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SBI e Lessons

The document consists of a series of questions related to working capital limits and financial concepts, including cost of sales, projected annual turnover methods, and cash accruals. It covers guidelines and benchmarks for sanctioning working capital finance to small-scale industries and commercial units. Additionally, it includes definitions and prerequisites for various financial metrics and methods used in assessing working capital needs.

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817 views2 pages

SBI e Lessons

The document consists of a series of questions related to working capital limits and financial concepts, including cost of sales, projected annual turnover methods, and cash accruals. It covers guidelines and benchmarks for sanctioning working capital finance to small-scale industries and commercial units. Additionally, it includes definitions and prerequisites for various financial metrics and methods used in assessing working capital needs.

Uploaded by

swapst
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Appraisal of Working Capital Limits

Remaining
Question 1
Time: [Link]
Cost of Sales means
A) Total cost of Goods sold
B) Total cost of Goods manufactured
C) Direct manufacturing cost of Goods sold
D) Direct manufacturing cost of Goods produced

Question 2

Projected Annual Turnover method(Nayak Committee Recommendations) is to be adopted for sanction of working
capital finance to SSI/ C&I-Manufacturing units upto:
A) Rs 1 crores
B) Rs 2 crores
C) Rs 3 crores
D) Rs 5 Cr

Question 3

In PBS method the Bench mark figure of Current Ratio is


A) 1.00
B) 1.02
C) 1.25
D) 1.33

Question 4

Receivables is compared in terms of


A) Net Sales
B) Bad Debts written off
C) Gross sales
D) Gross Sales less excise Duty

Question 5

Finished goods holding required by a unit is a function of


A) Order pattern
B) Perishability
C) Both the above
D) As advised by the borrower

Question 6

Stock-in-process holding level is compared in terms of


A) Cost of Production
B) Cost of Sales
C) Purchase of raw material
D) Consumption of finished goods

Question 7

Which of the following is not a pre-requisite for application of Turnover Method for sanction of WC finance to C & I
Trade units upto Rs 5 Crore.
A) Should be an existing unit(3 yrs old)
B) Should be profit making unit
C) Current Ratio should be as per benchmark
D) Credit rating should be SB4 or better

Question 8

WCG can be arrived at by


A) CA-CL
B) CA-BB
C) CA-Sundry Creditors
D) CA-Other CL (Excluding BB)

Question 9

Cash Accruals consist of


A) Operating Profit+Depreciation+Amortisation
B) Profit after tax+depreciation+Amortisation
C) Profit Before Tax+Depreciation+Amortisation Remaining
D) Gross Profit-Dividend Time: [Link]

Question 10

NWC is
A) Long term sources-Long Term Uses
B) Working Capital Gap-Other Current Liabilities
C) Current Assets-Bank Borrowings
D) Non-Current Assets-Current Liabilities

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