General Studies · Banking and Financial Appraisal

Consider the following seven statements regarding the Lenders' Appraisal Procedure: Statement 1: Evaluating the 'Catchment Area' to ensure a steady supply of agricultural produce is vital for a cold storage project appraisal. Statement 2: For software companies, the appraisal is typically 'Asset-Light', focusing heavily on human resource quality and IP assets rather than physical machinery. Statement 3: The 'Debt Equity Ratio' is monitored dynamically by banks post-disbursement via periodic reviews and covenant compliance. Statement 4: 'Market Appraisal' encompasses assessing the industry's demand-supply gap and the borrower's competitive matrix. Statement 5: A 'Letter of Credit' (LC) facility is appraised as a 'Non-Fund-Based' limit initially, as funds are deployed only upon default or invocation. Statement 6: The 'DSCR' calculation traditionally factors back 'Depreciation' into net cash flows because it represents a non-cash accounting expenditure. Statement 7: 'Unit Inspection' or 'Site Visits' serve to physically verify asset existence, operational infrastructure, and overall business morale. Which of the following summary evaluations is correct?