subject : Financial Management

You are an experienced loan manager at ICICI Bank Smail and Medium Enterprises branch at Chennal. You have been allotied the following two customer files for you to analyze and decide whether to give a loan or not: File 11 - Mr. Krishna Kumar Malani is applying for a loan of Rs. 25 lakhs on behalf of his business Malani Exports Pvt. Lid. He is the Managing. Director of the company. In the recont board meeting held at Hyderabad it was decided that the company will open as new tactory in Hyderabad for which Mc. Matani is seeking the new loan. Malani Exports has one factory in Bangalore, which is in business since last 5 years. They had earficr taken a loan of Rs, 15 lakhs from ICICI Bank for their Bangalore branch and repald it successfully. The company was never late on its EMi payments relating to the previous loan. The Bangalore factory is generating a net income of Rs, 40 lakhs per annum. The land and building of the Bangalore factory valued at Rs. 12 Crores has been pledged with the bank as collateral. File th - Mr. Ramesh Kumar is applying for a loan of Rs. 75 lakhs on behalf of his business Kumar Granites Pvt. Lid. He is the Managing Director of the company. In the recent board meeting held at Chennai it was decided that the company wili open a new showroom at Salem. Tamilnadu for which Mr. Kumar is seeking the new loan. Kumar Granites has one showroom in Chennal, which is in business since last 3 years. They had earlier taken a loan of Rs. 25 lakhs from ICICl Bank for their Chennai showroom. The loan is yet to be repaid fully. The company was late a few times on its EMI payments relating to the previous loan and the management could not give a good reason or explanation for the late payments. The Chennal showroom is generating a net income of Rs. 10 lakhs per annum. The Chennal showroom is on rented premises. No property has been piedged with the bank as collateral. What are the 5C3 of Credit Analysis? Name and Explain each C succinctly. (25) Whom should the bank lend the money based on the 5 C's of Credi Analysis? [2,8]