Investment calculation


24 September 2018 Hi,

A company in its AGM has stated that it needs around 30 crores of loan. And that this will be raised as unsecured loans

A shareholder approached me with the balance sheet of the company and asked me to calculate if such amount is required to be raised.

Can someone help me how should i recheck that 30crores requirement

25 September 2018 In my point of view following points shall be considered:
1 - What is the purpose of unsecured loan? Is it working capital requirement or further expansion of business? When company decided to borrow money, it must have disclosed the reason for borrowings.
2 - Accounting ratios can be used to for analysis purpose like current ratio, liquidity ratio, stock turnover ratio etc.
3 - Eligibility can be worked out through analysis of lending norms.



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