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What is Working Capital Assessment Guide about?

- Working capital refers to funds used to finance the day-to-day operational needs of a business like raw materials, work-in-progress, finished goods, and receivables. It is needed to ensure continuity of business operations. - There are different approaches used by banks to assess working capital requirements - the Nayak Committee method bases it on 20% of projected annual turnover, the MPBF method considers the operating cycle and minimum net working capital levels, and the cash budget method analyzes pr

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