Mpbf Case Study

 Mpbf Case Study Essay

Case Study – ITA L. Ltd.

Method I

2010-112011-12

Total Current Assets 361. 97384. 03

Less Current Liabilities230. 00180. 00

(Excluding Bank Borrowings)

:. Working Capital GAP131. 97204. goal

25% of Working Capital Gap 32. 99 51. 01

:. MPBF 98. 98153. 02

Bank Borrowing150. 00200. 00

:. Excess Credit 51. 02 47. 02

Method 2

Total Current Assets361. 97384. 03

Significantly less 25% of CA 90. 49 ninety six. 01

forty-eight. 288. 02

Less Current Liabilities 230. 00180. 00

:. MPBF 41. 48108. 02

Bank Borrowing150. 00200. 00

:. Excess Borrowing108. 52 91. 98

11. 2011-12

1) Total Current Assets361. 97384. 03

2) Total Current Liabilities230. 00180. 00

(Other than Financial institution Borrowings

& T/L Installments due inside

a year)

3) Doing work Cap. GAP (1 less 2)131. 97204. 03

4) Min. established working capital 85. 49 ninety six. 01

(25% of total Current Resources

Excluding Foreign trade receivables)

5) Actual /Projected NWC

(Total CA Less Total CL)(35. 60)(12. 89)

6) Item No . a few Minus 4 41. 48108. 02

(Method II)

7) Item Number 3 Minus 5167. 57216. 92

8) MPBF (Lower of six or 7) 41. 48108. 02

9) Excess Borrowings representing108. 52 91. 98

Shortfall in WWC (i. e. Big difference

Between W. B. & MPBF)

a) Since there exists already surplus borrowing in comparison to MPBF, there is not any case for improvement in Working Capital.

b) Working Capital Eligibility

Technique I 98. 98 MPBF – offers Excess Borrowing 51. 02

c) Working Capital Eligibility

Approach II41. forty eight MPBF – gives Surplus Borrowing 108. 52

d) It is possible for Bank to fund Packing Credit for certain export order received by Co. Since the total purchase is of US $ 14, 250/-, the Co. may be granted P/C Facility people $ eleven, 250/- much less Profit section.

e) It truly is o. k. to...

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