ASSIGNMENT ON

MBABF 307 FINACLE TRADE FINANCE

SEM: III, FALL 2014, CREDITS: 1, MARKS: 50

Q.1. Explain in detail what are the different types of credit facilities available to an exporter.
Answer: Answer:Projects involve activities like engineering, procurement, construction (civil,
mechanical, electrical or instrumental), including provision of all desired and specified equipment and /
supplies, construction and building materials, consultancy, technical know-how, technology transfer,
design, engineering (basic or detailed), commissioning with other all such related services as are needed
by the existing or new projects / plants / processes involving international competitive bidding (thus
including even Multilaterally Funded Projects in India). Project exports occupy an important place in
Indias export portfolio. The contracts secured in the recent years
(i) Pre-shipment Credit Facilities: financial planner should clearly explain and document the
services that he or she will provide to the client and define responsibilities of both parties during the
financial planning engagement.
(ii) Post-shipment Credit Facilities: The financial planner asks for information about clients
financial situation. The client and the planner mutually define personal and financial goals,
understand time frame for results and discuss risk.

2. Explain the process of opening an Inland Bill Purchase Account.

(a) Steps in account opening
(b) Fields to be entered

Answer: Bank only purchase the local bill is known as Inland documentary bills for
purchase (IDBP).The Inland documentary bills for purchase (IDBP) is done in the
following ways,

The customer submits the L/C to Bank.

Then Bank officer advising the L/C.
Customers then present the documents for negotiation to Bank.
Bank official scrutinizes the documents to ensure the conformity with the terms and
conditions.
The documents are then forwarded to the L/C opening bank.
The L/C issuing bank gives the acceptance

Q. 3. Outline the various Screens to be visited in Finacle while opening an Import Term Loan.
(a) List the various Screens
Page 1 of 2

ASSIGNMENT ON

MBABF 307 FINACLE TRADE FINANCE

SEM: III, FALL 2014, CREDITS: 1, MARKS: 50

(b) The Important Fields to be entered in those screens.

Answer: Procedure for arriving at the exact INR required for conversion to the FC
amt of the deposit: In the debit part tran involving the source account (NRE account
of the customer), explode from the Amount field to get a small popup window in
the bottom left side of the screen. Ref CCY Ref Amt enter USD 100(for USD100).
In the field Ratecode/Rate In the first field enter WAR and press F11, the
applicable rate will get populated in the second field. Then press F4 , after which the
actual INR equivalent for the FC amt. at the selected WAR rate gets populated in the
Amount field.
Using ODCM enter all the mandatory General Details -F4 DC charges screen is
displayed Charges can be modified. F 4 will bring you to the option block ;

Q.4. Explain in detail the steps involved in invocation of a guarantee.

(a) What is Invoke?
(b) The Process in Invoke?

Answer:THE Appellant invoked the Bank Guarantee by a letter dated 26th October, 2000
addressed to the Second Respondent. By the letter of invocation, the Appellant gave a notice of
demand requiring the Second Respondent to pay an amount of Rs. 250 lacs towards the loss,
damage, costs, charges and expenses caused to or suffered by the Appellant due to non
performance and breach of the vendor: of the terms and conditions contained in the purchase
order, within three days of the receipt of notice of invocation. The Bank appears to have
regarded the

Q.5. Explain the requirement of a Limit id for BG/LC Limits in Finacle and where the limit ids
are attached?

Page 2 of 2