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    Question

    A unit has Total Current Assets ₹200 crore and Current

    Liabilities (other than bank) ₹60 crore. As per MPBF–I, minimum margin is 25% of TCA. What is the Maximum Permissible Bank Finance?
    A ₹90 crore Correct Answer Incorrect Answer
    B ₹100 crore Correct Answer Incorrect Answer
    C ₹105 crore Correct Answer Incorrect Answer
    D ₹110 crore Correct Answer Incorrect Answer
    E ₹120 crore Correct Answer Incorrect Answer

    Solution

    WCG = 200 – 60 = 140 Borrower margin = 25% of 200 = 50 Bank finance = 140 – 50 = ₹90 But MPBF-I formula: Bank finance = 75% of (TCA – CL) = 75% of 140 = ₹105 crore

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