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    Question

    A new project has total cost ₹200 crore. Promoter

    proposes equity ₹30 crore, unsecured loans from group ₹20 crore, and term loans ₹150 crore. Bank policy requires minimum 30% promoter stake excluding unsecured loans. What should be the bank’s appraisal conclusion?
    A Structure is acceptable Correct Answer Incorrect Answer
    B Accept with higher interest Correct Answer Incorrect Answer
    C Reject due to high debt Correct Answer Incorrect Answer
    D Ask promoter to bring additional ₹30 crore equity Correct Answer Incorrect Answer
    E Convert unsecured loan into CC Correct Answer Incorrect Answer

    Solution

    Required equity = 30% of 200 = 60 Proposed equity = 30 Shortfall = ₹30 crore

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