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    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?
    A Approve restructuring immediately Correct Answer Incorrect Answer
    B Reject restructuring proposal Correct Answer Incorrect Answer
    C Approve with additional funding Correct Answer Incorrect Answer
    D Seek higher promoter contribution Correct Answer Incorrect Answer
    E Convert part of debt into equity Correct Answer Incorrect Answer

    Solution

    Low DSCR + weak cash flow → promoter must strengthen viability first

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