october 2021 june 2019 change the world by being yourself

June 2019

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Shriram City—News Letter - Breeze – 1st OCTOBER 2021

OCTOBER 2021 Change the world by being yourself. – Amy Poehler

June 2019

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OCTOBER 2021

Our North Regional office had organized Swachh Workplace Competition on 1st October 2021 at North Regional Office for enlightening the Spirit of Swachh Bharat on the Occasion of Father of Nation, Mahatma Gandhi’s Birthday. And below are the Rank holders & Consolation Prize holders of Swachh Workplace Competition.

Congratulations to all the Winners Rank Holders

Swachh Workplace Competition at North Regional Office

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OCTOBER 2021

Consolation Prize Holders

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OCTOBER 2021

List of Winners are below. There are 3 rank holders and 6 Consolation Prizes:

LIST OF WINNERS

EMPCODE NAME DEPARTMENT RANK

NP1020 POOJA CASH DEPOSIT 1

S8389 SHIV KUMAR CMS LOGISTIC 2

F091 FARZANA CMS LOGISTIC 3

R1942 REETU TYAGI ADMIN CONSOLATION

S4643 SHWETA KUMARI CASH DEPOSIT CONSOLATION

NS2446 SUMIT KUMAR SINGH CREDIT CONSOLATION

A4849 ASHOK KUMAR LEGAL - BACK OFFICE CONSOLATION

NS1904 SANDEEP KUMAR DUBEY

RECOVERY SUPPORT CONSOLATION

NS2555 SONAM VERMA SALES & MARKETING SUPPORT CONSOLATION

Members of Organising Committee are below:

ORGANISING COMMITTEE

EMPCODE NAME

P036 PREMJEET SINGH

S5914 SAPAN KUMAR MAURYA

NA1410 ANUJ KUMAR

NR960 RANJEET KUMAR SHARMA

NJ181 JITENDRA KUMAR SRIVASTAVA

NM156 MUNNA KUMAR PRASAD

NP037 PAWAN KUMAR

NP156 PAWAN KUMAR SRIVASTAVA

NA151 ANIL KUMAR BHAKTA

R424 RAJESH ROHATGI

Judges Panel are below:

JUDGES PANEL EMPCODE NAME

NK192 KAVITA BHATT

NP318 POONAM MEHTA

ND693 DEEPA BHATT

NR801 RACHNA DEVI

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OCTOBER 2021

LENDING BUSINESS – SELECTION OF BORROWER

In lending business, the most important aspect is the selection of borrower. It is

easier to say this than done as a decision is to be taken within a time frame

when the borrower /customer approaches the lender or when the lender

approaches the market for selling the loan product. Any wrong decision taken

or if proper due diligence is not done in the initial stage itself, the result will be

detrimental to lender’s interest with consequences. This is true of all loan prod-

ucts and more so under business loans. In today’s context this issue assumes

importance as there is stiff competition for securing viable business. MSME

segment in particular has been affected by the pandemic and many of the

business units are slowly limping back to normalcy. Hence, it will be prudent for

any lender to be careful in the selection of borrower and assessing their loan

requirement. Some of the points for consideration are as follows.

Person(s) - Person means man behind the organization. In the case of

proprietorship for example, the sole proprietor is the person. His managerial

capacity ,educational background, experience, family status , past track

record, willingness to repay the loan , integrity, alive to current trends,

proactive etc. In the case of partnership there could be a situation

wherein all the partners may be actively involved in business with distinct

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OCTOBER 2021

roles and responsibilities or one or two persons may be active and others

may be silent partners. Examination of partnership deed will give some

idea of the responsibilities of partners, their shareholding, and authority to

act on behalf of the firm etc. It could be family members or association

of persons with diversified background. It is preferable for the lender to

look into all aspects so that the partners have clear understanding of their

roles and responsibilities. The commitment and integrity of all the persons

associated with the firm are important. Each partners individual vis-à-vis

business capabilities, are to be verified, enquiredand established before

arriving loan component. In the private limited company, the

responsibilities of shareholders, CEO, key functionaries assumes important

apart from business viability.

Purpose - Purpose of the loan should be productive, legitimate and

fruitful so that the money lent is relatively very low risk and also provide a

certain source of repayment. If the borrower deploys the funds in an

unproductive or speculative project, the advance would be in jeopardy.

In the case of working capitalloans, the disbursement should facilitate

increase in net working capital and loans for capital assets should result in

corresponding increase in fixed assets. Incase loan is for taking over from

some Bank/NBFC, care should be taken to ensure that no

non -performing asset is taken over , the payment is directly made to the

concerned Bank/NBFC and that existing charges over the assets are

relinquished by them in favour of lender All these are subject to board

approved policy and prior approval is taken from the appropriate

authority.

Capacity – Capacity includes the business ability, managerial ability,

marketing ability etc . The capacity depends upon the borrower’s

tangible assets and achievement track record. It must be ensured that

the enterprise or business for which is loan is sought is sound. Any

weakness in the capacity will adversely affect the performance of the

firm which will impact the lender’s interest. Track record of the business

will throw light on the deficiencies if any and the lender must discuss with

the key person before taking a conscious decision.

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Capital /credit worthiness – Borrower’s financial stake in business is an

important aspect. It is important that the borrower has brought in

appropriate capital and has been retaining a portion of profits in the

business. This will show the stake holders commitment in the business. There

could be cases where the capital level is very low and the entrepreneur

may be running with borrowed capital and in the event of closure of such

business the impact on the lender will be huge. The analysis of 3 years

audited balance sheets of the firm will be useful to draw the rightful

conclusions

Collateral – Lender in general will be comfortable if any tangible

additional security is offered by the borrower. The nature and value of

collateral coverage will be an additional comfort for the lender in case

the borrower fails to repay the loan as committed or when the business is

closed for any reason. This is particularly relevant when the exposure on

the borrower is high and there is marked change in risk perception due to

certain developments

Conclusion: The selection of borrower is a crucial factor in any loan and

more particularly for business loans. The role of credit analyst in examining

and recording the key factors covering liquidity, profitability , purpose ,

safety and security , source of repayment , diversification of risk , social

responsibility, regulators guidelines ,company’s policy, market

intelligence etc.,as part of credit investigation will greatly help any

lending company in building a healthy loan portfolio.

A lender’s performance largely depends on his ability to recover the dues

in time. A successful recovery percentage will have impact on Lender’s

AUM and profitability. A judicious and intelligent borrower selection

paves way for organization growth.

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OCTOBER 2021

Communication Address:

Editorial Committee, (News Letter—Breeze)

Shriram City Union Finance

144, Santhome High Road, Chennai—600 004

Phone: 044 43925300

Email: [email protected]

Editorial Committee

Shri K.Subramaniam CO, Mylapore

Smt M.Subhashree BSC, Santhome

Shri N.R. Sivakumar SFPS,Santhome

“Life is a

question

and

how we live

it is our

answer.” -Gary Keller

october 2021 june 2019 change the world by being yourself

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