corporate fds are the important way of tapping the debt
market.critically analyze any five recently launched fds
explaining their differences benefits and limitations
- 1 Answers
- 5793 Views
- Lakshmi Vilas Bank, I also Faced
- E-Mail Answers
Answer Posted / neeraj
A.5 Yes, corporate FD’s are important and easy method of
getting un-secured loans for Corporates.
This is an effective means to get funds with low
administrative cost at current yield.
We analyse the following 5 FD’s.
1) J K Paper Ltd.
2) Ansal Buildwell Ltd.
3) Escorts Ltd.
4) Shriram Pistons & Rings Ltd.
5) Triveni Engineering & Industries.
The comparison for Annual yield are given below :
NAME OF CO. ANNUAL YIELD(%)
1) J K Paper Ltd. 7.71
2) Ansal Buildwell Ltd. 11.57
3) Escorts Ltd. 8.77
4) Shriram Pistons & Rings Ltd. 7.22
5) Triveni Engineering & Industries. 8.77
Highest Interest is offered by Ansal Buildwell and lowest
by Shirram Pistons & Rings Ltd.
Now we evaluate the figures of the companies after
comparitive study.
NAME OF CO. Secured Loan (Crores) Un-Secured
Loans (Crores)
First Yr Sec Yr First Yr Second Yr
1) J K Paper Ltd. 383.55 452.49 55.64 58.18
2) Ansal Buildwell Ltd. 33.9 29.78 3.96 4.05
3) Escorts Ltd. 440 480 277 335
4) Shriram Pistons & Rings Ltd. 51.04 87.68 15.2
13.39
5) Triveni Engineering & Industries. 282 386
18.34 23.87
In 3 cases namely , J K Paper Ltd, Escorts Ltd and Treveni
Engineering & Industries both the secured and un-secured
loans have increased . Where as in Ansal Buildwell there is
rise in un-secured loan and fall in secured loan this is un-
usual . This is probably due to higher capital intensive
Construction Business.
In the case of Shriram Pistons & Rings Ltd , the secured
credit is rising and the un-secured loan has been reduced.
This is because of Shriram Pistons & Rings preferring
lower interest cost secured credit to costlier un-secured
loan.
| Is This Answer Correct ? | 3 Yes | 0 No |
Post New Answer View All Answers
What is Incorporation?
Discuss risks that you have taken if your life?
Tell us the current Repo Rate and Reverse Repo Rate?
What are your views on social networking sites?
Can anyone please send me solution document for US payroll . My mail id is rishisharma29@rediffmail.com. Thanks
Tell some of the projects you did in the past?
what did you know about jrg securities ltd
can anyone help with interview questions for the position of bank operations officer? my e-mail is ysecurites@yahoo.com
What is current GDP of India?
What would you personally invest in?
Do you anything about bureaucracy?
Do you have interest in any particular area?
How YOU prepared for interview?
What are various qualities one should possess to become a Bank Officer? Do you think you possess those?
Recently what award has been given to SBI?
