FM -working capital
This query is : Resolved
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?
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
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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Gst registered proprietorship firm
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Tax rate change regarding
- Non filing of I T Returns
- SALARY CAN BE CAPITALIZE
- Change Of Karta In Case of Death
- Salary from Qatar in Dollars in India
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
