Indian Institute of Foreign Trade 2011 Solved Paper

The handloom firm is ready to pay the required security amount and possesses assets of Rs. 55 lakhs. Hence, we can say it fulfills condition III and V.
The firm possesses the environmental clearance certificate from the State Pollution Control Board after it was made mandatory for all handloom firms in the state.Hence, we can say the firm fulfills condition IV.
The firm can easily manage three guarantors with their personal identity cards (IDs). Hence, we can say the firm fulfillscondition VI.
If the firm is short in just criteria (I), then the case may be referred to Development Commissioner, Handloom (DCH) of the state as it operates in handloom products. However, nothing is mentioned with regard to any legal dispute against it. Hence, we can say that the licence will not be issues until we have more information regarding legal disputes against the firm.
Therefore, option B is the correct answer.