Bhojwani Builders Interview Questions and Answers

OD stands for Overdraft while VC stands for Venture Capital.

• OD is a type of credit facility provided by banks to customers where they can withdraw more money than they have in their account, up to a certain limit.

• VC is a form of financing provided to early-stage companies that have the potential for high growth in exchange for equity ownership.

• OD is typically short-term and used for managing cash flow fluctuations, while VC is long-term and used for scaling up businesses.

• OD i...read more

Drawing power is determined by assessing the borrower's ability to access funds from their credit line.

• Evaluate the borrower's current outstanding balance on their credit line.

• Consider the borrower's credit limit and any restrictions on the line of credit.

• Assess the borrower's repayment history and creditworthiness.

• Calculate the difference between the credit limit and the outstanding balance to determine the drawing power.

• Drawing power = Credit Limit - Outstanding Balance

Leverage ratio is a financial metric that measures the proportion of a company's debt to its equity.

• Leverage ratio is calculated by dividing total debt by total equity.

• It indicates the level of financial risk a company is taking by using debt to finance its operations.

• A high leverage ratio means a company has more debt relative to equity, which can be risky in times of economic downturn.

• A low leverage ratio indicates a conservative approach to financing.

• For example, if a comp...read more

The basic credit assessment process involves gathering information, analyzing financial statements, and assigning a credit rating.

• Gather information about the borrower's financial history and current financial situation

• Analyze financial statements to assess the borrower's ability to repay the loan

• Assign a credit rating based on the borrower's creditworthiness

• Consider factors such as credit score, debt-to-income ratio, and payment history

• Use the credit rating to determine the ...read more

DLOD stands for Days Late on Delivery, a metric used to measure the number of days a delivery is late.

• DLOD is calculated by subtracting the actual delivery date from the scheduled delivery date.

• It helps assess the efficiency of a company's supply chain and logistics operations.

• For example, if a shipment was scheduled to be delivered on January 15th but arrived on January 20th, the DLOD would be 5 days.