Corporate Finance

304
Corporate Finance

Sl. Nature of Rating
No. risk Remarks (H/M/L)

7. Funding The company’s financial position is stretched thus any additional funds Medium
   given may be with stiff conditions.


8. Liquidity The current ratio is 1.36, which is within the acceptable limits. Medium


9. Leverage The company’s TOL/TNW was 1.62 as on June 30, 2001, which is on the High
   higher side in view of the activity of the company.


10. Exchange Risk Not Applicable
    Overall Risk Rating Medium Risk at 4 (1–2: Low Risk, 3–4: Medium Risk, 5–6: High Risk)

RECOMMENDATIONS

The executive committee was requested to renew the existing facilities for a period of one year and to
sanction ad hoc facilities for a period of six months, as detailed here, to BDCL:

(Rs crore)

Proposed

Facility limits

Fund-based 1.Cash credit 2.00

2. Cash credit (ad hoc) 1.00
   Sub total 3.00
   Non-fund based 3. LC 1.00


3. LC(ad hoc) 2.00


4. BG 7.00
   Sub total 10.00
   Total fund and non-fund based facility 13.00
   Treasury Investments—Tradable 0.44
   Grand total of exposure 13.44

Table contd.