NBFC Application  The Application covers the following areas:  Credit Department  Settlement Department  Accounts Department  Risk

Typical Trade Financing system framework Enterprise Business Technologies Pvt. Ltd. 2 Finance Trade Credit Appraisal Credit Disbursement Trade Settlement Accounting Risk Management Loan Application Kit Central Data Repository Broker Back Office Depository Participant Third Party Vendor Banks Stock Exchange KYC & Income dtls Trading ID Trade Details Stock Collateral Corporate Action Info Bank Statement Price & Volume feeds Sanctioned Credit Accept/Reject Client Trades Stock Holding Movement Interest Calc Books of Account Portfolio Liquidation Risk and RBI repots Data Interface Channel Input Layer Process Layer  Output Layer

Objective  The primary objective of the application is to cover the back office process right from Customer KYC and approval of limits to trade processing and subsequent activities of liquidation in risk.  The principle that flows through in the entire chain of activities is to have a control on the risk element in trade transactions Enterprise Business Technologies Pvt. Ltd. 3

 The Risk factor is controlled at the following stages:  Detailed KYC and Client approval process  Funding of poor quality of Trades  Honoring un-qualified Fund/Security withdrawal.  Delay in client’s net worth monitoring.  Delay in corrective action/ recovery.  Non detection of client’s abnormal operational behavior. Enterprise Business Technologies Pvt. Ltd. 4

5 Portfolio Liquidation Scrip Categorization House/Client Level Restrictions Multi level Credit Approval Sanction/Welcome Letter Generation Auto Mail Alerts Trade Acceptance Trade Rejection Securities Payin/Payout Funds Payin/Payout DP Reconciliation Shortage/Auction Marking DP Slip (Physical/Soft copy) Margin Receipt Tax Deducted At Source Profit and Loss Statement Client Categorization Task Assignment to RMs Corporate Action Handling Funds Withdrawal (Normal/FnO) Credit Appraisal Credit Disbursement Trade Settlement Accounting Risk Management

Features  Credit Department:  Loan Request entry  Loan approval with help of multilevel approval hierarchy  After approval, customer creation for on-going transaction  Mailers to customer at various stage of loan activation o Sanction letter o welcome letter o rejection letter o closure letter  Interest rate reduction letter  Interest rate increase letter  Daily EOD status mailers to customers and respective braches Enterprise Business Technologies Pvt. Ltd. 6

 Settlement Department:  Scrip master update  Customer DP account maintenance  POA/ Pledge status update  Daily reconciliation of POA/pledge account  Trade process acceptance as per customer exposure  Slip generation at various stages in POA and pledge o Pay-in slip o Off-market transfer slip o Pledge confirmation slip o Pledge closure slip o Pledge invocation slip o Scrip withdrawal request creation and approval process Enterprise Business Technologies Pvt. Ltd. 7

 Accounts Department:  Customer bank account maintenance  In case of trade transfer letters for bank as per bank format o Pay-in letter o Pay-out letter  Amount withdrawal request and approval process  Interest calculation on daily basis  Interest posting as per agreement (Monthly/Qtrly/1/2-yearly/yearly)  Interest on interest or interest only on net loan choose facility per client wise  Various bank letters as per transaction type o RTGS letter o NEFT letter o Transfer letter o Cheque printing Enterprise Business Technologies Pvt. Ltd. 8

 Risk Department:  Category differentiation for scrip  Scrip valuation on basis of scrip category  Client category to decide max benefit  Liquidation process o Liquidation of client in case of shortfall o Liquidation trade in pro-client’s account o Transfer of scrip/ pledge invocation as per liquidation quantity o Distribution of liquidated amount as per client liquidation after trade acceptance  Even though scrip category finalized allow to special privilege for particular client with help of discount feature  House level restriction to restrict all client to more excess quantity  Client level restriction effective, which will decide quantity to be part of net value calculation Enterprise Business Technologies Pvt. Ltd. 9

THANK YOU Enterprise Business Technologies Pvt. Ltd. 10