TANDON, CHORE, KANNAN AND CERTAIN OTHER COMMITTEES RECOMMENDATIONS

Ø Level of Current Assets

Ø Broad Indicators

Ø Approach to Lending

Ø Withdrawal of Instructions relating to MPBF

Ø Important relaxation permitted in calculation of MPBF/Current Ratio of 1.33:1

- Treatment of export receivables

- Treatment of bills negotiated under usance Letters of Credit as receivables

- Treatment of term loan instalments

Ø Style of Credit

- Financing Inventories in Excess of Stipulated Norms/broad indicators accepted by the banks

- Treatment to be given to the Excess Borrowings

- New Structure of Cash Credit Facility

Ø Financing the Sales Receivables

Ø New Information System

Ø Chore Committee

Ø Continuation of Cash Credit, Loan and Bills Facilities

Ø Review of Borrowal Accounts

Ø Bifurcation of Cash Credit Limit

Ø Application of 2nd Method of Lending

Ø Working Capital Term Loan

Ø 'Peak Level' and 'Normal Non‑Peak Level' Limits

Ø Ad hoc or Temporary Limits

Ø Fixation of Operative Limits

Ø Cash Credit Limits against Book Debts

Ø Drawee Bill Scheme

- Acceptance System

- Bill Discounting System

Ø Non Submission of QIS Statements

Ø Slip Back in Current Ratio

Ø Diversion of Working Capital Finance

Ø Kannan Committee Report on Working Capital Finance and withdrawal of Prescription Relating to MPBF

Ø Present Scenario

Ø Recommendations of Working Group on Discounting of Bills

Ø Appendix 16.I Quarterly Information System‑Form I for Traders and Merchant Exporters

Ø Appendix 16.II Quarterly Information System‑Form I for Manufacturers

Ø Appendix 16.III Quarterly Information System ‑ Form II for Traders & Merchant Exporters

Ø Appendix 16.IV Quarterly Information System ‑ Form II For Manufacturers

Ø Appendix 16.V Half‑yearly Operating Statement‑Form III(A) For Traders and Merchant Exporters

Ø Appendix 16.VI Half‑yearly Funds Flow Statement Form III(B) For Traders & Merchant Exporters

Ø Appendix 16.VII Half‑yearly Operating Statement‑Form III(A) For Manufacturers

Ø Appendix 16.VIII Half‑yearly Funds Flow Statement Form III(B) For Manufacturers

Ø Appendix 16.IX Draft Cash Budget