Moon Ltd makes an application for Bank Guarantee Limit for the Financial Year 2021-22 with following data to PQR Bank Ltd:(i) Outstanding Bank Guarantee as per the last Audited Balance Sheet: ₹95 lakhs(ii) Bank Guarantee
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · June 2022
Moon Ltd makes an application for Bank Guarantee Limit for the Financial Year 2021-22 with following data to PQR Bank Ltd:(i) Outstanding Bank Guarantee as per the last Audited Balance Sheet: ₹95 lakhs(ii) Bank Guarantee required for the Financial Year 2021-22: ₹115 lakhs(iii) Estimated maturity or Cancellation during the period: ₹65 lakhsCompute the Bank Guarantee limit of Moon Ltd for the Financial Year 2021-22.
Answer & Explanation:
Computation of Bank Guarantee limit of Moon Ltd for Financial Year 2021-22 Amount in ₹ A Outstanding Bank Guarantee as per Audited Balance Sheet 95 lakhs B Add: Bank Guarantee required during the period 115 lakhs C Less: Estimated maturity or Cancellation during the period 65 lakhs D Requirement of Bank Guarantee (A+B-C) 145 lakhs
Topics: Bank Guarantees
Related Questions in this Topic
- SCL Ltd has outstanding bank guarantee of ₹325 Lakh as per Audited Balance Sheet of March 31, 2023. During the year 2023...
- Distinguish between the following: Financial Bank Guarantee and Performance Bank Guarantee.
- What is the difference between the BdL market, which is an EU-regulated market, and the Euro MTF market, which is an exc...
- One of the measures of the principles of the corporate governance and protection of minority shareholder is "Equitable t...
- Rajesh, the promoter of the company had acquired 10000 equity shares of the company on 5th April, 2025, for a market pri...