Process ID Event Process Title Description of Process Output

LC-1 OCR Received Receive Manual
OCR
The OCR received from another division (after
approval from their hierarchy) is entered.
The OCR Entered
LC-2 Details entered and
initiate approval
process
Entering Of Details
in the form.
The details of the OCR are keyed in the system by the
accountant and it is saved and it goes for an approval
process.
Details entered and bank
nominated; workflow initiated
LC-3 Approval Process Approver
nominates bank
and approve the
OCR
The approver gets a notification in his screen about the
same OCR that is saved. When it is opened he selects
the bank and approves the OCR.
His approval initiates another workflow which sends a
notification to the requestor whether his OCR got
approved or rejected.
OCR approved and sent to bank
LC-4 Approach Bank for
LC
The OCR is sent to the bank along with other
documents to open a new LC against the supplier.

LC-5 Approval by Bank Bank Approval Bank receives the OCR and as per the understanding
between GBFT and the respective bank, it opens a new
LC in favour of the supplier against a facility available.
There can be two situations at this point. One that bank
approves the LC and the other that it is rejected.

LC-6 Change the bank and
send again
Change the bank
and send again for
approval
If the request for LC is rejected by a particular bank, the
approver once again nominates another bank and it is
sent to that bank for approval.


LC-7
Details Entry Details entered and
initiate approval
process
When bank opens an LC against the supplier, then it
gives a new reference number for that LC. This number
has to be entered in the system along with other details
such as LC Amount, Date opened, valid till, Exchange
rate and opening charges.

LC-8 Supplier intimated
and shipping
Supplier intimated
and shipping
process starts
As soon as the LC is opened in favour of the supplier,
the issuing bank requests the confirming bank to
intimate the credit and notify the supplier of the
opening of credit and the terms to be complied with by
the company to be entitled to the benefit under the
credit.
Once all this finishes, the shipping process starts.
 The seller arranges for the contracted goods to
be shipped, obtains stipulated documents
including Bill Of Lading from the Master of
the Vessel and tenders them to the confirming

Process ID Event Process Title Description of Process Output

bank.
LC-9 Goods received Goods received The goods are received by the divisions along with
other documents (commercial invoice, packing list and
shipping details). GBFT is intimated and shipping
adviceareentered against a single LC.
Then the shipment is recorded in the system against the
particular LC. Multiple shipments as they arrive are
entered against a single LC.
On the other hand, there goes on another process
between the supplier and the bank:
 The supplier is paid by the confirming bank
once the documents are confirmed.
 Confirming bank presents credit documents to
issuing bank and it is paid with its cost and
commission.
When the supplier gets paid, the process is known as
Acceptance.

LC 10 Invoice Creation Invoice Creation
Process
After the Acceptance by bank, the invoice will be
created in GBFT AP against supplier based on the
payment term and due date to bank

LC-11 Handover of
Document
Document
handover
The issuing Bank releases the documents (mainly Bill of
Lading) to the buyer after insisting on the buyer to
reimburse the cost and commission. This release of
documents is known as “Retirement of Shipment”

LC-12 Payment to Bank On the due date, there are two options with GBFT.
1. They can pay the bank on the due date and
take over the Bill of Lading. In this case, the
amount gets settled through the current bank
account of GBFT.
2. If GBFT fails to pay the bank, the Acceptance
converts into a TR. TR is again created
between bank and GBFT on the basis of trust
agreement between them. TR is accepted by
GBFT with payments terms as agreed.

LC-13 Payment of TR On the due date, TR is paid by GBFT along with the
interest.
.