Quiz on Due diligence

Which of the following website can provide quality information for real estate project under construction

• Rera

• Property.com

• Ghar banao.com

• Magic bricks.

Which of the following to be checked in account statement?

• a)Percentage of non trading transaction in overall transaction.

• b)Instance of Cheque return due to insufficient fund

• c)Number of transactions with related parties

• All of a,b,c .

How to deal with the leads generated by loan arranger :-

• As the loan arranger is generally an expert professional ,bankers can rely upon them blindly.

• To accept the CMA data as submitted by the loan arranger.

• Not to cross examine the data submitted by the loan arranger

• It is necessary to assess the data submitted by the loan arrangers ,independently as per the extant guidelines of the Bank.

Which of the following may have negative impact on quality of earning of an entity :-

• A. Dependence on only one customer

• B. High Volume of internal trade

• C. Non Seasonal Business

• Both a and b.

Which of the following is correct regarding the proforma invoice issued for car loan:-

• A. Porforma invoice issued by sub dealers can be accepted.

• B. Porforma invoice issued by sub dealers cannot be accepted

• C. Porforma invoice issued by canteen stores of defence can be accepted subject to certain conditions.

• Both b and c.

Generally Detailed Project Report must contain which of the following :-

• a)Cost of project

• b)Means of project

• c)Implementation schedule

• a,b and c.

Which of the following document are part of due diligence in Consortium advance:-

• Exchange of information

• Ceding letter of pari passu

• Inter creditor agreement

• All of a,b,c.

Cersai check will be necessary in which of the following type of retail loans?

• Home Loan

• Baroda Mortgage Loan

• Baroda Ashray Loan

• All of a,b and c.

In a company abc ,xyz holds 62% share ,What must branch do as part of due diligence :-

• A. Bank has no right to demand for balance sheet of XYZ ltd.

• B. Bank should obtain the balance sheet of XYZ Ltd and assess the financial health of the company.

• C. Demand for corporate Guarantee of XYZ Ltd.

• Both b and c.

To ascertain genuiness of the financial statement which of the following due diligence is required ?

• Check the UDIN in the ICAI website.

• Obtain confirmation from the auditor that balance sheet was signed by him.

• Check the membership details of the statutory auditor in ICAI website.

• ALL a,band c.