IIFCL Grade A cheat sheet

RBI was established on 1 April 1935 under the RBI Act, 1934, and nationalised on 1 January 1949; it is the monetary authority, banker to government, and lender of last resort.

Monetary policy framework since 2016: flexible inflation targeting with CPI headline target of 4% (band 2%-6%); the six-member MPC headed by the RBI Governor sets the repo rate.

Policy rates and tools: repo, reverse repo/SDF, MSF, bank rate, CRR and SLR; liquidity absorption now mainly via the Standing Deposit Facility introduced in April 2022.

Priority sector lending target is 40% of ANBC for scheduled commercial banks, with sub-targets for agriculture (18%), micro enterprises (7.5%), and weaker sections (12%).

Basel III in India: minimum CRR-inclusive CET1 of 5.5%, Tier 1 of 7%, total CRB of 9%, plus capital conservation buffer of 2.5% and CCB for domestic systemically important banks.

Key infrastructure institutions: IIFCL (2006, long-tenor project debt), NABARD (1982, rural credit), SIDBI (1990, MSMEs), EXIM Bank (1982), NHB (1988), and NaBFID (2021, infrastructure development finance institution).

National Infrastructure Pipeline (2019) targets over Rs 100 lakh crore of infrastructure investment; PM Gati Shakti (2021) is the GIS-based multi-modal master-planning platform.

Insolvency and Bankruptcy Code 2016: CIRP must be completed within 330 days including litigation; NCLT is adjudicating authority, IBBI regulates insolvency professionals.

Fiscal and external indicators: fiscal deficit target expressed as % of GDP in Union Budget; current account deficit, forex reserves (RBI), and WPI/CPI are tracked monthly.

Simple interest = P x R x T / 100; compound interest = P[(1+R/100)^T - 1]; for 2 years, CI - SI = P(R/100)^2.

Speed-distance-time: distance = speed x time; for a train crossing a platform, total distance = train length + platform length.

Boats and streams: downstream speed = u + v, upstream = u - v; speed in still water = (downstream + upstream)/2.

Profit and loss: SP = CP x (100 + profit%)/100; successive discounts of a% and b% equal a single discount of (a + b - ab/100)%.

Permutation vs combination: nPr = n!/(n-r)!; nCr = n!/[r!(n-r)!]; arrangements of a word with repeated letters divide by factorial of repeats.

Syllogism rule: conclusions must hold in every possible Venn diagram of the premises; 'some' and 'no' statements convert, 'all A are B' does not convert to 'all B are A'.

Blood relations and direction sense: draw a fixed reference diagram; net displacement uses Pythagoras when movements are perpendicular.

Data interpretation: compute percentage change as (new - old)/old x 100; use approximation only after checking option spread.

Coding-decoding and series: check positional shifts, reversal, and alternating patterns before assuming a single arithmetic rule.

Subject-verb agreement: each, every, either, neither, everyone, and nobody take singular verbs; 'neither...nor' agrees with the nearer subject.

Articles: 'a/an' for indefinite singular countable nouns, 'the' for unique or previously specified nouns; no article before uncountable nouns used generally.

Tenses: present perfect (has/have + past participle) for past actions with present relevance; past perfect for the earlier of two past actions.

Prepositions with fixed collocations: 'comprise' takes no 'of'; 'consist of', 'comply with', 'in accordance with', 'prior to', 'despite' + noun/gerund.

Common error traps: 'one of the' + plural noun + singular verb; 'the number of' (singular) vs 'a number of' (plural).

Reading comprehension: identify the main idea, tone, and inference; eliminate options that are true but not stated or that overstate the passage.

Cloze test: read the full passage first, then choose the option that fits both grammar and meaning; check collocation and parallel structure.

Para jumbles: find the opening sentence (no pronoun reference to prior content), then follow pronoun, article, and connector chains.

Project appraisal covers technical, economic, financial, commercial, managerial, and environmental/social dimensions; financial viability alone is insufficient for public infrastructure.

Capital budgeting metrics: NPV = sum of CFt/(1+r)^t minus initial outlay (accept if NPV > 0); IRR is the discount rate where NPV = 0; DSCR = CFADS / debt service.

DSCR and cover ratios: minimum DSCR covenants typically 1.20x-1.50x; ADSCR uses annual CFADS, LLCR discounts CFADS over loan life, PLCR over project life.

Project finance is non-recourse or limited-recourse, ring-fenced via SPV, with debt sized on project cash flows and a defined debt-equity ratio (often 70:30 or 80:20).

Risk allocation: construction, completion, offtake, price, currency, interest-rate, regulatory, and force majeure risks are assigned to parties best able to manage them via concession and EPC contracts.

Concession structures: BOT (build-operate-transfer), BOOT, DBFOT, HAM (hybrid annuity model), TOT, and annuity models; HAM splits funding 40% government grant during construction and 60% as annuity-linked debt.

Sensitivity and scenario analysis: test NPV/DSCR under adverse traffic, tariff, cost-overrun, and interest-rate scenarios; break-even analysis identifies the cushion.

Viability Gap Funding (VGF) is a capital grant by government (up to 20%, extendable to 40% with approval) to make PPP projects commercially viable.

Environmental and social appraisal: EIA under EIA Notification 2006, environmental clearance, land acquisition under RFCTLARR Act 2013, and R&R compliance are conditions precedent to financial close.

Time value of money: PV = FV/(1+r)^n; annuity PV = PMT x [1 - (1+r)^-n]/r; perpetuity PV = PMT/r; growing perpetuity PV = PMT/(r - g).

WACC = (E/V) x Ke + (D/V) x Kd x (1 - tax rate); Ke via CAPM = Rf + beta x (Rm - Rf).

Leverage: operating leverage = contribution/EBIT; financial leverage = EBIT/EBT; combined leverage is their product.

Working capital: operating cycle = inventory days + receivable days - payable days; current ratio = current assets/current liabilities; quick ratio excludes inventory.

Accounting fundamentals: double-entry; accrual and matching concepts; debit increases assets/expenses, credit increases liabilities/equity/income.

Key financial statements: balance sheet (assets = liabilities + equity), profit and loss, cash flow statement split into operating, investing, and financing activities.

Ratio analysis: ROE = net income/equity (DuPont: net margin x asset turnover x equity multiplier); interest coverage = EBIT/interest.

Banking asset classification: standard, sub-standard (NPA up to 12 months), doubtful, and loss assets; NPAs are loans overdue more than 90 days.

Provisioning and capital: banks maintain CRR and SLR with RBI, provision for NPAs per IRAC norms, and report gross and net NPA ratios; SARFAESI Act 2002 enables secured creditor enforcement without court intervention.

RBI was established on 1 April 1935 under the RBI Act, 1934, and nationalised on 1 January 1949; it is the monetary authority, banker to government, and lender of last resort.

Monetary policy framework since 2016: flexible inflation targeting with CPI headline target of 4% (band 2%-6%); the six-member MPC headed by the RBI Governor sets the repo rate.

Policy rates and tools: repo, reverse repo/SDF, MSF, bank rate, CRR and SLR; liquidity absorption now mainly via the Standing Deposit Facility introduced in April 2022.

Priority sector lending target is 40% of ANBC for scheduled commercial banks, with sub-targets for agriculture (18%), micro enterprises (7.5%), and weaker sections (12%).

Basel III in India: minimum CRR-inclusive CET1 of 5.5%, Tier 1 of 7%, total CRB of 9%, plus capital conservation buffer of 2.5% and CCB for domestic systemically important banks.

Key infrastructure institutions: IIFCL (2006, long-tenor project debt), NABARD (1982, rural credit), SIDBI (1990, MSMEs), EXIM Bank (1982), NHB (1988), and NaBFID (2021, infrastructure development finance institution).

National Infrastructure Pipeline (2019) targets over Rs 100 lakh crore of infrastructure investment; PM Gati Shakti (2021) is the GIS-based multi-modal master-planning platform.

Insolvency and Bankruptcy Code 2016: CIRP must be completed within 330 days including litigation; NCLT is adjudicating authority, IBBI regulates insolvency professionals.

Fiscal and external indicators: fiscal deficit target expressed as % of GDP in Union Budget; current account deficit, forex reserves (RBI), and WPI/CPI are tracked monthly.

Simple interest = P x R x T / 100; compound interest = P[(1+R/100)^T - 1]; for 2 years, CI - SI = P(R/100)^2.

Speed-distance-time: distance = speed x time; for a train crossing a platform, total distance = train length + platform length.

Boats and streams: downstream speed = u + v, upstream = u - v; speed in still water = (downstream + upstream)/2.

Profit and loss: SP = CP x (100 + profit%)/100; successive discounts of a% and b% equal a single discount of (a + b - ab/100)%.

Permutation vs combination: nPr = n!/(n-r)!; nCr = n!/[r!(n-r)!]; arrangements of a word with repeated letters divide by factorial of repeats.

Syllogism rule: conclusions must hold in every possible Venn diagram of the premises; 'some' and 'no' statements convert, 'all A are B' does not convert to 'all B are A'.

Blood relations and direction sense: draw a fixed reference diagram; net displacement uses Pythagoras when movements are perpendicular.

Data interpretation: compute percentage change as (new - old)/old x 100; use approximation only after checking option spread.

Coding-decoding and series: check positional shifts, reversal, and alternating patterns before assuming a single arithmetic rule.

Subject-verb agreement: each, every, either, neither, everyone, and nobody take singular verbs; 'neither...nor' agrees with the nearer subject.

Articles: 'a/an' for indefinite singular countable nouns, 'the' for unique or previously specified nouns; no article before uncountable nouns used generally.

Tenses: present perfect (has/have + past participle) for past actions with present relevance; past perfect for the earlier of two past actions.

Prepositions with fixed collocations: 'comprise' takes no 'of'; 'consist of', 'comply with', 'in accordance with', 'prior to', 'despite' + noun/gerund.

Common error traps: 'one of the' + plural noun + singular verb; 'the number of' (singular) vs 'a number of' (plural).

Reading comprehension: identify the main idea, tone, and inference; eliminate options that are true but not stated or that overstate the passage.

Cloze test: read the full passage first, then choose the option that fits both grammar and meaning; check collocation and parallel structure.

Para jumbles: find the opening sentence (no pronoun reference to prior content), then follow pronoun, article, and connector chains.

Project appraisal covers technical, economic, financial, commercial, managerial, and environmental/social dimensions; financial viability alone is insufficient for public infrastructure.

Capital budgeting metrics: NPV = sum of CFt/(1+r)^t minus initial outlay (accept if NPV > 0); IRR is the discount rate where NPV = 0; DSCR = CFADS / debt service.

DSCR and cover ratios: minimum DSCR covenants typically 1.20x-1.50x; ADSCR uses annual CFADS, LLCR discounts CFADS over loan life, PLCR over project life.

Project finance is non-recourse or limited-recourse, ring-fenced via SPV, with debt sized on project cash flows and a defined debt-equity ratio (often 70:30 or 80:20).

Risk allocation: construction, completion, offtake, price, currency, interest-rate, regulatory, and force majeure risks are assigned to parties best able to manage them via concession and EPC contracts.

Concession structures: BOT (build-operate-transfer), BOOT, DBFOT, HAM (hybrid annuity model), TOT, and annuity models; HAM splits funding 40% government grant during construction and 60% as annuity-linked debt.

Sensitivity and scenario analysis: test NPV/DSCR under adverse traffic, tariff, cost-overrun, and interest-rate scenarios; break-even analysis identifies the cushion.

Viability Gap Funding (VGF) is a capital grant by government (up to 20%, extendable to 40% with approval) to make PPP projects commercially viable.

Environmental and social appraisal: EIA under EIA Notification 2006, environmental clearance, land acquisition under RFCTLARR Act 2013, and R&R compliance are conditions precedent to financial close.

Time value of money: PV = FV/(1+r)^n; annuity PV = PMT x [1 - (1+r)^-n]/r; perpetuity PV = PMT/r; growing perpetuity PV = PMT/(r - g).

WACC = (E/V) x Ke + (D/V) x Kd x (1 - tax rate); Ke via CAPM = Rf + beta x (Rm - Rf).

Leverage: operating leverage = contribution/EBIT; financial leverage = EBIT/EBT; combined leverage is their product.

Working capital: operating cycle = inventory days + receivable days - payable days; current ratio = current assets/current liabilities; quick ratio excludes inventory.

Accounting fundamentals: double-entry; accrual and matching concepts; debit increases assets/expenses, credit increases liabilities/equity/income.

Key financial statements: balance sheet (assets = liabilities + equity), profit and loss, cash flow statement split into operating, investing, and financing activities.

Ratio analysis: ROE = net income/equity (DuPont: net margin x asset turnover x equity multiplier); interest coverage = EBIT/interest.

Banking asset classification: standard, sub-standard (NPA up to 12 months), doubtful, and loss assets; NPAs are loans overdue more than 90 days.

Provisioning and capital: banks maintain CRR and SLR with RBI, provision for NPAs per IRAC norms, and report gross and net NPA ratios; SARFAESI Act 2002 enables secured creditor enforcement without court intervention.

RBI was established on 1 April 1935 under the RBI Act, 1934, and nationalised on 1 January 1949; it is the monetary authority, banker to government, and lender of last resort.

Monetary policy framework since 2016: flexible inflation targeting with CPI headline target of 4% (band 2%-6%); the six-member MPC headed by the RBI Governor sets the repo rate.

Policy rates and tools: repo, reverse repo/SDF, MSF, bank rate, CRR and SLR; liquidity absorption now mainly via the Standing Deposit Facility introduced in April 2022.

Priority sector lending target is 40% of ANBC for scheduled commercial banks, with sub-targets for agriculture (18%), micro enterprises (7.5%), and weaker sections (12%).

Basel III in India: minimum CRR-inclusive CET1 of 5.5%, Tier 1 of 7%, total CRB of 9%, plus capital conservation buffer of 2.5% and CCB for domestic systemically important banks.

Key infrastructure institutions: IIFCL (2006, long-tenor project debt), NABARD (1982, rural credit), SIDBI (1990, MSMEs), EXIM Bank (1982), NHB (1988), and NaBFID (2021, infrastructure development finance institution).

National Infrastructure Pipeline (2019) targets over Rs 100 lakh crore of infrastructure investment; PM Gati Shakti (2021) is the GIS-based multi-modal master-planning platform.

Insolvency and Bankruptcy Code 2016: CIRP must be completed within 330 days including litigation; NCLT is adjudicating authority, IBBI regulates insolvency professionals.

Fiscal and external indicators: fiscal deficit target expressed as % of GDP in Union Budget; current account deficit, forex reserves (RBI), and WPI/CPI are tracked monthly.

Simple interest = P x R x T / 100; compound interest = P[(1+R/100)^T - 1]; for 2 years, CI - SI = P(R/100)^2.

Speed-distance-time: distance = speed x time; for a train crossing a platform, total distance = train length + platform length.

Boats and streams: downstream speed = u + v, upstream = u - v; speed in still water = (downstream + upstream)/2.

Profit and loss: SP = CP x (100 + profit%)/100; successive discounts of a% and b% equal a single discount of (a + b - ab/100)%.

Permutation vs combination: nPr = n!/(n-r)!; nCr = n!/[r!(n-r)!]; arrangements of a word with repeated letters divide by factorial of repeats.

Syllogism rule: conclusions must hold in every possible Venn diagram of the premises; 'some' and 'no' statements convert, 'all A are B' does not convert to 'all B are A'.

Blood relations and direction sense: draw a fixed reference diagram; net displacement uses Pythagoras when movements are perpendicular.

Data interpretation: compute percentage change as (new - old)/old x 100; use approximation only after checking option spread.

Coding-decoding and series: check positional shifts, reversal, and alternating patterns before assuming a single arithmetic rule.

Subject-verb agreement: each, every, either, neither, everyone, and nobody take singular verbs; 'neither...nor' agrees with the nearer subject.

Articles: 'a/an' for indefinite singular countable nouns, 'the' for unique or previously specified nouns; no article before uncountable nouns used generally.

Tenses: present perfect (has/have + past participle) for past actions with present relevance; past perfect for the earlier of two past actions.

Prepositions with fixed collocations: 'comprise' takes no 'of'; 'consist of', 'comply with', 'in accordance with', 'prior to', 'despite' + noun/gerund.

Common error traps: 'one of the' + plural noun + singular verb; 'the number of' (singular) vs 'a number of' (plural).

Reading comprehension: identify the main idea, tone, and inference; eliminate options that are true but not stated or that overstate the passage.

Cloze test: read the full passage first, then choose the option that fits both grammar and meaning; check collocation and parallel structure.

Para jumbles: find the opening sentence (no pronoun reference to prior content), then follow pronoun, article, and connector chains.

Project appraisal covers technical, economic, financial, commercial, managerial, and environmental/social dimensions; financial viability alone is insufficient for public infrastructure.

Capital budgeting metrics: NPV = sum of CFt/(1+r)^t minus initial outlay (accept if NPV > 0); IRR is the discount rate where NPV = 0; DSCR = CFADS / debt service.

DSCR and cover ratios: minimum DSCR covenants typically 1.20x-1.50x; ADSCR uses annual CFADS, LLCR discounts CFADS over loan life, PLCR over project life.

Project finance is non-recourse or limited-recourse, ring-fenced via SPV, with debt sized on project cash flows and a defined debt-equity ratio (often 70:30 or 80:20).

Risk allocation: construction, completion, offtake, price, currency, interest-rate, regulatory, and force majeure risks are assigned to parties best able to manage them via concession and EPC contracts.

Concession structures: BOT (build-operate-transfer), BOOT, DBFOT, HAM (hybrid annuity model), TOT, and annuity models; HAM splits funding 40% government grant during construction and 60% as annuity-linked debt.

Sensitivity and scenario analysis: test NPV/DSCR under adverse traffic, tariff, cost-overrun, and interest-rate scenarios; break-even analysis identifies the cushion.

Viability Gap Funding (VGF) is a capital grant by government (up to 20%, extendable to 40% with approval) to make PPP projects commercially viable.

Environmental and social appraisal: EIA under EIA Notification 2006, environmental clearance, land acquisition under RFCTLARR Act 2013, and R&R compliance are conditions precedent to financial close.

Time value of money: PV = FV/(1+r)^n; annuity PV = PMT x [1 - (1+r)^-n]/r; perpetuity PV = PMT/r; growing perpetuity PV = PMT/(r - g).

WACC = (E/V) x Ke + (D/V) x Kd x (1 - tax rate); Ke via CAPM = Rf + beta x (Rm - Rf).

Leverage: operating leverage = contribution/EBIT; financial leverage = EBIT/EBT; combined leverage is their product.

Working capital: operating cycle = inventory days + receivable days - payable days; current ratio = current assets/current liabilities; quick ratio excludes inventory.

Accounting fundamentals: double-entry; accrual and matching concepts; debit increases assets/expenses, credit increases liabilities/equity/income.

Key financial statements: balance sheet (assets = liabilities + equity), profit and loss, cash flow statement split into operating, investing, and financing activities.

Ratio analysis: ROE = net income/equity (DuPont: net margin x asset turnover x equity multiplier); interest coverage = EBIT/interest.

Banking asset classification: standard, sub-standard (NPA up to 12 months), doubtful, and loss assets; NPAs are loans overdue more than 90 days.

Provisioning and capital: banks maintain CRR and SLR with RBI, provision for NPAs per IRAC norms, and report gross and net NPA ratios; SARFAESI Act 2002 enables secured creditor enforcement without court intervention.

RBI was established on 1 April 1935 under the RBI Act, 1934, and nationalised on 1 January 1949; it is the monetary authority, banker to government, and lender of last resort.

Monetary policy framework since 2016: flexible inflation targeting with CPI headline target of 4% (band 2%-6%); the six-member MPC headed by the RBI Governor sets the repo rate.

Policy rates and tools: repo, reverse repo/SDF, MSF, bank rate, CRR and SLR; liquidity absorption now mainly via the Standing Deposit Facility introduced in April 2022.

Priority sector lending target is 40% of ANBC for scheduled commercial banks, with sub-targets for agriculture (18%), micro enterprises (7.5%), and weaker sections (12%).

Basel III in India: minimum CRR-inclusive CET1 of 5.5%, Tier 1 of 7%, total CRB of 9%, plus capital conservation buffer of 2.5% and CCB for domestic systemically important banks.

Key infrastructure institutions: IIFCL (2006, long-tenor project debt), NABARD (1982, rural credit), SIDBI (1990, MSMEs), EXIM Bank (1982), NHB (1988), and NaBFID (2021, infrastructure development finance institution).

National Infrastructure Pipeline (2019) targets over Rs 100 lakh crore of infrastructure investment; PM Gati Shakti (2021) is the GIS-based multi-modal master-planning platform.

Insolvency and Bankruptcy Code 2016: CIRP must be completed within 330 days including litigation; NCLT is adjudicating authority, IBBI regulates insolvency professionals.

Fiscal and external indicators: fiscal deficit target expressed as % of GDP in Union Budget; current account deficit, forex reserves (RBI), and WPI/CPI are tracked monthly.

Simple interest = P x R x T / 100; compound interest = P[(1+R/100)^T - 1]; for 2 years, CI - SI = P(R/100)^2.

Speed-distance-time: distance = speed x time; for a train crossing a platform, total distance = train length + platform length.

Boats and streams: downstream speed = u + v, upstream = u - v; speed in still water = (downstream + upstream)/2.

Profit and loss: SP = CP x (100 + profit%)/100; successive discounts of a% and b% equal a single discount of (a + b - ab/100)%.

Permutation vs combination: nPr = n!/(n-r)!; nCr = n!/[r!(n-r)!]; arrangements of a word with repeated letters divide by factorial of repeats.

Syllogism rule: conclusions must hold in every possible Venn diagram of the premises; 'some' and 'no' statements convert, 'all A are B' does not convert to 'all B are A'.

Blood relations and direction sense: draw a fixed reference diagram; net displacement uses Pythagoras when movements are perpendicular.

Data interpretation: compute percentage change as (new - old)/old x 100; use approximation only after checking option spread.

Coding-decoding and series: check positional shifts, reversal, and alternating patterns before assuming a single arithmetic rule.

Subject-verb agreement: each, every, either, neither, everyone, and nobody take singular verbs; 'neither...nor' agrees with the nearer subject.

Articles: 'a/an' for indefinite singular countable nouns, 'the' for unique or previously specified nouns; no article before uncountable nouns used generally.

Tenses: present perfect (has/have + past participle) for past actions with present relevance; past perfect for the earlier of two past actions.

Prepositions with fixed collocations: 'comprise' takes no 'of'; 'consist of', 'comply with', 'in accordance with', 'prior to', 'despite' + noun/gerund.

Common error traps: 'one of the' + plural noun + singular verb; 'the number of' (singular) vs 'a number of' (plural).

Reading comprehension: identify the main idea, tone, and inference; eliminate options that are true but not stated or that overstate the passage.

Cloze test: read the full passage first, then choose the option that fits both grammar and meaning; check collocation and parallel structure.

Para jumbles: find the opening sentence (no pronoun reference to prior content), then follow pronoun, article, and connector chains.

Project appraisal covers technical, economic, financial, commercial, managerial, and environmental/social dimensions; financial viability alone is insufficient for public infrastructure.

Capital budgeting metrics: NPV = sum of CFt/(1+r)^t minus initial outlay (accept if NPV > 0); IRR is the discount rate where NPV = 0; DSCR = CFADS / debt service.

DSCR and cover ratios: minimum DSCR covenants typically 1.20x-1.50x; ADSCR uses annual CFADS, LLCR discounts CFADS over loan life, PLCR over project life.

Project finance is non-recourse or limited-recourse, ring-fenced via SPV, with debt sized on project cash flows and a defined debt-equity ratio (often 70:30 or 80:20).

Risk allocation: construction, completion, offtake, price, currency, interest-rate, regulatory, and force majeure risks are assigned to parties best able to manage them via concession and EPC contracts.

Concession structures: BOT (build-operate-transfer), BOOT, DBFOT, HAM (hybrid annuity model), TOT, and annuity models; HAM splits funding 40% government grant during construction and 60% as annuity-linked debt.

Sensitivity and scenario analysis: test NPV/DSCR under adverse traffic, tariff, cost-overrun, and interest-rate scenarios; break-even analysis identifies the cushion.

Viability Gap Funding (VGF) is a capital grant by government (up to 20%, extendable to 40% with approval) to make PPP projects commercially viable.

Environmental and social appraisal: EIA under EIA Notification 2006, environmental clearance, land acquisition under RFCTLARR Act 2013, and R&R compliance are conditions precedent to financial close.

Time value of money: PV = FV/(1+r)^n; annuity PV = PMT x [1 - (1+r)^-n]/r; perpetuity PV = PMT/r; growing perpetuity PV = PMT/(r - g).

WACC = (E/V) x Ke + (D/V) x Kd x (1 - tax rate); Ke via CAPM = Rf + beta x (Rm - Rf).

Leverage: operating leverage = contribution/EBIT; financial leverage = EBIT/EBT; combined leverage is their product.

Working capital: operating cycle = inventory days + receivable days - payable days; current ratio = current assets/current liabilities; quick ratio excludes inventory.

Accounting fundamentals: double-entry; accrual and matching concepts; debit increases assets/expenses, credit increases liabilities/equity/income.

Key financial statements: balance sheet (assets = liabilities + equity), profit and loss, cash flow statement split into operating, investing, and financing activities.

Ratio analysis: ROE = net income/equity (DuPont: net margin x asset turnover x equity multiplier); interest coverage = EBIT/interest.

Banking asset classification: standard, sub-standard (NPA up to 12 months), doubtful, and loss assets; NPAs are loans overdue more than 90 days.

Provisioning and capital: banks maintain CRR and SLR with RBI, provision for NPAs per IRAC norms, and report gross and net NPA ratios; SARFAESI Act 2002 enables secured creditor enforcement without court intervention.