$1/1$ Minicase $6$ AutoTech Ltd$.,$ a leading automotive parts manufacturer in India, plans to upgrade its production line by importing high$-$precision CNC machines from MechaTech GmbH$,$ a German machinery supplier. The total value of the shipment is $$1,000,000,$ but AutoTech Ltd$.$ requests a payment term$/$method $$that allows them to pay after a specified period to better manage their cash flow. To ensure payment security, MechaTech GmbH agrees to the transaction only if AutoTech Ltd$.$ arranges an irrevocable and confirmed deferred payment Letter of Credit $($L$/$C$).$ Bank of importer : $$State Bank of India $($SBI$)$ Bank of exporter : $$Deutsche Bank, Germany $$ Payment Terms $/$ Methods : Irrevocable and confirmed L$/$C with deferred payment $(120$ days after shipment$)$ Shipping Terms: CIF $($Cost$,$ Insurance, and Freight$)$ Port of Mumbai, India Pls identify the parties in an L$/$C $$ Pls draw and explain in steps how $$does it work $.$ Why did the exporter insist on a confirmed L$/$C rather than just an irrevocable one? How does a deferred payment L$/$C benefit the importer compared to an L$/$C at sight? What risks do banks take when confirming a deferred payment L$/$C$?$ What is the role of issuing bank $?$ What does $$it $$mean $$ irrevocable$$ What would happen if the issuing bank $($SBI$)$ fails to pay after $120$ days? If exporter would like to access funds earlier, how does this L$/$C help $$and work $?$ Pls$.$ calculate how much is paid to exporter $?($ interest rate : $5\%$ p$.$a$)$ How much will $$the bank take on the due date $?($ issuing fee $$is $3\%$ flat $,$confirming fee : $4\%$ flat $,$advising fee $$: $1\%$ flat $)$ Who bears these $$costs $?$ Short answers and please draw in chart