Entrepreneurial Finance- Class Test

Name:_Naitik Jain ______________Roll No.______23_________

1. This system based on projected annual sales has been evolved on the
basis of recommendations of a study group known as Nayak Committee

2. Total working capital requirement of SSI would be equivalent to

requirement of maximum _________months of the annual output value:

3. The working capital requirement is to be met by the bank and the

borrower in the ratio of 4:1

4. The security for the working capital term loan emanated out of excess
borrowing would generally be ______________

5. Working capital term loans is generally repaid in not exceeding 4

months

6. Work in progress holding period is valued in relation to length of

production cycle.

7. Sales of an SSI unit for the previous year were Rs.200 lac. These are
projected at Rs.300 lac for next year. As per Nayak Committee, the
level of maximum bank working capital limits to be sanctioned would be
60 lac.

8. In the above, problem, the borrower has a margin of Rs.30 lac . The
level of working capital to be sanctioned by the bank would be 120 lacs.

9. Current assets of a company are Rs.800 lac and other current liabilities
Rs.80 lac. The amount of PBF as per 2nd method of lending as suggested
by Tandon Committee would be 520 lacs

10. In the above question, the MPBF as per 1 st method of lending of

Tandon Committee would be 540 lacs.

11. If the amount of net working capital is Rs.250 in the above

case, the PBF as per 2nd method would be 137.5 lacs.

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12. If the amount of net working capital in the above question is
Rs.170 lac,the amount of excess borrowing, as per 2nd method of
lending would be 350.

13. The stock in process holding in terms of period is worked out on

the basis of average of opening and closing WIP divided by 2.

14. The finished goods holding in terms of period is worked out on the
basis of stock average of WIP divided by production cost.
15. The term working capital gap denotes difference of total
current assets and total current liabilities not including the bank.
16. I-wish is a special product from ICICI bank in retail asset
space. NO
17. Minimum period for a term Deposit is 7 days
18. IMPS is not available on 26th January - False
19. BP/BD to be added with ________________________in Current
asset to construct Current asset
20. BP/BD to be added with ________________________in Current
liabilities to construct Current liabilities
21. CMA Non_Current Assets are
1._______________________________________________________
2. _______________________________________________________
3. ________________________________________________________
4._________________________________________________________
5._________________________________________________________

22.Current Ratio in method I- Total Current Assets/ (MPBF (by method 1)

+ Current Liabilities without bank borrowings)
23. Current Ratio in method II- Total Current Assets/ (MPBF (by method
2) + Current Liabilities without bank borrowings)
24 Out of order account is related to which
facility___________________________________
25.Provisioning of standard Home loan- Standard asset provision for all
individual home loans is kept at 0.25%. For loans up to Rs 30 lakhs to Rs
75 lakh with LTV ratio of more than 80%, risk weight has been brought
down to 35%

30.Provisioning of Unsecured standard asset- a sub-standard

Asset requires a provision of 15 per cent on secured portion and 25 per
cent on the unsecured exposure. After 12 months as Sub-Standard Asset,
it gets classified as Doubtful Asset 1(DA1) and requires a provision of 25
per cent on secured portion and 100 per cent on the unsecured portion

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