6.13 End-to-end decision walkthrough

The borrower (synthetic example)

Sundar Textiles & Apparel Pvt Ltd

Pvt Ltd company, Bengaluru, established 2020.
Industry: Garment manufacturing (NIC code 14101) and B2B distribution.
Promoter / Director: Ms. Sundari Murthy (PAN ABCDE1234F, DoB 1980-04-15), 60% shareholding.
Co-director: Mr. Rakesh Murthy (PAN FGHIJ5678K, DoB 1978-08-22), 40% shareholding.
GSTIN: 29ABCDE1234F1Z5, active, regular taxpayer.
Udyam: UDYAM-KA-29-0001234, registered as Small Enterprise (manufacturing).
Annual turnover (claimed): ₹4.2 Cr.
Bank: HDFC Bank current account, Bengaluru.

Loan request: ₹35 lakh revolving working-capital line, 90-day average draw tenure, for raw-material purchase from anchor mills + working-capital cycle.

Submitted via: CA partner (Murthy & Associates Chartered Accountants).

Application form completed end-to-end via the CA portal in ~25 minutes.
Consents captured (timestamped, with IP and device fingerprint):
- Bureau pull (all 4 CICs) — consumer (Ms. Sundari, Mr. Rakesh) + commercial (entity).
- AA-based bank-statement pull (12 months).
- GST data pull via GSP (24 months).
- DPDP consent — purpose-specific.
- MCA / Udyam verification.

Stage 2 — KYC / KYB

Both directors: V-CIP completed via IDfy. Aadhaar offline XML verified. PAN-Aadhaar name match.
Entity KYB: GSTIN verified active; Udyam verified; MCA verified — company active, both directors active, no strike-off.
BO mapping: simple — Ms. Sundari at 60%, Mr. Rakesh at 40%, both natural persons; complete graph.
Sanctions / PEP screening: clear for both promoters.
CKYC: search returned no existing KIN for entity; new upload queued.
Bank account verified via penny drop — name matches Sundar Textiles & Apparel Pvt Ltd.

KYC / KYB status: complete; no flags.

Stage 3 — Data ingestion

AA bank-statement pull

1 AA (Setu), 1 FIP (HDFC), 1 account.
Period: 2024-05-01 to 2026-05-01 (24 months).
4,837 transactions ingested.
Parsed via Perfios.
Tampering flags: none.

Aggregated metrics

ABB (12 months): ₹1.85 lakh.
Monthly credit turnover (12 months avg): ₹38.5 lakh.
Monthly debit turnover (12 months avg): ₹37.8 lakh.
NACH bounces (last 12 months): 1 (against an EMI on an existing HDFC term loan; bounce in Jan 2026; cured next day).
Cheque returns (last 12 months): 0.
Cash deposits / total credits: 8% (within normal range).
Negative-balance days (last 6 months): 2.
Salary credits / EMIs detected: 1 existing term loan EMI of ₹45,000 to HDFC Bank.

GST data pull

GSPs: Cygnet. OTP successful. 24 months pulled.
GSTR-3B: 24 of 24 months filed; 22 on time, 2 within 5 days late (Jan-Feb 2025 — Covid recovery period).
GSTR-1: same pattern.
Annual turnover (last 12 months from 3B): ₹4.15 Cr (matches borrower-declared ₹4.2 Cr within rounding).
Annual turnover growth (YoY): +18%.
Monthly volatility (CV): 42%.
Top buyer concentration (last 12 months): top buyer = 28% (well within thresholds).
Top 3 buyers: 55%.
Number of unique B2B buyers (12 months): 73.
GST suspension / cancellation in last 12 months: none.

Tally data

CA uploaded Tally backup. Parsed via Karza (Perfios) Tally connector.
P&L:
- Revenue: ₹4.15 Cr.
- COGS: ₹3.15 Cr (Gross margin 24%).
- Operating expenses: ₹52 lakh.
- EBITDA: ₹48 lakh (11.6% of revenue).
- Interest expense: ₹15 lakh.
- Depreciation: ₹8 lakh.
- Net profit: ₹25 lakh.
Balance sheet (closing):
- Receivables: ₹62 lakh (avg ~55 days).
- Inventory: ₹85 lakh (avg ~95 days).
- Payables: ₹38 lakh (avg ~45 days).
- Net working capital: ₹109 lakh (₹1.09 Cr).
Receivable ageing: 0 – 30 days: 60%; 31 – 60 days: 25%; 61 – 90 days: 12%; > 90 days: 3%. (Healthy.)
Payable ageing: 0 – 30 days: 70%; 31 – 60 days: 25%; > 60 days: 5%. (Healthy.)
Inventory: raw material 40%, WIP 30%, finished goods 30%. (Manufacturing pattern.)
Top 5 debtors concentration: 42% (within threshold).
Top 5 creditors concentration: 48% (within threshold).

Bureau pulls

All 4 CICs pulled.
Ms. Sundari Murthy: CIBIL TransUnion score 782. Experian 765. Equifax 771. CRIF 758. Active accounts: 1 credit card (HDFC, ₹2 lakh limit, 35% utilisation, no DPD in 24 months), 1 home loan (₹40 lakh outstanding, no DPD, 14 years remaining). 1 enquiry in last 6 months (an HDFC car loan that wasn’t taken).
Mr. Rakesh Murthy: CIBIL 768. Active accounts: 1 credit card (₹1 lakh limit, 28% utilisation), 1 personal loan (₹3 lakh outstanding, on track). No DPD.
Commercial bureau (CRIF Highmark MSME report) on Sundar Textiles: 1 existing facility — HDFC term loan ₹18 lakh outstanding, EMI ₹45,000, no DPD, sanctioned 2023.

Stage 4 — Underwriting engine run

The engine identifies the borrower segment: manufacturing + B2B distribution. The garment-manufacturing overlay applies (NIC 14101 → manufacturing segment).

Eligibility cuts (all pass)

✓ Entity type: Pvt Ltd, allowed.
✓ GSTIN active.
✓ Business vintage: ~6 years (> 24 months).
✓ Industry: garment manufacturing, not on negative list.
✓ Geography: Bengaluru, serviceable.
✓ MCA company status: Active.
✓ Udyam registered as Small Enterprise.
✓ PANs active for both directors.
✓ Aadhaar verified.
✓ Sanctions / PEP: clear.
✓ Director KYC: complete.
✓ BO verified.

Bureau scorecard (consumer + commercial)

Check	Ms. Sundari	Mr. Rakesh	Entity
Score	`782` (A1 range)	`768` (A2 range)	—
Worst-of for grading	A1	A2	—
30+ DPD last 12 months	None	None	None
90+ DPD last 24 months	None	None	None
Write-off / settlement	None	None	None
Wilful defaulter	No	No	No
Recent enquiries (6 mo)	1	0	0
Existing exposure / income	FOIR `~22%`	FOIR `~18%`	Commercial exposure `₹18L outstanding`
Decision contribution	A1 grade	A2 grade	Commercial pattern: A

Consolidated bureau grade: A2 (worst-of promoters dominates, with strong commercial overlay).

GST scorecard

Rule	Threshold	Borrower value	Grade contribution
`gst_turnover_min`	`>= ₹1 Cr` for A	`₹4.15 Cr`	A
`gst_growth_yoy`	`>= 0%` (no decline) for B; `> 10%` for A	`+18%`	A
`gst_volatility_cv`	`<= 50%` for A	`42%`	A
`gst_filing_consistency`	`>= 22/24` on time for A	`22/24`	A
`gst_recent_late_filings`	`<= 1` in last 6 months	`0`	A
`gst_suspension`	none in 12 months	none	A
`gst_top_buyer_concentration`	`<= 60%` B (manufacturing overlay)	`28%`	A
`gst_unique_buyers`	`>= 30` for A	`73`	A

GST scorecard grade: A1.

Bank-statement scorecard

Rule	Threshold	Borrower value	Grade contribution
`bank_abb_min`	`>= ₹1 lakh` for A	`₹1.85 lakh`	A
`bank_monthly_credit_min`	`>= ₹10 lakh` for A	`₹38.5 lakh`	A
`bank_negative_balance_days`	`<= 3` for A	`2`	A
`bank_nach_bounces`	`<= 2` for A	`1`	A
`bank_cheque_returns`	`<= 3` for A	`0`	A
`bank_cash_deposit_ratio`	`<= 20%` for A	`8%`	A
`bank_circular_transactions`	None material	None	A

Bank-statement scorecard grade: A1.

Cash-flow scorecard

Monthly available CF (12 months avg): ₹38.5 lakh credit − ₹37.8 lakh debit + ₹1.25 lakh interest add-back + ₹0.67 lakh depreciation add-back = ₹2.62 lakh average. (Using full add-back method for capacity.)
Proposed loan EMI (if amortising): N/A — revolving line.
Proposed interest service: 35 lakh × 20% / 12 = ₹58,333 per month.
DSC (avg CF / interest service): ₹2.62 lakh / ₹58,333 = 4.5×. A grade (>= 2.5×).
Working-capital cycle: 55 + 95 − 45 = 105 days. For manufacturing overlay: <= 150 days for A — acceptable.

Cash-flow scorecard grade: A1.

Tally scorecard (manufacturing overlay)

Rule	Threshold	Borrower value	Grade
`revenue_growth_yoy`	`>= 10%` for A	`+18%` (matches GST)	A
`gross_margin`	`>= 20%` for garment manufacturing	`24%`	A
`ebitda_margin`	`>= 8%` for A	`11.6%`	A
`net_profit_positive`	Yes	Yes	A
`receivable_over_90_days`	`<= 20%` for A	`3%`	A
`payable_over_90_days`	`<= 25%` for A	`5%`	A
`inventory_turn`	`>= 4` for general manufacturing	`~5.5` (₹3.15 Cr COGS / ₹85 lakh avg inventory)	A
`top_5_debtor_concentration`	`<= 60%` for A	`42%`	A
`tally_vs_gst_reconciliation`	within `15%`	within `1%` (₹4.15 Cr vs ₹4.15 Cr)	A
`tally_vs_bank_reconciliation`	within `10%`	within `5%`	A

Tally scorecard grade: A1.

Manufacturing overlay specifics

Rule	Borrower value	Grade
`mfg_pcb_consent_valid`	Garment manufacturing in Bengaluru — typically green-category, exempt or simplified	Pass
`mfg_factories_act_licence`	Borrower employs `~25 people`; below most state thresholds for full Factories Act, but applies. Borrower has the licence.	Pass
`mfg_customer_industry_diversification`	Sells to garment retailers (multiple sub-categories), exports `5%`	A (`>= 2 industries`)
`mfg_gst_input_credit_pattern`	Output GST `~₹35 lakh / yr`, ITC claimed `~₹28 lakh / yr` (ratio normal)	Pass
`mfg_pf_esi_compliance`	PF / ESI verified compliant; no defaults	Pass
`mfg_power_consumption_pattern`	Consistent over 12 months; no material drop	Pass

Fraud scorecard

Rule	Status
PAN-Aadhaar match (both promoters)	Pass
Mobile-PAN match	Pass
Internal blacklist	Clear
Consortium fraud feed	Clear
Device fingerprint	First-time application; no duplicate-device flags
Tampering on BSA	None
GST IRN (invoice fraud)	Not applicable (no invoice-backed product requested)
Velocity (channel pattern)	CA channel; CA Murthy & Associates has `8 prior` applications all clean

No fraud flags.

Exposure check

Tier-1 capital of NBFC: ₹15 Cr.
Single-borrower cap: 25% of ₹15 Cr = ₹3.75 Cr.
Group exposure: zero (no other borrowers in this group).
Proposed sanction: ₹35 lakh.
Current exposure: zero (new borrower).
✓ Well within cap.

Decision summary

Dimension	Outcome
Eligibility cuts	All pass
Bureau scorecard	A2 (worst-of promoters)
GST scorecard	A1
Bank-statement scorecard	A1
Cash-flow scorecard	A1
Tally scorecard	A1
Manufacturing overlay	All pass
Fraud scorecard	Clear
Exposure	Well within cap
Overall risk grade	A2 (consolidated; bureau is the worst dimension)
Engine decision	APPROVE (full auto, no refer)

Sanction proposal

Sanction amount: min(₹35 lakh requested, ₹52 lakh capacity-based, ₹50 lakh ticket grid for A2 first-loan, ₹3.75 Cr exposure cap) = ₹35 lakh.
Tenure per draw: max 180 days (A2 grade).
Interest rate: 19.5% (A2 rate 19.0 – 19.5% from grid; channel adjustment — CA channel discount of 25 bps applied; final 19.25%). Round to 19.5%.
Processing fee: 1.25% of sanction = ₹43,750 + GST.
Servicing fee: 0.25% per annum on outstanding.
Penal charges: per board policy (NACH bounce ₹1,000; late payment 2% of overdue with min ₹500 max ₹5,000).
Conditions:
- Disbursement to borrower’s HDFC current account (verified).
- NACH mandate on HDFC account active before drawdown.
- Quarterly Tally export submission (light review).
- Annual limit review.

KFS preview

Generated and presented to borrower in English + Kannada. Includes APR computation:

Interest: 19.5% p.a.
Processing fee (annualised over 90-day average tenure): 1.25% × 4 = 5%.
Servicing fee: 0.25%.
Approximate APR: ~24.7%.
Cooling-off: 3 days after drawdown.
All charges itemised; total payable for an indicative ₹35 lakh / 90 days draw shown.

Stage 5 — Manual review queue

The application bypassed manual review because the engine returned APPROVE with no deviations, no fraud flags, and no edge cases.
Optional: under board policy, the first co-lent loan to a new partner-eligible borrower may require a sample manual review for QA; not required here as this is own-book.

Stage 6 — Sanction, documents, eSign

Sanction memo generated and approved by Credit Manager (within delegated authority).
KFS issued; borrower acknowledged via eSign on the CA portal.
Loan agreement, DPN, PG (by both directors) generated.
eStamp (Karnataka, 0.1% × ₹35 lakh = ₹3,500 capped within state schedule).
eSign — multi-signer: Ms. Sundari and Mr. Rakesh both signed via Aadhaar OTP within 2 hours.
NACH mandate created (eNACH via Aadhaar); active within 4 hours.

Stage 7 — Disbursement

Pre-disbursement checklist: all pass.
Borrower draws ₹15 lakh on Day 1 of 90-day term.
Payout via HDFC API; UTR SBINH26052250001 captured within 3 minutes.
Borrower notified via SMS + WhatsApp.

Stage 8 — LMS active

Loan account WC-2026-LD-00001 activated.
Schedule generated for the ₹15 lakh / 90-day draw.
Daily interest accrual begins.
Classification: Standard.

Aggregate trace

Total decision time from application submit to APPROVE: ~6 hours (data ingestion was the bottleneck — GST OTP took ~2 hours for borrower to respond).

Total time from APPROVE to disbursement (drawdown of first tranche): ~24 hours (limited by eSign multi-signer flow + NACH activation).

This is the happy path for a clean A2 SME WC application. Edge-case applications (REFER outcomes, deviations, manual approvals) follow the workflow in 3.F Manual underwriting workflow.

What the trace shows about the engine

Every rule fires deterministically with input → output recorded.
Per-scorecard grade is computable and explainable.
Worst-of methodology drives consolidated grade conservatively.
Manufacturing overlay layered cleanly on standard rules.
Channel adjustment applied to pricing.
Conditions attached to sanction become drawdown-time prerequisites.
Audit trail at every step — KYC, BO, consent, data pulls, rule outputs, decision, deviation (none), sanction, KFS, eSign, mandate, disbursement, LMS activation.

The full decision trace (every rule version, every input, every output) is stored as JSON in the platform’s decision-engine log, accessible by loan reference for the lifetime of the loan.

Sources

6. Underwriting — full rule library.
3.E Underwriting engine — engine architecture.
5.5 Workflow and rules engines — execution layer.