WHAT IS THE BASIS TO CALCULATE MODIFIED MPBF??
This query is : Resolved
03 November 2010
Dear All
Kindly let me know the method to calculate MPBF under the modified MPBF System.
Happi Deepawali and thanks
Kindly let me know the method to calculate MPBF under the modified MPBF System.
Happi Deepawali and thanks
08 November 2010
MPBF is given below by following two methods.
FIRST Method of Lending
1 Total Current Assets
[ T1 in Form-IV ]
2 Current Liabilities [Other than bank borrowing]
[ T2 in Form-IV ]
3 Working Capital Gap [WCG]
[ 1 - 2 ]
4 Minimum Stipulated Net Working Capital
[ 25% of WCG excluding export receivables]
[ (item 3 above - item no. 6 in Form - IV)*0.25 ]
5 Actual / Projected Net Working Capital [ NWC ]
[ 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 ]
9 Excess borrowings representing shortfall in NWC
[ item 4 - item 5 ]
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 ]
9 Excess borrowings representing shortfall in NWC
[ item 4 - item 5 ]
FIRST Method of Lending
1 Total Current Assets
[ T1 in Form-IV ]
2 Current Liabilities [Other than bank borrowing]
[ T2 in Form-IV ]
3 Working Capital Gap [WCG]
[ 1 - 2 ]
4 Minimum Stipulated Net Working Capital
[ 25% of WCG excluding export receivables]
[ (item 3 above - item no. 6 in Form - IV)*0.25 ]
5 Actual / Projected Net Working Capital [ NWC ]
[ 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 ]
9 Excess borrowings representing shortfall in NWC
[ item 4 - item 5 ]
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 ]
9 Excess borrowings representing shortfall in NWC
[ item 4 - item 5 ]
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