(1)
(2)
(3)
Into howmany sets the Asset side of the Balance Sheet are mainly classified into
Ans
(a)
Fixed Asset
(b)
Intangible Assets
(c)
Non Current Asset
(d)
Current Assets
(4)
(5)
(b)
(6)
(7)
(8)
(9)
(10)
(11)
Unsecured Loans from friends & Relatives if pegged in business can be treated
as
Ans
(12)
Liability under LCs, LGs issued by Bank on behalf of the concern is referred to
as
Ans Contingent Liabilities.
(13)
(14)
(A)
(B)
Ans
(C)
(D)
Gross Profit is
Ans
Gross Sales
Less: Excise Duty
Equal: Net Sales
Net Sales Less: Cost of Sales = Gross Profit
(E)
(F)
(2)
2) Solvency Ratio
3) Solvency Measure
= Tangible Networth
(2)
(3)
(4)
Quick Ratio =
Quick Asset
----------------Quick Liability
(5)
(6)
x 100
6) Debt Equity Ratio for SSI unit upto Rs.10 lacs can be 3:1.
7) Debt Equity Ratio for MLI unit can be 2:1.
8). What are the different Profitability Ratio
Ans
(1)
= Gross Profit
------------------ x 100
Net Sales
(2)
= Operating Profit
------------------------ x 100
Net Sales
(3)
= Net Profit
--------------- x 100
Net Sale
(4)
Ans
(1)
Debtors Velocity
in Number of days
(2)
Debtors Velocity
in months
= Average Debtors
--------------------------- x 365
Credit Sales
= Average Debtors
---------------------------- x 12
Credit Sales
(3)
(4)
(5)
(6)
(7)
WIP Turnover
(8)
(9)
= Cost of Sales
--------------------Average Inventory
= Raw Material Consumption
-----------------------------------Average Raw Material
= Cost of Product
---------------------Average WIP
Ans
A Unit is said to be overtrading when it accepts sale orders disportionate to its
working capital
10) How BEP is Worked out
Ans
BEP in Value =
Fixed Cost
-----------------------------------------(Unit Selling Price = Unit VP)
Fixed Cost
-------------------------------------------------- x SP
Unit Selling Price Unit Variable Cost
PV RATIO
Unit Contribution
------------------------- x 100
Unit Selling Price
DSCR =
16)
ExpandDSCR
Ans
While deciding on a Credit Proposal, what all Important aspects, you will
look into
a.
b.
2.
Economic Viability
Technical Feasibility
Financial Viability
Managerial Efficiency
What are the important factors to be looked into while assessing the
financial Viability.
We assess the most important financial indicators like
a.
b.
c.
d.
e.
3.
Liquidity Ratio
Debt Equity Ratio
Solvency Ratio
Profitability Ratio
Break Even Point and Debt Service Coverage Ratio
6.
6. What is the difference between Working Capital Gap and Net Working Capital.
WCG = TCA - Other Current Liability
NWC = TCA - TCL
Effectively
WCG - NWC = Bank Borrowings
7. What is the measure of solvency of a firm?
Solvency = Tangible Net worth
8.
9.
10.
Free Reserve means, any money retained in the business created out of
Revenue or profit created out of Capital Issue by way of Premium or forfeiture of
share and credited to Reserve Account.
11. What do you know about contribution in respect of BEP?
Fixed Cost
BEP in numbers = --------------Unit selling Price - Unit Variable cost
The unit selling price - unit variable cost is called Contribution
12. Can you tell me what is P-V Ratio?
Profit Value Ratio is
PV Ratio =
Unit Contribution
=========== x 100
Unit Selling Price
3. 1000 lacs and above either by Cash Flow Method or Tandon Second Method as
desired by the Party.
20. Can you brief the system of assessment of working capital facility under cash
flow.
The firms will be having Cash Flow under
a. Operational activities
b. Financing Activities
c. Investment Activities
The firm will be advised to submit the cash flow statement for all the three activities
referred above on a monthly basis over a period of 12 months.
The surplus or deficit under cash flow under each activity will be arrived at. Then the
net position is arrived at on a monthly basis. Limit will be sanctioned based on the Peak
net deficit. The party has to then submit the cash flow statement on a monthly basis
before the beginning of every month and accordingly the operating limit is fixed.
21. What do you know about the Loan delivery system for Loans for Rs.10 Crores
and above.
As per Rashid Jilani Committees Recommendations Loan Delivery System for
Advances of WC of Rs.10 Cores and above from Banking System was introduced.
As per the norms Banks can extend 80% of the sanctioned WC limit by way of DL
and 20% by way of Cash Credit.
The portion of Bill Purchase/Discounted facilities can be out of the 80% portion.
Recently, however, RBI have relaxed the norms and gave freedom to Bank. Our
Bank accordingly, have decided to give flexibility under the delivery norms. As per
C.O. guidelines, we can have a flexibility between 70% DL, 30% C/C to 90% DL and
10% C/C. The Loan delivery system is not applicable to Export Credit.
22. What do you know on the Line of credit for Exporters.
This is a Credit Facility extended to Exporters where the sanction is extended for a
period of 36 months. The outer limit is fixed. The scheme also envisages flexibility
by way of interchange between say PC and Bills Purchase facility etc.,
29.
Ans. The export bill should be Co-accepted by a bank in the buyers country and
the process is called "AVAILYSING".
31.
Ans
1.
2.
3.
4.
5.
6.
32
Ans. 1.
2.
3.
4.
5.
33.
What were the main causes for the South East Asian Crisis?
Ans. 1.
2.
3.
Banks for South East Asian took the exchange rate stability for
granted.
External Debt was much more than the reserves.
Central Banks started to step up monitoring
35.
Ans. If the borrower belongs to Public Sector the risk is usually referred to as
the Sovereign Risk. That means it may be the failure of the State.
36.
Ans. It is an agreement whereby interest rates is fixed now for a future period.
37.
Ans. In an FRA, only the difference between the agreed rate and the actual
rate on the specified date/period alone will be made good by are party to
others.
38.
Ans. In Forward Contract the buyer has the obligation where as in option Q
contract the buyer has the right what he may or may not exercise.