Page 22 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) .indd

BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
nd
th
Upon that kind of threat, and after the roaring projected profit! That’s how the conditions
success of Public issue and good unaudited removed. As I know you for years, better
performance and encouraging projected annual you please go through all financials & satisfy
sale and profit with `2100 Crs & `105 Crs, Mr yourself.”
Das’ Bank had cleared the proposal in lightning
speed removing the earlier conditions. First time Mr Das, felt bit confused, considering
their frank relationship, he felt that something
Upon receiving the sanction letter, the customer was wrong which he was missing! His boss Mr
Co, quickly advised the acceptance of sanction Thomas, had always been 100% relying on his
with necessary board resolution and requested work & recommendation that never failed.
for early release of the limit in order to execute
a huge export order for which consortium It was very late in the evening back at his home,
but he still opened laptop and the Export B/R
leader was also pressurising. The Branch was
also following up with the Lead Bank as well statement, that was totalling around `1540 Crs
as other large PSU member Bank, asking for (paid & unpaid together), and estimated for
this current year is `2120 Crs. Then he checked
help regarding sanction-compliance, at least
by providing the opinion report though it was for last year’s Export B/R and found it was 75%
FBD limit backed by LC. Only `280 are Non-
removed. In a Banker’s meeting, Mr Das, met
DGM, lead Bank and other PSU member Bank LC, which was alright. Suddenly he noticed
during the dinner, they very jovially told Mr that there are small insignificant * mark against
nine export bills without any comments,
Das, “Hi, young man, you managed to sanction
very smartly in a lightning speed, even which he ignored last month also. Now out of
curiosity, he was verifying little more. And to
removing the earlier conditions. Now what is
your problem? You have got the clear sanction his surprise, (very cordially thanking DGM), he
from Bank’s appropriate authority, now if you observed as follows:
want to grab this good business, you have to 1) Five bills were Dt16.04.xx & four bills dt
quickly act and release. Otherwise, another 29.4.xx, All Inspection Agency Certificate
Bank is waiting in the wings and already dt 30.04.xx !!
talking to the company to grab your share!” Apparent doubts:
Mr Das, then requested the DGM, Lead i) Unusual billing & it’s dates.
Bank, “Sir, my submission is, you both have ii) And all 9 bills inspected and certified
sanctioned and released the limit, may we not on one single day (?)
expect a favourable two line letter that account iii) And by one agency
and it’s export figures and performances are
iv) The certification dates are after billing
good. So that we can also offer an excellent
rate, as yours.” Pat came the reply “dear, all date, which is not possible.
Export Bills data, unaudited financials with 2) When Mr Das started checking-up of
projected sales & profit, sanction note with realisation bills at night 1AM, he almost
recommendations are with you. Youngman, had an heart attack, sort of, when he saw
your HO considered only the new Co’s excellent that till year-end the (even after360 days)
export of the last year and it’s collection and nine bills totalling `180 Crs not realised.
profit along with wonderful order book and 3) As per RBI norms in those days, the bills

The Institute Of Cost Accountants Of India

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