Professional Documents
Culture Documents
Financial close is the process of verifying and adjusting account balances at the end of an accounting
cycle (often the end of the quarter or end of year) to produce financial reports representative of the
company's true financial position as of a certain date.
An Escrow is an arrangement for a third party to hold the assets of a transaction temporarily. The assets
are kept in a third-party account and are only released when all terms of the agreement have been met.
The use of an escrow account in a transaction adds a degree of safety for both parties.
Term exposure is a measurement of the maximum potential loss to a lender if the borrower defaults on
payment. It is a calculated risk to doing business as a bank.
4) What factors shall you examine when estimating the loan amount that can be sanctioned to a
borrower
a) For a single project company
borrower's age, value of the property, current interest rates and the specific plan chosen.
5) Assume a NBFC has funded 5 projects of a group of companies with cumulative loans of Rs
1000 crore. The amount of Rs 1000 crore has already been disbursed by the NBFC and Rs 300
crore has been repaid by the group to NBFC out of the disbursed amount. The net worth of
the company is Rs 3000 crore. Now one of the companies of the group is requesting for
another Rs 450 crore for a new infrastructure project being set up by the company. How much
maximum loan amount could be sanctioned by the NBFC?
The Viability Gap Funding (VGF) Scheme aims at supporting infrastructure projects that are economically
justified but fall marginally short of financial viability. Support under this scheme is available only for
infrastructure projects where private sector sponsors are selected through a process of competitive
bidding.
Viability Gap Funding (VGF) is designed to provide capital support to PPP projects which would not
otherwise be financially viable. VGF has the effect of reducing the revenue required to recover costs and
provide a financially attractive return for the private sector.
7) What are the major clearances required for a setting up thermal power project?
the major clearances required for setting up a thermal power project includes clearance for main plant
area (boiler, turbine generator and transformer yard), coal handling system, raw water reservoir, water
system (water & wastewater treatment and water requirement for the cooling tower), switchyard, ash
handling system, FGD system, roads, landscaping, and green belt.
8) Give an example of a Franchisee Model in Public Private Partnership. What are the major risks
for a franchisee in such a model?
A public-private partnership (PPP) is a funding model for public infrastructure projects and initiatives
such as a new telecommunications system, public transportation system, airport or power plant.
Risks Involved:-
9) Name the three main parameters which are seen to assess the viability of the project for
consideration for funding?
10) Name 3 different category of projects for which environmental clearances from Ministry of
Environment and Forest, Govt of India is a a must?