UPSC Economy 2020 Prelims Questions: Chwck the Detailed Analysis for UPSC preparation

The main way people are exposed is by breathing in air containing benzene. Benzene can also be absorbed through the skin during contact with a a source such as gasoline, but because liquid benzene evaporates quickly, this is less common. Workers in industries that make or use benzene may be exposed to this chemical.

  1. While the ideal interest coverage ratio can vary across industries, a ratio above 2 is generally considered favorable.
  2. Typical exclusions include claims arising from war, breach of contract, theft of trade secrets, unfair trade practices, and employment practices.
  3. Its ability to translate intricate financial data into a comprehensible metric makes it an indispensable tool in the arsenal of financial analysts and decision-makers alike.
  4. Coal itself isn’t a particularly toxic material.

Coal itself isn’t a particularly toxic material. But after it’s burned, what remains in the ash includes lead, mercury, cadmium, chromium, arsenic, and selenium, all in levels that may threaten human health. So statements 1 and 3 are correct. A question based on both government schemes and environment-ecology.

Company

When triggers occur, certain stopgaps will be enacted to protect the lenders. For example, the lenders will receive 50% of select revenues for a specific amount of time should Sun Country’s DSCR drop below 1.00. In the example below, Sun Country, Inc. entered into an agreement with the U.S. Department of Treasury and the Bank of New York Mellon. As part of the loan and guarantee agreement, Sun Country agreed to several financial covenants. Find the interest coverage ratio from the above provided information.

Frightened by the information of publication of thirteen thousand copies of its five editions in just five years, the British banned the book in 1910. There is an authentic picture of the events to destroy the Indian economy, of the agricultural system, destroying the craftsmanship and industry and dealing with contemptuous sentences in relation to the Indian citizen, is present here. Hundi/Hundee is a financial instrument that developed in Medieval India for use in trade and credit transactions. Hundis are used as a form of remittance instrument to transfer money from place to place, as a form of credit instrument or IOU to borrow money and as a bill of exchange in trade transactions. Types of Hundi – Sahyog Hundi, Darshani Hundi, Muddati Hundi, Nam-jog hundi, Furman-jog Hundi, Dhani-jog Hundi, Jokhim-Hundi, Jawabi Hundi, Khaka Hundi, Khoti Hundi etc.

Pillar#1D: Financial inclusion

Statement 2 will create problems due to deeper integration with the world economy. People can also be exposed to benzene in contaminated drinking water and some foods (although the levels are usually very low). Many volatile organic compounds have toxic effects on human health and the environment. Benzene in particular, one of the https://1investing.in/ main organic compounds emitted by wood-burning,has the potential to cause cancer. All types of cells have Plasma Membrane (also called Cell Membrane). At the present level of technology (2020), there has been extensive usage of drones to spray pesticide on agricultural fields as reported from different parts of state of Telangana.

But it remains an important asset in the reserve holdings of several countries, and the IMF is still one of the world’s largest official holders of gold. In line with the new income model for the Fund agreed in April 2008, profits from limited gold sales were used to establish an endowment and used to boost the IMF’s concessional lending capacity to eligible low-income countries (LICs). Ans.(a) First railway line came to India on April 16, 1853 (Mumbai to Thane). The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in overseas and internal trade. The first cotton mill in Ahmedabad, was established in 1861.

Interest Coverage Ratio

This will put the firm at risk of insolvency or bankruptcy. While the ideal interest coverage ratio can vary across industries, a ratio above 2 is generally considered favorable. A ratio below 1.5 raises concerns about the company’s ability to meet its interest obligations without straining its financial resources. The simple way to calculate a company’s interest coverage ratio is by dividing its EBIT (the earnings before interest and taxes) by the total interest owed on all of its debts. As noted above, having a higher interest coverage ratio is usually considered desirable because it means that a company can better fulfill its financial obligations.

First-party coverage insures for losses to the policyholder’s own data, lost income or other harm to the policyholder’s business resulting from a data breach, cyber-attack or ransomware attack. First-party coverage applies to direct costs of the insured business for responding to a data breach or security failure. The weightage of food in CPI is higher than in WPI. If a company’s ratio is below one, it will likely need to spend some of its cash reserves to meet the difference or borrow more, which will be difficult for the reasons stated above. Otherwise, even if earnings are low for a single month, the company risks falling into bankruptcy.

For example, in all three examples, income is not inclusive of taxes. DSCR is also a more comprehensive analytical technique when assessing the long-term financial health of a company. interest coverage ratio upsc Compared to the interest coverage ratio, DSCR is a more conservative, broad calculation. DSCR is also an annualized ratio that often represents a moving 12-month period.

On a balance sheet, this will include short-term debt and the current portion of long-term debt. An interest coverage ratio of 1.5 is considered as healthy for a business. In general, a higher interest coverage ratio means that a company is earning sufficient money in order to pay off the interests due on long term loans, which indicates that there is a very less chance of a financial default. In other words, the interest coverage ratio measures the number of times a company is able to make payments on its existing debt with the EBIT or earnings before interest and taxes. It is also known as the Times Interest Earned Ratio or TIE ratio.

If it does, the borrower could be found to have defaulted on the loan. In addition to helping banks manage their risks, DSCRs can also help analysts and investors when analyzing a company’s financial strength. Total debt service refers to current debt obligations, meaning any interest, principal, sinking fund, and lease payments due in the coming year.

Can a company have an interest coverage ratio of zero?

Presently it is known as Vidisha and is a district of MP. Correct answer could be (a) or (b). Statement 2 is wrong, but 1, 3 and 4 are correct. You could have eliminated options (d) and (a) directly. West Texas Intermediate can refer to a grade of a mix of crude oil, and/or the spot price, the futures price, or the assessed price for that oil. Well-drained soil is that which allows water to percolate through it reasonably quickly and not pool.

(1) India’s merchandise exports are less than its
merchandise imports. (2) India’s imports of iron and steel, chemicals, fertilisers
and machinery have decreased in recent years. (3) India’s exports of services are more than its imports
of services. (4) India suffers from an overall trade/current account
deficit. What is the importance of the term “Interest Coverage
Ratio” of a firm in India? (1)It helps in understanding the present risk of a firm
that a bank is going to give a loan to.

Lascia un commento

Il tuo indirizzo email non sarà pubblicato. I campi obbligatori sono contrassegnati *