Syndicate DD Circular

8/13/2019 Syndicate DD Circular

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Date: 8- l l -2011PERMANENTUTTLITYDUE DILIGENCEREPORTOF MSME BORROWERS Y CRISILoaOe)Attentionof Branches/Officess draivn ro HO.Cir.No.287/2011/BCated 22.10.2011egardingimplementationf Schemeor FinancingMicroandSmallEnterprisesSyndMSE with effect&om0l.l 1.201. Rateof interest n MSEshasbeen rasticallyeduced ndprocess t operationalevelaresimplified to provide he increasedhruston credit low to Micro andSmallEnterprises. urther,oincreaseur reach o MSME Sector y ensuring vailabilityof adequatend imely credit o the sector,it{srintended to avail the services f CRISIL to empowerthesanctioning uthoritieswith additionalinputs o enable hem o take imely creditdecisions.CRISIL is engaged n the businessof credit rating, investment esearchand also collectionanddisseminationf corporate,inancial,market nformationo variousclients.CRISIL hasstarted atingservicesor SmallandMediumEnterprisesn 2005andhasso ar evaludtedmore han30,000MSMEsacrosshecountry.Several orporate reutilizing the serviceso CRISIL o evaluateheirexistingandprospective ealers, endors,associates,ranchisees,tc. Our Bank hasenteredMemorandum fUnderstandingMOU) with CRISIL on 28.10.2011o provideDue DiligenceReports or MSMEcustomerso supplementur nternal valuationsnd or better nderstandingf variousisks nvolvedwhile endingo MSMEs.Duediligencesa processo verif andvalidatehecredentialsf theprospectiveorrower.his sanintensend ocused xerciseonductedyaneutral redible hirdparty Bankhasanexclusiveie upwith CRISIL' or Due Diligenceand the processs intemalized s per bank's requirement. hisexercises undertakeno support he opinionof credit appraisaln the bank and offer comfort fordecisionmakersat all levels.The exercise ncompassesite visit, reference hecks, nd a briefmanagementiscussion.he duediligence rocesss completed ithin a short umaroundime of 7days rom the dateof receiptof complete ocuments ndconducting managementiscussion. hisenables uicker oanprocessingndenhanceshecompetitive dgeofthe bank.Benefits f obtainingDueDiligence) Validationof prospectiveMSMEscredentialsy a credible,eputed ndneutral hirdparfy.F Offersconfidence ndcomfort o sanctioning uthorityor takingawell informedcreditdecision.) Rigorous rocess f site visits,managementiscussions,efereniechecks, tc.) Helpshrancheso expand usinessndquickdecisionmaking) Cultivates ndenhancesisciplinewith theunorganizedMicro, SmallandMediumenterprises.

Circular o.316.-201-BC-RBD-34

Eligible nits:> All MSMEunits sperRBI/Golguidelines irhcredit acil it ies rom {lrespectf solebanking rrangementFess ayableo CRISIL :Professionaleeof{ 18700+ erviceaxlperreportall inclusives payableocollectionof all requireddocuments.Theee charged y cRISIL is to be/upfront ee o be collectedromthe borrower.} Nonrefundable 5%of theapplicableprocessingupfront ee s to becollectedromtheborrowerbefore eferring heproposalo CRISIL .

eCircular

crore to { 25 crore n

CRISIL in advance npaid out of processing


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Fjjllil::l:::i_'[,, 'i'. 'i,iCircular o.316 201-BC-RBD-34/18.11'201

F Theapplicableeeshallberemittedo CRISIL'sBankCurrent ccount o. 0032-0500-0032 tICICI BankLtd., - DadarBranch,Poonawadi, r; AmbedkarRoad,Dadar,Mumbai 400 014 byNEFT/RTGS.(MICRode 400-229-0|0,IFSCode: CIC0000032.AN No: AAACT 3l5l E:ServiceaxNo: AAACT 3151EST001)Contactpersons t CRISIL for clarifications:Foranyqueries n remittanceetails rancheslaredvisedo get in touchwith Mr' MadhumangeshBagul t 022-3342-1917r email [email protected] ranches aycontactheManager, IBIL at he ollowingaddresstc.Mr.Ser j i lAlamManagerThaparHouse,Mezzanine oor,43 44,MontiethRoad,Egmore, hennai600008.Te 9 44 66.53 36, 0988480220,Fax:9144285475Emai sala [email protected] obtainDuediligenceReport:Stepl. Branchwill collect all requireddocuments f MSME clientasper the list for preparing heDueDiligence eportAnnexure I) on receipt f applicationor credit acilities.Step 2.Collect25o/o f the applicableProcessingupfront fee from the borrower n advance nonrefundableeforeeferringheproposalo CRISIL.Step3.Brancho inform he applicant boutCRISILduediligence rocess sper Annexure I and*uik u copy o CRISIL. n cases herecustomerso nothaveemail d or accesso emails,Branchshouldnformcustomershrough ourier/postith a email opy o CRISIL.Step4.Brancho remitentireduediligenceees hroughRTGSd{EFTo a bankaccount f CRISILwith a narrationFORCRISIL DueDiligence eport f M/s ......,... (Details f BankAccount sabove)Step5 Brancho sendan email o [email protected] etails f loanapplicationnd eeremittanceetails sper ormat n AnnexurelIIStep6. CRISIL associates ill collect documents nd nformation rom the branchand contactheclient o conduct itevisit andcollect emaining ocumentsif any)andsendhe documentso CRISILHO ,Step7. CRISIL analystso analysehe informationand conducta brief telephonic onversation iththecustomer.Step8. CRISIL to send he due diligence eportwithin 7 working days orm sitevisit and elephonicconversion ith customer.Thereportshallbe sent o branchalongwith the nvoicecontaining ll theaspects.

If the branchs not able o collectall the informationor a particularoan applicantnspiteof repeatedfollow-ups,theranch houldn the minimumcollect heFinancial elated ocumentslongwith 3 YearsIncomeax etumspersonal company) nd ntimatehe easonor non-availabilityf other nformation,so hatCRISIL hallapproachheclientaccordinglyndcollect alancenformation. owever, ranchsrequestedo takenoteof the fact hat f completenformations notsubmittedo CRISIL, he umaroundtime or submissionf reportsmaygetextended,ased n heco-operationf client.


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Crcular o.3l6 201-BC-RBD-34/18- l-201I

Due DiligenceReport would cover the fotlowing aspectsof the borrowers and their businessactivities:) Businessrofile:Businessescriptionndexperiencen the ield>>Demand ndsupplysideanalysis: ustomerprofileandsupplier rofile) Ownership a'ttem ndmanagementrofileof owner/partners/promoters) Organizationaltructure, ontrols ndsystems) Keymanagementersonnel) Briefdetails f othergroup ompaniesnd irmsF Current ankingacilitieswithname f thebankand acilities njoyed) Current ndpast inancial erformanceprofitand ossaccount,alanceheet,urnover, ey

financialatios, nd und'flowstatementX,$ite visit details,Details f propertieswned asconfirmed y management)) Thirdpartychecks- ustomers'/uppliers/ankerseedback)OtherGuidelines) The requestor Due DiligenceReport s to be submittedo CRISIL for Credit facilities rom {lcrore upto t 25 crore ior MSMEs to enablequicker oan processing nd shall not delay heprocess fsanction.) branches hall efer he caseso CRISIL for Duediligence eportdepending pon herequirementon caseo case asis.F Branches hallensurehat DueDiligence eportcontains ll the aspects f the borrowerand heirbusinessctivities.) The Due.DiligenceReport will be deliveredo the branchwithin 7 days from the date ofsubrnissionf all requisiteocumentsnd ompletionf site isitF The delay n furnishinghe report f any shallbe takenup with CRISIL, f not resolvedn time

Brancheshall akeup hematterwithCO:MSME, angalorehroughheirRegional ffice.All Branches/officesreadvisedo makeuseof CRISIL'sexpertisen thisareaextensivelyndseektheir DueDiligence eport or MSMEswith exposuref t I crore o { 25 crores. hiswill notonlysave ime in aplraisaloi NASNASroposalsor branches ut alsoprovidequalitative upportn takingtimely redit ecisions.Branches/Officesrerequestedakethis circular may be sought fromDepartmentat Corporate Office,guidelines.

note of the aboveguidelines.Clarifications equired, f any,onMicron Small &Medium Enterprises & Retail BankingBangalorethroughrespectiveRegionalOffice, as per extant

MAOAX:YRSRE:YRUNOCheck Word GENERAL MANAGER


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A Circular o.3l6 201l-BC-RBD-34i18- l-201-

a

AnnexureV nnexureld' , .F List,ofdocumentp nd inforFatio4requiredbv 9RISIL for ConducfiqeDue.Dilieenceti Financial related

./ Audited/Provisionalinancialstatefi:lentso, ZOtO-t for evaluated ntity./ Financial tatementsannual epoh) or 2009-10, 008-09 nd2007-08or evaluated ntity./ Financialtatementsannualeport) or200$'10 Provisional010-l for groupentities./ Networth statementsf all promotersstatementshouldbe certified by CA)Bankins acilitieselatedr' Repaypgnt chedulef all long ermdebtStatutorvComplianceelated,/ 3 Years ncomeax retumspersonal company),/ 3 Years alesax retums./ 3 Yearsexciseduty returns,/ 3 YearsESICiEPFetums,/ 3 Yearswealth ax returns/ Proofof ProvisionalFinalpowersanctionn respect f newunitsOthers

Provide documentssupporting for registration(memorandumand articles of associations,partnershipgreements,nd egistration ocuments).if any).Documentsupportingame hange nd egalstructure.Documentsupportinghangesn capital if any).Insuranceolicy Xeroxcopy.Details f TaxExemptions.Address roofof the entityandpromotersndguarantorcopyof telephone ill or electricity il lor copyofpassportr copyofdriving icense)

ogOu>


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i

Circular o.36 -201-BC-RBD-34118-1-201

AnnexureI

Ref 000/001/2011-12

Mr. ABCCompanyPvtLtd

Date:dd/mm/yy

trpm:Biinch HeadSyndicateank

Sub: CRISIL Due Diligence RePort onDearSir,

XYZ Company Pvt Ltd

In our constant ndeavoro provideyou best n classserviceevelsand mproveour turnaroundime,we haveembarked n an a new nitiative or evaluation f ourMSME customers. owardshiswe arepartneringwith CRISIL - India'smost espectednd eading ating, esearch,isk andpolicy advisorycompany, o undertake uediligence f MSME customers'Representativesf CRISIL will contact ou requestingor a meeting.Theywill alsoberequestingorcopiesof documentsequired or preparing he duediligenceReport.We request ou to extend ourcobperationo CRISIL rlpresentativei ndassisthem n thedocumentationnd nformation ollectionprocess.This initiative rom Syndicate ank amongstndia's eading ublicsector anks,s to reduce urtumaroundime, improve nformation ollection& strengthenur credit deliveryprocesso enhanceyouroverallexperiencef dealingwith us.Thanking ou

YoursSincerely

BranchManager


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Circular o.316201 -BC-RBD-34/18-1-2011

AnnexureIISpeCimenetter o CRISfL authorizingo conductDue Dilieence.

Ref 000/0012011-12CRISILLtdCRISILHouse,Hiranandani usiness ark,Powai,N$f 4bai 400076From:BranchManagerSyndicateank

(ddimmlyy)

(Completeddressf branch)BICCode:XXXXTel:+91XX XXXXXXXXSub:CRISILDueDil igence eport n .. . . . . . . . .CompanyvtLtd.DearSir,As per he agreementxecutedwith theBank,we areauthorizing ou to conductDue Diligence n thecase f . . . . . . . . .XYTCompany vtLtd.Necessaryntimation n thisregard s already assed n o thecustomer lsoandwe havealso emittedan amount f { 18,700/- serviceax to your account o: 0032-0500-0032ith ICICI Bank,DadarBranch n DD/MM/YYYY & the eferenceo for hesamesGivenbeloware hecontact etails f thecustomer:

Nameof entity Nameof thecustomer Contact no. ofthe customer Email Addresscustomer Address fentityLoanamountaonlied or

Pleaseubmityourreportwithin 7 days.ThankingYou

Yours Sincerely

BranchManager

Date: