CONTENTS1. Basic concepts in accounting constructing financial statements2. Identification & rectification of mistakes in financial statements3. Computation of Net Worth (Opinion Report)4. Construction of Balance Sheet (from a lender’s point of view)5. Construction of Operating Statement (restructured P&L account)6. Classification of assets & liabilities, analysis, and assessment of credit needs7. Proprietorship trading firm assessment of financial situation8. Construction and Analysis of a Funds Flow Statement9. Analysis of the financial statements using funds-flow and cash-flow statements10. Preparation of CMA11. Working capital assessment Inventory & Receivables holding Method 12. Compliance of stipulations, WC computation & taking credit decision13 Analysis of Financial Statements (CMA), WC computation & Limit allocation14 Assessing WC Credit limits Cash Budget Method15 Assessing Working Capital Credit requirements on the basis of Cash Gap Method16 Working Capital financing by Advanced way of consortium17 Assessment of FB and NFB (LC) limits18 Letter of Credit Assessment of limit 19. Scrutiny of LC Application form20 Situations Analysis – Letter of Credit21. Quantitative Assessment of Bank Guarantee limit22. Bank Guarantee – Situations Analysis23. Issue of Bank Guarantee modification of clauses24. Issue of Bank Guarantee modification of clauses25. Computation of Book Value of Fixed Assets26. Break-Even analysis determining a viable operating levelExamining financial viability of a Term loan proposal28 Providing a Composite Term Loan to an MSME unit29 Assessing Term finance requirements of a small project30 Appraising a Term loan proposal31 Financing capital assets by means of internal accrual32 Decision making on the basis of Internal Rate of Return (IRR)33 Decision-making on the basis of Loan Life Coverage Ratio (LLCR) 34. Project Finance – appraising the financial viability35. Retail loans – working out suitable EMls36. Retail loans – working out suitable EM Is37. Retail loans: Unethical lending – ‘Flat rate’ and ‘Advance EMls’38. Retail loans : Unethical lending – ‘Flat rate’ and ‘Advance EMls’39. Retail loans – Time value & EMI40 Retail loans – Time value & EMI41. Housing loan – counselling a Customer 42 Providing Drawing Power against a Stock Statement43 ABC analysis of inventory44 Insurance of Inventory45 Analysis of Financial Follow-up Reports (FFR I)46 Analysis of Financial Follow-up Reports (FFR II)47 Supervision & Follow-up48 Analyzing a D & B Report49 Taking over the loans of a group of companies50 Estimation of NWC requirements (Rehabilitation)51 Rehabilitation – Segregation of the various loan components 52 Rehabilitation – Holding On Operations53 Finalising a compromise proposal54 Pledge vs. Hypothecation55 Promoter & the company56 Legal aspects of taking blank cheques as security against credit facilities57 Issues in Company documentation-I58 Issues in Company documentation-II59 Mortgage – Verification of title deeds 60 Company advances mortgage & charge creation61 Multiple banking – Issue of charge sharing62 Takeover of credit facilities legal aspects63 Situations Analysis – recovery of bank loan64 Decisio.n-making in Credit The High (Hi) – Breed Company65 Arbitration Award and ‘Unsecured Creditor’ statusFEATURES A book which hand holds the user in solving problemsrelating to bank credit – a step-by-step approach Contains Exercises, Illustrations, Caselets, SituationAnalyses and Case Studies on all aspects of dispensingbank credit Begins with cases for beginners – graduating to casesfor seasoned decision makers in credit Contents classified in three levels – Basic, Standardand Advanced Separate Modules for Cases and Suggested SolutionsAbout The BookHANDS ON CREDIT – DOING IT YOURSELFThis book is a compilation of exercises, illustrations,caselets, situation analyses and case studies (withsuggested solutions) on credit appraisal, credit monitoringand decision-making in credit. The reader begins withunderstanding the basic steps and gradually proceedstowards internalizing the critical aspects of dispensingcredit with every single illustration in the book. A must forevery credit officer and decision maker in bank lendingAbout The AuthorDr. D.D.Mukherjee is a corporate trainer and a senior faculty in thebanking and finance domain. He is associated with various institutesof repute in the country – Jawaharlal Nehru Institute of Bankingand Finance (JNIBF, lOBI Bank), Hyderabad, Talentsprint EducationServices Pvt. Ltd., Hyderabad and Stratadigm Education ServicesPvt. Ltd., Mumbai – to name a few. Dr. Mukherjee has more thanthree decades of experience in banking and finance. He served StateBank of India for 25 years in various important positions followedby a seven year association with IDBI Bank as Senior faculty.Dr. Mukherjee is a post-graduate in Physics, a Certified Associateof the Indian Institute of Banking & Finance, and holds a Ph.D. inManagement (Finance).
Snow White Publication
2nd Edition , March 2015