These two methods are called tondon's method of working capital assessment. 1. MPBF method 1st 2. MPBF method 2nd Tondon method is used when a Small Scale Industry applied for working capital limit upto Rupees 5 crores and in case of other than SSI applied for wcl upto 1 Crore. MPBF Method 1st gives more leniency while calculating wcl. When a bank has liberal approach of funding or the proposed borrower is old and reliable customer of the bank or the business activity of the proposed borrower is safe, proven and gradually in increasing trends or possible risk is very limited then the bank use MPBF method 1st. MPBF Method 2nd is stringent method while calculating wcl. When a bank has very choosy approach of funding or proposed borrower is new in industry and his business activity started first time on the basis of trial and error or business trends is uncertain, volatile then the bank choose this method. In short MPBF method 1st = Lower margin and maximize funding and MPBF method 2nd = Higher Margin and Minimise Funding.
While calculating CR, you excluded existing bank loan i. e. 50lacs, taken proposed bank loan and other liabilities. My query is should exclude existing bank loan.
if current ratio = current asset/curr liab., then that is already in the question. 500/150. MPBF should not also be called CL. it is confusing.. and if we are taking total liab., then already there is 50 lakh bank borrowing that we subtracted to get OCL. shouldnt the firm have a total liab. of 50+MPBF???
Fantastic and easy to understand
एकदम सही फ़ंडा क्लियर कर दिया सर जी अपने , धन्यवाद👌👌
Very simple method sir, thank you sir
Thank you very much sir
Bahut badhiya se samajh me aa gya thanks a lot thank you.
Acha informative video hai
Current assets me cash & bank balance ko lete hain kya first ya second method of mpbf me
Excellent Sir
Amazing explanation
VERY NICE TECHING SIR
kya borrowings mein capex pe liye hue term loan ki current maturity bhi hatayi jaayegi ya sirf short term loans?
Thank you so much sir love❤ u for teaching easier.
Very nice
Thnku sir
U r great sir
Very interesting..sir
Very nice sir
Well explained sir
Superb Sir.
❤❤
Sir when deviations allowed in current ratio ? With examples for any industry can u explain in any video please !!
thanx sir
Nice
Thank you so much Sir ji
Thank you so much sir 🙏
Home loan related basic checklist nd calculation related videos plz
This is like sanjeevani to all banker.
Sir bank of india ke promotion ke liye capsule aapne release kar diya hai kya.. ❓
Yes
Sir kaise milega mujhe.. ❓
Thank you sir
When method-1 and method-2 applies for calculation?
Sir, your explanation are good. What are logics behind all these method 1 or method 2.
These two methods are called tondon's method of working capital assessment.
1. MPBF method 1st
2. MPBF method 2nd
Tondon method is used when a Small Scale Industry applied for working capital limit upto Rupees 5 crores and in case of other than SSI applied for wcl upto 1 Crore.
MPBF Method 1st gives more leniency while calculating wcl. When a bank has liberal approach of funding or the proposed borrower is old and reliable customer of the bank or the business activity of the proposed borrower is safe, proven and gradually in increasing trends or possible risk is very limited then the bank use MPBF method 1st.
MPBF Method 2nd is stringent method while calculating wcl.
When a bank has very choosy approach of funding or proposed borrower is new in industry and his business activity started first time on the basis of trial and error or business trends is uncertain, volatile then the bank choose this method.
In short MPBF method 1st = Lower margin and maximize funding
and
MPBF method 2nd = Higher Margin and Minimise Funding.
@@vipulsolanki2353 Thanx Bhai
Sir please explain working capital assessment of construction contractor scheme
Thank you very much sir..
Thank you sir 🙏
While calculating CR, you excluded existing bank loan i. e. 50lacs, taken proposed bank loan and other liabilities. My query is should exclude existing bank loan.
Core current assets Kaisa hai
Sir please vijeta ka videos upload kijiye bank of india ka exam nazdik hai pls
if current ratio = current asset/curr liab., then that is already in the question. 500/150. MPBF should not also be called CL. it is confusing..
and if we are taking total liab., then already there is 50 lakh bank borrowing that we subtracted to get OCL. shouldnt the firm have a total liab. of 50+MPBF???
Bhai first we calculate the mpbf then exclude existing borrowing and fund the balance
CL 150
CL 400
CL 375
How
Naya borrowings Jo lia hai abhi MPBF k muthabik vo bhi to CL hai
Excellent sir
very nice sir
Thank you Sir
Excellent Sir