This document provides information about IndianBankers, a consultancy that assists entrepreneurs with financial, taxation, and legal advice when working with banks. It offers services like compiling financial data for banks, helping with credit ratings to secure lower interest rates, and guiding clients on best banking products and processes. The consultancy aims to help entrepreneurs navigate challenges with banks through its experts who are retired bankers with qualifications like CAIIB and MBAs. It guarantees confidentiality and compliance in serving clients.

1. Why IndianBankers ?
Why IndianBankers ?
Chartered Accountant(s) areexpert in keeping Accounting Standards and are the
firstsourceof generating Financial Data. Bankers evaluate Financial Data and
come to conclusion aboutMaximum PermissibleBank Finance which can be lent
to the borrower. Wehaveacumen to makenot only to makeFinancial Data , but
have the ability to assess it fromthe point of view of Bankers . We are supported
by experienced Bankers retired fromIndian Banking Industry.
We have a large pool of Chartered Accountants and Advocates who are available
for comprehensivedispensation of expert guidance to Entrepreneurs. Our team is
high powered and committed . Our services are at the beginning of a
transformationalshiftin India and we intend to lead it.
What we are getting for IndianBankers Fees ?
We provideprofessionalservices fromonesingle platform after evaluating needs
of entrepreneurs fromfinancial, taxation and legal angles. Many times disputes
faced by entreneurs are not becauseof their fault but on numerous occasions
even banks haveseen to be wrong in their contentions . Our consultancy help
solvedisputes by mere word of mouth by presenting the cogent arguments with
the bankers. Our integrated and actionable advice tools give you actionable
guidance, which we help you execute immediately.

2. How secure is my personal informationand identity at IndianBankers ?
We guarantee extreme confidentiality of data entrusted as we are committed to
giving value to your money
Is IndianBankers aregulatedfinancial institution?
IndianBankers has highly capableex-bankers whoseexperience has always been
meritorious and many among our team are professional bankers who areMBAs
and haveattained CAIIBDegrees. Our goalis to grow as an institution.
How is IndianBankers'services different fromothers ?
Today's marketscenario is very demanding in terms of innovation . Entrepreneurs
are pressed time and again to provideto their lending banks various types of
financial data for keeping their line of credit continuing. Companies may have
their in housestaff for keeping accounts but compiling data needed by banks is
always challenging. We with a minimum of charges arecapable to providelife line
to entrepreneurs so as to not only to keep their credit continued but keep it with
better credit rating, as we being expert ex-bankers can provideinsight in to
keeping operating practices of companies crisp and healthy . Our experience of
having lived with the industrial practices can help guide entrepreneurs to adopt
best business models for improving profitability and help them in doing strategic
management of their businesses.
How secure is my personal information
We have Banking experts who have had CAIIBdegrees , MBA degrees and many
have served in banking industry at senior executives level positions as well. We

3. have a team of Chartered Accountants , Advocates who come fromfields
maintaining high professionaldiscipline and ethics. So our motto is to maintain
strict confidentiality of your affairs and our aim is to make you grow.
Does IndianBankers helpinworking with Credit Rating Agencies ?
A bank loan rating conveys the credit risk that the Bank is undertaking by lending
to the borrower. Every Fund Based Limit [ External Commercial Borrowings, Term
Loans, Working Capital Loans, Buyers Credit, Cash Credit / Packing Credit,
Overdraft, Bill Purchased / Discounted ] and Non-Fund Based Limits [ Bank
Guarantee , Letter of Credit ] are Reviewed , Renewed every year and each Bank
Rates Credit of their clients, as per their own Loan Policies . Banks give
concessions in interest rates based on betterment in Credit Rating .
Moreover for Big CorporateBorrowers ReserveBank of India ( RBI ) issued
guidelines in 2007, according to which banks are mandated to be get their Credit
Rating done from Eligible Credit AssessmentInstitutions ( ECAI ) such as : CRISIL ,
ICRA , CARE , ONICRA, FITCH , SMERA , Brickwork Rating . Rating process adopted
by the above Rating Agencies involves : Pre-Rating Process , Rating Process, Post-
Rating Process.
This Rating is done on tons of parameters and according to Rating Numbers,
Banks chargetheir lending Rates over and above Bank(s) BaseRates . Our experts
are capable to take load off the clients as we are well equipped in understanding
the criteria used for Credit Rating by Lending Banks themselves or by external
Credit Rating Agencies, and thus we help our clients in bettering their Credit
Rating for making them qualified for being charged lesser InterestRates. Our

4. insight in to getting better Credit Rating would help in securing cheaper rates of
Interestrates.
Banking Products and Processes
What are the Sectors inwhich Commercial Banks provide lending ?
The prime objective of lending banks is the welfare of the society at large. Banks
are life line for large industrial units . Apart fromthis RBI has delineated various
activities which fall under Priority Sector. The fivemain categories of Priority
Sector are : Agriculture, Micro and Small Enterprises, Micro Credit, Education
Loans and Housing Loans. Indian Banks havetarget of 40% for achieving under
Priority Sector lending, whereas , foreign banks haveto achieve 32% of their
lending under Priority Sector. There are further sub-targets for taking care of
various enterprises. For Housing, education and other retail loans, various banks
have certain specified schemes.
Do individual Banks have their ownLoan Policies , and what are the Exposure
Norms ?
All Banks havean in-houseloan policy document . Such loan policy documents
contain the ceiling level, the standards of appraisal, the decision making powers
at different levels of hierarchy, the documentation standards and the premise on
which lending decision should be taken by credit officers. The exposureceiling is
linked to the capital funds of the banks. Exposureceiling is 15% of capital funds in
case of single borrower and 40% in the caseof a borrower group. Exposurenorms

5. are higher in case of Infrastructureprojects. Banks lay down prudentlending
policies in respectof exposureto segments such as Real Estate, shares, stock
brokers.
What are MSMEs ?
Businesses that are declared as MSMEs , in India, which can enjoy fruit of having
Business interest rate reduction and financial subsidy , are the enterprises that
follow the following definition [ as per Section 7 of the Micro, Small and Medium
Enterprises Development ( MSMED ) Act 2006 ] :
Company
Category
In caseof enterprises engaged
in manufacturing Investmentin
Plant and Machinery
In caseof enterprises engaged in
providing or rendering of services
Investmentin Plant and
Machinery
Medium-
sized
More than Rs5 Crores but less
than 10 Crores
More than Rs2 Crores but less
than Rs5 Crores
Small More than Rs25 Lakhs Rs5
Crores
More than Rs10 Lakhs Rs2 Crores
Micro < Rs25 Lakhs < Rs10 Lakhs
Practically speaking Micro enterprises are those wherethere are less than 10
employees, Small enterprises are thosewhere there are less than 50 employees,
Medium enterprises are those wherethere are less than 250 employees . It is
because of this difficulty of attracting, engaging and retaining the right talent for
such enterprises , such businesses continuously need to respond to shifting

6. market needs by hiring our services for judging the required Banking Products,
Financial Data , which are critical to success . Proper and apt guidance for Banking
products that take the pain out of HR management are needed to empower both
employees & futureleaders. We have experience and expertise to provide
products and services to help companies do justthat. Ultimately, we are on a
mission to improve the lives of millions of people , while helping our clients grow
and succeed.
What are the Lending Rates of Banks ?
InterestRates of any bank are, mostly, linked to the 'Base Rate' of individual
banks. BaseRate is the minimum rate of lending , below which banks are not
allowed to lend , though there are certain exceptions in case of DRI advances,
Loans to bank's own employees and loans to bank's depositors againsttheir own
deposits. Base Rate is subject to review by all banks at least once in a quarter but
normal tendency is that these rate remain constant over a long period of time.
Banks jack up their interest rates by adding 0% to as much as 5% above their Base
Rate depending upon the Credit Rating profile of their customers. Beginning from
1st
April2016 banks havebeen ordained to adopt to Marginal Cost of Fund Based
Lending Rate ( MCLR ).
What is meant by MCLR and how it is different fromBase Rate?
Effective from1st April 2016, RBI has issued new guidelines , banks haveto
prepareMarginal Cost of Funds based Lending Rate ( MCLR ) which will be
internal benchmark lending rates. Based upon this MCLR, interest rates for
different types of customers should be fixed in accordancewith their risk

7. management. Banks have to revisetheir marginalcost on a monthly basis. The
difference between Base Rate and MCLR is that Repo Rate changes effected by
RBI are now being incorporated in to MCLR, earlier Repo Rate was explicitly
considered under the Base Rate system.
What is the Lending Process of Banks ?
Most of the Banks have their own schemes for the benefit of various small
borrowers.
After nationalization, commercial banks in India , especially the PSBs laid great
stress on Priority Sector lending. Governmentof India took keen interest in
evolving schemes for Small Scale Industry and other Village and Tiny Sector
Industries.
From2006 the Governmentof India through Small and Medium Enterprises
Development ( MSMED ) Act defined the size of Micro, Small , and Medium
Enterprises . Businesses thatare declared as MSMEs and within specific sectors
and criterias can then apply for "Priority Sector" lending to help with business
expenses. Banks have annual targets set by Prime Minister's Task Forceon
MSMEs for year-on-year increases of lending to various categories of MSMEs. We,
being a team of expert bankers are best equipped in guiding clients for coverage
under such benevolent schemes.

8. What is Nayak Committee methodof lending ?
For SSI Lending Banks have adopted Nayak Committee Prescriptions - Turnover
Method . The lending norms prescribethat the working capitallimits provided by
lending banks should be at a minimum level of 20% of the Projected Annual
Turnover ( PAT ). This normis applicable in caseof all SSI units ( new as well as
existing ) , Village and Tiny units with aggregate Fund Based Working Capital
Credit Limit of Rs5 Crores and below from the banking system.
What are the CMA Forms and why they are necessary ?
These are the Forms preferred by lending bankers . These contain : Details of
borrower and the WC credit facilities, Operating Statement , assets and Liabilities
, Holding period of Current Assets and also Trade Creditors, Computation of MPBF
( Maximum PermissibleBank Finance ), Funds Flow Statement. These forms have
been made optional by RBI , the forms continue to be relevant and are being used
by a large number of banks for the purposeof analysis.
What are QIS Statements andwhy they are necessary ?
Banks Review Term Loans and Renew Working Capital Limits every financial year.
After Disbursalof Limits , Banks requiretimely submission of Quarterly
Information System, viz., QIS - I, QIS -II , QIS - IIIA, QIS - IIIB. Linkageof Financial
Data of CMA with QIS - I, QIS -II , QIS - IIIA,QIS - IIIBStatements is known astutely
to Bankers , thus our role is desirablefor effective and efficient handling of
Financial Data for our clients.

9. Does IndianBankers support inForeignExchange Matters ?
Types of Letters of Credit, documents under letter of credit, stages of a letter of
credit transaction , relationship between the various parties involved, using letter
of credit in import transactions and export transactions, appraising a proposalfor
opening of an LC, cash budget as a tool of for appraising LC limits, onerous clauses
of letters of credit, are the important fields of operation in matters of Foreign
Exchange . We have experience and expertise in handling all such matters, and
above all, knowledgeof INCOTERMS aresome of the important factors which
distinguishes IndianBankers fromothers in the field.
Project Financing
What is a Project Report ?
Financial experts carry forward theentrepreneurs'dreamby making a Financial
Report by documenting the Project& the Promoters. Beginning fromTechnology
involved , inputs of : Raw Material, Selling and Distribution, Manufacturing
Process , Financial Experts explain in detail the Economics of the Scheme which in
turn incorporates economics of operation. The viability of the projectis
determined through PV, NPV, and IRR. The project is viable when IRRis far more
than WACOC.
Is there 'Cost of Capital' ?
A Company's assets arefinanced by Debt and / or Equity. Weighted Average Cost
of Capital ( WACOC) is the weighted averageof the cost of debt and equity. Yes,

10. there is Cost of Equity which in turn depends on Risk FreeRate, Market Risk
Premium, Equity Beta, and SizePremium.
Is there relationshipbetweenIRR andWACOC ?
Volume of Financing is a determining factor in computation of IRR. As against this
, the determining factor for computation of WACOCis the cost of funds. Team of
IndianBankers is capableto draw distinction between IRRand WACOC.
Is there Risk Appraisal InProject Financing ?
Lenders may not agree to privide funds to a projectunless they are convinced
that that it will be viable going concern. Viability of a projectis tested by putting
the relevant factors in the financial analysis under stress and by studying the
bottomlines of the project under such situations. Stress Testing ( sensitivity
analysis ) by observing resulting changes in cash generation, operating profit,
DSCRor the IRRof the projectis done under the guidance of financial experts of
IndianBankers. Another way to to asses Cushion ( or Margin of Safety ) is
calculated by finding the difference between IRRand WACOC. Higher the cushion,
better is the degree of acceptability of the projectas a lending proposition.
All other forms of risk i.e. completion risk, technological nrisk, economic risk,
forcemajeure risk, interest rate risk, currency risk, politicalrisk etc. are assessed
in consultation with the entrepreneurs , and hedged accordingly.

11. What is the role of IndianBankers inProject Financing ?
We make compact ProjectReport complete with all financial data required by
bankers . For example, if a corporate needs LC limits along with Cash Credit Limit
then our team of experts knowing fully well how Bankers assess Working Capital
Limits along with LC Limits, build comprehensivedata initially itself so as to avoid
loss of time. We facilitate understanding of financial data fromlending bankers
perspective. However, IndianBankersdoes notindulge in brokering for
procurementof loans.
Taxation
Lower Taxes
We'll show you how your actions impact your taxes, and even help you take
advantageof advanced tax strategies .
We have a team of Chartered Accountants led by one who has post qualification
experience of over 36 years in the field of Taxation, Corporate Laws and Finance.
He is regularly appearing before Appellate authorities like Commissioner of
Income Tax (Appeals) and Income Tax Appellate Tribunal. He has great analytical
and representation skills. He is a regular participant and speaker in Seminars and
Conferences conducted by various Professional Bodies and Associations. He is
presently member National Executive Committee of All India Federation of Tax
Practitioners and was Vice Chairman of its North Zone for the term 2014 - 2015.

12. He is also a member of the Executive Committee of the Income Tax Appellate
Tribunal Bar Association, New Delhi and was Convenor of its Study Circle. He has
been Chairman of Delhi Chapter of The Chamber of Tax Consultants (CITC). Hehas
been a Special Invitee to the meetings of the Fiscal Laws & Direct Taxes
Committees of the ICAI. He has been a member of the Executive Committees of
International Fiscal Association – North Zone. He has also actively participated in
meetings of FICCI, Assocham,Indian Merchants Chamber (IMC) and PHD Chamber
of Commerce & Industry.
Dispute Resolution Mechanism
Not all borrowers areWilful Defaulters. There can always be genuine reasons for
delay or non payment of bank dues. There is always a need to saveinnocent
persons/defaulting firms fromundueharassment/disastrous effects of wrong/
unjustified sale of assets etc. There is also a need to save the properties of some
innocent persons who are bonafidepurchasers for valueand haveneither been
borrower/guarantoror mortgagor, butaresometimes proceeded under SRFAESI
ACT for sale of their properties. Sometimes, banks wrongfully declareborrowers
who have missed to pay someEMIs due to genuine business or other problems,
as WILFUL DEFULTERS. In all such cases, there is a need for resolution of the
problems within the framework of law, to avoid or reduce the hardships to the
bare minimum.

13. Day by day, the Laws for Recovery of Bank loans are being made morestringent.
RDDBFI Actprovides for disposalof Recovery Suits within 180 days. SRFAESI Act
has given powers to the Secured Lenders to take possession of & to sell the
securities, without intervention of the courts, by justgiving a notice for 60 days.
We extend legal & financial/ banking related guidance & support within legal
framework/RBI guidelines, through our panel of retired senior bankers and
seasoned advocates .