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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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