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-type f this would run only on files, not directories
find /path/to/files -name "*.bak.z" -type f -mtime +365 -delete

execute this first you will come to know what you are going to delete, once...

Note: ${DB_SID,,} is bash 4.x only.

Depending on your shell, might do:DB_SID_SM=/opt/${DB_SID,,}/TEST/somepath

DB_SID=TEST
n12:/rdm/users/vbe $ DB_SID_SM=/opt/$(echo $DB_SID | tr '[:upper:]' '[:lower:]')/TEST/somepath
n12:/rdm/users/vbe $ echo $DB_SID_SM ...

You probably want something like this:

totalInstance=1
c=1
SID_1=CERUAT
SID_2=LAUAT
SID_3=TATSUAT
W=$(date '+%d%b%Y')
while [ $c -le $totalInstance ]
do
eval D=\${SID_$c}
...

eval solution :

#!/usr/bin/ksh

totalInstance=1
c=1
SID=SID
SID_1=CERUAT

while (( c <= $totalInstance ))
do
var1="${SID}_${c}"
eval var2="$"$var1
...

while [ $c -le $totalInstance ]
do
BDUMP_DIR="${SID}_${c}"
eval echo "\$$BDUMP_DIR"
c=$((c + 1))
echo "$c"
done

That is setting up a variable for the oracle password.
if there does not exist that reboot file, you will run sqlplus with those hot.sql and hotback.sql scripts..

PASS=Figomom#0;export PASS is password that is getting used to connect to database. Once you set the password you need to export it as environment variable. So whenever you need you can use it.

if...

The system_reboot.flg should be a flag file and not a script..

this is what your script is doing:
first it sets up some variables, including the PASS, which is holding the password to log into...