Risk Scoring Model Existing Connection

Name of the Borrower

Name of the Branch
Name of the Zone
Name of the Circle
Present Exposure
Proposed Exposure
Internal Rating
External Rating
Date of Receipt of proposal
Name of the Analyst & PF No
Name of the Checker & PF No
Name of the Validator & PF No
Risk Scoring

S No Parameter/Sub-Parameter Score Weightage

I Company 1
A From data in proposal
i Constitution
1
Public Co-Listed/Central PSU including Maharatna/Statutory Corporations
Public Co-Unlisted/State PSU 2 2
Private Limited/Society 3
Partnership/LLP/Trusts & Association 4
Individual/Proprietary Concern/HUF/Others 5
ii Commencement of commercial operations since
No projects involved NA
More than 5 years 1
1
More than 3 years but upto 5 years 2
More than 1 year but upto 3 years 3
Upto 1 year or yet to commence operations 4
Gearing in Trend in Movement of Gearing TOL/Adj TNW (for Last Year LY),
iii Previous Year (PY) & Current Year (CY)
Not Applicable to the proposal NA
Improving with value better than the Desired Level 0 2
Deteriorating but within the Desired Level 1
Improving with value worse than the Desired Level 2
Deteriorating but within value worse than the Desired Level 3
iv Liquidity-Trend in Movement of Liquidity (CR) (for LY, PY, CY)
Not Applicable to the proposal NA
Improving with value better than the Desired Level 0
3
Deteriorating but within the Desired Level 1
Improving with value worse than the Desired Level 2
Deteriorating but within value worse than the Desired Level 3
v Interest Coverage Ratio-Trend in movement of ICR (for LY, PY, & CY)
Not Applicable to the proposal NA
Improving with value better than the Desired Level 0
3
Deteriorating but within the Desired Level 1
Improving with value worse than the Desired Level 2
Deteriorating but within value worse than the Desired Level 3
vi Op Cash Flows after WC changes -Trend in movement (for LY, PY, CY)
Not Applicable to the proposal NA
Op Cash Flows Improving with increased turnovers 0
3
Op Cash Flows Improving with decreased turnovers 1
Op Cash Flows Decreasing with increased turnovers 2
Op Cash Flows Decreasing with decreased turnovers 3
vii WC Cycle (days)Trend in movement (for LY, PY & CY)
Not Applicable to the proposal NA
WC Cycle Contracting with increased COS as a % of Net Sales 0
2
WC Cycle Contracting with decreased COS as a % of Net Sales 1
WC Cycle Expanding with increased COS as a % of Net Sales 2
WC Cycle Expanding with decreased COS as a % of Net Sales 3
viii Long term Debt / EBITDA - Trend in movement (for LY, PY & CY)
Not Applicable to the proposal NA
Improving with value better than the Desired Level 0
2
Deteriorating but within the Desired Level 1
Improving with value worse than the Desired Level 2
Deteriorating but within value worse than the Desired Level 3
Trend of utilising short term sources to long term uses, resulting into
ix Current Ratio falling below desired level
Not observed during last three years 0
Once in the last 3 years 1 3
Twice in the last three years 2

3
Observed in all the three years and/ or estimated/ projected to continue
x Number of members in consortium/ MBA
Sole Banking NA
Up to 5 members (or) Maharatna 0 2
6 to 15 1
More than 15 2
xi Product/ Market Concentration
Fairly distributed 1
2
2
Concentration evident/ Not commented upon in the proposal
xii Our proposed share in Consortium/ MBA and ease of exit
Sole Banking NA
Upto 10% (Or) Maharatna 0
3
More than 10% and upto 25% 1
More than 25% but upto 50% 2
 3

More than 50% 3

xiii Change in Key Management Personnel (KMP)
No change 0
If one KMP left in last 12 months 1 2
If two or more KMP have left/ new KMP who is a defaulter is inducted in 2
last 12 months

xiv Compliance with Conditions/ Observations/ Terms of either sanctions

Fully complied with 0 5
Partially complied with 1
Not at all complied with 2
Qualifying remarks/ Emphasis of matter by Statutory Auditors of the
xv Company
No qualifying remarks/ emphasis of matter (or) exists and its impact is upto 0
5% of TNW
2
Qualifying remarks/ emphasis of matter exists and its impact is above 5% up 1
to 10% of TNW
Qualifying remarks/ emphasis of matter exists and its impact is above 10% 2
of TNW
TOTAL
B From intelligence gathered in CRD
i Board Quality
Functionally Independent 0
3
Directord from promoter family are < 50% 1
Directors from promoter family are > = 50% 2

Contribution (Net Sales minus Cost of Production) estimated vs industry

average (of five years for applicable turnover brackets, i.e., up to Rs 500 Cr,
ii Rs 500 Cr to Rs 2000 Cr & above Rs 2000 Cr)
Not Applicable to the proposal NA
2
Above the industry average by > 20% 0
Above the industry average by < 20% 1
Below the industry average < 10% 2
Below the industry average > 10% 3

Resilience of estimated ICR & Debt/ EBIDTA (Changes in these ratios

Current Year (CY) & Next Year (NY) when worked with average EBIDTA
margin of the industry over last five years, for the applicable turnover
iii bracket; i.e. Up to Rs 500 Cr, Rs 500 Cr to Rs 2000 Cr & above Rs 2000 Cr)
3
Not Applicable to the proposal NA
Improving 0
Deteriorating by below 20% 1
Deteriorating by 20% to 50% 2
Deteriorating by more than 50% 3
Extent of Contingent Liabilities (CL) / Litigations / NCLT cases wherein the
iv company is respondent
4
 No critical cases pending 0 4
Litigations pending Appellate Tribunals/ Supreme Court 1
Existence of Cl /Litigations not reported by the branch 2
Frequency of stress reporting (for more than 30 days "In Default"
v continuously in CRILC / SMA-1 / SMA-2)
NIL during last 12 months 0
4
One time during last 12 months 1
Two times during last 12 months 2
More than two times during last 12 months 3
vi Extent of pledge of promoters' shares (other than lenders)
No pledge 0
4
up to 20% of promoter holding 1
More than 20% of promoter holding 2

vii Cash flow diversion (existence of current accounts with non-lenders)

Non-existent 0 5
Existent with approval of lenders 1
Existent with out approval of lenders 2
Volatility in Share price movement (with respect to Bench Mark Index
viii applicable for the script) (for listed company)
No issue of share NA
3
Beta of the stock is less than 1 (or) Maharatna 0
Beta of the stock is 1 to 1.25 1
Beta of the stock is more than 1.25 2
ix Diversity of funding options being exercised by the unit
Three or More (including bank funding) 1
3
Two (including bank funding) 2
Only Bank funding 3
x Major/ Beneficiary shareholding by trusts
Not Applicable to the proposal NA
4
No 0
Yes 1
Premium being paid on FBIL Benchmark rate for orimary issuance of debt
xi (for listed company)
No such Issuance of debt NA
3
Not more than 100 bps 1
Between 100 and 250 bps 2
More than 250 bps 3
EBIDTA 0 Trend in Movement (Industry Average Data as per independent
xii agencies) (LY, PY & CY)
Not Applicable to the proposal NA
Higher than Industry Average and improving 0 2
Deteriorating but still higher than Industry Average 1
Improving but still lower than Industry Average 2
Deteriorating and lower than Industry Average 3
xiii Any other Risk Factor pertaining to company/ Borrower
No such factor NA
Risk perception is Low 1 3
Risk perception is Medium 2
Risk perception is High 3
TOTAL
C Mitigation evaluation
i For Public Company - Listed/ Central PSU/ Maharatna listed with
Sensex/ NIFTY 2
5
BSE A group/ NSE 200 1
Others 0
OR
For Unlisted/ State PSU/ Private Co
Competency of Management
[% Score in "Management Risk" of RAM rating]
Management Score is above 90% 2 3
Management Score is between 75% and 90% 1
Management Score is less than 75% 0
For Partnership/ LLP/ Proprietary units
Collateral Coverage
Covers > 50% of total exposure 2
5
Covers 25% to 50% of total exposure 1
Covers less than 25% exposure 0
For all types of borrowers
Existence of guarantee by State/ Central government
Available covering more than 75% of exposure 3
Available covering more than 50% upto 75% of exposure 2 5
Available covering upto 50% of exposure 1
Not available 0
ii Availability of long term contracts for purchase of principal inputs
Not Applicable to the proposal NA
Covers more than 75% of requirements 3
2
Covers more than 50% to 75% of requirements 2
Covers more than 25% and upto 50% of requirements 1
Not available 0
iii Availability of long term contracts for sale of principal products
Not Applicable to the proposal NA
Covers more than 75% of production 3
2
Covers more than 50% to 75% of production 2
Covers more than 25% and upto 50% of production 1
Not available 0
iv Consistency in Contribution Levels
Not Applicable to the proposal NA
Contribution is more than 3 times of the indutry average during LY, PY, CY &
NY 3
5
 Contribution is more than 2 times of the indutry average during LY, PY, CY & 5
NY 2
Contribution is more than or Equal to the indutry average during LY, PY, CY
& NY 1
Contribution is less than the indutry average during LY, PY, CY & NY 0

TOTAL
PARAMETER SCORE

S No Parameter/ Sub-Parameter Score Weightage

II Promoter/ Group 2
A From data in proposal
History of Defaults (More than 30-days) by the Group (other than borrower
i company)
No default 0 5
Single case default in last 12 months 2
Multiple defaults in last 12 months 3
ii Group gearing, liquidity and positive cash flows
Desirable Gearing, Liquidity and positive Cash Flows (Or) Promoter(s) do not
have any other activity 0
3
Any one of the three (Gearing, Liquidity and positive Cash Flows) is adverse 1
Any two of the three are adverse 2
All the three are adverse (Or) Group data is not provided 3
iii Extent of diversification
No diversification 0
2
Diversified in to two to five activities 1
Diversified in to more than five activities 2
iv Promoter's/ Sponsor's experience in the industry/ Activity
More than 10 years 0
More than 5 years and up to 10 years 1
2

More than 1 year and up to 5 years 3

Less than one year 4
Extent of Related Party Transactions (Sales or Purchases or Both based on
v applicability)
Related Party Transactions are up to 15% 0
3
More than 15% up to 50% are with Related Parties 1
More than 50% are with Realted Parties (OR) data not provided in the
proposal 2
vi Venturing into new markets/ activities in the Current Year
Not Applicable to the proposal NA
2
No 0
Yes 1
vii Location of beneficial Sponsor
Not Applicable to the proposal NA
5
India 0
Abroad 1

viii Group company selected as EPC contractor (in case of New TL Proposed)
Not Applicable to the proposal NA 3
No 0
Yes 1
ix Submission of financial data in time
Submitted within the stipulated timeline 0
3
Submitted with a delay not exceeding one month 1
Submitted with a delay of more than one month 2
TOTAL
B From intelligence gathered in CRD

History of irregularities/ defaults/ cross defaults with other lenders by

i Group (of more than 30-days in any instance) (Other than Borrower
Company)
5
NIL 0
Observed once in last One year 1
Observed in multiple occassions in last One year 2
Extent of promoter group holding in the borrower company, with changes
ii in the last three years
No changes/ improved in the last three years 0
Decreased by upto 5% during last three years/ decreased under statutory 4
purposes 1
Decreased by more than 5% & upto 10% over last three years 2
Decreased by more than 10% over last three years 3
Pledge of promoter shareholding for unrelated purposes to other than the
iii lenders
Not Applicable to the proposal NA
5
NIL 0
Observed once 2
Observed multiple times 3
Major proceedings/ litigations pending against the Promoters/ Group/
iv Convicted
4
Not existing 0
Existing 1
v Extent of negative news in the media on the Promoters
Negligible negative news 0
3
Sporadic reporting of negative news 1
Fairly extensive in recent times 2
vi Complexity of the Group Structure
Not Applicable to the proposal NA

3
 Direct holding by promoters OR Promoter(s) are not having any other
activity 0 3
Single holding 1
Two to three layers 2
More than three layers 3
vii
Model Existing Connection

Risk Scoring

Source Co's Score Co's W Score Max Score Benchmarking Comment of the
(Y/N) Analyst

KYC
Document/
ROC 0 10 No
Document/
Appraisal
Note

Appraisal
0 4 No
Note

Balance
sheet
Analysis/ 0 6 Yes
Appraisal
Note

Balance
sheet/ CMA/
0 9 Yes
Appraisal
Note
 Balance
sheet/ CMA/ 0 9 Yes
Appraisal
Note

Balance
sheet/ CMA/ 0 9 No
Appraisal
Note

Balance
sheet/ CMA/
Appraisal 0 6 No
Note

Balance
sheet/
Appraisal 0 6 Yes
Note

Balance
sheet/
0 9 No
Appraisal
Note

CRILC/
Appraisal 0 4 No
Note

Own
Assessment/
0 4 No
External
Source

Lead Bank
0 9 No
Note
Lead Bank
0 9 No
Note

Annual
report/
0 4 No
external
source

Appraisal 0 10 No

Annual
Report 0 4 No

0 103

Annual
Report/
0 6 No
External
Source

Balance
Sheet/
0 6 Yes
External
Source

Balance
Sheet/
0 9 Yes
External
Source

External 0 8 No
Sources
External
0 8 No
Sources

CRILC 0 12 No

External
0 8 No
Sources

CRILC 0 10 No

External
Sources 0 6 No

External 0 9 No
Sources

Annual
Report / 0 4 No
External
Source

External
0 9 No
Source

Balance
Sheet/
0 6 Yes
External
Source
 Own
0 9 No
Assessment

0 102

Proposal/
External No
source

OR

RAM No

Appraisal No

Appraisal No

Appraisal No

Appraisal No

Appraisal
Note/ No
External
source
 Appraisal
Note/
No
External
source

0 0
0 205
weight 1
Benchmarking
Co's Score Co's W Score Max Score (Y/N) Comment

CRILC/
Appraisal/
0 15 No
External
Source

Group
balance 0 9 Yes
Sheet Study

Appraisal 0 4 No

External
Source/ 0 8 No
Proposal

External
0 6 No
Sources

External
Sources/ 0 2 No
Appraisal
 External 0 5 No
Sources

External
0 3 No
Sources

Appraisal/
audit 0 6 No
statement

0 58

CRILC/
External 0 10 No
source

Share
holding
pattern/ 0 12 No
external
source

External
0 15 No
Sources

External
0 4 No
Sources

External
0 6 No
Sources

External 0 9 No
Sources
External
0 9 No
Sources