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    Question

    Projected Annual Turnover: ₹24 crore Borrower

    margin: 5% What is the permissible WC limit under Nayak Committee norms?
    A ₹4.80 crore Correct Answer Incorrect Answer
    B ₹4.56 crore Correct Answer Incorrect Answer
    C ₹4.00 crore Correct Answer Incorrect Answer
    D ₹5.00 crore Correct Answer Incorrect Answer
    E ₹4.30 crore Correct Answer Incorrect Answer

    Solution

    Step-by-step Calculation: 1. Total Working Capital Requirement (WCR):                              25% of ₹24 crore = 0.25 × 24 = ₹6 crore 2. Borrower's Contribution (margin):                             5% of ₹24 crore = ₹1.20 crore 3. Permissible Bank Finance (MPBF):                              ₹6 crore – ₹1.20 crore = ₹4.80 crore

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