Question
In the context of credit risk assessment, which of the
following metrics would be the most reliable for an MSME lender to assess the long-term financial stability of a business, especially when the company is facing difficulties in the international markets?Solution
The Debt-Service Coverage Ratio (DSCR) measures an MSME’s ability to meet its debt obligations from its operating income. A higher DSCR indicates that the company is generating enough cash to service its debt, which is particularly important when the firm is facing challenges in international markets that could affect its revenues. This ratio provides a more accurate picture of long-term financial stability compared to other liquidity or profitability ratios.
Which instrument is used by foreign entities not registered with SEBI to invest in India Market via registered brokers?
RBI’s Internal Ombudsman Scheme is applicable to:
Which of the following statements is/are correct regarding National Stock Exchange (NSE) in India?
1) NSE was established in 1992. <...
A type of bond (debt security) that allows the issuer of the bond to retain the right of redeeming the bond at some point before the bond reaches its d...
As per accounting standards, depreciable amount of a depreciable asset should be allocated on _______
Which scheme provides collateral-free loans up to ₹5 crores for MSMEs?
Which among the following will increase the net worth of an organisation?
Under the Indian Trusts Act, 1882, what is the minimum number of trustees required to create a valid trust?
Bonds with original maturities of one year or less are called:
Which of the following methods of retiring bonds before maturity is generally considered the most detrimental to the bondholders?
