📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    A term loan outstanding is ₹90 crore. Security

    comprises Plant valued at ₹100 crore with FSV 50% and land valued at ₹40 crore with FSV 80%. The bank wants to compute coverage on forced sale value basis. What is the security coverage ratio?
    A 0.8 Correct Answer Incorrect Answer
    B 0.9 Correct Answer Incorrect Answer
    C 1.0 Correct Answer Incorrect Answer
    D 1.2 Correct Answer Incorrect Answer
    E 1.4 Correct Answer Incorrect Answer

    Solution

    Total FSV = 50 + 32 = 82. Coverage = 82 / 90 = 0.91.

    Practice Next
    ask-question