16 December 2012
TOL represents Total Outside Liabilities. TNW represents Tangible Net Worth.
TOL/TNW is nothing but Debt/Equity Ratio.
Bank will look for ratio less than 3.
Adj. TOL/TNW represents adjustment made in TNW for investments made in associates. i.e., investments made in associates will be deducted from TNW to represents true Net Worth of the company.