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To understand this case study, one must know what a letter of undertaking is. Mr. X, a businessman, wants to purchase raw materials from PQR Company in Singapore. However, PQR Company requires payment through a Singapore bank, which Mr. X does not have. He approaches ICICI Bank in India for a letter of undertaking. This letter is provided based on Mr. X's credit limits or collateral. With this letter, Mr. X can obtain buyer's credit from a bank in Singapore to pay PQR Company. Essentially, the letter of undertaking serves as a guarantee from ICICI Bank to the Singapore bank in case Mr. X is unable to settle the payment.