Interested to Buy Any Domain ? << Click Here >> for more details...
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
- 5670 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 do you know about Mid- day meal scheme launched by the Indian government?
Explain dematerialization?
Explain the term double bottom?
What is 'fringe benefit tax (fbt)'?
How can i create a business blueprint document for SAP FI, CO , SD Module?
What is the role of NABARD in developing the economy?
How can a Business firm achive growth Internally and Externally?
What is cash value?
What would you do if you did not have to work for money? How does that relate to this job?
what is the short cut to recall the last narration saved for the first ledger in the voucher?
What Is Swift?
What pieces of research might you be asked to do as a graduate recruit in the department you're applying to?
How can Indian Economy be developed?
Why you quite your job in six months??
Why credit suisse?
