SECOND Method of Lending 1 Total Current Assets [ T1 in Form-IV ]
2 Current Liabilities [other than bank borrowings] [ T2 in Form-IV ]
3 Working Capital Gap (WCG) (1-2) [ 1 - 2 ] 4 Minimum Stipulated Net Working Capital [25% of total Current Assets excluding export receivables] [ (1 above - item 6 in Form-IV)*0.25 ]
5 Actual / Projected net working capital [ T22 in Form-III ]
6 Item no. 3 minus Item no. 4
7 Item no. 3 minus Item no. 5
8 Maximum permissible bank finance [MPBF] [ least of item 6 or 7 above ]
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