF:

Primary:
Collateral:
Other Security:
Personal guarantee :
5. Maximum tenor The tenure of the loan shall be _______ months. The validity of the facility
against a Warehouse Receipt/Storage Receipt to expire by the end of
the month in which new crop arrives (harvesting season). In case of any
commodity having multiple harvesting seasons, the tenure of the
intermittent crop also needs to expire by the end of the month in which
new main crop arrives. The above tenors are subject to the maximum
duration as specified by the Bank for each commodity.
16 Repayment Terms
Interest: Interest will be charged and will fall due on monthly intervals.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 Principal: Principal repayment along with interest (from last application
date) on due dates i.e. at the end of tenure of each disbursement.

17 ➢ In case of private warehouse/godown/ silo/WRDA accredited

Other Conditions warehouse, value & Quality of stocks will be certified by
Collateral Manager, appointed by the Bank.
➢ The Memorandum & Articles of Association of the company
should have the provision for borrowing against pledge
(Applicable, if the borrower is a Company).

➢ Company to provide Board resolution for this sanction specifying

the authorized signatory for execution of loan documents
(Applicable, if the borrower is a Company).

➢ The stocks pledged to us are to be exclusively charged to our

Bank and the borrower should furnish an undertaking that the
stocks pledged to us will not be included in the stock statements
submitted to the existing Bankers, if any.

➢ The Borrower shall ensure that at any point of time, during the
currency of the facility, the receipt wise total outstanding
(including interest accrued till date) as a percentage of the
market value of the commodities pledged should not exceed
82.5%. In case of outstanding exceeds 82.5 %, the Borrower shall
furnish additional security or deposit funds within 5 days of being
served a notice to replenish with the original margin level as
stipulated in the schedule. In case, the borrower does not bring
in additional security or funds within the stipulated time, the Bank
may offload the commodities, directly or through an agent, in
part or full, at its discretion to ensure maintenance of the requisite
margin. The loss if any from this action would be to the borrower’s
account. However, during the notice period or any time during
the currency of the facility, if the total outstanding (including
interest accrued till date) as a percentage of the market value
of the commodities pledged touches 90 % due to commodity
price volatility, Bank may immediately initiate disposal of the
commodities on the same day directly or by appointing an
agent. The Banks Decision and action shall final as regards such
disposal. The Bank may offload the commodities in part or full at
its discretion. All the expense of the agent, if any, appointed shall
be borne by the borrower.
➢ Providing PDCs towards repayment of the loan.
➢ Pre-stacked stock will not be financed. The same can be
considered only if the borrower agrees to pay the de-stacking
and restacking expenses.
➢ Warehouse / Storage Receipts should be kept valid during the
currency of the facility.
➢ Inspection of the Commodity stocked will be conducted at least
once in a month by the Bank officials.
➢ QC charges, fumigation charges and other charges if any,
wherever required are to be borne by the borrower.

Version: BB/COM/LPA/ Apr 24/Ver 1.03

 The maximum funding price for commodities will be within the
➢
price cap decided by the Bank from time to time.
18. Sanction Letter Ref. No. ____________ dated ____________

Annexure I
List of eligible commodities along their margins and validity

Commodity Name Funding % Maximum Storage Period Including Approved Regions

Revalidation
ARECANUT 65 12 KK (only Karnataka), TN
BAJRA 75 9 MPCG, NT, RJ, TN, PB
BARLEY 70 9 NT, RJ, PB
BENGAL GRAM (CHICK PEA) 70 9 APTS, EAST, GJ, KK (Karnataka), MH,
MPCG, NT, RJ
BLACK GRAM (URAD) 70 9 APTS, MH, MPCG, TN, GJ, KK, NT, RJ
BLACK PEPPER 70 12 KK, TN
CARDAMOM 70 9 KK, TN
CASHEW (KERNELS AND RAW 70 6 APTS, EAST, MH, KK, TN
NUTS)
CASTOR SEEDS 70 12 APTS, GJ, MH, RJ
COFFEE 70 9 KK, TN
COPRA 70 9 KK, TN
CORIANDER 70 9 APTS, GJ, KK, MH, MPCG, RJ, TN
COTTON BALES 70 12 All designated branches
COTTON SEED 70 9 APTS, GJ, HRJK, KK, MH, MPCG, PB, RJ
COTTON SEED OILCAKE 70 6 APTS, GJ, HRJK, KK, MH, MPCG, PB, RJ
FENNEL SEEDS (SAUNF) 70 9 GJ, RJ
FENUGREEK SEEDS (METHI) 70 9 MPCG, RJ
GREEN GRAM (MUNG) 70 9 APTS, GJ, KK, MH, TN, MPCG, NT, RJ
GROUNDNUT (IN SHELL) 70 6 APTS, GJ, KK (Davangere), RJ, TN, HRJK
GROUNDNUT (KERNAL) 70 6 GJ
GROUNDNUT DOC 70 6 GJ, MH
GUAR GUM 70 9 GJ, HRJK(HARYANA ONLY), RJ
GUAR SEEDS 70 12 GJ, HRJK, MPCG, RJ
ISABGOL 70 9 GJ, MPCG (Madhya Pradesh), RJ
JAGGERY 75 9 GJ, MH, NT, RJ (Jodhpur)
JEERA (CUMIN SEEDS) 70 9 GJ, RJ
JOWAR(SORGHUM) 75 9 APTS, MH, TN, RJ, PB
LENTIL (MASOOR) 70 9 MH, MPCG (Madhya Pradesh), EAST, NT,
RJ
MAIZE 75 9 APTS, EAST, GJ, KK, MH, MPCG, NT, TN, PB,
RJ
MUSTARD DOC 70 6 HRJK, MH, PB
MUSTARD SEEDS 70 9 GJ, HRJK, MPCG, NT, RJ, EAST, PB
PADDY 75 12 APTS, EAST, GJ, HRJK, KK, MPCG, MH, NT,
PB, RJ, TN
PROCESSED DAL OF APPROVED 70 6 REFER POINT ANNEX.1
PULSES
RED CHILLIES 70 9 APTS, KK, MH, MPCG, TN
RED GRAM (TUR) 70 9 APTS, GJ, KK, MPCG, MH, TN, RJ, NT

Version: BB/COM/LPA/ Apr 24/Ver 1.03

RICE 70 9 APTS, GJ, MPCG, NT, HRJK, PB, TN, RJ
RICE BRAN DOC 70 6 PB,HRJK,TN,RJ, MPCG
RUBBER SHEET 75 6 KK (Kerala), TN (Madurai)
SAGO 70 6 TN
SESAME SEEDS 70 9 MPCG (Neemuch), GJ, NT, RJ, TN
SKIMMED MILK POWDER 70 6 MPCG, MH
SOYBEAN 70 9 APTS (Warangal), GJ, KK, MPCG, MH, NT
(Rudrapur, Jalaun & Mauranipur), RJ
(Kota)
SOYBEAN DOC 70 6 EAST, GJ, KK, MH, MPCG, TN
SUGAR 75 12 All designated branches
TURMERIC 65 9 APTS, EAST, KK, MH, TN
WHEAT 75 9 All designated branches.
YELLOW PEAS 70 9 APTS, MH, EAST, NT

The contents of the document have been explained to me in ____________ language and I/we
have understood the same.

IN WITNESS WHEREOF the Borrower has hereunto put his hand and seal on

Name & Signature/thumb impression

Axis Bank Ltd

Authorized Signatory on behalf of the Bank

Authorized Signatory

Place:
Date :

Version: BB/COM/LPA/ Apr 24/Ver 1.03