Question
An MSME unit has projected annual turnover of ₹240 crore. As per the 20% working capital norm, total working capital requirement is taken at 20% of turnover and the bank finances 80% of the same. What is the maximum permissible bank finance?
Solution
WC = 20% of 240 = 48. Bank share = 80% of 48 = ₹38.4 ≈ ₹38 crore.
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