A customer has approached you for finance against his retention in export contract. The export order was of $ 1 million (retention of 20%) and its turnkey project where in 25 % amount is for services. How much amount you will sanction to your customer.
a) Max of $ 1 million
b) Max of 0.75 million
c) Max of 0.20 million
d) Max of0.15 million
Solution:
Retention Money Reference
a) Max of $ 1 million
b) Max of 0.75 million
c) Max of 0.20 million
d) Max of0.15 million
Solution:
| EXPORT ORDER | 1MN | ||
| SERVICE PORTION | 25.00% | ||
| AS PER GUIDELINES NO SANCTION FOR SERVICES HENCE EXPORT ORDER FOR SANCTION | .75MN | ||
| RETENTION MONEY | 20.00% | ||
| .75 x 20% = 0.15mn | |||
| ANSWER IS | |||
Retention Money Reference
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