Question
A stressed MSME account is proposed for restructuring.
The TEV study shows DSCR of 1.05, negative cash flows for first two years and high sensitivity to sales variation. What should be the bank’s primary credit decision?Solution
Low DSCR + weak cash flow → promoter must strengthen viability first
More Basic Accounting Concepts Questions
How important is it for you to have a sense of purpose or meaning in your life?
How do you approach teamwork or collaboration?
How do you prefer to receive instructions or guidance?
How do you handle situations where you are required to compromise your integrity or values?
How important is it for you to have a sense of control over your life and surroundings?
How comfortable are you with taking on leadership roles?
How do you prefer to communicate?
How important is it for you to have alone time?
How important is honesty and transparency in your relationships with others?
How do you typically handle ethical dilemmas?
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