Alphameter Technologies Limited has outstanding guarantees of ₹ 92 crore as on March 31, 2019. During the year, Company had given new guarantees of ₹ 8 crore to the Telecom Department for new telephone lines. The income

CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · December 2021
Alphameter Technologies Limited has outstanding guarantees of ₹ 92 crore as on March 31, 2019. During the year, Company had given new guarantees of ₹ 8 crore to the Telecom Department for new telephone lines. The income tax assessment proceedings for the Assessment Year (AY) 2014-15 have concluded and the Department has released bank guarantees of ₹ 21 crore which the company had provided earlier. The Department has demanded an additional guarantee of ₹ 2 crore towards the interest for the AY 2015-16, for which the Company had provided guarantee of ₹ 14 crore in previous years. Compute the bank guarantee limits as on March 31, 2020.

Answer & Explanation:

Computation of Bank guarantee limits as on March 31, 2020 Particulars Amount (in ₹ crores) Outstanding Bank Guarantee as on 31st March 2019 92 (A) Bank guarantees including additional guarantee issued during the period (8 cr. + 2 cr.) 10 (B) Bank guarantees released during the year 21 (C) Bank Guarantee Limits as on 31st march 2020 81 (D=A+B-C) Notes: 92 crores have been considered as the opening bank guarantees outstanding as on April 1, 2019 Additions during the year include 8 crore and 2 crore bank Guarantee provided towards the interest with the income-tax department 14 crores have not been considered separately, as it was provided during the earlier years and is included in the opening guarantees as on April 01, 2019

Topics: Financial Management

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