For one hour short session of bank staff,this much is useful. One can understand basic concept of what is meant by appraisal and what banks finds out for advance case. This much is not enough ,but for beginner of banking course this gives overview of appraisal. Even students studying banking can get idea about what this is and how done

1. A R Mankodi
Faculty- NIIT IFBI (PGDB)
Director- Karnavati Coop Bank
Secretary- Bankers’ Club
Ex CEO- Guj State Coop Union
Ex DGM- A D C Bank
AMCO Bank
1
CORPORATE TRAINER

2. What is appraisal ?
Appraisal mean to ascertain
about applicant’s financial as well
as personal and social status by
calling various papers and data
and judging creditworthiness and
repaying capacity to take
decision of advance

3. Following are three ways of analysis
1 Quantitative Analysis
2 Qualitative Analysis
3 Technical Analysis

4. CREDIT APPRAISAL
Personal Project
safety
Character
Integrity
Reliability
Motivation
Age
Health
Initiative
Capital Collateral ConditionCapacity
Knowledge
Skills
Industry
Management
Production
Finance
Marketing

5. MORE….
 Take outsider guarantor where possible
 Find out about assets of applicant,gurantor
 Find out market reports history of borrower
 Find our eligibility
 Find our arrangements of margin money
 Search ROC if applicable
 Ask if PG available
 See who attends you and how haste fully
 See if consultant is involved—Discourage if
any
 Find out object and end use

6. PROFIT AND LOSS ACCOUNT
5865151 op Stock sale 51875948
23774552 Purchase Others 398635
243257970 Prod cost Cl Stock 7117682
3145864 ADM cost
1623409 Depreciation
655322 profit
---------------------------- ------------------
59292268 59292268
Pur+Cost/12=monthly prod cost=40 lac
Sale/12=monthly sale=68 lac
Profit is just 1.2 % of sale. with deprec it is 4.5 %
100 % production cost of purchase( Not possible)

7. BALANCE SHEET
 1950000 Capital Machine 14262373
 2225362 Reserve Invest 218000
 7568097 Bank Loan/Adv 272712
 17060955 Creditors Debtors 23071438
 Stock 7117685
 Cash 175482
 -------------------------- ---------------
 24353690 24353690

8. RESULT
1. Balance sheet not tally on credit side it is
–ve
2. Capital + Reserve + Bank=1.17 Cr –
Machine 1.42 WC =Zero
3. Debtors(2.72) + Stock(71.17)<
Creditors(1.71 Cr)
4. Loan > Capital
5. 100 % Prod cost on purchase not possible
There is sure diversification and
manipulation of accounts

9. Project Person
RejectBadBad
Decision
Bad Good
RejectBadGood
Reject
 Credit Decision
SanctionGoodGood
Become
NPA

10. THANK YOU