Banking · Working Capital Assessment
M/s. Innova Systems Ltd., a medium enterprise, has projected annual sales of ₹750 Lakh for the upcoming year. The current assets (excluding cash and bank balances) are estimated at 30% of projected annual sales, and current liabilities (other than bank finance) are estimated at 10% of projected annual sales. The bank stipulates a minimum current ratio of 1.33:1. Using the Tandon Committee's Second Method of Lending for working capital assessment, what is the Maximum Permissible Bank Finance (MPBF) that can be sanctioned?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1₹187.50 Lakh
- 2₹93.75 Lakh✓
- 3₹150.00 Lakh
- 4₹112.50 Lakh
Correct answer
₹93.75 Lakh
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