FM -working capital

This query is : Resolved

janak (Querist)
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27 December 2009 if we hav to find "max perm. bank finance" as per 3rd norm of tandon committee in which we have to use core current assets ....how will we find MPBF?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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27 December 2009 Refer the following example:

Total Current Assets : 370

Less:Core Current Assets : 95

(Core Current Assets represents minimum long term working capital)

Real Current Assets : 275

Less 25% margin -69
---
206

Less:Current Liabilities 150
---
56

Working Capital Gap is Rs.370-150 = 220

But Maximum Permissible Bank Finance is only Rs.56

janak

janak (Querist)
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27 December 2009 "sir" thanking u very much

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