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solution.
(i) The total Projected Yearly Turnover (PYT) of Friends Fridge and Fans Limited, a small-scale industrial unit, is ` 24 crore, made up as follows:
(a) Cash Sales – ` 4 Crore; and (b) Credit Sales – ` 20 Crore. Compute, (a) The total Working Capital Requirement of the unit (to be assessed by the bank, as prescribed by the Reserve Bank of India (RBI), as per the Nayak Committee recommendations. (b) The total fund-based working capital limit to be sanctioned by the bank, and (c) The quantum of margin money required to be brought in by the company, from the OE (Owner’s Equity).
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Order Paper Now(ii) Would the position be any different if the Projected Yearly Turnover (PYT) of the unit would have been ` 30 crore, instead of ` 24 crore? Give reasons for your answer.