________________________________________________________________________________

Credit Appraisal
and its role in Working Capital Finance

Chennai: November 15-17, 2010

This computer-based workshop includes a hands-on credit

a ppraisa l e xercise that is intended to walk the pa rticipants
through a financial appraisal case study.

“A very interactive discussion and example-based

training: Imparting total product knowledge in simple
terms without too much emphasis on formulas”
- Senior Manager (Treasury), Tata Motors

The objective of this training is to help the participants

Learn in depth about the working capital cycle and the determinants of working
capital finance

Understand the credit appraisal process for working capital finance

Build knowledge of how to deal with window dressing in financial statements and
learn about the various possible pitfalls in the credit appraisal process

Master the technique of setting working capital limits through a hands-on computer-
based exercise

This programme will benefit

Credit officers from banks (Senior Managers to Chief Managers and AGMs of Public
sector banks)

Officers from NBFCs lending to SMEs

Level: Intermediate-to-Advanced

Organisations which have nominated in the past

> Corporation Bank > Kotak Mahindra Bank

> Indian Bank > Reliance Capital
> Tata Capital > The Shamrao Vithal Co-op Bank Ltd
> The Federal Bank > The Lakshmi Vilas Bank Ltd
Course Structure

1. Introduction
 Entry Test to participants – knowledge mapping with the course discussions/
contents
 Meaning of Finance and Working Capital
 Working Capital Concepts
 Sources of Working Capital Finance
 Financing Mix Approaches - Hedging, Conservative, Aggressive and Trade-Off
Approaches
 Meaning of Operating and working capital cycle
 Factors affecting working capital cycle
 Meaning and objectives of working capital management
 Processes involved in working capital finance

2. Determinants of working capital

 Major determinants of Working Capital
 CMA directions
 Small exercise on how adjustments to financial statements are done in CMA
 Understanding of NWC Concept (balance sheet equation) – specific macro based
excel (3 interlinked worksheets) to arrive at NWC and working capital need
would given to participants
 Issues with over trading
 What to look for in a credit decision process? (40 practical tips)
 Drawing cues from the Upanishad
 10 hidden business risks -Validations
 Aspects of common window dressing and picking up warning signals
 Criticism against cash credit system
 Deficiencies in cash credit system
 Discussion on “Hard Core asset’ funding
 Reasons for existence of gap between limits and utilization – examples
 Supply chain financing
 Relevance of Basel II norms in working capital finance
 Case studies on the above concepts

3. Pitfalls, Integrity checks and intelligent traps

 120 identified areas of pitfalls in the credit appraisal process – with examples for
each one of them

4. Case Study: on Cash Flow importance (Through common size analysis)

5. Role Play: A Case on Apparel sector would be discussed and presentation by

participants in groups

6. Drawing Power and Margin – discussion and existence of fallacy

7. Sanity checks and opportunity assessment – A case study

8. Case Study: Stock verification – Insurance loss

9. On-Screen rapid fire questions on credit

10. Case Study: CMA exercise – Computer-based financial package for project finance
and working capital (12 elaborate interlinked worksheets) and presentation by
participants in groups

11. How NOT to make Credit Appraisal Memorandum- Learning through Negation

Faculty

The trainer is an experienced banker with over two decades of rich banking experience.

Details of the programme

Chennai

Venue: The Residency Towers, Sir Thiyagaraya Road, T.Nagar, Chennai - 600 017
Date: November 15-17, 2010
Timings: 09:30 am to 05:00 pm
Fees: *Rs. 25,000/- (plus applicable service tax)
The fees are for a non-residential training and include tuition fees, lunch & refreshments
for the duration of the training.

C a n c e l l a t i o n P o l i c y : CRISIL reserves the right to retain 25% of the fees, for any
cancellations less than 24 hours before the training programme or non-attendance. CRISIL
reserves the right to accept or reject nominations at its sole discretion.

To register for the programme, contact

Latika Sharma/ Shobha Nayak

On 022-3342 3127 / 3342 3199/ 9867555312
Email: lsharma@crisil.com / snayak@crisil.com