MID TERM LOAN

Loan fund available is 267 crores (given).

As per the statement available there is commercial paper worth Rs. 15 crores.
Hence loan against asset = 267 – 15 = 252 crores.
Assuming 80% of the principal asset value is paid by financial bank or institution.

Therefore 80% of principal asset = 252 crores.

1% of principal asset = 252/80

100% of principal asset = (252/80)*100 = 315 crores.

Net Fixed Asset is 624 crores, Assets available without loan is 624 – 315 = 309 crores.

Therefore application of loan will be 80% of 309 crores = 247.2 crores.

 FACTORING

Total Sundry Debtor is 57 crores available.

Usually 80% of the Sundry Debtors are utilised for collecting funds.

Hence 80% of 57 crores = 45.6 crores. This amount can be collected through factoring.