BRIEF PROCESS ABOUT LC

1. BRIEF PROCESS
CA. Shelly Gupta
Goldman Group
190, Rajinder Nagar,
New Delhi – 110 060.
Mob.: 9968498865
E-mail : shelly@goldmangroup.com

2. INLAND LETTER OF CREDIT PROCESS
Marketing
LCBD Limit
Set Up
Process
Discounting
Post
Discounting

3. MARKETING PROCESS
Marketing
LCBD Limit
Set Up
Process
Discounting
Post
Discounting

4. Identification of Client. Sourcing of companies
Once meeting is scheduled with the client, send Pre-Meeting Information (Annexure)
to Department Heads & Business Head.
In client meeting, gather information on company Financials, Banking Arrangements,
Trade Cycle & their requirements.
After meeting with client Case Summary (Annexure) send to Credit Analyst,
Department Heads & Business Head.
Once client showing willingness, discuss with Department Head & send Preliminary
Offer Letter (Annexure).
Take approval from the Business Head & Department Head (Marketing) for Proposal
through mail. (Annexure)
When client accept all terms & conditions then send them final Service Agreement
(signed by department head). (Annexure )
After getting Mandate from client collect all required documents (company & KYC) for
Limit setup process.
Marketing Process
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5. LCBD LIMIT SETUP PROCESS
Marketing
LCBD Limit
Set Up
Process
Discounting
Post
Discounting

6. RM will prepare the Profile (Annexure) and FSA (Annexure)
Submit all company documents, Company Teaser and Financial Statement Analysis
along with the approval Mail to the Credit Analyst.
Credit Analyst Analyze the complete set of documents and formats received from the
RM and if there is any shortcoming, Credit Analyst will coordinate with RM.
Credit Analyst prepare Bank proposals (hard & soft copy both) and submit it to the Bank
along with required company documents. Follow up with Bank for sanction also.
Credit Analyst arrange all office copies in Investeurs define order
If queries are raised by the Banker, Credit Analyst will solve them in consultation with
concerned RM. Share information of sanction with the RM, Department Heads
(Marketing & Operations) Business Head over the mail
LCBD Limit Set up Process
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7. DISCOUNTING PROCESS
Marketing
LCBD Limit
Set Up
Process
Discounting
Post
Discounting

8. HOW LC’S WORKS
Applicant’s Bank
Applicant
Negotiating Bank
Beneficiary’s Bank
Beneficiary
Scrutinize&Submit
Docs Forwarding for acceptance Make Payment
Submission of LC Docs
Submit Confirmation of due date payment
Submitacceptance
Intimationfordocsarrival
NotifyPayment
GOLDMAN

9. Discounting Process
RM gets first transaction details from the client and forward to TL and our introductory
contact details to client.
Documents submit in Negotiating Bank by field associate and after that forward &
submit in LC Opening Bank either by our field associate or by Negotiating Bank
representative.
Information passed on to client to arrange acceptance of documents.
Once acceptance get ready at LC Opening Bank, field associate or Negotiating Bank’s
representative picks the same.
Acceptance get submit in Negotiating Bank for discounting of documents.
TL follow up with Negotiating Bank for UTR No & RTGS Amount of Bill discounted.
TL passed the UTR No. & RTGS Amount details to client , RM, Department heads
(Marketing, Operation) Business Head & Post discounting team.
RM will send Pricing details and client’s contact information along with final offer
letter to Accounts . TL will send credit advice to Accounts.
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10. POST DISCOUNTING PROCESS
Marketing
LCBD Limit
Set Up
Process
Discounting
Post
Discounting

11. Post Discounting Process
On receipt of UTR No. & RTGS, entries made in respective logs / Software by
post discounting team. (Monthly Log, Bank Log, Company Log)
All entries approved by Executive Operation in software and system generated
credit advice automatic mail to clients.
Office copies get rearranged in Investeurs define order & scanned for records.
On due date, the reimbursement of payment is followed at Negotiating Bank.
Filed associates collect Margin Money & handover to Executive Operation for
recording the same & handing over original to clients.
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12. THANK YOU