QUESTION 2

You are the Credit Processing Officer of Citi Bank. The bank has instructed you to process a new application by Publix Supermarket (PS) that was established in 2015. PS operates palm oil business in Chevron Corporation. The company makes the application on 1^st November 2020. The details application are as follows: -

FACILITY	AMOUNT	TENURE	CONTRACT	PURPOSE
Working Capital	RM700,000	3 years	Murabahah	To finance working capital requirement
Fixed asset financing	RM2,500,000	10 years	Tawarruq	To finance the construction of new factory

1. Discuss the 5 Cs criteria that you can use evaluate the companys application

(5 marks)

(b) Based on the financing above, explain TWO (2) types of collateral that can be used to secure EACH OF FINANCING obtained by PS ?

(5 marks)

(Total 10 marks)