Nature of Assistance / Facility

I. Facilities for sanction

(A) Working Capital facilities

a) Fund Based

(CC/WCDL/STL) – Within consortium & outside consortium

b) Non Fund Based

LC (RM)/BG/TCBG

LC capex

c) LER (sublimit of LC)

d) CMS (inter/intraday)

(B) Term Loan Facilities

(RTL, CL, STL)

II. Existing Facilities for review

List of Enclosures:

1. Analysis of Latest Audited Financial Statements2. YTD Performance3. Credmin sheet4. LER Deals sheet5. Profitability & Cash Flow projections6. Ratings Report

I. SUMMARY SHEET

II. COMPANY & BUSINESS PROFILE

1. Background2. Production Facilities3. Capacities & Production4. Products Share5. Market Share6. Marketwise Revenue share of the co.7. Product wise Revenue share of the co.8. Region wise Revenue share of the co.9. Industry Outlook10. Recent developments for the co. & in the industry

III. PERFORMANCE/ FINANCIAL ANALYSIS (As per CMA)

YTD PerformancePeer ComparisonGroup Financials Consolidated

Sample EOD Status:-1. Current Ratio<12. TOL/TNW>23. INTREST COVER<24. COMPANY SHOULD NOT BE INCURRING CASH LOSS5. NEGAIVE VARIATION SHOULD NOT BE MORE THAN 10% BETWEEN PROVISIONAL &

AUDITED RESULTS.

IV. ASSESSMENT OF THE CURRENT PROPOSAL

1 (a) Assessment of WC/STL Requirement

(i) Assessment of Fund Based Facility

– Buildup of Current Assets & Current Liabilities

Calculation of Maximum Permissible Bank Finance

(ii) Assessment of Non-Fund Based Facility

LC Facility – Import of Raw Material Bank Guarantee Capex LC

2 (i) Assessment of Corporate Loan

(Normal capital expenditure)

DSCR Calculation

V. REVIEW OF EXISTING FACILITIES

VI. COMPLIANCE WITH EXPOSURE NORMS

1. Cap in absolute terms

2. (a) As a percentage of Bank’s Total Capital Funds Pre-defined limit is 15% (20% in case of infrastructure) in case of a company Pre-defined limit is 40% (50% in case of infrastructure) in case of a Group.

(b) In case of substantial exposure (i.e. exposure beyond 10% of TCF)

3. To individual industry Pre-defined limit of 10% of IDBI’s total industry exposure

VII. COMPLIANCE WITH LENDING NORMS/PARAMETERS

VIII. KEY RISKS/ MITIGANTS/ RATING

1. Business and Industry Risk2. Financial Risks3. Management Risks4. ECGC Cover5. Country Risk

6. Internal Rating7. Rating Concerns

VIII. RECOMMENDATIONS

Appendix – I (Term Sheet for Working Capital)

SECURITY

CC/WCDL/STL/LC (RM)

First Pari Passu charge on all current assets of the company Subsequent and subservient charge on the current assets

LC Capex Underlying equipment under documentary credit.

Second Pari-Passu charge on the fixed assets of the company.

EVENTS OF DEFAULT

Financials—

Current Ratio not to fall below 1 Gearing not to exceed 3 Intrest Cover Min. of 2:1

Others—

Change in ownership/ shareholding pattern/ management of the company Default with any other bank/ FI/ MF/ Lending institution

Appendix – II (Term Sheet for Existing RTL)

Appendix – III (Term Sheet for Fresh Corporate Loan)

CREDIT APPRAISAL PROCESS FOLLOWED/ DETAILS COLLECTED BY IDBI

I. Summary Sheet:

The process of credit appraisal of the proposal begins with the creation of a summary sheet.

The sheet contains various basic details about the company such as the address of the registered office of the company, nature of business/ product, the list of promoters/ directors, its listing status and other details on the stock exchange, the shareholding pattern, external rating score for the company and so on.

II. Company & Business Profile:

A general study is carried out to understand the business of the customer. This is done by studying the profile of the company, gathering information regarding the installed and production capacity (in case of a manufacturing company), going through the client base of the company and the products being produced/ manufactured and sold by the company.

Information is also gathered regarding the operations of the company such as the number of retail outlets, distributors, etc. that the company has and also the places and areas where it operates or carries out its business.

An overview of the industry in which the company operates is also taken into account. This is done to check the current scenario in the industry and the future prospects for the industry, in order to ensure that the company might not get adversely affected by the condition of the industry to which it belongs.

III. Performance/ Financial Analysis:

A detailed analysis of the past and future financial data is carried out to.(need for financial analysis)

i) Profit as a percentage of Sales

ii) Gearing Ratio (Total Operating Liabilities/ Total Net Worth)

iii) Current Ratio

iv) Interest Coverage Ratio

v) Debt Service Coverage Ratio (DSCR)

Under performance analysis a peer comparison is also carried out to compare various values such as the sales, profits, net worth, current ratio, etc. of the company to its competitors.

IV. Assessment of Current Proposal

The loan requirements are assessed using the MPBF method.

V. Compliance with Exposure Norms/ Credit Policy

1. There is a Cap set in absolute terms for the company as well as the group to which the company belongs.

2. Pre-defined limits are set for the total exposure which is set at 15% of IDBI’s total capital funds in case of a company and 40% in case of a particular business group.

3. There are pre-defined limits set on an industry basis also. The proposal to any industry cannot exceed more than 10% of the total existing industry exposure.

VI. Key Risks/ Mitigants

Various risks are checked before granting the WCL. These are:-

1. Business & Industry Risks2. Financial Risks3. Management Risks4. ECGC Cover5. Country Risk

VII. Recommendations

Post collection of all the data and having done all the analysis, the final recommendations are given to accept or reject a proposal.