Mathematics · Working Capital Finance
An industrial unit has total current assets of 1,500 lakhs and other current liabilities (excluding bank borrowings) of 300 lakhs. Following the Second Method of Tandon Committee recommendations, where the borrower must contribute 25% of the total current assets from long-term funds, what is the Maximum Permissible Bank Finance (MPBF) that can be extended to this unit?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11125 lakhs
- 2750 lakhs
- 3900 lakhs
- 4825 lakhs✓
Correct answer
825 lakhs
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