MANUAL ON SCORING MODELS FOR MSME ADVANCES "PNB SCORE SME"

MANUAL ON SCORING MODELS FOR MSME ADVANCES "PNB SCORE SME"

MANUAL SCORING MODELS MSME ADVANCES “PNB SCORE SME” -i- (For Internal Circulation only) MANUAL ON SCORING MODELS FOR MSME ADVANCES “PNB SCORE SME” (For Internal Circulation only) SCORING MODELS MSME ADVANCES “PNB SCORE SME”

S.NO 1. “PNB SCORE SME” 2. OPERATING GUIDELINES FOR USING CREDIT SCORING MODEL SOFTWARE “PNB SCORE SME” 3. CODE OF BANK’S COMMITMENT TO MICRO AND SMALL ENTERPRISES (MSEs) RATING PARAMETERS 4. GUIDELINES FOR USING SCORING MODEL “PNB SCORE SME” : 4.1 GENERAL GUIDELINES 4.2 MSME MANUFACTURING UNIT (NEW CASE INCLUDING TAKEOVER) UPTO ` 50 LAKH.

4.3 MSME SERVICE UNIT (NEW CASE INCLUDING TAKEOVER) - ABOVE LAKH. 4.4 MSME MANUFACTURING AND SERVICE UNIT (NEW CASES INCLUDING TAKEOVER) LAKH AND BELOW.

4.5 MSME MANUFACTURING AND SERVICE UNIT (RENEWAL / ENHANCEMENT) LAKH UPTO ` 50 LAKH. 4.6 MSME MANUFACTURING AND SERVICE UNIT (RENEWAL / ENHANCEMENT) BELOW. -ii- CONTENTS PAGE NO. “PNB SCORE SME” OPERATING GUIDELINES FOR USING CREDIT SCORING MODEL SOFTWARE “PNB SCORE- CODE OF BANK’S COMMITMENT TO MICRO AND SMALL ENTERPRISES (MSEs) - SHARING OF RATING PARAMETERS GUIDELINES FOR USING SCORING MODEL “PNB SCORE SME” : GENERAL GUIDELINES MSME MANUFACTURING UNIT (NEW CASE INCLUDING TAKEOVER) - ABOVE ` 10 LAKH UNIT (NEW CASE INCLUDING ABOVE ` 10 LAKH UPTO ` 50 MSME MANUFACTURING AND SERVICE UNIT (NEW CASES INCLUDING TAKEOVER ` 10 AND BELOW.

MSME MANUFACTURING AND SERVICE UNIT (RENEWAL / ENHANCEMENT) - ABOVE ` 10 50 LAKH. MSME MANUFACTURING AND SERVICE UNIT (RENEWAL / ENHANCEMENT ` 10 LAKH AND PAGE NO. 1-3 4-28 29-33 34-65 34-35 36-42 43-48 49-54 5-60 61-65

1. In order to supplement the pre comprehensive structured approach for evaluating loan proposal (New /Renewal/Enhancement/Take over) under /Service) category up to limits of five Credit Scoring Models :- I. MSME Manufacturing (New Cases including takeover) 10 lakh upto ` 50 lakh. II. MSME Service (New Cases including takeover) upto ` 50 lakh.

III. MSME Manufacturing an takeover ` 10 lakh and below. IV. MSME Manufacturing and Service (Renewal / Enhancement) Above ` 10 lakh upto V. MSME Manufacturing and Service (Renewal / Enhancement) 10 lakh and below.

These Credit Scoring the bank and are available on Finacle home page as “PNB SCORE SME” The characteristics of various MSME (Manufacturing/Service) lending schemes /activities have been put together to arrive at risk profile of MSME segment. The various MSME schemes/ activities covered are as under: MSME (Manufacturing) MSME (Service) Sarthak Udhami SME Sahyog Scheme PNB Vikas Udyami PNB Pragti Udyami PNB Artisan Credit Card PNB Laghu Udhami Credit Card Loans for setting up Industrial Estates PNB Kushal Udyami PNB Vikas Udyami Financing Industry related small enterprises self employed -1- “PNB SCORE SME” In order to supplement the pre-sanction appraisal process and to adopt a comprehensive structured approach for evaluating loan proposal (New /Renewal/Enhancement/Take over) under MSME (Manufacturing category up to limits of ` 50 lakh, bank has developed following MSME Manufacturing (New Cases including takeover) - 50 lakh.

MSME Service (New Cases including takeover) - Above ` MSME Manufacturing and Service (New Cases including 10 lakh and below. MSME Manufacturing and Service (Renewal / Enhancement) 10 lakh upto ` 50 lakh. MSME Manufacturing and Service (Renewal / Enhancement) 10 lakh and below. These Credit Scoring models have been placed on the server of the bank and are available on Finacle home page as “PNB SCORE The characteristics of various MSME (Manufacturing/Service) lending schemes /activities have been put together to arrive at risk profile of MSME gment. The various MSME schemes/ activities covered are as under: MSME (Manufacturing) MSME (Service) Sarthak Udhami Training Institutes Education Institutions Trading in new medical instruments Nursing homes/Clinics X-Ray Clinic Card Legal Services ing up Industrial Estates Advertising Agency Advances to Transport Sector Advances to professionals & Financing Industry related small enterprises self employed Seed grading Services Courier services Architecture Designers Events Management Catering Retail Trade sanction appraisal process and to adopt a comprehensive structured approach for evaluating loan proposal (New (Manufacturing 50 lakh, bank has developed following - Above ` ` 10 lakh d Service (New Cases including MSME Manufacturing and Service (Renewal / Enhancement) - MSME Manufacturing and Service (Renewal / Enhancement) - ` models have been placed on the server of the bank and are available on Finacle home page as “PNB SCORE The characteristics of various MSME (Manufacturing/Service) lending schemes /activities have been put together to arrive at risk profile of MSME gment.

The various MSME schemes/ activities covered are as under: MSME (Manufacturing) MSME (Service) Education Institutions Trading in new medical Nursing homes/Clinics Advances to Transport Sector Advances to professionals & Seed grading Services chitecture Designers

The above list is indicative only. In addition to above models there is another scoring model of Retail Assets Division (RAD) available on Finacle home page activities like Retail trade (New cases & Renewal/Enhancement), advances to Qualified Medical Practitioners be scored under this model. Exempted Categories: Advances to taxi, station wagon etc.) and documentary films (on themes like family planning, social forestry, energy conservation and commercial advertising) are exempted from scoring as the developed. For such activities the guidelines for credit risk rating issued by IRMD (Systems & Models), HO All branches are to use the relevant models for MSME advances w.e.f 01.01.2011 and use the scores secured by borrowers to take decision regarding sanction of the loan application.

The score generated by models will facilitate the sanction & rejection of the loan application as per following scoring / coloring scheme: S. No Score Range 1 Up to 40 2 Above 40 up to 50 3 Above 50 up to 75 4 Above 75 Now the use of scoring model mandatory for MSME loans up to mentioned as above and such proposals will not be rated through PNB Trac. -2- Auto repair and service Center Desktop Publishing Xeroxing Typing Centers Industrial Photography Internet browsing se Cyber Cafe X-Ray Clinic Tailoring, boutique etc Photographic Lab Beauty Parlors & crèches The above list is indicative only.

In addition to above models there is another scoring model of Retail Assets Division (RAD) available on Finacle home page as “PNB SCORE” and (New cases & Renewal/Enhancement), advances Qualified Medical Practitioners & Gramin Chikitsak shall continue to Advances to Transport Sector (including loan for taxi, station wagon etc.) and documentary films (on themes like family planning, social forestry, energy conservation and commercial advertising) as the models for these activities are yet to be ivities the guidelines for credit risk rating issued by IRMD (Systems & Models), HO shall be applicable.

All branches are to use the relevant models for MSME advances w.e.f 01.01.2011 and use the scores secured by borrowers to take decision ion of the loan application.

The score generated by models will facilitate the sanction & rejection of the loan application as per following scoring / coloring scheme:- Color Scheme Implication Red Zone Application cannot be considered for sanction. Yellow Zone Application can be considered by next higher Authority for sanction with proper justifications. Green Zone Application can be considered for sanction at branches as per their vested loaning powers. Blue Zone Now the use of scoring model “PNB SCORE SME” / “PNB SCORE” mandatory for MSME loans up to ` 50 Lakh (except loans to the activities such proposals will not be rated through PNB Trac.

Auto repair and service Center Industrial Photography Internet browsing setting up Tailoring, boutique etc Beauty Parlors & crèches In addition to above models there is another scoring model of Retail Assets and MSME (New cases & Renewal/Enhancement), advances shall continue to ng loan for taxi, station wagon etc.) and documentary films (on themes like family planning, social forestry, energy conservation and commercial advertising) models for these activities are yet to be ivities the guidelines for credit risk rating issued by All branches are to use the relevant models for MSME advances w.e.f 01.01.2011 and use the scores secured by borrowers to take decision The score generated by models will facilitate the sanction & rejection of the Application cannot be considered for sanction.

Application can be considered by next higher Authority for sanction with proper Application can be considered for sanction at branches as per sted loaning powers.

“PNB SCORE SME” / “PNB SCORE” is 50 Lakh (except loans to the activities such proposals will not be rated through PNB Trac.

The mapping of scores of the of PNB Trac is as under:- S.No Score as per Scoring Model for MSME 1 0-30 2 Above 30 3 Above 40 4 Above 50 5 Above 60 6 Above 70 7 Above 80 On the basis of above table, applicable interest rate would be ascertained for advances above ` 20 lakh. It may be noted that scoring models supplement the credit appraisal; it is not substitute for credit appraisal calculations in credit risk rating are good for measuring the risk and not for anticipating it.

There is a Maker–Checker concept in “PNB SCORE SME” meaning thereby that maker (appraising official) will enter the desired data scoring model and generate the score sheet. The score sheet so prepared by the maker will be checked and authorised by the checking official (checker)/sanctioning authority.

The Score card Id generated by the model in the score sheet shall b and same must be assigned Details’ in all the eligible MSME advances (Manufacturing /Service) sanctioned up to the limit of Rs.50 lakh. -3- The mapping of scores of the five MSME models with the risk rating category Score as per Scoring Model for Rating Category as per PNB Trac 30 D Above 30-40 C Above 40-50 B Above 50-60 BB Above 60-70 A Above 70-80 AA Above 80 AAA On the basis of above table, applicable interest rate would be ascertained for It may be noted that scoring models supplement the credit appraisal; it is not substitute for credit appraisal as the mathematical formulae/ calculations in credit risk rating are good for measuring the risk and not for Checker concept in “PNB SCORE SME” meaning thereby that maker (appraising official) will enter the desired data in respective scoring model and generate the score sheet.

The score sheet so prepared by the maker will be checked and authorised by the checking official (checker)/sanctioning authority.

The Score card Id generated by the model in the score sheet shall b must be assigned in CBS in “Free Text 6” field in ‘V Details’ in all the eligible MSME advances (Manufacturing /Service) sanctioned up to the limit of Rs.50 lakh. * * models with the risk rating category Rating Category as On the basis of above table, applicable interest rate would be ascertained for It may be noted that scoring models supplement the credit appraisal; it is as the mathematical formulae/ calculations in credit risk rating are good for measuring the risk and not for Checker concept in “PNB SCORE SME” meaning thereby in respective scoring model and generate the score sheet.

The score sheet so prepared by the maker will be checked and authorised by the checking official The Score card Id generated by the model in the score sheet shall be noted field in ‘V – MIS Details’ in all the eligible MSME advances (Manufacturing /Service)

2. OPERATING GUIDELINES FOR USING CREDIT SCORING MODEL SOFTWARE “PNB SCORE SME STEPS FOR RUNNING THE APPLICATION “PNB SCORE SME” 1 This software can be accessed through Finacle home page using the link “PNB Score SME” For the first time it may prompt you to install the compatible Jinitiator 1.3.1.22 that will be automatically downloaded from the server. It may take 2 to 5 minutes. provided to branches/downloaded fro Repository->Downloads->Oracle Jinit. In case of difficulty in accessing the application please check whether you are able to ping the CSM server using the following command on Run window: Ping 10.192.15.201 –t In case of No reply from server help -4- OPERATING GUIDELINES FOR USING G MODEL SOFTWARE “PNB SCORE SME STEPS FOR RUNNING THE APPLICATION “PNB SCORE SME” This software can be accessed through Finacle home page using the link For the first time it may prompt you to install the compatible that will be automatically downloaded from the server.

It may take 2 to 5 minutes. It can be installed directly from the CD /downloaded from PNB eCirculars->Knowledge >Oracle Jinit.

of difficulty in accessing the application please check whether you are able to ping the CSM server using the following command on Run In case of No reply from server you may call HO: ITD (011-23356506 G MODEL SOFTWARE “PNB SCORE SME” This software can be accessed through Finacle home page using the link For the first time it may prompt you to install the compatible Oracle that will be automatically downloaded from the server. directly from the CD Knowledge of difficulty in accessing the application please check whether you are able to ping the CSM server using the following command on Run 23356506) for

2 This application can also be accessible through internet browser “Internet explorer” using the following U http://10.192.15.201/forms/frmservlet?config=pnbsme After you access the application the following Login Screen will appear: Login Screen 3 Creation of Shortcut for PNB SCORE -5- ation can also be accessible through internet browser “Internet explorer” using the following URL: http://10.192.15.201/forms/frmservlet?config=pnbsme After you access the application the following Login Screen will f Shortcut for PNB SCORE SME: ation can also be accessible through internet browser After you access the application the following Login Screen will

In your desktop Right click from mouse You will get the following screen. -6- In your desktop Right click from mouse-> click New -> Shortcut You will get the following screen.

Click Browse & then Click C Drive (C:): Click Program files -7- Click C Drive (C:):

Then click Internet Explorer Then click IExplore After the …….\IExplore.exe” give a space then type the following url (address) http://10.192.15.201/forms/frmservlet?config=pnbsme -8- lorer IExplore.exe” give a space then type the following url http://10.192.15.201/forms/frmservlet?config=pnbsme IExplore.exe” give a space then type the following url

Click Next Type name (PNB Score SME) and then Finish SME -9- Type name (PNB Score SME) and then Finish SME

Double Click the PNB Score SME shortcut for accessing the application 4 Operational Instruction: Enter the “User Name” and “ click on the “Login” button or si to proceed. System will check for correct combination of “User Name” and “Password”. The “User Name” will be the PF Number of the users and Password will be provided by the Offices and Circle Offices in turn provide for Branches. If the “User Name” and “Password” are found correct, it will show the Main screen as under: -10- Click the PNB Score SME shortcut for accessing the application Operational Instruction: and “Password” in the login Screen and then ” button or simply press “Enter” on your keyboard roceed.

System will check for correct combination of “User Name” and “Password”. The “User Name” will be the PF Number of the users and Password will be provided by the MSME HO/ITD HO for Circle fices in turn provide ID No./Name and Password If the “User Name” and “Password” are found correct, it will show the Main screen as under: Click the PNB Score SME shortcut for accessing the application in the login Screen and then mply press “Enter” on your keyboard roceed. System will check for correct combination of “User Name” and “Password”. The “User Name” will be the PF Number of the users and for Circle Name and Password If the “User Name” and “Password” are found correct, it

The screen will show the Main Menus horizontally The Main Menu options are as 1. User Master. 2. Master. 3. Transactions. 4. Reports. 5. Logout. 6. Help. 7. Window. 4.1 Initially “User Master” has to be performed at HO and Circle Offices and as such the option is available to HO and Circle Office users having related privileges. The page is displ -11- The screen will show the Main Menus horizontally on the top of screen The Main Menu options are as under: ” has to be performed at HO and Circle Offices and as such the option is available to HO and Circle Office users having related privileges.

The page is displayed as under: User Master of screen. ” has to be performed at HO and Circle Offices and as such the option is available to HO and Circle Office users

On selecting user creation following screen will be displayed: a) User Master menu will users at the Branches, who will work on this MSME Score Model -12- user creation following screen will be displayed: User Master menu will be used by the Circle Offices to add ranches, who will work on this MSME Score Model to add ranches, who will work on this MSME Score Model.

b) Following Buttons are available on this page: i Insert: This Button is to be used ii Update: This button is to be used for iii Search: This button is to be used for iv Save: This butto v Cancel: This button is to be used for vi Exit: This Button is to be used for c) After selecting appropriate button the following details are to be filled on this page for Creation /Modification of User.

1. User ID. 2. User Name. 3. Branch Code. Can be entered by (ctrl +H) also. 4. Branch Name. 5. Password. These are Alphanumeric (Six characters long). 6. User Type: There are three types of users. Ø Normal User: Users at branches. Ø Super User: Users at HO level Ø Administrator: Users at Circles/ branches d) The Credit Scoring Models are based on Makers the officers/Dy. Manager/Manager at hub/branches processing the loan applications shall b authority i.e., Manager/Senior Manager & above shall be the “Authorizing Official".

e) The Circle Offices shall ensure that sufficient user the Branches, so that there is always at least one maker checker in the branches. This may be done by way of creating multiple user ID for the maker and checker in the Branches subject to the condition that the making and checking officials are not the same in branch. 4.2 “Transaction” menu is scoring is to be done actually. -13- ns are available on this page: This Button is to be used for Adding a New Record. This button is to be used for Modifying Record. This button is to be used for Searching Record. This button is to be used for Saving the Record.

This button is to be used for Cancelling the Entry. This Button is to be used for Exiting from the Form c) After selecting appropriate button the following details are to be filled ge for Creation /Modification of User.

Branch Code. Can be entered by (ctrl +H) also. Password. These are Alphanumeric (Six characters long). There are three types of users. Normal User: Users at branches. (Maker) Super User: Users at HO level Administrator: Users at Circles/ branches (Checker). The Credit Scoring Models are based on Makers-Checkers concept. All the officers/Dy. Manager/Manager at hub/branches processing the loan applications shall be the “Normal User”. The sanctioning authority i.e., Manager/Senior Manager & above shall be the .

The Circle Offices shall ensure that sufficient user ID’s are created at so that there is always at least one maker checker in the branches.

This may be done by way of creating multiple for the maker and checker in the Branches subject to the condition that the making and checking officials are not the same in menu is to be used by the branch user, where the actually. a New Record. the Entry. from the Form c) After selecting appropriate button the following details are to be filled Password. These are Alphanumeric (Six characters long). Checkers concept. All the officers/Dy. Manager/Manager at hub/branches processing the The sanctioning authority i.e., Manager/Senior Manager & above shall be the ’s are created at and one checker in the branches.

This may be done by way of creating multiple for the maker and checker in the Branches subject to the condition that the making and checking officials are not the same in a by the branch user, where the

This is selected by left clicking the “Transaction” option at Main Menu as under: Here, entries will be made by Normal user (i.e., the maker) a) The available option for feeding of deta “Scheme Selection”, which opens as under: -14- This is selected by left clicking the “Transaction” option at Main Menu Here, entries will be made by Normal user (i.e., the maker). The available option for feeding of details for credit scoring is “Scheme Selection”, which opens as under:- This is selected by left clicking the “Transaction” option at Main Menu ils for credit scoring is

Select the “Industry type” Industry” options using the button provided for the purpose.

For selecting the Activity/scheme you have to press “List” bu schemes are shown in the window and you have to select the Activity/scheme from window and press button OK. b) If facility is being considered “Whether our existing Borrower: button as under: Whether our existing Borrowe Further selection “New Unit/ Business” or “Takeover” whether the unit is new unit/business or take over case. In case of renewal/ enhancement of f selected.

The loan amount of the proposal under consideration shall be entered facility wise & amount for facilities has to be entered. Lastly press “OK” to move to next screen. c) Internally the MSME accounts have be categories for the purpose of scoring: 1. MSME Manufacturing (New Case including takeover) lakh up to ` 50 lakh. -15- Industry type” “Manufacturing Unit” or “ ” options using the button provided for the purpose. For selecting the Activity/scheme you have to press “List” button and all schemes are shown in the window and you have to select the Activity/scheme from window and press button OK.

considered for the first time by the branch, then “Whether our existing Borrower: choose option “No” using Whether our existing Borrower Yes No.

“New Unit/ Business” or “Takeover” shall be made whether the unit is new unit/business or take over case. case of renewal/ enhancement of facility, the option “Yes The loan amount of the proposal under consideration shall be entered facility wise & amount for facilities has to be entered. Lastly press to move to next screen. SME accounts have been segregated in following categories for the purpose of scoring:- MSME Manufacturing (New Case including takeover) - Above 50 lakh.

” or “Service ” options using the button provided for the purpose. For tton and all schemes are shown in the window and you have to select the for the first time by the branch, then using radio Yes No.

shall be made Yes” is to be The loan amount of the proposal under consideration shall be entered facility wise & amount for facilities has to be entered. Lastly press en segregated in following Above ` 10

2. MSME Service (New Case including takeover) to ` 50 lakh. 3. MSME Manufacturing and S ` 10 lakh and below. 4. MSME Manufacturing and Service (Renewal / Enhancement) Above ` 10 lakh upto 5. MSME Manufacturing and Service (Renewal / Enhancement) lakh and below. For each category there i d) Then the form/screen pertaining One of the screens (for scoring model upto ` 50 lakh) is placed Other models may be attem of the models is similar. e) Information if required to be filled in 5 different numbers 1,2,3,4 and 5, and the last page gives us the score. The -16- MSME Service (New Case including takeover) - Above ` 10 lakh up MSME Manufacturing and Service (New Cases including takeover) 10 lakh and below.

MSME Manufacturing and Service (Renewal / Enhancement) 10 lakh upto ` 50 lakh. MSME Manufacturing and Service (Renewal / Enhancement) there is a separate scoring model. pertaining to that scoring model opens. screens (for scoring model- service sector above ` placed for reference as under: Other models may be attempted on the same lines as the functionality of the models is similar. Information if required to be filled in 5 different screens with page numbers 1,2,3,4 and 5, and the last page gives us the score. The 10 lakh up ervice (New Cases including takeover) - MSME Manufacturing and Service (Renewal / Enhancement) - MSME Manufacturing and Service (Renewal / Enhancement ` 10 opens.

` 10 lakh pted on the same lines as the functionality with page numbers 1,2,3,4 and 5, and the last page gives us the score. The

navigation through the pages is provided using “Previous” options provided at the bottom of the pages. 5 Illustration – Model 2- M Above ` 10 lakh up to ` 50 Let us consider an illustration of new existing unit in service sector agency requesting for working capital limit of User in branch shall select Scheme selection option in transaction and fill the details in the Activity/Scheme Select as under: After filing the information in all Then following page shall open: -17- navigation through the pages is provided using the “Next” and “Previous” options provided at the bottom of the pages.

MSME Service (New Case including takeover) 50 lakh: Let us consider an illustration of new borrower to the bank but an in service sector, carrying on the business of advertising agency requesting for working capital limit of ` 12 lakh. User in branch shall select Scheme selection option in transaction and fill the details in the Activity/Scheme Selection page as per proposal After filing the information in all fields, user shall press “OK” button. hen following page shall open: the “Next” and SME Service (New Case including takeover) - to the bank but an carrying on the business of advertising User in branch shall select Scheme selection option in transaction menu ion page as per proposal button.

Page 1 This page is used for filling the following details: 1. Unit details like name of the un unit/project (existing unit or new project 2. The promoter’s details like name, date of birth, educational qualifications, PAN number etc. 3. In case of past relationship with the bank, details like A/C since and average balance in last six months are also accepted. 4. List of options are provided for selecting the credit history, in case the CIBIL score is available 5. Options for “Ownership of current residence on record” and “Ownership of manufacturing unit 6. Space is provided for filling up of distance of factory from financing branch and options are provided to select attributes whether the unit and financing branch are in same city/center or not distance is > 25 Kms After filing the information in all Then following page shall open: -18- This page is used for filling the following details:- nit details like name of the unit, address, constitution, type of unit/project (existing unit or new project).

The promoter’s details like name, date of birth, educational qualifications, PAN number etc. In case of past relationship with the bank, details like A/C since alance in last six months are also accepted. List of options are provided for selecting the credit history, in case the CIBIL score is available/ not available. Options for “Ownership of current residence on record” and “Ownership of manufacturing unit/factory premises” are provided. Space is provided for filling up of distance of factory from financing branch and options are provided to select attributes whether the unit and financing branch are in same city/center or not distance is > 25 Kms.

After filing the information in all fields, user shall press “OK” button hen following page shall open: it, address, constitution, type of The promoter’s details like name, date of birth, educational In case of past relationship with the bank, details like A/C since alance in last six months are also accepted. List of options are provided for selecting the credit history, in case Options for “Ownership of current residence on record” and /factory premises” are provided.

Space is provided for filling up of distance of factory from financing branch and options are provided to select attributes whether the unit and financing branch are in same city/center or not if the button.

Page2 This page is used for filling the following details: a. Facility required (Working Capital Proposed facilities are marked ‘ amounts according to the limits filled initially. The rate of interest is to be filled in along with the repayment period in months in case of term loan. b. “Value of fixed assets to be financed” shall of the fixed assets purchased out of term loan, if any. c. A list has been provided for “ be selected. d. Whether borrower agreed to CGTMSE cover then the system shall not a security details.

e. “Accepted projected profit after tax (PAT)” and “Accepted Projected Cash profit” are to be filled.

f. Income Tax Assessee : Proper choice is made by selecting Yes/No. g. Client type is selected from th -19- This page is used for filling the following details:- Working Capital, Term Loan, Non fund based). facilities are marked ‘√’ in the specified space with amounts according to the limits filled initially. The rate of interest is to be filled in along with the repayment period in months in case of “Value of fixed assets to be financed” shall contain the invoice value of the fixed assets purchased out of term loan, if any.

A list has been provided for “Purpose of Loan”, one of which has to Whether borrower agreed to CGTMSE cover. If “Yes” is selected then the system shall not accept the Guarantors’ and collateral “Accepted projected profit after tax (PAT)” and “Accepted Projected Cash profit” are to be filled. Income Tax Assessee : Proper choice is made by selecting Yes/No. Client type is selected from the list provided. Loan, Non fund based). √’ in the specified space with amounts according to the limits filled initially. The rate of interest is to be filled in along with the repayment period in months in case of contain the invoice value ”, one of which has to .

If “Yes” is selected ccept the Guarantors’ and collateral “Accepted projected profit after tax (PAT)” and “Accepted Projected Income Tax Assessee : Proper choice is made by selecting Yes/No.

h. The details of guarantors are also filled in which include name of guarantors, guarantors’ net worth, date of CR, PAN number and amount offered as collateral. The navigation inside the table is provided through ‘Tab’ key and it is accept does not fall under CGTMSE After filing the information in all Then following page shall open: Page3 This page is used for filling the following details which are related Liabilities side of balance sheet of a Unit a. Capital b. Quasi Capital (In case of Prop./Partnership) c. Reserve & Surplus.

d. Long Term Borrowing from Banks/Fin. Institutions.

(Loan type, outstanding, amount repayable in & rate of interest). e. Unsecured Loans/others. f. Short term bank borrowings/other short term loans. -20- The details of guarantors are also filled in which include name of guarantors, guarantors’ net worth, date of CR, PAN number and amount offered as collateral. The navigation inside the table is provided through ‘Tab’ key and it is accepted only when the proposal CGTMSE. After filing the information in all fields, user shall press “OK” button hen following page shall open: This page is used for filling the following details which are related Liabilities side of balance sheet of a Unit:- Quasi Capital (In case of Prop./Partnership) Long Term Borrowing from Banks/Fin.

Institutions. (Loan type, outstanding, amount repayable in & rate of interest). thers.

Short term bank borrowings/other short term loans. The details of guarantors are also filled in which include name of guarantors, guarantors’ net worth, date of CR, PAN number and amount offered as collateral. The navigation inside the table is ed only when the proposal button. This page is used for filling the following details which are related to Long Term Borrowing from Banks/Fin. Institutions. (Loan type,

g. Trade creditors and other current liabilities. After filing the information in all Then following page shall open: Page4 This page is used for filling the following details which are related to Assets side of balance sheet of a Unit a.

Fixed Assets b. Accumulated depreciation c. Noncurrent assets d. Inventories e. Receivables (Debtors) f. Loan & advances g. Cash & bank balances -21- Trade creditors and other current liabilities. After filing the information in all fields, user shall press “OK” button hen following page shall open: lling the following details which are related to side of balance sheet of a Unit:- Accumulated depreciation Receivables (Debtors) Cash & bank balances button.

lling the following details which are related to

h. Other current assets i. Value of IP in net worth in case of Partnership/Proprietorship/ Individual/HUF After filing the information in all Then following page shall open: Page5 “Submit” has to be pressed if everything is filled correctly provide the Score Card assessed using the PNB TRAC then, its score should also be mentioned, through which the ratings shall be generated. Selecting “Save” shall generate the report for record. dated 28.06.2011 advances under MSME schemes separate Credit Scoring models are available credit risk rating).

-22- Other current assets of IP in net worth in case of Partnership/Proprietorship/ After filing the information in all fields, user shall press “OK” button. following page shall open: has to be pressed if everything is filled correctly. It shall ID and Total score. If the same proposal is assessed using the PNB TRAC then, its score should also be mentioned, through which the ratings shall be generated. Selecting “Save” shall generate the report for record. (Now as per IRMD Cir. No. 17/2011 dated 28.06.2011 advances under MSME schemes, for which separate Credit Scoring models are available, are exempted from of IP in net worth in case of Partnership/Proprietorship/ button.

. It shall and Total score. If the same proposal is assessed using the PNB TRAC then, its score should also be mentioned, through which the ratings shall be generated. Selecting “Save” shall per IRMD Cir. No. 17/2011 for which are exempted from

6 Modification: In case any modification is required to be made in the Score Card, separate option is provided in the “Transaction” menu: Clicking on the option “Modification -23- In case any modification is required to be made in the arate option is provided in the “Transaction” menu: Modification” shall open the following screen In case any modification is required to be made in the arate option is provided in the “Transaction” menu: the following screen:-

The Score Card ID should be selected from the “List” provided for the purpose. Similar pages shall appear as in case of data e the changes can be made and saved through the option at the end of 5th page. 7 Authorization: The authorizer (checker) will login in the software by entering his user name and password. He/she shall use the following screen for the purpose: Clicking on the option “Authorization” the authorizer:- -24- should be selected from the “List” provided for the purpose. Similar pages shall appear as in case of data entry, wherein the changes can be made and saved through the option at the end of The authorizer (checker) will login in the software by entering his user name and password.

He/she shall use the following screen for the purpose: “Authorization” shall open the following screen for should be selected from the “List” provided for the ntry, wherein the changes can be made and saved through the option at the end of The authorizer (checker) will login in the software by entering his user name and password. He/she shall use the following shall open the following screen for

Now the authorizer will click on the button ID and screen will appear depicting all the details of the same sequence. The checker is authorized to make changes also. “Submit” button is clicked at page no.5. The authorizer then asked to authorize. This completes the process. 8 REPORT GENERATION Two types of reports are generated by the system for the user (BO/CO/HO): 1. Scoring Report. 2. MIS Report. Reports for Branch User: The “report” option is selected as under: 1. Scoring Report -25- Now the authorizer will click on the button “List” in front of Score and screen will appear depicting all the details of the Score Card ence.

The checker is authorized to make changes also. button is clicked at page no.5. The authorizer then asked to authorize. This completes the process.

Two types of reports are generated by the system for the user Reports for Branch User: ” option is selected as under:- Score Card Score Card in ence. The checker is authorized to make changes also. button is clicked at page no.5. The authorizer then asked to Two types of reports are generated by the system for the user

Scoring Report (Detailed Score report) can also be prepared by selecting the Score Card ID by using the help menu and des and clicking on the “Generate Report button .The report screen will appear. Print of this report is to be obtained.

This completes the process of scoring. Reports for Circle User/ HO User -26- Scoring Report (Detailed Score report) can also be prepared by selecting the Score Card ID by using the help menu and desired format (html/ pdf) and clicking on the “Generate Report button .The report screen will appear. Print of this report is to be obtained. This completes the process Reports for Circle User/ HO User Scoring Report (Detailed Score report) can also be prepared by selecting ired format (html/ pdf) and clicking on the “Generate Report button .The report screen will appear. Print of this report is to be obtained.

This completes the process

1. Scoring Report CO/HO users can also generate score card report pertaining to its branches. 2. MIS Report MIS REPORT option is available to all the users in Circle office/ HO. Circle office shall take the printout of the above mentioned reports related to the branches under its cont monitoring and ensuring that all MSME loan proposals (Fresh/ Renewals/ Enhancements) with proposed facilities upto scored on the relevant models and these guidelines are complied with meticulously by all branches. The users at HO shall view and take printout of the reports for monitoring.

-27- also generate score card report pertaining to its MIS REPORT option is available to all the users in Circle office/ HO.

Circle office shall take the printout of the above mentioned reports related to the branches under its control & use these reports for closely monitoring and ensuring that all MSME loan proposals (Fresh/ Renewals/ Enhancements) with proposed facilities upto ` 50 La scored on the relevant models and these guidelines are complied with anches. The users at HO shall view and take printout of the reports for monitoring. also generate score card report pertaining to its MIS REPORT option is available to all the users in Circle office/ HO. Circle office shall take the printout of the above mentioned reports rol & use these reports for closely monitoring and ensuring that all MSME loan proposals (Fresh/ 50 Lakh are scored on the relevant models and these guidelines are complied with anches.

The users at HO shall view and take

In addition, HO user can also generate Audit Trail report based on different criteria’s: · Audit Trail report for Branch Master · Audit Trail report for User Master · Audit Trail report for Scheme Master · Audit Trail report for Loan Detail Master · Audit Trail report for Loan Header Master · Audit Trail report for Loan Score Header · Audit Trail report for Balance Shee -28- In addition, HO user can also generate Audit Trail report based on different Audit Trail report for Branch Master Audit Trail report for User Master dit Trail report for Scheme Master Audit Trail report for Loan Detail Master Audit Trail report for Loan Header Master Audit Trail report for Loan Score Header Audit Trail report for Balance Sheet * * In addition, HO user can also generate Audit Trail report based on different

3. CODE OF BANK’S COMMITMENT TO ENTERPRISES (MSEs) - Banking Codes & Standards Board of India ( Code of Bank’s Commitment to Micro and Small Enterprises (MSEs). Our Bank has adopted the code as 01/2011 dated 01.01.2011. As per the BCSBI Code, the banks are required to share the parameters of scoring model (not the methodology of scoring). Sharing of parameters of different credit scoring models will give the borrowers an insigh they are required to focus for getting a better credit scoring from the bank. Keeping in view the requirement of BCSBI code and stand already taken by the bank for sharing of rating parameters in respect of MSE borrowers, it has been decided to disclose the general parameters of our following rating models as well: PNB Score MSME Models: I.

MSME Manufacturing (New Cases including takeover) lakh upto ` 50 lakh.

II. MSME Service (New Cases including takeover) ` 50 lakh. III. MSME Manufacturing and Service (New Cases including takeover) 10 lakh and below. IV. MSME Manufacturing and Service (Renewal / Enhancement) ` 10 lakh upto ` 50 lakh. V. MSME Manufacturing and Service (Renewal / Enhancement) lakh and below. PNB Score Retail Models: VI. Doctors’ Loan Scheme VII. Traders’ Loan Scheme (New cases) VIII. Traders’ Loan Scheme (Renewal Cases -29- CODE OF BANK’S COMMITMENT TO MICRO AND SMALL - SHARING OF RATING PARAMETERS Banking Codes & Standards Board of India (BCSBI) has come out with the Code of Bank’s Commitment to Micro and Small Enterprises (MSEs).

Our Bank has adopted the code as re-circulated vide MSME Circular No. As per the BCSBI Code, the banks are required to share the parameters of scoring model (not the methodology of scoring). Sharing of parameters of different credit scoring models will give the borrowers an insight in the areas they are required to focus for getting a better credit scoring from the bank. Keeping in view the requirement of BCSBI code and stand already taken by the bank for sharing of rating parameters in respect of MSE borrowers, it to disclose the general parameters of our following rating MSME Manufacturing (New Cases including takeover) - Above MSME Service (New Cases including takeover) - Above ` 10 lakh upto MSME Manufacturing and Service (New Cases including takeover) MSME Manufacturing and Service (Renewal / Enhancement) 50 lakh.

MSME Manufacturing and Service (Renewal / Enhancement) Traders’ Loan Scheme (New cases) Traders’ Loan Scheme (Renewal Cases MICRO AND SMALL SHARING OF RATING PARAMETERS ) has come out with the Code of Bank’s Commitment to Micro and Small Enterprises (MSEs). Our SME Circular No. As per the BCSBI Code, the banks are required to share the parameters of scoring model (not the methodology of scoring). Sharing of parameters of t in the areas they are required to focus for getting a better credit scoring from the bank. Keeping in view the requirement of BCSBI code and stand already taken by the bank for sharing of rating parameters in respect of MSE borrowers, it to disclose the general parameters of our following rating Above ` 10 10 lakh upto MSME Manufacturing and Service (New Cases including takeover) - ` MSME Manufacturing and Service (Renewal / Enhancement) - Above MSME Manufacturing and Service (Renewal / Enhancement ` 10

The general parameters applicable to above models, which can be shared with MSE customers without disclosing the methodol pattern, are as under: PNB MSME Score Model I. MSME Manufacturing (New Cases including takeover) lakh upto ` 50 lakh. Parameters a. Constitution of the proposed unit b. Education & Experience of the promoter c. Past relationship with the Bank d. Credit History e. Marketing of the product f. Ownership of current residence on record g. Ownership of Manufacturing unit/ Factory Premises/business premises h. Distance of factory/business location from the financing branch i. Type of collateral propo j.

Ratio of value of collateral to Loan Amount k. Guarantor's Net worth l. Ratio of Borrower’s net worth to loan amount m. TOL /TNW n. Working Capital Cycle o. Repayment Period p. Ratio of cash profit to repayment obligation. q. CAGR- Gross Sales last 3 years r. Cash Profit Position s. Ratio of Credit summation to Gross Sales t. Variability in availment II. MSME Service (New Cases including takeover) ` 50 lakh Parameters a. Constitution of the proposed unit b. Income Tax Payee Status c. Education & Experience of the pr d. Past relationship with the Bank e. Credit History f. Type of service/ clientele and location of the unit g.

Purpose of Loan h. Ownership of current residence on record i. Ownership of main business Premises j. Distance of main business location from the financing b k. Type of collateral proposed -30- The general parameters applicable to above models, which can be shared without disclosing the methodologies and scoring MSME Manufacturing (New Cases including takeover) - Above Constitution of the proposed unit Education & Experience of the promoter hip with the Bank Marketing of the product Ownership of current residence on record Ownership of Manufacturing unit/ Factory Premises/business Distance of factory/business location from the financing branch Type of collateral proposed Ratio of value of collateral to Loan Amount Guarantor's Net worth Ratio of Borrower’s net worth to loan amount Working Capital Cycle Ratio of cash profit to repayment obligation.

Gross Sales last 3 years Ratio of Credit summation to Gross Sales Variability in availment Service (New Cases including takeover) - Above ` 10 lakh upto Constitution of the proposed unit Income Tax Payee Status Education & Experience of the promoter Past relationship with the Bank Type of service/ clientele and location of the unit Ownership of current residence on record Ownership of main business Premises Distance of main business location from the financing branch Type of collateral proposed The general parameters applicable to above models, which can be shared ogies and scoring Above ` 10 Ownership of Manufacturing unit/ Factory Premises/business Distance of factory/business location from the financing branch 10 lakh upto ranch

l. Ratio of value of collateral to Loan Amount m. Guarantor's Net worth n. Ratio of Borrowers' net worth to loan amount o. TOL /TNW p. Repayment Period q. Ratio of cash profit to repayment obligation. r. Loan to Value ratio s. CAGR - Gross Sales t. Cash profit position u. Ratio of Credit summation to Gross Sales v. Variability in availment III. MSME Manufacturing and Service (New Cases ` 10 lakh and below. Parameters a. Constitution of the proposed unit b. Education and experience of the promoter c. Past relationship with the Bank d. Credit History e. Purpose of Loan f. Ownership of current residence g.

Ownership of Manufacturing unit/ Factory Premises/business premises h. Distance of factory/business location from the financing branch i. Age j. Assessed for Income Tax k. No. of Dependents l. Ratio of Borrowers' net worth to loan amount m. Loan to Value ratio n. Repayment Period o. Ratio of cash profit to repayment p. Gross Sales Growth q. Profit Growth IV. MSME Manufacturing and Service (Renewal / Enhancement) ` 10 lakh upto ` 50 lakh.

Parameters a. Experience in Business/Family Business b. Credit History c. Ownership of current residence d. Ownership of Manufacturing unit/ Factory Premises/business premises -31- Ratio of value of collateral to Loan Amount Guarantor's Net worth Ratio of Borrowers' net worth to loan amount Ratio of cash profit to repayment obligation. Gross Sales last 3 years Ratio of Credit summation to Gross Sales Variability in availment MSME Manufacturing and Service (New Cases including takeover) Constitution of the proposed unit perience of the promoter Past relationship with the Bank Ownership of current residence Ownership of Manufacturing unit/ Factory Premises/business Distance of factory/business location from the financing branch Assessed for Income Tax Ratio of Borrowers' net worth to loan amount Ratio of cash profit to repayment MSME Manufacturing and Service (Renewal / Enhancement) 50 lakh.

Experience in Business/Family Business Ownership of current residence Ownership of Manufacturing unit/ Factory Premises/business takeover) - Ownership of Manufacturing unit/ Factory Premises/business Distance of factory/business location from the financing branch MSME Manufacturing and Service (Renewal / Enhancement) - Above Ownership of Manufacturing unit/ Factory Premises/business

e. Distance of main premises of manufacturing unit/ Factory/ business from the financing Branch f. Gross - Sales last 3 years g. Achievement of sales target in last year h.

Achievement of Profit target in last year i. Cash profit position j. Ratio of Debtors to Sales k. Ratio of value of collateral to Loan Amount l. Guarantor's Net worth m. Ratio of Borrower’s Net worth to Loan Amount n. TOL /TNW o. Conduct of the account p. Ratio of Credit summation to Sales q. Variability in availment V. MSME Manufacturing and Service (Renewal / Enhancement) lakh and below Parameters a. Experience in Business/Fami b. Credit History c. Ownership of current residence d. Ownership of Manufacturing unit/ Factory Premises/business premises e. Distance of main premises of manufacturing unit/ Factory/ business from the financing branch f.

Achievement of sales target in last g. Achievement of Profit target in last year h. Ratio of cash profit / Projected surplus to repayment obligation i. Ratio of Borrower’s Net worth to Loan Amount j. TOL /TNW k. Conduct of the account l. Ratio of Credit summation to Sales m. Variability in availment. PNB Score Models (Retail): VI. Doctors’ Loan Scheme Parameters a. Age b. Education c. Relation with PNB -32- Distance of main premises of manufacturing unit/ Factory/ siness from the financing Branch Sales last 3 years Achievement of sales target in last year Achievement of Profit target in last year Ratio of Debtors to Sales Ratio of value of collateral to Loan Amount Guarantor's Net worth Ratio of Borrower’s Net worth to Loan Amount Conduct of the account Ratio of Credit summation to Sales Variability in availment MSME Manufacturing and Service (Renewal / Enhancement) Experience in Business/Family Business Ownership of current residence Ownership of Manufacturing unit/ Factory Premises/business Distance of main premises of manufacturing unit/ Factory/ business from the financing branch Achievement of sales target in last year Achievement of Profit target in last year Ratio of cash profit / Projected surplus to repayment obligation Ratio of Borrower’s Net worth to Loan Amount Conduct of the account Ratio of Credit summation to Sales Variability in availment.

Distance of main premises of manufacturing unit/ Factory/ MSME Manufacturing and Service (Renewal / Enhancement ` 10 Ownership of Manufacturing unit/ Factory Premises/business Distance of main premises of manufacturing unit/ Factory/ Ratio of cash profit / Projected surplus to repayment obligation

d. Place of residence from the financing branch e. Residence Ownership f. Category of the borrower g. Ratio of Net worth to loan amount h. Work Experience i. Repayment Period j. Margin k. Value of collateral to Loan Amount l. Ratio of net monthly income to EMI m. Guarantor's Net worth to Loan Amount VII. Traders’ Loan Scheme (New cases) Parameters a. Experience in Business/Family Business b. Ownership of Shop / Place of Business c. Past relationship with th d. IT Assessee e. Sales last 3 years f. TOL /TNW g. Ratio of Debtors to Sales h. Profit position i. Value of collateral to Loan Amount j.

Credit History k. Guarantor's Net worth l. Purpose of Loan VIII. Traders’ Loan Scheme (Renewal Cases) Parameters a. Experience in Business/Fa b. Ownership of Shop / Place of Business c. Past relationship with the Bank d. IT Assessee e. Sales last 3 years f. TOL /TNW g. Ratio of Debtors to Sales h. Profit Position i. Value of collateral to Loan Amount j. Conduct of the account k. Ratio of Credit summation to Sal l. Whether dealing with other bank m. Whether documents provided on time n. Succession Plan -33- Place of residence from the financing branch Residence Ownership Category of the borrower Ratio of Net worth to loan amount lue of collateral to Loan Amount Ratio of net monthly income to EMI Guarantor's Net worth to Loan Amount Traders’ Loan Scheme (New cases) Experience in Business/Family Business Ownership of Shop / Place of Business Past relationship with the Bank Ratio of Debtors to Sales Value of collateral to Loan Amount Guarantor's Net worth Traders’ Loan Scheme (Renewal Cases) Experience in Business/Family Business Ownership of Shop / Place of Business Past relationship with the Bank Ratio of Debtors to Sales Value of collateral to Loan Amount Conduct of the account Ratio of Credit summation to Sales Whether dealing with other bank Whether documents provided on time * *

4. GUIDELINES FOR USING SCORING MODEL “PNB SCORE SME” 4.1 GENERAL GUIDELINES Before using the web based scoring model software, all the Branches are advised to take utmost care to ensure the following: 1. The applicant fulfils all the eligibility criteria prescribed in the Circulars/ Book of instructions etc. and amendments made therein from time to time. 2. The name of the borrower/co CIBIL/ECGC /RBI/Other Bank’s/Financial Companies defaulter’s list. 3. The borrower has no outstanding statutory dues like Income tax, Sales tax, Wealth tax, Service tax, PF, should be ascertained.

4. The information provided by the borrower/co the application form has been entered in the score model by spokes on the basis of original documents provided and the same is to be checked/verified from the original documents, spot verification, personal visits, and market reports by the concerned officer at branches.

5. All the parameters of applicable scoring models are evaluated and no parameter should be left out in the scoring model SCORE-SME”. In other words, the attributes in each of the risk parameters are to be selected and clicked.

6. Each attribute is to be selected after careful evaluation/analysis/calculation on the basis of the guidelines given in the scoring model software so that the score truly reflects the credit risk attached to the borrower. -34- GUIDELINES FOR USING SCORING MODEL “PNB SCORE SME” GENERAL GUIDELINES using the web based scoring model software, all the Branches are advised to take utmost care to ensure the following: The applicant fulfils all the eligibility criteria prescribed in the Circulars/ Book of instructions etc. and amendments made therein The name of the borrower/co-borrower/ guarantor does not appear in CIBIL/ECGC /RBI/Other Bank’s/Financial Companies defaulter’s list.

The borrower has no outstanding statutory dues like Income tax, Sales tax, Wealth tax, Service tax, PF, ESI etc., if so then reasons should be ascertained.

The information provided by the borrower/co-borrower/guarantor in the application form has been entered in the score model by spokes on the basis of original documents provided and the same is to be ecked/verified from the original documents, spot verification, personal visits, and market reports by the concerned officer at All the parameters of applicable scoring models are evaluated and no parameter should be left out in the scoring model software “PNB SME”. In other words, the attributes in each of the risk parameters are to be selected and clicked.

Each attribute is to be selected after careful evaluation/analysis/calculation on the basis of the guidelines given in del software so that the score truly reflects the credit risk attached to the borrower.

GUIDELINES FOR USING SCORING MODEL using the web based scoring model software, all the Branches The applicant fulfils all the eligibility criteria prescribed in the Circulars/ Book of instructions etc. and amendments made therein borrower/ guarantor does not appear in CIBIL/ECGC /RBI/Other Bank’s/Financial Companies defaulter’s list. The borrower has no outstanding statutory dues like Income tax, ESI etc., if so then reasons borrower/guarantor in the application form has been entered in the score model by spokes on the basis of original documents provided and the same is to be ecked/verified from the original documents, spot verification, personal visits, and market reports by the concerned officer at All the parameters of applicable scoring models are evaluated and no software “PNB SME”.

In other words, the attributes in each of the risk Each attribute is to be selected after careful evaluation/analysis/calculation on the basis of the guidelines given in del software so that the score truly reflects the credit

7. Utmost care should be taken to ensure that the scoring has been done objectively and accurately as per the guidelines given in the manual of scoring model software. 8. In order to maintain the secrecy of the scoring models and prevent its misuse, it is advised not to hand over any exercise under scoring model to the borrower or any other banks and and kept as confidential document 9. Scoring sheets of the sanctioned loans/proposals at the branch with the signature of the maker & original documents of the loan applicant. -35- Utmost care should be taken to ensure that the scoring has been done objectively and accurately as per the guidelines given in the manual of scoring model software.

In order to maintain the secrecy of the scoring models and prevent its misuse, it is advised not to hand over any exercise under scoring model to the borrower or any other banks and it should be marked and kept as confidential document. f the sanctioned loans/proposals at the branch with the signature of the maker & checker shall be kept with the original documents of the loan applicant. * * Utmost care should be taken to ensure that the scoring has been done objectively and accurately as per the guidelines given in the manual of In order to maintain the secrecy of the scoring models and prevent its misuse, it is advised not to hand over any exercise under scoring it should be marked f the sanctioned loans/proposals at the branch shall be kept with the

4.2 MSME Manufacturing ` 10 lakh upto ` 50 lakh Constitution of the unit: The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected out of the available options from the “ 1 Cooperative Society 2 HUF 3 Proprietorship 4 Individual 5 Partnership 6 Pvt. Ltd. Company 7 Public Ltd Company 8 Limited Liability Partnership 9 Trust Type of Unit/Project: One of the available options from “Existing Unit” or the “New Project” is to be selected. Option “Existing Unit” shall be selected even if the proposal is new for us if the units are already established and running.

“New Project” is to be selected only when the project is yet to commence the operations.

Promoter/Partner/Karta description experience of promoters have bearing on the working and the management of the unit, therefore information of all the promoters which may be Partners, Karta, Directors, Sole proprietor etc. have to be e is used to navigate through the fields and details of partners if they are more than 4 in number. Past Relationship with Bank the bank captures the loyalty of th loan in the future. The relevance of this parameter lies in capturing the conduct of the account and banking habit of the loan applicant. Out of the three options provided “ and “Existing Borrower”, one radio button has to be clicked.

In case of Deposit customer, it shall ask for information like “ date of first deposit account (SF/CA/FD) opened either in the name of firm or in the name of promoters (Proprie may be provided. Similarly the average balance in last 6 months of all the promoter’s deposit accounts combined may be provided in “ for last 6 months”.

-36- MSME Manufacturing Unit (New Case including takeover) akh The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected ns from the “List” as given under. Limited Liability Partnership One of the available options from “Existing Unit” or roject” is to be selected. Option “Existing Unit” shall be selected even if the proposal is new for us if the units are already established and running. “New Project” is to be selected only when the project is yet to er/Karta description: Age, education qualification, experience of promoters have bearing on the working and the management of the unit, therefore information of all the promoters which may be Partners, Karta, Directors, Sole proprietor etc.

have to be entered. ‘ is used to navigate through the fields and side bar is to be used to enter details of partners if they are more than 4 in number. Past Relationship with Bank: The past relationship of the borrower with the bank captures the loyalty of the applicant and the likely behavior of the The relevance of this parameter lies in capturing the conduct of the account and banking habit of the loan applicant. Out of the three options provided “Deposit Customer”, “New Customer ”, one radio button has to be clicked. In case of Deposit customer, it shall ask for information like “A/C Since”, wherein the date of first deposit account (SF/CA/FD) opened either in the name of firm or in the name of promoters (Proprietor, Partner, Karta etc.) with the bank may be provided.

Similarly the average balance in last 6 months of all the promoter’s deposit accounts combined may be provided in “Average balance New Case including takeover) - Above The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected One of the available options from “Existing Unit” or roject” is to be selected. Option “Existing Unit” shall be selected even if the proposal is new for us if the units are already established and running. “New Project” is to be selected only when the project is yet to Age, education qualification, experience of promoters have bearing on the working and the management of the unit, therefore information of all the promoters which may be ntered.

‘Tab’ key is to be used to enter : The past relationship of the borrower with e applicant and the likely behavior of the The relevance of this parameter lies in capturing the New Customer” ”, one radio button has to be clicked. In case of ”, wherein the date of first deposit account (SF/CA/FD) opened either in the name of firm tor, Partner, Karta etc.) with the bank may be provided. Similarly the average balance in last 6 months of all the Average balance

Credit history: The past repayment behavior of a of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with us otherwise we have to depend only on the market reports/other institutions feedback. T problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statistically into a score. The CIBIL score is a statistically significant predicative indicator of how well the applicant will repay the debt/loan. higher the score, the lower is the risk.

The Credit Information Report (CIRs) on the borrowers, co guarantors should be generated from CIBIL Database per the instructions contained in L&A Circular No. 31.10.2009 & MISD Circular No. 8/11 dated 31.05.11. score among the applicant/s, partners, directors, guarantors should be considered and based on the information collected by the appraiser enter “credit history” by selecting one out of the following options from the List:- i. CIBIL score below 600 or no CIBIL data available but availed loan from the banks/institutions and account was NPA and adjusted through compromise/write ii. CIBIL score between 600 and 659 or No CIBIL data available and account became NPA but fully adjusted without any loss.

iii. CIBIL score between 660 and 719 or No CIBIL data available but availed earlier loan/loans from us/any bank and account remained irregular more than 2 times but the account was not NPA and the account was fully adjusted without any loss to the bank. iv. CIBIL score between 720 and 799 or No CIBIL data available but availed earlier loan/loans from us/any bank and account remained occasionally (one to two times) within the stipulated period. v. CIBIL score between 800 and 900 or No CIBIL data available but availed Earlier loan/loans and repaid all the installments and/interest within the stipulated period.

vi. No CIBIL data available and availed no loan/loans from any financial institution. -37- : The past repayment behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with us otherwise we have to depend only on the market reports/other institutions feedback. T problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statistically into a score. The CIBIL score is a statistically significant ow well the applicant will repay the debt/loan.

higher the score, the lower is the risk. The Credit Information Report (CIRs) on the borrowers, co-obligators, guarantors should be generated from CIBIL Database with CIBIL Score instructions contained in L&A Circular No. 138/09 dated 31.10.2009 & MISD Circular No. 8/11 dated 31.05.11.The minimum score among the applicant/s, partners, directors, guarantors should be considered and based on the information collected by the appraiser enter “credit history” by selecting one out of the following options CIBIL score below 600 or no CIBIL data available but availed loan from the banks/institutions and account was NPA and adjusted through compromise/write-off.

re between 600 and 659 or No CIBIL data available and account became NPA but fully adjusted without any loss. CIBIL score between 660 and 719 or No CIBIL data available but availed earlier loan/loans from us/any bank and account remained an 2 times but the account was not NPA and the account was fully adjusted without any loss to the bank. CIBIL score between 720 and 799 or No CIBIL data available but availed earlier loan/loans from us/any bank and account remained o times) irregular but repaid all the installments within the stipulated period.

CIBIL score between 800 and 900 or No CIBIL data available but availed Earlier loan/loans and repaid all the installments and/interest within the stipulated period.

IL data available and availed no loan/loans from any financial ny borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with us otherwise we have to depend only on the market reports/other institutions feedback. This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statistically into a score. The CIBIL score is a statistically significant ow well the applicant will repay the debt/loan.

The obligators, with CIBIL Score, as 138/09 dated The minimum score among the applicant/s, partners, directors, guarantors should be considered and based on the information collected by the appraiser, enter “credit history” by selecting one out of the following options CIBIL score below 600 or no CIBIL data available but availed loan from the banks/institutions and account was NPA and adjusted re between 600 and 659 or No CIBIL data available and CIBIL score between 660 and 719 or No CIBIL data available but availed earlier loan/loans from us/any bank and account remained an 2 times but the account was not NPA and the CIBIL score between 720 and 799 or No CIBIL data available but availed earlier loan/loans from us/any bank and account remained irregular but repaid all the installments CIBIL score between 800 and 900 or No CIBIL data available but availed Earlier loan/loans and repaid all the installments and/interest IL data available and availed no loan/loans from any financial

Ownership of current residence capturing stability of stay at the current place and likelihood to stay at the same place in future, which a applicant. The residence ownership refers to ownership of the present house occupied by the key Promoter/ Managing Partner/Managing Director case of partnership concerns and companies the “ Partner/Managing Director” reasonable care on the basis of stake involved. After verification of residence ownership of the Partner/Managing Director appropriate risk attribute may be selected from the drop box. The verification may be done through: i) Title deed of the proper ii) Rent agreement.

iii) Electricity bill/Water bill or any other document acceptable to the Bank.

iv) Spot verification and report taken from the neighbors. Ownership of the Manufacturing Unit/Factory Premises the parameter lies in capturing sta and likelihood to keep working at the same place in future also. This parameter also reflects the financial strength of the loan applicant. The parameter captures the ownership of the unit. In case of multiple u ownership of the main unit is to be considered. If the owner ship of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of main unit is of Other Promoter/ Director, the risk attribute “Owned by other family member” is to be selected.

Risk Parameter Ownership of current residence -38- Ownership of current residence: The relevance of the parameter lies in capturing stability of stay at the current place and likelihood to stay at the same place in future, which also reflects the financial strength of the loan The residence ownership refers to ownership of the present house occupied Promoter/ Managing Partner/Managing Director. Thus in case of partnership concerns and companies the “Managing Partner/Managing Director” is selected among the partners/directors with reasonable care on the basis of stake involved.

After verification of residence ownership of the key Promoter/ Managing Partner/Managing Director from the supporting documents the propriate risk attribute may be selected from the drop box.

The verification may be done through: Title deed of the property. Electricity bill/Water bill or any other document acceptable to the Spot verification and report taken from the neighbors. Ownership of the Manufacturing Unit/Factory Premises: The relevance of the parameter lies in capturing stability of the business at the current place and likelihood to keep working at the same place in future also. This parameter also reflects the financial strength of the loan applicant. The parameter captures the ownership of the unit. In case of multiple u ownership of the main unit is to be considered.

If the owner ship of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of main unit is of Other Promoter/Other Partner/Other Director, the risk attribute “Owned by other family member” is to be Risk Parameter Risk Attributes Ownership of current residence Owned by Self/Spouse Owned by parents Rented and others The relevance of the parameter lies in capturing stability of stay at the current place and likelihood to stay at the lso reflects the financial strength of the loan The residence ownership refers to ownership of the present house occupied .

Thus in Managing is selected among the partners/directors with Promoter/ Managing from the supporting documents the Electricity bill/Water bill or any other document acceptable to the The relevance of bility of the business at the current place and likelihood to keep working at the same place in future also. This parameter also reflects the financial strength of the loan applicant. The parameter captures the ownership of the unit. In case of multiple units ownership of the main unit is to be considered. If the owner ship of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Owned by self/spouse” is to be selected and if the Other Partner/Other Director, the risk attribute “Owned by other family member” is to be

After verification of ownership of Manufacturing unit/ Factory Premises from suitable documents the appropriate risk attribute may be selected from the drop box. The verification may be done through: I. Title deed of the manufacturing unit. II. Rent agreement/Lease deed. III. Balance Sheet. IV. Electricity bill/Water bill or any other document acceptabl Bank. V. Spot verification and report taken from the neighbors Distance of the factory from the financing branch parameter lies in better monitoring of the loan account and reducing cost of monitoring through easy security veri Distance in Kilometers from the Branch to the place of manufacturing unit/factory premises shall be mentioned here (After making spot verification by the branch official) shall also recorded whether it is loca city centre.

In case the manufacturing unit is located at more than one place, distance of the main unit from the financing branch should be considered. Facility Required: The information regarding applicable rates of the facilities applied (In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months under the proposal should be entered. It has to be ensured that at the beginning of scoring, the total amount of all the proposed term loans should Risk Parameter Risk Attributes Ownership of Manufacturing unit/ Business Premises Leased accommodation with lease period covering loan duration Owned by other family member Owned by self/spouse Owned by the firm/company Rented/Leased with sh with a clause to renew till the currency of the loan -39- After verification of ownership of Manufacturing unit/ Factory Premises from suitable documents the appropriate risk attribute may be selected from the The verification may be done through: Title deed of the manufacturing unit.

Rent agreement/Lease deed. Electricity bill/Water bill or any other document acceptabl Spot verification and report taken from the neighbors Distance of the factory from the financing branch: The relevance of this parameter lies in better monitoring of the loan account and reducing cost of monitoring through easy security verification.

Distance in Kilometers from the Branch to the place of manufacturing unit/factory premises shall be mentioned here (After making spot verification by the branch official) and in case it is more than 25 km it shall also recorded whether it is located in the same city or different In case the manufacturing unit is located at more than one place, distance of the main unit from the financing branch should be The information regarding applicable rates of interest for the facilities applied (In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months posal should be entered.

It has to be ensured that at the beginning of scoring, the total amount of all the proposed term loans should Risk Attributes Leased accommodation with lease period covering loan duration Owned by other family member Owned by self/spouse Owned by the firm/company Rented/Leased with shorter period but with a clause to renew till the currency of the loan After verification of ownership of Manufacturing unit/ Factory Premises from suitable documents the appropriate risk attribute may be selected from the Electricity bill/Water bill or any other document acceptable to the The relevance of this parameter lies in better monitoring of the loan account and reducing cost of Distance in Kilometers from the Branch to the place of manufacturing unit/factory premises shall be mentioned here (After making spot and in case it is more than 25 km it ted in the same city or different In case the manufacturing unit is located at more than one place, the distance of the main unit from the financing branch should be interest for the facilities applied (In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months posal should be entered.

It has to be ensured that at the beginning of scoring, the total amount of all the proposed term loans should Leased accommodation with lease period orter period but with a clause to renew till the currency

be entered in rupees in the term loan box and similarly total of all working capital facilities and non fund based limits the respected boxes. Value of the fixed assets to be financed against which term loan from the bank has been requested, like the cost of land, estimates of construction of building, cost o be installed etc. It should be greater than amount of Term Loan entered under “Facility required” option only. Marketing of the Product: information needed for making investment decisions and especially for securing loan. Therefore to analyze the market of the product, the market arrangements of the product to be manufactured are to be studied properly and one out of the given options has to be s a) Confirmed orders in hand from more than one buyer b) Confirmed orders in hand from one buyer only c) Informal tie up arrangements d) No marketing arrangements but product freely tradable e) Others f) Tie up arrangement in operation with terms and condition properly defined with more than one buyer g) Tie up arrangement in operation with terms and condition properly defined with one buyer only.

Technology: The selection be made according to the technology used in manufacturing process is imported or available in India. Working Capital cycle: The working capital cycle of the unit accepted by the bank should be entered in the space provided for. Normally financing is made as per Nayak Committee recomm such working capital cycle should be taken as 3 months i.e. equivalent to 25% of accepted Projected Sales. In case financing is made under traditional method, the projected & accepted working capital cycle is taken. -40- in the term loan box and similarly total of all working capital facilities and non fund based limits in rupees should be entered in Value of the fixed assets to be financed: It is the total cost of the assets against which term loan from the bank has been requested, like the cost of land, estimates of construction of building, cost of plant and machinery It should be greater than amount of Term Loan entered under “Facility required” option.

The amount should be entered in rupees : Market analysis is crucial for providing the ation needed for making investment decisions and especially for securing loan. Therefore to analyze the market of the product, the market arrangements of the product to be manufactured are to be studied properly and one out of the given options has to be selected. The options are: Confirmed orders in hand from more than one buyer Confirmed orders in hand from one buyer only Informal tie up arrangements No marketing arrangements but product freely tradable ment in operation with terms and condition properly defined with more than one buyer Tie up arrangement in operation with terms and condition properly defined with one buyer only.

The selection be made according to the technology used in manufacturing process is imported or available in India. The working capital cycle of the unit in months, accepted by the bank should be entered in the space provided for. Normally financing is made as per Nayak Committee recommendations as such working capital cycle should be taken as 3 months i.e. equivalent to 25% of accepted Projected Sales. In case financing is made under traditional method, the projected & accepted working capital cycle is taken. in the term loan box and similarly total of all working should be entered in It is the total cost of the assets against which term loan from the bank has been requested, like the cost of f plant and machinery to It should be greater than amount of Term Loan entered .

The amount should be entered in rupees Market analysis is crucial for providing the ation needed for making investment decisions and especially for securing loan. Therefore to analyze the market of the product, the market arrangements of the product to be manufactured are to be studied properly elected. The options are:- ment in operation with terms and condition properly Tie up arrangement in operation with terms and condition properly The selection be made according to the technology used in in months, as endations as such working capital cycle should be taken as 3 months i.e. equivalent to 25% of accepted Projected Sales.

In case financing is made under traditional

Whether borrower agreed fo available, “YES” option should be selected otherwise select option “NO”. Accepted Projected profit after tax (PAT) rupees as projected and accepted by the bank in the financial yea which the borrowing unit has full year of operations. Accepted Projected Cash profit other cash accrual items i.e., depreciation, preliminary expenses written off during the year etc. Guarantor Details: The system will allow entering guarantor details only if CGTMSE cover is not available Third party guarantors have a contractual obligation to act as a substitute for the primary borrower, if he defaults on his payment obligation.

Thus the guarantor has to fulfill the obligation of defaulting borrower. The relevance of this parameter lies in risk mitigation in case the borrower defaults. Net worth of guarantor = Total assets of the guarantor the guarantor The Net worth of guarantor/s i a. Documents supporting the statement of assets and liability of the Guarantor.

b. Spot verification by the branch officer. c. Latest CR/s of the guarantor/s. Name of guarantors including Directors as guarantors, Net worth Date of CR, PAN number, Value of IP/liquid security offered (if any) as collateral security by guarantor/s. have to be entered. navigate through the fields and guarantors if they are more than 4 in n Details of Liabilities of firm/company concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all the items of Liabilities are filled outstanding such as taxes payable, outstanding against immovable properties have been incorporated in the details of Liabilities.

-41- Whether borrower agreed for CGTMSE cover: If the CGTMSE cover is available, “YES” option should be selected otherwise select option “NO”. Accepted Projected profit after tax (PAT): It is the PAT (profit after tax) in accepted by the bank in the financial yea which the borrowing unit has full year of operations. Accepted Projected Cash profit: It is PAT (Profit after tax) plus any all other cash accrual items i.e., depreciation, preliminary expenses written off system will allow entering guarantor details only if CGTMSE cover is not available Third party guarantors have a contractual obligation to act as a substitute for the primary borrower, if he defaults on his payment obligation.

Thus the lfill the obligation of defaulting borrower. The relevance of this parameter lies in risk mitigation in case the borrower defaults. Net worth of guarantor = Total assets of the guarantor – Total liabilities of The Net worth of guarantor/s is verified through: Documents supporting the statement of assets and liability of the Spot verification by the branch officer.

Latest CR/s of the guarantor/s. Name of guarantors including Directors as guarantors, Net worth in rupees CR, PAN number, Value of IP/liquid security offered (if any) as collateral security by guarantor/s. have to be entered. ‘Tab’ key is used to navigate through the fields and side bar is to be used to enter details of guarantors if they are more than 4 in number. Details of Liabilities of firm/company: All the liabilities of the concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all the items of Liabilities are filled in & all statutory liabilities and all outstanding such as taxes payable, outstanding against immovable properties have been incorporated in the details of Liabilities.

If the CGTMSE cover is available, “YES” option should be selected otherwise select option “NO”. It is the PAT (profit after tax) in accepted by the bank in the financial year in It is PAT (Profit after tax) plus any all other cash accrual items i.e., depreciation, preliminary expenses written off system will allow entering guarantor details Third party guarantors have a contractual obligation to act as a substitute for the primary borrower, if he defaults on his payment obligation. Thus the lfill the obligation of defaulting borrower. The relevance of this parameter lies in risk mitigation in case the borrower defaults.

Total liabilities of Documents supporting the statement of assets and liability of the in rupees, CR, PAN number, Value of IP/liquid security offered (if any) as key is used to is to be used to enter details of All the liabilities of the concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all in & all statutory liabilities and all outstanding such as taxes payable, outstanding against immovable

Details Assets of the firm/company any firm/company captures the financial strength of the borrower vis the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the lender seizes and sells if the borrower the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) should be incorporated in the model.

company should be entered in the relevant table of the model by navigating as above.

The amount is to be entered in rupees only. The system will allow ticking collateral security only if CGTMSE cover is not available Before pressing the submit button, the user should ensure that all the entries/selections are made correctly. If not, press previous to modify the same. Then press “submit” to generate the score. Radio button for YES/NO has been provided to sel has been rated under PNB TRAC” If Yes is selected be filled at appropriate space.

In case certain changes are warranted due to the change in the input received at a later stage, such modifications can be m modification button in the beginning and then selecting the number to be modified for carrying out the necessary changes and proceeding as above. -42- Details Assets of the firm/company: This net of assets and liabilities of mpany captures the financial strength of the borrower vis the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the lender seizes and sells if the borrower fails to perform his debt obligation.

All the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) he model. Similarly the liquid assets of the firm company should be entered in the relevant table of the model by navigating The amount is to be entered in rupees only.

The system will allow ticking collateral security only if CGTMSE cover Before pressing the submit button, the user should ensure that all the entries/selections are made correctly. If not, press previous to modify the same. Then press “submit” to generate the score. Radio button for YES/NO has been provided to select option “Has the unit er PNB TRAC” If Yes is selected then score is required to be filled at appropriate space. In case certain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the modification button in the beginning and then selecting the Score Card number to be modified for carrying out the necessary changes and * * This net of assets and liabilities of mpany captures the financial strength of the borrower vis-à-vis the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default.

These are assets that the fails to perform his debt obligation. All the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) Similarly the liquid assets of the firm/ company should be entered in the relevant table of the model by navigating The system will allow ticking collateral security only if CGTMSE cover Before pressing the submit button, the user should ensure that all the entries/selections are made correctly. If not, press previous to modify ect option “Has the unit then score is required to In case certain changes are warranted due to the change in the input ade by pressing the Score Card number to be modified for carrying out the necessary changes and

4.3 MSME Service Unit ( Above ` 10 lakh upto Constitution of the unit: The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected out of the available options from the “ constitution once selected cannot be modified subsequently: 1 Cooperative Society 2 HUF 3 Proprietorship 4 Individual 5 Partnership 6 Pvt. Ltd. Company 7 Public Ltd Company 8 Limited Liability Partnership 9 Trust Type of Unit/Project: One of the available options from “Existing Unit” or the “New Project” is to be selected.

Option “Existing Unit” shall be selected even if the proposal is new for us if the units are already established and running. “New Project” is to be selected only when the project is yet to commence the operations.

Promoter/Partner/Karta description experience of promoters have bearing on the working and the management of the unit, therefore information of all t Partners, Karta, Directors, Sole proprietor etc. have to be entered. ‘ is used to navigate through the fields and details of partners if they are more than 4 in number. Past Relationship with Bank the bank captures the loyalty of the applicant and the likely behavior of the loan in the future. The relevance of this parameter lies in capturing the conduct of the account and banking habit of the loa Out of the three options provided “ and “Existing Borrower”, one radio button has to be clicked.

In case of Deposit customer, it shall ask for information like “ date of first deposit account (SF/CA/FD) opened either in the name of firm or in the name of promoters (Proprietor, Partner, Karta etc.) with the bank may be provided. Similarly the average balance in last 6 months of all the promoter’s deposit accounts combined may be provided i for last 6 months”.

-43- Unit (New Case including takeover) 10 lakh upto ` 50 lakh The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected he available options from the “List” as given under, constitution once selected cannot be modified subsequently:- Limited Liability Partnership One of the available options from “Existing Unit” or the “New Project” is to be selected. Option “Existing Unit” shall be selected even if the proposal is new for us if the units are already established and to be selected only when the project is yet to Promoter/Partner/Karta description: Age, education qualification, experience of promoters have bearing on the working and the management of the unit, therefore information of all the promoters which may be Partners, Karta, Directors, Sole proprietor etc.

have to be entered. ‘ is used to navigate through the fields and side bar is to be used to enter details of partners if they are more than 4 in number. th Bank: The past relationship of the borrower with the bank captures the loyalty of the applicant and the likely behavior of the The relevance of this parameter lies in capturing the conduct of the account and banking habit of the loan applicant. Out of the three options provided “Deposit Customer”, “New Customer ”, one radio button has to be clicked. In case of Deposit customer, it shall ask for information like “A/C Since”, wherein the count (SF/CA/FD) opened either in the name of firm or in the name of promoters (Proprietor, Partner, Karta etc.) with the bank may be provided.

Similarly the average balance in last 6 months of all the promoter’s deposit accounts combined may be provided in “Average balance New Case including takeover) - The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected under, as the One of the available options from “Existing Unit” or the “New Project” is to be selected. Option “Existing Unit” shall be selected even if the proposal is new for us if the units are already established and to be selected only when the project is yet to Age, education qualification, experience of promoters have bearing on the working and the management he promoters which may be Partners, Karta, Directors, Sole proprietor etc.

have to be entered. ‘Tab’ key is to be used to enter : The past relationship of the borrower with the bank captures the loyalty of the applicant and the likely behavior of the The relevance of this parameter lies in capturing the New Customer” ”, one radio button has to be clicked. In case of ”, wherein the count (SF/CA/FD) opened either in the name of firm or in the name of promoters (Proprietor, Partner, Karta etc.) with the bank may be provided. Similarly the average balance in last 6 months of all the Average balance

Credit history: The past repayment behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with u have to depend only on the market reports/other institutions feedback. This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statistically into a score. The CIBIL score is a statistically significant predicative indicator of how well the applicant will repay the debt/loan. higher the score, the lower is the risk.

The Credit Information Report (CIRs) on the borrowers, co guarantors should be generated from CIBIL Database per the instructions contained in L&A Circular No. 31.10.2009 & MISD Circular No. 8/11 dated 31.05.11. score among the applicant/s, partners, directors, considered and based on the information collected by the appraiser, enter “credit history” by selecting one out of the following options from the List:- i. CIBIL score below 600 or no CIBIL data available but availed loan from the banks/institutions and account was NPA and adjusted through compromise/write ii. CIBIL score between 600 and 659 or No CIBIL data available and account became NPA but fully adjusted without any loss.

iii. CIBIL score between 660 and 719 or No CIBIL data availab availed earlier loan/loans from us/any bank and account remained irregular more than 2 times but the account was not NPA and the account was fully adjusted without any loss to the bank. iv. CIBIL score between 720 and 799 or No CIBIL data available but availed Earlier loan/loans from us/any bank and account remained occasionally v. (one to two times)irregular but repaid all the installments within the stipulated period .

vi. CIBIL score between 800 and 900 or No CIBIL data available but availed Earlier loan/loans and repaid all the installments and/interest within the stipulated period. vii. No CIBIL data available and availed no loan/loans from any financial institution. -44- : The past repayment behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with us otherwise we have to depend only on the market reports/other institutions feedback. This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them into a score.

The CIBIL score is a statistically significant predicative indicator of how well the applicant will repay the debt/loan. higher the score, the lower is the risk.

The Credit Information Report (CIRs) on the borrowers, co-oblig guarantors should be generated from CIBIL Database with CIBIL Score per the instructions contained in L&A Circular No. 138/09 dated 31.10.2009 & MISD Circular No. 8/11 dated 31.05.11. The minimum score among the applicant/s, partners, directors, guarantors should be considered and based on the information collected by the appraiser, enter “credit history” by selecting one out of the following options CIBIL score below 600 or no CIBIL data available but availed loan ks/institutions and account was NPA and adjusted through compromise/write-off.

CIBIL score between 600 and 659 or No CIBIL data available and account became NPA but fully adjusted without any loss. CIBIL score between 660 and 719 or No CIBIL data availab availed earlier loan/loans from us/any bank and account remained irregular more than 2 times but the account was not NPA and the account was fully adjusted without any loss to the bank. CIBIL score between 720 and 799 or No CIBIL data available but availed Earlier loan/loans from us/any bank and account remained (one to two times)irregular but repaid all the installments within the CIBIL score between 800 and 900 or No CIBIL data available but /loans and repaid all the installments and/interest within the stipulated period.

No CIBIL data available and availed no loan/loans from any financial : The past repayment behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if s otherwise we have to depend only on the market reports/other institutions feedback. This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them into a score. The CIBIL score is a statistically significant predicative indicator of how well the applicant will repay the debt/loan. The obligators, with CIBIL Score, as 138/09 dated The minimum guarantors should be considered and based on the information collected by the appraiser, enter “credit history” by selecting one out of the following options CIBIL score below 600 or no CIBIL data available but availed loan ks/institutions and account was NPA and adjusted CIBIL score between 600 and 659 or No CIBIL data available and CIBIL score between 660 and 719 or No CIBIL data available but availed earlier loan/loans from us/any bank and account remained irregular more than 2 times but the account was not NPA and the CIBIL score between 720 and 799 or No CIBIL data available but availed Earlier loan/loans from us/any bank and account remained (one to two times)irregular but repaid all the installments within the CIBIL score between 800 and 900 or No CIBIL data available but /loans and repaid all the installments and/interest No CIBIL data available and availed no loan/loans from any financial

Ownership of current residence capturing stability of stay at the current place and likelihood to stay at the same place in future, which also reflects the financial strength of the loan applicant. The residence ownership refers to ownership of the present house occupied by the key Promoter/ Managing Par case of partnership concerns and companies the “ Partner/Managing Director” reasonable care on the basis of stake involved. After verification of residence ownership of Partner/Managing Director appropriate risk attribute may be selected from the drop box. Risk Parameter Ownership of current residence The verification may be done through: i) Title deed of the property.

ii) Rent agreement.

iii) Electricity bill/Water bill or any other document acceptable to the Bank. iv) Spot verification and report taken from the neighbors. Ownership of the Business Premises ownership of the business premises. In case of multiple units the main unit is to be considered. If the owner ship of main unit is of main promoter/managing partner/managing director the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of main unit is of other promoter/other partner/other director the risk attribute “Owned by other family member” is to be selected. -45- Ownership of current residence: The relevance of the parameter lies in of stay at the current place and likelihood to stay at the same place in future, which also reflects the financial strength of the loan The residence ownership refers to ownership of the present house occupied Promoter/ Managing Partner/Managing Director.

Thus in case of partnership concerns and companies the “Managing Partner/Managing Director” is selected among the partners/directors with reasonable care on the basis of stake involved.

After verification of residence ownership of the key Promoter/ Managing Partner/Managing Director from the supporting documents the appropriate risk attribute may be selected from the drop box. Risk Parameter Risk Attributes Ownership of current residence Owned by Self/Spouse Owned by parents Rented and others The verification may be done through: Title deed of the property. Electricity bill/Water bill or any other document acceptable to the Spot verification and report taken from the neighbors. ness Premises: The parameter captures the ownership of the business premises. In case of multiple units ownership of the main unit is to be considered.

If the owner ship of main unit is of main promoter/managing partner/managing director the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of main unit is of other promoter/other partner/other director the risk attribute “Owned by other family member” is to be selected. The relevance of the parameter lies in of stay at the current place and likelihood to stay at the same place in future, which also reflects the financial strength of the loan The residence ownership refers to ownership of the present house occupied . Thus in Managing is selected among the partners/directors with Promoter/ Managing from the supporting documents the Electricity bill/Water bill or any other document acceptable to the The parameter captures the ownership of the main unit is to be considered.

If the owner ship of main unit is of main promoter/managing partner/managing director the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of main unit is of other promoter/other partner/other director the risk

After verification of ownership of Business Premises from documents the appropriate risk attribute may be selected from the drop box. The verification may be done through: I. Title deed of the manufacturing unit. II. Rent agreement/Lease deed. III. Balance Sheet. IV. Electricity bill/Water bill or any other document acceptable to the Bank. V. Spot verification and report taken from the neighbors Distance of the Business premises from the financing branch relevance of this parameter lies in bet reducing cost of monitoring through easy security verification. Distance in Kilometers from the Branch to the place of business premises shall be mentioned here (After making spot verification by the branch official) and in case it is more than 25 km it shall also recorded whether it is located in the same city or different city centre.

In case the business unit is located at more than one place, the main unit from the financing branch should be conside Facility Required: The information regarding applicable rates of interest for the facilities applied (In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months under the proposal should be entered. It has to be ensured that at the beginning of scoring, the total amount of all the proposed term loans should be entered in rupees in the term loan box and simil capital facilities and non fund based limits the respected boxes.

Risk Parameter Risk Attributes Ownership of Manufacturing unit/ Business Premises Leased accommodation with lease period covering loan duration Owned by other family m Owned by self/spouse Owned by the firm/company Rented/Leased with shorter period but with a clause to renew till the currency of the loan -46- After verification of ownership of Business Premises from documents the appropriate risk attribute may be selected from the drop box. The verification may be done through: Title deed of the manufacturing unit. se deed.

Electricity bill/Water bill or any other document acceptable to the Spot verification and report taken from the neighbors Distance of the Business premises from the financing branch relevance of this parameter lies in better monitoring of the loan account and reducing cost of monitoring through easy security verification.

Distance in Kilometers from the Branch to the place of business premises shall be mentioned here (After making spot verification by the branch and in case it is more than 25 km it shall also recorded whether it is located in the same city or different city centre. In case the business unit is located at more than one place, the distance of the main unit from the financing branch should be considered. The information regarding applicable rates of interest for the facilities applied (In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the be entered) and repayment period of term loan in months under the proposal should be entered.

It has to be ensured that at the beginning of scoring, the total amount of all the proposed term loans should in the term loan box and similarly total of all working capital facilities and non fund based limits in rupees should be entered in Risk Attributes Leased accommodation with lease period covering loan duration Owned by other family member Owned by self/spouse Owned by the firm/company Rented/Leased with shorter period but with a clause to renew till the currency of the loan suitable documents the appropriate risk attribute may be selected from the drop box. Electricity bill/Water bill or any other document acceptable to the Distance of the Business premises from the financing branch: The ter monitoring of the loan account and Distance in Kilometers from the Branch to the place of business premises shall be mentioned here (After making spot verification by the branch and in case it is more than 25 km it shall also recorded whether the distance of The information regarding applicable rates of interest for the facilities applied (In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the be entered) and repayment period of term loan in months under the proposal should be entered.

It has to be ensured that at the beginning of scoring, the total amount of all the proposed term loans should arly total of all working should be entered in Leased accommodation with lease period Rented/Leased with shorter period but with a clause to renew till the currency

Value of Equipment to be financed which term loan from the bank has been requested, like equipment to be purchased etc. Loan entered under “Facility required” option entered in rupees only. Income Tax Assessee: Amount of the promoters indicates the financial strength of the Firm/company or the promoters. In case the unit is new and if the promoters are income tax assesses the option ”YES” should be selected otherwise option “No” be selected. In case of existing unit who is not availing a income tax paid by the firm /company in the last year should be considered for selecting this option. On selecting the “YES” option the system asks for the actual income tax paid, which should be filled in rupees only.

Whether borrower agreed for CGTMSE cover available, “YES” option should be selected otherwise select option “NO”. Accepted Projected profit after tax (PAT) rupees as projected and accepted by the bank in the which the borrowing unit has full year of operations. Accepted Projected Cash profit other cash accrual items i.e., depreciation, preliminary expenses written off during the year etc.

Guarantor Details: The system will allow entering guarantor details only if CGTMSE cover is not available. Third party guarantors have a contractual obligation to act as a substitute for the primary borrower, if he defaults on his payment obligation. Thus the guarantor has to fulfill the obligation of defaulting borrower. The relevance of this parameter lies in risk mitigation in case the borrower defaults. Net worth of guarantor = Total assets of the guarantor the guarantor The Net worth of guarantor/s is verified through: a. Documents supporting the statement of assets and liability of the Guarantor.

b. Spot verification by the branch officer. c. Latest CR/s of the guarantor/s. -47- Value of Equipment to be financed: It is the total cost of the assets against which term loan from the bank has been requested, like to be purchased etc. It should be greater than amount of Term Loan entered under “Facility required” option. The amount should be : Amount of Income Tax paid by a Firm/company or ndicates the financial strength of the Firm/company or the promoters. In case the unit is new and if the promoters are income tax assesses the option ”YES” should be selected otherwise option “No” be selected.

In case of existing unit who is not availing any facility from us, the income tax paid by the firm /company in the last year should be considered for selecting this option. On selecting the “YES” option the system asks for which should be filled in rupees only.

ower agreed for CGTMSE cover: If the CGTMSE cover is available, “YES” option should be selected otherwise select option “NO”. Accepted Projected profit after tax (PAT): It is the PAT (profit after tax) in accepted by the bank in the financial year in which the borrowing unit has full year of operations. Accepted Projected Cash profit: It is PAT (Profit after tax) plus any all other cash accrual items i.e., depreciation, preliminary expenses written off : The system will allow entering guarantor details only if CGTMSE cover is not available. Third party guarantors have a contractual obligation to act as a substitute for the primary borrower, if he defaults on his payment obligation.

Thus the antor has to fulfill the obligation of defaulting borrower. The relevance of this parameter lies in risk mitigation in case the borrower defaults. Net worth of guarantor = Total assets of the guarantor – Total liabilities of f guarantor/s is verified through: Documents supporting the statement of assets and liability of the Spot verification by the branch officer.

Latest CR/s of the guarantor/s. It is the total cost of the assets against which term loan from the bank has been requested, like cost of It should be greater than amount of Term . The amount should be Income Tax paid by a Firm/company or ndicates the financial strength of the Firm/company or the promoters. In case the unit is new and if the promoters are income tax assesses the option ”YES” should be selected otherwise option “No” be ny facility from us, the income tax paid by the firm /company in the last year should be considered for selecting this option. On selecting the “YES” option the system asks for If the CGTMSE cover is available, “YES” option should be selected otherwise select option “NO”.

It is the PAT (profit after tax) in financial year in It is PAT (Profit after tax) plus any all other cash accrual items i.e., depreciation, preliminary expenses written off : The system will allow entering guarantor details Third party guarantors have a contractual obligation to act as a substitute for the primary borrower, if he defaults on his payment obligation. Thus the antor has to fulfill the obligation of defaulting borrower. The relevance of this parameter lies in risk mitigation in case the borrower defaults. Total liabilities of Documents supporting the statement of assets and liability of the

Name of guarantors including Directors as guarantors, Net worth Date of CR, PAN number, Value of IP/liquid security offered (if any) as collateral security by guarantor/s. have to be entered. navigate through the fields and guarantors if they are more than 4 in number. Details of Liabilities of firm/company concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all the items of Liabilities are filled in & all statutory liabilities and all outstanding such as taxes payable, outstanding against immovable properties have been incorporated in the details of Liabilities.

Details Assets of the firm/company any firm/company captures the financial strength of the borrower vis the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the lender seizes and sells if the borrower fails to perform his debt obligation. All the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) should be incorporated in the model.

company should be entered in the relevant table of the model by navigating as above. The amount is to be entered in rupees only. The system will allow ticking collateral security only if CGTM is not available. Before pressing the submit button, the user should ensure that all the entries/selections are made correctly. If not, press previous to modify the same. Then press “submit” to generate the score. Radio button for YES/NO has been has been rated under PNB TRAC” If Yes is selected be filled at appropriate space.

In case certain changes are warranted due to the change in the input received at a later stage, such modific modification button in the beginning and then selecting the number to be modified for carrying out the necessary changes and proceeding as above.

-48- Name of guarantors including Directors as guarantors, Net worth in r Date of CR, PAN number, Value of IP/liquid security offered (if any) as collateral security by guarantor/s. have to be entered. ‘Tab’ key is used to navigate through the fields and side bar is to be used to enter details of ore than 4 in number.

Details of Liabilities of firm/company: All the liabilities of the concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all ties are filled in & all statutory liabilities and all outstanding such as taxes payable, outstanding against immovable properties have been incorporated in the details of Liabilities. Details Assets of the firm/company: This net of assets and liabilities any firm/company captures the financial strength of the borrower vis the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default.

These are assets that the the borrower fails to perform his debt obligation. All the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) orporated in the model. Similarly the liquid assets of the firm company should be entered in the relevant table of the model by navigating The amount is to be entered in rupees only.

The system will allow ticking collateral security only if CGTM Before pressing the submit button, the user should ensure that all the entries/selections are made correctly. If not, press previous to modify the same. Then press “submit” to generate the score. Radio button for YES/NO has been provided to select option “Has the unit r PNB TRAC” If Yes is selected then score is required to be filled at appropriate space. In case certain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the modification button in the beginning and then selecting the Score Card number to be modified for carrying out the necessary changes and * * in rupees, Date of CR, PAN number, Value of IP/liquid security offered (if any) as key is used to is to be used to enter details of All the liabilities of the concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees.

It should be ensured that all ties are filled in & all statutory liabilities and all outstanding such as taxes payable, outstanding against immovable This net of assets and liabilities of any firm/company captures the financial strength of the borrower vis-à-vis the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the the borrower fails to perform his debt obligation. All the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) Similarly the liquid assets of the firm/ company should be entered in the relevant table of the model by navigating The system will allow ticking collateral security only if CGTMSE cover Before pressing the submit button, the user should ensure that all the entries/selections are made correctly.

If not, press previous to modify provided to select option “Has the unit score is required to In case certain changes are warranted due to the change in the input ations can be made by pressing the Score Card number to be modified for carrying out the necessary changes and

4.4 MSME Manufacturing and Service Unit (N including takeover) Constitution of the unit: The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefu out of the available options from the “ 1 Cooperative Society 2 HUF 3 Proprietorship 4 Individual 5 Partnership 6 Pvt. Ltd. Company 7 Public Ltd Company 8 Limited Liability Partnership 9 Trust Type of Unit/Project: One of the available opt the “New Project” is to be selected. Option “Existing Unit” shall be selected even if the proposal is new for us if the units are already established and running.

“New Project” is to be selected only when the project is yet to commence the operations.

Promoter/Partner/Karta description experience of promoters have bearing on the working and the management of the unit, therefore information of all the promoters, which may be Partners, Karta, Directors, Sole proprietor etc., have to be entered. ‘ is used to navigate through the fields and details of partners if they are more than 4 in number. Past Relationship with Bank the bank captures the loyalty of the applicant and the likely behavior of the loan in the future. The relevance of this parameter lies in capturing the conduct of the account and banking habit of the loan applicant. Out of the three options provided and “Existing Borrower”, one radio button has to be clicked.

In case of Deposit customer, it shall ask for information like “ date of first deposit account (SF/CA/FD) opened either in the name of f or in the name of promoters (Proprietor, Partner, Karta etc.) with the bank may be provided. Similarly the average balance in last 6 months of all the promoter’s deposit accounts combined should be provided in “ balance for last 6 months”.

-49- MSME Manufacturing and Service Unit (New Cases including takeover ` 10 lakh and below. The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected out of the available options from the “List” as given under. Limited Liability Partnership One of the available options from “Existing Unit” or the “New Project” is to be selected. Option “Existing Unit” shall be selected even if the proposal is new for us if the units are already established and running. “New Project” is to be selected only when the project is yet to Promoter/Partner/Karta description: Age, education qualification, experience of promoters have bearing on the working and the management of the unit, therefore information of all the promoters, which may be ectors, Sole proprietor etc., have to be entered.

‘ is used to navigate through the fields and side bar is to be used to enter details of partners if they are more than 4 in number. Past Relationship with Bank: The past relationship of the borrower the bank captures the loyalty of the applicant and the likely behavior of the loan in the future. The relevance of this parameter lies in capturing the conduct of the account and banking habit of the loan applicant. Out of the three options provided “Deposit Customer”, “New Customer ”, one radio button has to be clicked. In case of Deposit customer, it shall ask for information like “A/C Since”, wherein the date of first deposit account (SF/CA/FD) opened either in the name of f or in the name of promoters (Proprietor, Partner, Karta etc.) with the bank may be provided.

Similarly the average balance in last 6 months of all the promoter’s deposit accounts combined should be provided in “ ew Cases The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of lly selected ions from “Existing Unit” or the “New Project” is to be selected. Option “Existing Unit” shall be selected even if the proposal is new for us if the units are already established and running. “New Project” is to be selected only when the project is yet to Age, education qualification, experience of promoters have bearing on the working and the management of the unit, therefore information of all the promoters, which may be ectors, Sole proprietor etc., have to be entered.

‘Tab’ key is to be used to enter : The past relationship of the borrower with the bank captures the loyalty of the applicant and the likely behavior of the loan in the future. The relevance of this parameter lies in capturing the New Customer” ”, one radio button has to be clicked. In case of ”, wherein the date of first deposit account (SF/CA/FD) opened either in the name of firm or in the name of promoters (Proprietor, Partner, Karta etc.) with the bank may be provided. Similarly the average balance in last 6 months of all the promoter’s deposit accounts combined should be provided in “Average

Credit history: The past repayment behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with us otherwise we have to depend only on the ma problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statistically into a score. The CIBIL score is a statistic predicative indicator of how well the applicant will repay the debt/loan. higher the score, the lower is the risk.

The Credit Information Report (CIRs) on the borrowers, co guarantors should be generated from C per the instructions contained in L&A Circular No.

31.10.2009 & MISD Circular No. 8/11 dated 31.05.11. score among the applicant/s, partners, directors, guarantors should be considered and based on the information collected by the appraiser, enter “credit history” by selecting one out of the following options from the List:- i. CIBIL score below 600 or no CIBIL data available but availed loan from the banks/institutions and account was NPA and adjus through compromise/write ii. CIBIL score between 600 and 659 or No CIBIL data available and account became NPA but fully adjusted without any loss. iii. CIBIL score between 660 and 719 or No CIBIL data available but availed earlier loan/loans from us/any irregular more than 2 times but the account was not NPA and the account was fully adjusted without any loss to the bank.

iv. CIBIL score between 720 and 799 or No CIBIL data available but availed Earlier loan/loans from us/any bank occasionally (one to two times)irregular but repaid all the installments within the stipulated period v. CIBIL score between 800 and 900 or No CIBIL data available but availed Earlier loan/loans and repaid all the installments and/int within the stipulated period .

vi. No CIBIL data available and availed no loan/loans from any financial institution. -50- : The past repayment behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with us otherwise we have to depend only on the market reports/other institutions feedback. This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statistically into a score. The CIBIL score is a statistically significant predicative indicator of how well the applicant will repay the debt/loan.

higher the score, the lower is the risk.

The Credit Information Report (CIRs) on the borrowers, co-obligators, guarantors should be generated from CIBIL Database with CIBIL Score per the instructions contained in L&A Circular No. 138/09 dated 31.10.2009 & MISD Circular No. 8/11 dated 31.05.11. The minimum score among the applicant/s, partners, directors, guarantors should be n the information collected by the appraiser, enter “credit history” by selecting one out of the following options CIBIL score below 600 or no CIBIL data available but availed loan from the banks/institutions and account was NPA and adjus through compromise/write-off.

CIBIL score between 600 and 659 or No CIBIL data available and account became NPA but fully adjusted without any loss. CIBIL score between 660 and 719 or No CIBIL data available but availed earlier loan/loans from us/any bank and account remained irregular more than 2 times but the account was not NPA and the account was fully adjusted without any loss to the bank. CIBIL score between 720 and 799 or No CIBIL data available but availed Earlier loan/loans from us/any bank and account remained occasionally (one to two times)irregular but repaid all the installments within the stipulated period.

CIBIL score between 800 and 900 or No CIBIL data available but availed Earlier loan/loans and repaid all the installments and/int within the stipulated period .

No CIBIL data available and availed no loan/loans from any financial : The past repayment behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with us otherwise we rket reports/other institutions feedback. This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them ally significant predicative indicator of how well the applicant will repay the debt/loan. The obligators, with CIBIL Score, as 138/09 dated The minimum score among the applicant/s, partners, directors, guarantors should be n the information collected by the appraiser, enter “credit history” by selecting one out of the following options CIBIL score below 600 or no CIBIL data available but availed loan from the banks/institutions and account was NPA and adjusted CIBIL score between 600 and 659 or No CIBIL data available and CIBIL score between 660 and 719 or No CIBIL data available but bank and account remained irregular more than 2 times but the account was not NPA and the CIBIL score between 720 and 799 or No CIBIL data available but and account remained occasionally (one to two times)irregular but repaid all the installments CIBIL score between 800 and 900 or No CIBIL data available but availed Earlier loan/loans and repaid all the installments and/interest No CIBIL data available and availed no loan/loans from any financial

Ownership of current residence capturing stability of stay at the current place and likelihood same place in future, which also reflects the financial strength of the loan applicant. The residence ownership refers to ownership of the present house occupied by the key Promoter/ Managing Partner/Managing Director case of partnership concerns and companies the “ Partner/Managing Director” reasonable care on the basis of stake involved. After verification of residence ownership of the Partner/Managing Director appropriate risk attribute may be selected from the drop box. The verification may be done through: i) Title deed of the property.

ii) Rent agreement.

iii) Electricity bill/Water bill or any other document acceptable to the Bank. iv) Spot verification and report taken from the neighbors. Ownership of the Manufacturing Unit/Business Premises captures the ownership of the Manufacturing unit/Business Premises. In case of multiple units ownership of the main unit is to be considered. If the ownership of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Ow is to be selected and if the owner ship of main unit is of Other Promoter/Other Partner/Other Director, the risk attribute “Owned by other family member” is to be selected.

Risk Parameter Ownership of current residence -51- Ownership of current residence: The relevance of the parameter lies in capturing stability of stay at the current place and likelihood to stay at the same place in future, which also reflects the financial strength of the loan The residence ownership refers to ownership of the present house occupied Promoter/ Managing Partner/Managing Director. Thus in nership concerns and companies the “Managing Partner/Managing Director” is selected among the partners/directors with reasonable care on the basis of stake involved.

After verification of residence ownership of the key Promoter/ Managing Director from the supporting documents the appropriate risk attribute may be selected from the drop box.

y be done through: Title deed of the property. Electricity bill/Water bill or any other document acceptable to the Spot verification and report taken from the neighbors. Ownership of the Manufacturing Unit/Business Premises: The para captures the ownership of the Manufacturing unit/Business Premises. In ownership of the main unit is to be considered. If the ownership of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of main unit is of Other Promoter/Other Partner/Other Director, the risk attribute “Owned by other family member” is to be selected.

Risk Parameter Risk Attributes Ownership of current residence Owned by Self/Spouse Owned by parents Rented and others The relevance of the parameter lies in to stay at the same place in future, which also reflects the financial strength of the loan The residence ownership refers to ownership of the present house occupied . Thus in Managing is selected among the partners/directors with Promoter/ Managing from the supporting documents the Electricity bill/Water bill or any other document acceptable to the The parameter captures the ownership of the Manufacturing unit/Business Premises. In ownership of the main unit is to be considered.

If the ownership of main unit is of main Promoter/Managing ned by self/spouse” is to be selected and if the owner ship of main unit is of Other Promoter/Other Partner/Other Director, the risk attribute “Owned by

After verification of ownership of Manufacturing unit/ Busi from suitable documents, the appropriate risk attribute may be selected from the drop box. The verification may be done through: I. Title deed of the manufacturing unit. II. Rent agreement/Lease deed. III. Balance Sheet. IV. Electricity bill/Water bill or any other document acceptable to the Bank. V. Spot verification and report taken from the neighbors Distance of Factory/Business premises from the financing branch Distance in Kilometers from t unit/Business unit shall be mentioned here (After making spot verification by the branch official) and in case it is more than 25 km it shall also recorded whether it is located in the same city or different city cen In case the Manufacturing unit/Business unit is located at more than one place, the distance of the main unit from the financing branch should be considered.

Facility Required: The information regarding applicable rates of interest for the facilities applied (In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months under the proposal should be entered. It beginning of scoring, the total amount of all the proposed term loans should be entered in rupees in the term loan box and similarly total of all working capital facilities and non fund based limits the respected boxes.

Risk Parameter Risk Attributes Ownership of Manufacturing unit/ Business Premises Leased accommodation with lease period covering loan duration Owned by other family member Owned by self/spouse Owned by the firm/company Rented/Leased with shorter period but with a clause to renew till the currency of the loan -52- After verification of ownership of Manufacturing unit/ Business Premises from suitable documents, the appropriate risk attribute may be selected The verification may be done through: Title deed of the manufacturing unit.

ement/Lease deed.

Electricity bill/Water bill or any other document acceptable to the Spot verification and report taken from the neighbors Distance of Factory/Business premises from the financing branch Distance in Kilometers from the Branch to the place of manufacturing unit/Business unit shall be mentioned here (After making spot verification and in case it is more than 25 km it shall also recorded whether it is located in the same city or different city cen In case the Manufacturing unit/Business unit is located at more than one the distance of the main unit from the financing branch should The information regarding applicable rates of interest for applied (In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months under the proposal should be entered.

It has to be ensured that at the beginning of scoring, the total amount of all the proposed term loans should in the term loan box and similarly total of all working capital facilities and non fund based limits in rupees should be entered Risk Attributes Leased accommodation with lease period covering loan d by other family member Owned by self/spouse Owned by the firm/company Rented/Leased with shorter period but with a clause to renew till the currency of the loan ness Premises from suitable documents, the appropriate risk attribute may be selected Electricity bill/Water bill or any other document acceptable to the Distance of Factory/Business premises from the financing branch: he Branch to the place of manufacturing unit/Business unit shall be mentioned here (After making spot verification and in case it is more than 25 km it shall also recorded whether it is located in the same city or different city centre.

In case the Manufacturing unit/Business unit is located at more than one the distance of the main unit from the financing branch should The information regarding applicable rates of interest for applied (In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months has to be ensured that at the beginning of scoring, the total amount of all the proposed term loans should in the term loan box and similarly total of all working should be entered in Leased accommodation with lease period covering loan Rented/Leased with shorter period but with a clause to

Value of equipment purchased which term loan from the bank has been requested, like cost of plant and machinery to be installed/ Equipment to be purchased etc. greater than amount of Term Loan entered under “Facility required” option The amount should be entered in rupees only. Whether borrower agreed for CGTMSE cover available, “YES” option should be selected otherwise select option “NO”. Technology: The selection be made according to the technology used in manufacturing process is imported or available in India. Projected accepted profit after tax as projected and accepted by the bank in the financial y borrowing unit has full year of operations.

Projected accepted Cash profit cash accrual items i.e., depreciation, preliminary expenses written off during the year etc.

Details of Liabilities of firm/company concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all the items of Liabilities are filled in & all statutory liabiliti outstanding such as taxes payable, outstanding against immovable properties have been incorporated in the details of Liabilities. Details Assets of the firm/company any firm/company captures the financial s the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the lender seizes and sells if the borrower fails to perform his debt obli the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) should be incorporated in the model.

company should be entered in the relevant table of the model by navigating as above. The amount is to be entered in rupees only. Before pressing the submit button, the user should ensure that all the entries/selections are made correct the same. Then press “submit” to generate the score. -53- Value of equipment purchased: It is the total cost of the assets against which term loan from the bank has been requested, like cost of plant and to be installed/ Equipment to be purchased etc. It should be amount of Term Loan entered under “Facility required” option The amount should be entered in rupees only.

Whether borrower agreed for CGTMSE cover: If the CGTMSE cover is available, “YES” option should be selected otherwise select option “NO”. The selection be made according to the technology used in manufacturing process is imported or available in India. Projected accepted profit after tax: It is the PAT (profit after tax) in rupees accepted by the bank in the financial year in which the borrowing unit has full year of operations. Projected accepted Cash profit: It is PAT (Profit after tax) plus any all other cash accrual items i.e., depreciation, preliminary expenses written off during of firm/company: All the liabilities of the concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees.

It should be ensured that all the items of Liabilities are filled in & all statutory liabilities and all outstanding such as taxes payable, outstanding against immovable properties have been incorporated in the details of Liabilities. Details Assets of the firm/company: This net of assets and liabilities of any firm/company captures the financial strength of the borrower vis the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the lender seizes and sells if the borrower fails to perform his debt obligation.

All the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) should be incorporated in the model. Similarly the liquid assets of the firm company should be entered in the relevant table of the model by navigating The amount is to be entered in rupees only.

Before pressing the submit button, the user should ensure that all the entries/selections are made correctly. If not, press previous to modify the same. Then press “submit” to generate the score. It is the total cost of the assets against which term loan from the bank has been requested, like cost of plant and It should be amount of Term Loan entered under “Facility required” option. If the CGTMSE cover is available, “YES” option should be selected otherwise select option “NO”. The selection be made according to the technology used in It is the PAT (profit after tax) in rupees ear in which the : It is PAT (Profit after tax) plus any all other cash accrual items i.e., depreciation, preliminary expenses written off during All the liabilities of the concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees.

It should be ensured that all es and all outstanding such as taxes payable, outstanding against immovable This net of assets and liabilities of trength of the borrower vis-à-vis the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the gation. All the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) assets of the firm/ company should be entered in the relevant table of the model by navigating Before pressing the submit button, the user should ensure that all the ly.

If not, press previous to modify

Radio button for YES/NO has been provided to select option “Has the unit has been rated under PNB TRAC” If Yes is selected then score is required to be filled at appropriate space. In case certain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the modification button in the beginning and then selecting the number to be modified for c proceeding as above. -54- Radio button for YES/NO has been provided to select option “Has the unit has been rated under PNB TRAC” If Yes is selected then score is required to opriate space.

In case certain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the modification button in the beginning and then selecting the Score Card number to be modified for carrying out the necessary changes and * * Radio button for YES/NO has been provided to select option “Has the unit has been rated under PNB TRAC” If Yes is selected then score is required to In case certain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the Score Card arrying out the necessary changes and

4.5 MSME Manufacturing and Service Unit (Renewal / Enhancement) - Above Constitution of the unit: The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected out of the available options from the “ 1 Cooperative Society 2 HUF 3 Proprietorship 4 Individual 5 Partnership 6 Pvt. Ltd. Company 7 Public Ltd Company 8 Limited Liability Partnership 9 Trust Promoter/Partner/Karta description experience of promoters have bearing on the working and the management of the unit, therefore information Partners, Karta, Directors, Sole proprietor etc.

have to be entered. ‘ is used to navigate through the fields and details of partners if they are more than 4 in number. Whether CIBIL score available on record: behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with us otherwise we h the market reports/other institutions feedback. This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statistically into a score. The CIBIL score is a statistically significant predicative indicator of how well the applicant will repay the debt/loan.

lower is the risk. The Credit Information Report (CIRs) on the borrowers, co guarantors should be generated from CIBIL Database per the instructions contained in L&A Circular No. 31.10.2009 & MISD Circular No. 8/11 dated 31.05.11. score among the applicant/s, partners, directors, guarantors shou entered after selecting the “YES” option of availability of CIBIL data. -55- MSME Manufacturing and Service Unit (Renewal / Above ` 10 lakh upto ` 50 lakh. The constitution of the unit indicates the risk ssociated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected out of the available options from the “List” as given under.

Limited Liability Partnership Promoter/Partner/Karta description: Age, education qualification, experience of promoters have bearing on the working and the management of the unit, therefore information of all the promoters which may be Partners, Karta, Directors, Sole proprietor etc. have to be entered. ‘ is used to navigate through the fields and side bar is to be used to enter details of partners if they are more than 4 in number. IL score available on record: Yes/No.: The past repayment behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with us otherwise we have to depend only on the market reports/other institutions feedback.

This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statistically into a e CIBIL score is a statistically significant predicative indicator of how well the applicant will repay the debt/loan. The higher the score, the The Credit Information Report (CIRs) on the borrowers, co-obligators, s should be generated from CIBIL Database with CIBIL Score per the instructions contained in L&A Circular No. 138/09 dated 31.10.2009 & MISD Circular No. 8/11 dated 31.05.11. The minimum score among the applicant/s, partners, directors, guarantors shou entered after selecting the “YES” option of availability of CIBIL data.

MSME Manufacturing and Service Unit (Renewal / The constitution of the unit indicates the risk ssociated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected Age, education qualification, experience of promoters have bearing on the working and the management of all the promoters which may be Partners, Karta, Directors, Sole proprietor etc. have to be entered. ‘Tab’ key is to be used to enter : The past repayment behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower ave to depend only on the market reports/other institutions feedback.

This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statistically into a e CIBIL score is a statistically significant predicative indicator of The higher the score, the obligators, with CIBIL Score, as 138/09 dated The minimum score among the applicant/s, partners, directors, guarantors should be entered after selecting the “YES” option of availability of CIBIL data.

In case the non-availability of CIBIL data click “NO”. Then confirm by clicking “Availed no loan/loans from any financial institution except our bank”. Ownership of current resi ownership of the present house occupied by the Partner/Managing Director companies the “Managing Partner/Managing Director” the partners/directors with reasonable care on the basis of stake involved. After verification of residence ownership of the Partner/Managing Director appropriate risk attribute may be selected from the dro The verification may be done through: i) Title deed of the property. ii) Rent agreement.

iii) Electricity bill/Water bill or any other document acceptable to the Bank.

iv) Spot verification and report taken from the neighbors. Ownership of the Manufacturing Unit/Business Premises captures the ownership of the Manufacturing unit/Business Premises. In case of multiple units ownership of the main unit is to be considered. If the ownership of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of main unit is of Other Promoter/Other Partner/Other Director, the risk attribute “Owned by other family member” is to be selected.

Risk Parameter Ownership of current residence -56- availability of CIBIL data click “NO”. Then confirm by clicking “Availed no loan/loans from any financial institution except Ownership of current residence: The residence ownership refers to ownership of the present house occupied by the key Promoter/ Managing Partner/Managing Director. Thus in case of partnership concerns and Managing Partner/Managing Director” is selected among ners/directors with reasonable care on the basis of stake involved. After verification of residence ownership of the key Promoter/ Managing Partner/Managing Director from the supporting documents the appropriate risk attribute may be selected from the drop box.

The verification may be done through: Title deed of the property. r bill or any other document acceptable to the Spot verification and report taken from the neighbors. Ownership of the Manufacturing Unit/Business Premises: The parameter captures the ownership of the Manufacturing unit/Business Premises. In ownership of the main unit is to be considered. If the ownership of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of main unit is of Other Promoter/Other Partner/Other Director, the risk attribute “Owned by other family member” is to be selected.

Risk Attributes Ownership of Owned by Self/Spouse Owned by parents Ancestral Rented and others availability of CIBIL data click “NO”. Then confirm by clicking “Availed no loan/loans from any financial institution except The residence ownership refers to Promoter/ Managing . Thus in case of partnership concerns and is selected among ners/directors with reasonable care on the basis of stake involved. Promoter/ Managing from the supporting documents the r bill or any other document acceptable to the The parameter captures the ownership of the Manufacturing unit/Business Premises. In ownership of the main unit is to be considered.

If the ownership of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of main unit is of Other Promoter/Other Partner/Other Director, the risk attribute “Owned by

After verification of ownership of Manufacturing unit/ Business Premises from suitable documents, the appropriate risk attribute may be selecte from the drop box. The verification may be done through: I. Title deed of the manufacturing unit. II. Rent agreement/Lease deed. III. Balance Sheet. IV. Electricity bill/Water bill or any other document Bank. V. Spot verification and report taken from the neighbors Distance of Factory/Business unit from the financing branch in Kilometers from the Branch to the place of factory/Business premises shall be mentioned here (After maki official) and in case it is more than 25 km it shall also recorded whether it is located in the same city or different city centre.

In case the Manufacturing unit/Business unit is located at more than one place, the distance of the main unit from the financing branch should be considered.

Facility to be renewed/ Required applied/to be renewed under the proposals may be entered along with applicable rates of interest(In case two dif facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months. It has to be ensured that at the beginning of scoring, the total the existing (outstanding) and proposed term loans should be entered rupees in the term loan box and similarly total of all working capital facilities and non fund based limits boxes.

Risk Parameter Risk Attributes Ownership of Manufacturing unit/ Business Premises Leased accommodation with lease period covering loan duration Owned by other family member Owned by self/spouse Owned by the firm/company Rented/Leased with shorter period but with a clause to renew till the currency of the loan -57- After verification of ownership of Manufacturing unit/ Business Premises from suitable documents, the appropriate risk attribute may be selecte The verification may be done through: Title deed of the manufacturing unit.

Rent agreement/Lease deed. Electricity bill/Water bill or any other document acceptable to the Spot verification and report taken from the neighbors Distance of Factory/Business unit from the financing branch: in Kilometers from the Branch to the place of factory/Business premises shall be mentioned here (After making spot verification by the branch and in case it is more than 25 km it shall also recorded whether it is located in the same city or different city centre. In case the Manufacturing unit/Business unit is located at more than one nce of the main unit from the financing branch should Facility to be renewed/ Required: The information regarding the facilities applied/to be renewed under the proposals may be entered along with applicable rates of interest(In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months.

It has to be ensured that at the beginning of scoring, the total amount of all the existing (outstanding) and proposed term loans should be entered in the term loan box and similarly total of all working capital facilities and non fund based limits in rupees should be entered in the respected Risk Attributes Leased accommodation with lease period covering loan Owned by other family member Owned by self/spouse Owned by the firm/company /Leased with shorter period but with a clause to renew till the currency of the loan After verification of ownership of Manufacturing unit/ Business Premises from suitable documents, the appropriate risk attribute may be selected acceptable to the Distance in Kilometers from the Branch to the place of factory/Business premises ng spot verification by the branch and in case it is more than 25 km it shall also recorded whether In case the Manufacturing unit/Business unit is located at more than one nce of the main unit from the financing branch should The information regarding the facilities applied/to be renewed under the proposals may be entered along with ferent facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months.

It amount of all the existing (outstanding) and proposed term loans should be entered in in the term loan box and similarly total of all working capital facilities should be entered in the respected Leased accommodation with lease period covering loan /Leased with shorter period but with a clause to

Value of Equipment: It is the total cost of the assets (including the depreciated book value of the existing term loan assets) which term loan from the bank has been availed/ requested, like cost of plant and machinery to be installed/ equipment Whether borrower agreed for CGTMSE cover available, “YES” option should be selected otherwise select option “NO”. Sales Target/Estimated profit for the last year and Profit after Tax (PAT) target of last sanction should be selected for incorporated in the model. Past Performance –Last 3 years: in the last three years in respect of sales, profit and cash profi incorporated in the model.

If the age of the firm/ company is less than 3 years, the performance from the available balance sheets should be incorporated. As far as possible, audited balance sheet figures should be used. The sales and profit mea respectively for the firm/company. Figures are to be entered in rupees only. Cash profit: It is PAT (Profit after tax) plus any all other cash accrual items i.e., depreciation, preliminary expenses written off during the year etc. Debtors: The debtors outstanding be entered in the model and this value should tally with the amount of sundry debtors entered in table 2 (Liquid assets deta firm/company on page 3.

Conduct of the account: relationship on the occurrence of default in the account. Therefore the past conduct of all the accounts of the borrower should be examined carefully and appropriate attribute should be selected out of the “LIST” provided as under: Risk Parameter Risk Attributes Conduct of the account Account generally remain irregular and unsatisfactory conduct of account Account is irregular occasionally but conduct of account is satisfactory or where account has been restructured during last three years No irregularity during the last one year No irregularity during the last two year No irregularity during the last three year -58- It is the total cost of the assets (including the depreciated book value of the existing term loan assets) in rupees which term loan from the bank has been availed/ requested, like cost of to be installed/ equipment to be purchased etc.

Whether borrower agreed for CGTMSE cover: If the CGTMSE cover is available, “YES” option should be selected otherwise select option “NO”. Sales Target/Estimated profit for the last year: The gross annual sales target in rupees accepted by the bank at the time of last sanction should be selected for incorporated in the model. Last 3 years: Past performance of the firm/ company in the last three years in respect of sales, profit and cash profit is to be incorporated in the model. If the age of the firm/ company is less than 3 years, the performance from the available balance sheets should be incorporated.

As far as possible, audited balance sheet figures should be used. The sales and profit mean gross sales and profit after tax (PAT) respectively for the firm/company. In case of loss negative sign be Figures are to be entered in rupees only.

It is PAT (Profit after tax) plus any all other cash accrual items , preliminary expenses written off during the year etc. he debtors outstanding in rupees in the last balance sheet should be entered in the model and this value should tally with the amount of sundry debtors entered in table 2 (Liquid assets details) of the : The conduct of the account has direct relationship on the occurrence of default in the account. Therefore the past conduct of all the accounts of the borrower should be examined carefully opriate attribute should be selected out of the “LIST” provided as Risk Attributes Account generally remain irregular and unsatisfactory conduct of account Account is irregular occasionally but conduct of ount is satisfactory or where account has been restructured during last three years No irregularity during the last one year No irregularity during the last two year No irregularity during the last three year It is the total cost of the assets (including the in rupees against which term loan from the bank has been availed/ requested, like cost of o be purchased etc.

If the CGTMSE cover is available, “YES” option should be selected otherwise select option “NO”. The gross annual sales accepted by the bank at the time Past performance of the firm/ company t is to be incorporated in the model. If the age of the firm/ company is less than 3 years, the performance from the available balance sheets should be incorporated. As far as possible, audited balance sheet figures should be n gross sales and profit after tax (PAT) In case of loss negative sign be used. It is PAT (Profit after tax) plus any all other cash accrual items , preliminary expenses written off during the year etc.

in the last balance sheet should be entered in the model and this value should tally with the amount of ils) of the The conduct of the account has direct relationship on the occurrence of default in the account. Therefore the past conduct of all the accounts of the borrower should be examined carefully opriate attribute should be selected out of the “LIST” provided as Account generally remain irregular and Account is irregular occasionally but conduct of ount is satisfactory or where account has

The window containing the attributes ma boundaries with the help of mouse. Conduct can be examined from the followings: · Statement of all the accounts of the borrower · Statement of irregular · Timely submission of financial statements and stock statements · Audit Reports including stock audit reports · Visit Reports and stock checking reports · Drawing Power Register · Balance sheets Details of facility availed: O Cash Credit (Hyp /Pledge) corresponding to last year are here so as to relate credit summation to sales & to evaluate variability of limits availed. Figures are to be entered in rupees only.

Guarantor Details: The system will allow entering guarantor details only if CGTMSE cover is not available Third party guarantors have a contractual obligation to act as a substitute for the primary borrower, if he defaults on his payment obligation. Thus the guarantor has to fulfill the obligation of defaulting borrower. The relevance of this parameter lies in risk mitigation in case the borrower defaults. Net worth of guarantor = Total assets of the guarantor the guarantor The Net worth of guarantor/s is verified through: a. Documents supporting the statement of assets and liability of Guarantor.

b. Spot verification by the branch officer. c. Latest CR/s of the guarantor/s. Name of guarantors including Directors as guarantors, Net worth Date of CR, PAN number, Value of IP/liquid security offered (if any) as collateral security by guarantor/s. have to be entered. navigate through the fields and guarantors if they are more than 4 in number. Details of Liabilities of firm/company concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all the items of Liabilities are filled in & all statutory liabilities and all -59- The window containing the attributes may be expanded by dragging the boundaries with the help of mouse.

Conduct can be examined from the followings: Statement of all the accounts of the borrower irregular accounts Timely submission of financial statements and stock statements it Reports including stock audit reports Visit Reports and stock checking reports Drawing Power Register Only Working capital (Fund Based) facilities like Cash Credit (Hyp /Pledge) corresponding to last year are to be mentioned here so as to relate credit summation to sales & to evaluate variability of Figures are to be entered in rupees only.

: The system will allow entering guarantor details only if CGTMSE cover is not available.

Third party guarantors have a contractual obligation to act as a substitute for the primary borrower, if he defaults on his payment obligation. Thus the guarantor has to fulfill the obligation of defaulting borrower. The relevance in risk mitigation in case the borrower defaults. Net worth of guarantor = Total assets of the guarantor – Total liabilities of The Net worth of guarantor/s is verified through: Documents supporting the statement of assets and liability of Spot verification by the branch officer.

Latest CR/s of the guarantor/s. Name of guarantors including Directors as guarantors, Net worth in rupees Date of CR, PAN number, Value of IP/liquid security offered (if any) as by guarantor/s. have to be entered. ‘Tab’ key is used to navigate through the fields and side bar is to be used to enter details of guarantors if they are more than 4 in number. Details of Liabilities of firm/company: All the liabilities of the rm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all the items of Liabilities are filled in & all statutory liabilities and all y be expanded by dragging the Timely submission of financial statements and stock statements nly Working capital (Fund Based) facilities like to be mentioned here so as to relate credit summation to sales & to evaluate variability of : The system will allow entering guarantor details Third party guarantors have a contractual obligation to act as a substitute for the primary borrower, if he defaults on his payment obligation.

Thus the guarantor has to fulfill the obligation of defaulting borrower. The relevance in risk mitigation in case the borrower defaults.

Total liabilities of Documents supporting the statement of assets and liability of the in rupees, Date of CR, PAN number, Value of IP/liquid security offered (if any) as key is used to is to be used to enter details of All the liabilities of the rm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all the items of Liabilities are filled in & all statutory liabilities and all

outstanding such as taxes payable, outstandi properties have been incorporated in the details of Liabilities.

Details Assets of the firm/company any firm/company captures the financial strength of the borrower vis the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the lender seizes and sells if the borrower fails to perform his debt obligation. All the movable and Immovable assets in the nam concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) should be incorporated in the model.

company should be entered in the r as above. The amount is to be entered in rupees only. The system will allow ticking collateral security only if CGTMSE cover is not available. Before pressing the submit button, the user should ensure that all the entries/selections are made correctly. If not, press previous to modify the same. Then press “submit” to generate the score. Radio button for YES/NO has been provided to select option “Has the unit has been rated under PNB TRAC” If Yes is selected be filled at appropriate space.

In case certain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the modification button in the beginning and then selecting the number to be modified for carrying out the necessary changes and proceeding as above.

-60- outstanding such as taxes payable, outstanding against immovable properties have been incorporated in the details of Liabilities. Details Assets of the firm/company: This net of assets and liabilities of any firm/company captures the financial strength of the borrower vis ollateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the lender seizes and sells if the borrower fails to perform his debt obligation. All the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) should be incorporated in the model.

Similarly the liquid assets of the firm company should be entered in the relevant table of the model by navigating The amount is to be entered in rupees only.

The system will allow ticking collateral security only if CGTMSE cover Before pressing the submit button, the user should ensure that all the ntries/selections are made correctly. If not, press previous to modify the same. Then press “submit” to generate the score. Radio button for YES/NO has been provided to select option “Has the unit has been rated under PNB TRAC” If Yes is selected then score is required to be filled at appropriate space. In case certain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the modification button in the beginning and then selecting the Scor number to be modified for carrying out the necessary changes and * * ng against immovable This net of assets and liabilities of any firm/company captures the financial strength of the borrower vis-à-vis ollateral serves to control the borrower’s risk taking propensity and increase recoveries under default.

These are assets that the lender seizes and sells if the borrower fails to perform his debt obligation. All e of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) Similarly the liquid assets of the firm/ elevant table of the model by navigating The system will allow ticking collateral security only if CGTMSE cover Before pressing the submit button, the user should ensure that all the ntries/selections are made correctly. If not, press previous to modify Radio button for YES/NO has been provided to select option “Has the unit e is required to In case certain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the Score Card number to be modified for carrying out the necessary changes and

4.6 MSME Manufacturing and Service (Renewal / Enhancement) - ` Constitution of the unit: The constitution of the u associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected out of the available options from the “ 1 Cooperative Society 2 HUF 3 Proprietorship 4 Individual 5 Partnership 6 Pvt. Ltd. Company 7 Public Ltd Company 8 Limited Liability Partnership 9 Trust Promoter/Partner/Karta description: experience of promoters have bearing on the working and the management of the unit, therefore information of all the promoters which may be Partners, Karta, Directors, Sole proprietor etc.

have to be entered. ‘ is used to navigate through the fields and details of partners if they are more than 4 Whether CIBIL score available on record: behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower as his past data is available with us otherwise we have to depend only on the market reports/other institutions feedback. This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statis score. The CIBIL score is a statistically significant predicative indicator of how well the applicant will repay the debt/loan.

lower is the risk. The Credit Information Report (CIRs) on the borrowers, guarantors should be generated from CIBIL Database per the instructions contained in L&A Circular No. 31.10.2009 & MISD Circular No. 8/11 dated 31.05.11. score among the applicant/s, partners, di entered after selecting the “YES” option of availability of CIBIL data. In case the non-availability of CIBIL data click “NO”. Then confirm by clicking “Availed no loan/loans from any financial institution except our bank”.

-61- MSME Manufacturing and Service (Renewal / ` 10 lakh and below. The constitution of the unit indicates the risk associated in financing the unit, their financial strength, type of management etc.

The constitution of the unit should be carefully selected out of the available options from the “List” as given under. Limited Liability Partnership description: Age, education qualification, experience of promoters have bearing on the working and the management therefore information of all the promoters which may be Partners, Karta, Directors, Sole proprietor etc. have to be entered. ‘ is used to navigate through the fields and side bar is to be used to enter details of partners if they are more than 4 in number. CIBIL score available on record: Yes/No.: The past repayment behavior of any borrower is an indicator of his future behavior.

The credentials of the applicant can only be known if he is our earlier borrower e with us otherwise we have to depend only on the market reports/other institutions feedback. This problem was resolved with the establishment of credit bureaus like CIBIL which provides the credit history of the borrower and it is converted by them statistically into a score. The CIBIL score is a statistically significant predicative indicator of how well the applicant will repay the debt/loan. The higher the score, the The Credit Information Report (CIRs) on the borrowers, co-obligators, guarantors should be generated from CIBIL Database with CIBIL Score per the instructions contained in L&A Circular No.

138/09 dated 31.10.2009 & MISD Circular No. 8/11 dated 31.05.11. The minimum score among the applicant/s, partners, directors, guarantors should be entered after selecting the “YES” option of availability of CIBIL data. availability of CIBIL data click “NO”. Then confirm by clicking “Availed no loan/loans from any financial institution except MSME Manufacturing and Service (Renewal / nit indicates the risk associated in financing the unit, their financial strength, type of management etc. The constitution of the unit should be carefully selected Age, education qualification, experience of promoters have bearing on the working and the management therefore information of all the promoters which may be Partners, Karta, Directors, Sole proprietor etc.

have to be entered. ‘Tab’ key is to be used to enter : The past repayment behavior of any borrower is an indicator of his future behavior. The credentials of the applicant can only be known if he is our earlier borrower e with us otherwise we have to depend only on the market reports/other institutions feedback. This problem was resolved with the establishment of credit bureaus like CIBIL which provides the tically into a score. The CIBIL score is a statistically significant predicative indicator of The higher the score, the obligators, with CIBIL Score, as 138/09 dated The minimum rectors, guarantors should be entered after selecting the “YES” option of availability of CIBIL data.

availability of CIBIL data click “NO”. Then confirm by clicking “Availed no loan/loans from any financial institution except

Ownership of current residence ownership of the present house occupied by the Partner/Managing Director companies the “Managing Partner/Managing Director” the partners/directors with reasonable care on the basis of stake involved. After verification of residence ownership of the Partner/Managing Director appropriate risk attribute may be The verification may be done through: i) Title deed of the property. ii) Rent agreement. iii) Electricity bill/Water bill or any other document acceptable to the Bank. iv) Spot verification and report taken from the neighbors. Ownership of the Manufacturing Unit/Business Premises captures the ownership of the Manufacturing unit/Business case of multiple units ownership of the main unit is to be considered.

If the ownership of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of m Promoter/Other Partner/Other Director, the risk attribute “Owned by other family member” is to be selected.

After verification of ownership of Manufacturing unit/ Business Premises from suitable documents, the appropriate risk attrib from the drop box. Risk Parameter Ownership of current residence Risk Parameter Risk Attributes Ownership of Manufacturing unit/ Business Premises Leased accommodation with lease period covering loan duration Owned by other family member Owned by self/spouse Owned by the fi Rented/Leased with shorter period but with a clause to renew till the currency of the loan -62- nership of current residence: The residence ownership refers to ownership of the present house occupied by the key Promoter/ Managing Partner/Managing Director.

Thus in case of partnership concerns and anaging Partner/Managing Director” is selected among the partners/directors with reasonable care on the basis of stake involved. After verification of residence ownership of the key Promoter/ Managing Partner/Managing Director from the supporting documents the appropriate risk attribute may be selected from the drop box. The verification may be done through: Electricity bill/Water bill or any other document acceptable to the Bank. Spot verification and report taken from the neighbors. Ownership of the Manufacturing Unit/Business Premises: The parameter captures the ownership of the Manufacturing unit/Business Premises.

In ownership of the main unit is to be considered. If the ownership of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Owned by self/spouse” is to be selected and if the owner ship of main unit is of Other Promoter/Other Partner/Other Director, the risk attribute “Owned by other family member” is to be selected.

After verification of ownership of Manufacturing unit/ Business Premises from suitable documents, the appropriate risk attribute may be selected Risk Attributes Ownership of Owned by Self/Spouse Owned by parents Ancestral Rented and others Risk Attributes Leased accommodation with lease period covering loan duration Owned by other family member Owned by self/spouse Owned by the firm/company Rented/Leased with shorter period but with a clause to renew till the currency of the loan The residence ownership refers to romoter/ Managing . Thus in case of partnership concerns and selected among the partners/directors with reasonable care on the basis of stake involved.

romoter/ Managing from the supporting documents the Electricity bill/Water bill or any other document acceptable to the Bank. The parameter Premises. In ownership of the main unit is to be considered. If the ownership of main unit is of main Promoter/Managing Partner/Managing Director, the risk attribute “Owned by self/spouse” ain unit is of Other Promoter/Other Partner/Other Director, the risk attribute “Owned by After verification of ownership of Manufacturing unit/ Business Premises ute may be selected Leased accommodation with lease period Rented/Leased with shorter period but with a clause to renew till the currency of the loan

The verification may be done through: I. Title deed of the manufacturing unit. II. Rent agreement/Lease deed. III. Balance Sheet. IV. Electricity bill/Water bill or a Bank. V. Spot verification and report taken from the neighbors Distance of Factory/Business unit from the financing branch in Kilometers from the Branch to the place of Manufacturing unit/Business unit shall be mentioned here (After making spot verification by the branch official) and in case it is more than 25 km it shall also recorded whether it is located in the same city or different city centre. In case the Manufacturing unit/Business unit is located at more place, the distance of the main unit from the financing branch should be considered.

Facility to be renewed/ Required applied/to be renewed under the proposals may be entered along with applicable rates of interest(In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months. It has to be ensured that at the begin the existing (outstanding) and proposed term loans should be entered rupees in the term loan box and similarly total of all working capital facilities and non fund based limits boxes.

Value of equipment: It is the total cost of the assets (including the depreciated book value of the existing term loan assets) which term loan from the bank has been availed/ requested, like the cost of land, construction of building estimates, cost of plant and machinery installed etc.

Whether borrower agreed for CGTMSE cover available, “YES” option should be selected otherwise select option “NO”. Sales Target/Estimated profit for the last and Profit after Tax (PAT) target of last sanction should be selected for incorporated in the model. Past Performance –Last 3 years in the last three years in respect of sales, profit and cash profit is to be incorporated in the model. If the age of the firm/ company is less than 3 -63- The verification may be done through: Title deed of the manufacturing unit. Rent agreement/Lease deed. Electricity bill/Water bill or any other document acceptable to the Spot verification and report taken from the neighbors Distance of Factory/Business unit from the financing branch: in Kilometers from the Branch to the place of Manufacturing unit/Business entioned here (After making spot verification by the branch and in case it is more than 25 km it shall also recorded whether it is located in the same city or different city centre.

In case the Manufacturing unit/Business unit is located at more the distance of the main unit from the financing branch should Facility to be renewed/ Required: The information regarding the facilities applied/to be renewed under the proposals may be entered along with f interest(In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months. It has to be ensured that at the beginning of scoring, the total amount of all the existing (outstanding) and proposed term loans should be entered in the term loan box and similarly total of all working capital facilities and non fund based limits in rupees should be entered in the It is the total cost of the assets (including the value of the existing term loan assets) in rupees which term loan from the bank has been availed/ requested, like the cost of n of building estimates, cost of plant and machinery Whether borrower agreed for CGTMSE cover: If the CGTMSE cover is available, “YES” option should be selected otherwise select option “NO”.

Sales Target/Estimated profit for the last year: The gross annual sales and Profit after Tax (PAT) target in rupees accepted by the bank at the time of last sanction should be selected for incorporated in the model. Last 3 years: Past performance of the firm/ company three years in respect of sales, profit and cash profit is to be incorporated in the model. If the age of the firm/ company is less than 3 ny other document acceptable to the Distance in Kilometers from the Branch to the place of Manufacturing unit/Business entioned here (After making spot verification by the branch and in case it is more than 25 km it shall also recorded whether In case the Manufacturing unit/Business unit is located at more than one the distance of the main unit from the financing branch should The information regarding the facilities applied/to be renewed under the proposals may be entered along with f interest(In case two different facilities of working capital facilities are attracting different rate of interests, the weighted average of the interest rates be entered) and repayment period of term loan in months.

It ning of scoring, the total amount of all the existing (outstanding) and proposed term loans should be entered in in the term loan box and similarly total of all working capital facilities should be entered in the respected It is the total cost of the assets (including the in rupees against which term loan from the bank has been availed/ requested, like the cost of n of building estimates, cost of plant and machinery to be If the CGTMSE cover is available, “YES” option should be selected otherwise select option “NO”. The gross annual sales accepted by the bank at the time Past performance of the firm/ company three years in respect of sales, profit and cash profit is to be incorporated in the model.

If the age of the firm/ company is less than 3

years, the performance from the available balance sheets should be incorporated. As far as possible, audited balance used. The sales and profit mean gross sales and profit after tax (PAT) respectively for the firm/company. Figures are to be entered in rupees only. Cash profit: It is PAT (Profit after tax) i.e., depreciation, preliminary expenses written off during the year etc. Debtors: The debtors outstanding be entered in the model and this value should tally with the amount sundry debtors entered in table 2 (Liquid assets details) of the firm/company on page 3.

Conduct of the account: relationship on the occurrence of default in the account.

Therefore the past conduct of all the accounts of the borrower should be examined carefully and appropriate attribute should be selected out of the “LIST” provided as under: Risk Parameter Risk Attributes Conduct of the account Account generally remain irregular and unsatisfactory conduct of accou Account is irregular occasionally but conduct of account is satisfactory or where account has been restructured during last three years No irregularity during the last one year No irregularity during the last two year No irregularity during the The window containing the attributes may be expanded by dragging the boundaries with the help of mouse.

Conduct can be examined from the followings: · Statement of all the accounts of the borrower · Statement of irregular · Timely submission of financial statements and stock statements · Audit Reports including stock audit reports · Visit Reports and stock checking reports · Drawing Power Register · Balance sheets -64- years, the performance from the available balance sheets should be incorporated. As far as possible, audited balance sheet fig ures should be used. The sales and profit mean gross sales and profit after tax (PAT) respectively for the firm/company. In case of loss negative sign be Figures are to be entered in rupees only.

It is PAT (Profit after tax) plus any all other cash accrual items i.e., depreciation, preliminary expenses written off during the year etc. he debtors outstanding in rupees in the last balance sheet should be entered in the model and this value should tally with the amount sundry debtors entered in table 2 (Liquid assets details) of the : The conduct of the account has direct relationship on the occurrence of default in the account. Therefore the past nts of the borrower should be examined carefully and appropriate attribute should be selected out of the “LIST” provided as Risk Attributes Account generally remain irregular and unsatisfactory conduct of account Account is irregular occasionally but conduct of account is satisfactory or where account has been restructured during last three years No irregularity during the last one year No irregularity during the last two year No irregularity during the last three year The window containing the attributes may be expanded by dragging the boundaries with the help of mouse.

Conduct can be examined from the followings: Statement of all the accounts of the borrower irregular accounts ubmission of financial statements and stock statements Audit Reports including stock audit reports Visit Reports and stock checking reports Drawing Power Register years, the performance from the available balance sheets should be sheet fig ures should be used. The sales and profit mean gross sales and profit after tax (PAT) In case of loss negative sign be used. plus any all other cash accrual items i.e., depreciation, preliminary expenses written off during the year etc. in the last balance sheet should be entered in the model and this value should tally with the amount of sundry debtors entered in table 2 (Liquid assets details) of the The conduct of the account has direct relationship on the occurrence of default in the account.

Therefore the past nts of the borrower should be examined carefully and appropriate attribute should be selected out of the “LIST” provided as Account generally remain irregular and Account is irregular occasionally but conduct of account is satisfactory or where account has The window containing the attributes may be expanded by dragging the ubmission of financial statements and stock statements

Details of facility availed: O Cash Credit (Hyp /Pledge) corresponding to last year are to be mentioned here so as to relate credit summation to sales & to evaluate variability of limits availed. Figures are to be entered in rupees only. Details of Liabilities of firm/company concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all the items of Liabilities are filled in & all statutory liabilities and all outstanding such as taxes payable, outstanding against immovable properties have been incorporated in the details of Liabilities.

Details Assets of the firm/company any firm/company captures the financial strength of the borrower the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the lender seizes and sells if the borrower fails to perform his debt obligation. All the movable and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) should be incorporated in the model.

company should be entered in the relevant table of the model by navigating as above. The amount is to be entered in rupees only. Before pressing the submit button, the user should ensure that all the entries/selections are made correctly. If not, press previo the same. Then press “submit” to generate the score. Radio button for YES/NO has been provided to select option “Has the unit has been rated under PNB TRAC” If Yes is selected be filled at appropriate space. In case certain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the modification button in the beginning and then selecting the number to be modified for carrying out the nec proceeding as above.

-65- Only Working capital (Fund Based) facilities li Cash Credit (Hyp /Pledge) corresponding to last year are to be mentioned here so as to relate credit summation to sales & to evaluate variability of Figures are to be entered in rupees only. Details of Liabilities of firm/company: All the liabilities of the concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees. It should be ensured that all the items of Liabilities are filled in & all statutory liabilities and all uch as taxes payable, outstanding against immovable properties have been incorporated in the details of Liabilities.

Details Assets of the firm/company: This net of assets and liabilities of any firm/company captures the financial strength of the borrower the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the lender seizes and sells if the borrower fails to perform his debt obligation. All and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) should be incorporated in the model. Similarly the liquid assets of the firm pany should be entered in the relevant table of the model by navigating The amount is to be entered in rupees only.

Before pressing the submit button, the user should ensure that all the entries/selections are made correctly. If not, press previous to modify the same. Then press “submit” to generate the score. Radio button for YES/NO has been provided to select option “Has the unit r PNB TRAC” If Yes is selected then score is required to be filled at appropriate space. ertain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the modification button in the beginning and then selecting the Score Card number to be modified for carrying out the necessary changes and * * nly Working capital (Fund Based) facilities like Cash Credit (Hyp /Pledge) corresponding to last year are to be mentioned here so as to relate credit summation to sales & to evaluate variability of e liabilities of the concern/firm/company should be ascertained from the balance sheets and incorporated in the relevant table in rupees.

It should be ensured that all the items of Liabilities are filled in & all statutory liabilities and all uch as taxes payable, outstanding against immovable This net of assets and liabilities of any firm/company captures the financial strength of the borrower vis-à-vis the loan amount and Collateral serves to control the borrower’s risk taking propensity and increase recoveries under default. These are assets that the lender seizes and sells if the borrower fails to perform his debt obligation. All and Immovable assets in the name of the concern/firm/company as shown in their balance sheet after due verification (as advised in Book of Instructions on Loans and Advances) Similarly the liquid assets of the firm/ pany should be entered in the relevant table of the model by navigating Before pressing the submit button, the user should ensure that all the us to modify Radio button for YES/NO has been provided to select option “Has the unit score is required to ertain changes are warranted due to the change in the input received at a later stage, such modifications can be made by pressing the Score Card essary changes and