1. To update the covenant details, click Action icon in the covenant record and select Update Covenant.
   The Covenant Details - RM Response window is displayed.

   Figure 3-3 Covenant Details - RM Response

   
   

   
   Description of "Figure 3-3 Covenant Details - RM Response"

   
   

   Figure 3-4 Covenant Details - RM Response

   
   

   
   Description of "Figure 3-4 Covenant Details - RM Response"

   
   

   In the above window, the result value and the compliance status derived from the uploaded financial documents are displayed as Derived Result Value and Derived Compliance Status, respectively. However, the RM can capture their result value and compliance status for the covenants based on manual verification.

   Note:

   Refer Uploading Financial Document chapter and upload the financial documents to view the system derived value and status.

   In the Covenant Details window, all the details (formula, target type, covenant check condition, and target value) maintained for the covenant are displayed only for reference purpose. You cannot modify the same.

   To view covenant linkage details, click and expand Covenant Details section.

2. Select Covenant Compliance Status from the drop-down list.

In the Covenant Tracking - RM Response stage, the RM can specify only if the covenant is breached or not. If the covenant is not breached, the compliance status should not be selected and the covenant should not be deferred.

3. To defer a covenant, select Yes under Deferred? field and specify Deferred Days.

Mentioned Deferred Days will be compared with the maximum allowed deferred days set for the covenant.

The system displays the number of times a covenant has been deferred in Deferred Count field.

4. Select Waiver Status, if the covenant is breached.
   The options available are :

   • Waive - Waive is used when the user wants to waive the covenant compliance check for this particular instance.
   • Waive All - Waive All is used when the user wants to waive the covenant compliance check forever.
5. In the Comments text box, capture remarks for the covenant if any.
6. Click Update.
   The Compliance Status is updated in the RM Response screen.