7.1 Proposal Structuring - Liabilities

This topic provides systematic intsructions about liabilities.

Liability Details

1. Click Next in the Connected Parties screen.
   The Liability Details page is displayed.

   Figure 7-14 Liability

   
   

   
   Description of "Figure 7-14 Liability"

   
   
2. Select the required liability and click Edit.
   The Liability Details window is displayed.

   Figure 7-15 Liability Details

   
   

   
   Description of "Figure 7-15 Liability Details"

   
   
3. Specify the details on the Liability Details page.

   Table 7-3 Liability Details

   Fields	Description
   Requested Liability Currency	Select the currency in which the liability is requested by the party.
   Requested Liability Amount	Liability amount requested by the party.
   Return On Capital	Ratio calculated by dividing the after tax operating income by the average book-value of the invested capital.
   Probability of Default	Estimate of the likelihood that the entity will be unable to meet its debt obligations.
   Loss Given Default	Amount of money a bank or other financial institution loses when a borrower defaults on a loan.
   Cash Cover	Amount deposited by the party in your bank.
   Total Gross Facility	Displays the total gross facility.
   Total Net Facility	Displays the total net facility.
   Next Review Date	Select the next review date when the party's liability needs to be reviewed.
   Requested Expiry Date	Select the requested expiry date for the liability based on your party request.

   Note:

   For more information on fields, refer Field Configuration Parameters
4. Click Audit.
   The Audit screen displays.

   Figure 7-16 Audit

   
   

   
   Description of "Figure 7-16 Audit"

   
   
5. Click Next.
   The Funding Requirement page appears.