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      Question

      Under the Turnover Method (Nayak Committee), a micro

      enterprise with projected turnover of ₹600 lakh should be sanctioned a WC limit of:
      A ₹60 lakh Correct Answer Incorrect Answer
      B ₹90 lakh Correct Answer Incorrect Answer
      C ₹120 lakh Correct Answer Incorrect Answer
      D ₹75 lakh Correct Answer Incorrect Answer
      E ₹105 lakh Correct Answer Incorrect Answer

      Solution

      Working Capital limit = 25% of projected turnover = 25% of ₹600 lakh = ₹150 lakh. Margin of 40% → Bank finance = 60% of ₹150 = ₹90 lakh.

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