The CEO,

We are using FiNiCS, a software application developed by Protominds to calculate the Expected Credit Lose (ECL) for one of our clients for the last several quarters. ECL is computed by the system as per the requirements of the Accounting Standards for Financial Instruments. The system computes Probability of Default (PD) which in turn is used to construct multiple scenarios based on forward looking macro economic data to compute the probability weighted scenarios for that loan portfolio. The loan portfolio had about 1.20 million housing loans having an approximate outstanding principal amount of INR 2 Trillion (USD 29 Billion).

CA Yagnesh Desai,
YM Desai & Co. Chartered Accountants
Mumbai, India
Membership No. 34975
15th March 2019


Accounting Standard: Ind AS 109 (Exact replica of IFRS 9)
Location: India
Client: Large Housing Financing Company
Purpose: Expected Credit Loss as per Accounting Standard
Methodology: Transition Matrix Method
Loan portfolio Value: INR 2 Trillion (USD 29 Billion)
Loan portfolio Size: 1.20 Mi housing loans