CASE STUDY PRESENTATION

RJ ENTERPRISES

A. Background:
RJ Enterprises has been a deposit customer of your bank for about 3 years now. They
have maintained average credit balances of approximately INR 30 MN during this period.
The company is involved in trading of poultry products and their business is reportedly
profitable. They have small working capital facilities with two banks.
RJ have now decided to breed high quality poultry in a large tract of land that they own
near Bengaluru since they feel that there is a clear demand in India for high end poultry
products, namely, eggs and meat. The project envisages import of one day old pedigree
chicks from Australia, breed them to raise pedigreed chicken variety in the country. Not
many other poultry companies have adopted this method of raising pedigree chicken.
For this project, RJs promoters have approached your bank for the following facilities:
i) Term loan of Rs.50 MN for purchase of a feed mixer machine
ii) Overdraft facility of Rs.30 MN for working capital
As the Relationship Manager for SJ Enterprises, you are keen to do this business
B. Please prepare a credit proposal highlighting all the pros/cons (apply the lending
principles already taught) and present it to the Credit Committee for their decision.
The presentation should cover all the risks, mitigants, if any, competition and benefits
to the bank through this relationship.

C. This will be a Group exercise. The class will be divided into 5+5 Groups as follows:

i) 5 Groups will form the Relationship Manager Group that will recommend the
proposal to the Credit Committee. One person can be the spokesperson for the Group
and others can support him/her with inputs
ii) 5 Groups will form the Credit Committee Group who will hear the proposal, ask
meaningful questions and give their credit decision which could be Approval,
Rejection, or Conditional Approval. If the Committee feels that some critical
information is missing, they can ask the RM Group to obtain it and resubmit the
proposal. The decision of the Credit Committee must be backed up with good reasons
iii) All the Groups will need to understand the customers business, assume some
financial numbers, look at qualitative parameters to be able to put up a meaningful
and convincing proposal

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 D. The Groups will be as given below:
RM GROUPS
RM Group RM Group RM Group RM Group 4 RM Group
1 2 3 5

CREDIT COMMITTEE GROUPS

CREDIT CREDIT CREDIT CREDIT
COMMITTEE COMMITTEE COMMITTEE COMMITTEE
1 2 3 4

E. Each presentation/committee decision should not exceed 20 minutes

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