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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