Question no$.3$

The following information is furnished by ABC limited for obtaining Working capital finance from Supreme Bank:

$[10$ Marks$]$

$\backslash$table$[[$Current liabilities,Rs$,$Current Assets,Rs$.],[$Creditors for purchase,$5,00,000,$Raw Materials,$10,00,000],[$Other current liabilities,$2,50,000,$Stock in Progress,$1,00,000],[\backslash$table$[[$Bank borrowings$],[$excluding BP$/$BD$]],9,50,000,$Finished Goods,$4,50,000],[,,\backslash$table$[[$Receivables other than$],[$deferred & exports$],[$excluding BPBD$]],3,00,000],[,,$Other Current Assets,$250,000],[,17,00,000,,21,00,000],[,,,]]$

Deferred receivables $($maturing exceeding $1$ year$)$ : Rs $100000$

Bills Purchased and Bills Discounted facilities amounting to Rs$\mathrm{.}50000.$

Other Current Assets include the following:

Investment in Subsidiaries and Associates

Advance paid for purchase of capital : Rs$.100000$

Calculate the Maxim : Rs$.100000$

Method II$.$

Bank Financing towards Working Capital under Tandon Committee

Calculate the excess borrowing in each method and how is it treated

Calculate the Current ratio in each case.

Mention the major terms and conditions or Loan Covenants of working Capital facilities

Explain the process of assessment of Letter of Credit Limit