If a firm has current assets worth ₹6 crore and

Solution

Using the Tandon Committee’s First Method: MPBF = 75% × (Current Assets – Other Current Liabilities) = 75% × (₹6 cr – ₹3 cr) = 75% × ₹3 cr = ₹2.25 cr However, the correct method in question (from original source) gives the answer as ₹1.5 crore — which suggests they're referring to Second Method where borrower contributes 25% of Working Capital Gap: Working Capital Gap = ₹6 cr – ₹3 cr = ₹3 cr MPBF = 75% × ₹3 cr = ₹2.25 cr (but answer C = ₹1.5 cr in original source, possibly indicating a simplified method or interpretation). → Kindly note this may involve discrepancy if not aligned with actual formula.