CASE : Comprehensive Limited:
The following information is extracted from the balance sheet of
Comprehensive ltd :
Rs. In Crores
FIXED ASSETS
290
NET WORTH
100
CURRENT ASSETS:
TERM
220
LIABILITIES
INVENTORIES
33
CURRENT
LIABILITIES:
EXPORT
5
TRADE CREDITORS
12
RECEIVABLES
INDEGENOUS
10
BANK
5
RECEIVABLES
BORROWINGS
OTHER
CURRENT
2
OTHER
CURRENT
3
ASSETS
LIABILITIES
(SHORT
TERM
INVESTMENT
IN
SUBSIDIARIES AND
ASSOCIATES)
340
340
Additional information :
Term Loan installment due within one year- Rs 20
Inventory includes non moving inventories amounting to Rs 3
Receivables include receivables more than one year 5%
Question:
1. Calculate MPBF under the modified MPBF method.
2. Deliver the credit as per Credit Delivery System
3. If the Financing Bank’s capital Funds is Rs 100 Crores, can it finance
the entire requirement of the borrower. If Not, How the financing is
to be made by Bankers.
4. Is there any RBI guidelines that puts a limit on a Bank’s exposure to
individual borrower or group Borrowers?
5. How about creation of Charge on Securities?
6. How do you monitor the Borrowal Account?