General Studies · Banking and Financial Appraisal

Examine the validity of the following statements concerning project appraisal procedures by banks: Statement 1: 'Economic Appraisal' measures a project's macroeconomic impact including job creation, forex savings, and value-addition. Statement 2: In credit appraisal, project cash flows are the primary repayment engine; collateral security acts merely as a secondary safety net. Statement 3: 'Working Capital Gap' represents the differential between total current assets and total current liabilities excluding bank finance. Statement 4: 'Promoter's Contribution' can comprise equity capital, preference shares, or verified long-term unsecured loans. Statement 5: 'Technical Feasibility' mandates choosing local adaptability, cost efficiency, and operating viability over simply deploying the most expensive technology. Statement 6: 'Financial Closure' is accomplished when all debt and equity financing components are legally bound and locked. Statement 7: The 'Appraisal Note' compiled by credit officers must explicitly state internal credit risk rating matrix scores. Choose the correct structural breakdown option: