Calculation methodology

How Munimly uses historical accounts, projection assumptions, Nayak MPBF and review flags.

Updated 16 October 2026

Actual, estimated and projected years

Actual years describe historical accounts you enter. Estimated and projected years use assumptions about sales, margins, holding periods, expenses, drawings and borrowing. Forward calculations do not write back into historical inputs. Displayed totals and ratios can still be derived from those inputs.

Review derived values against your original statements. Input fields and defaults are not a substitute for audited accounts.

The recommended cash-credit limit

The current implementation applies its Nayak turnover calculation to annualised assessment turnover:

• Working-capital requirement = 25% of turnover.
• Borrower margin = 5% of turnover.
• Assessed MPBF = 20% of turnover.
• Recommended CC = lower of applied CC and assessed MPBF.

Illustration, all amounts in ₹ lakh: turnover of 100 gives a requirement of 25, margin of 5 and MPBF of 20. An applied limit of 15 gives a recommendation of 15. This is a worked software example, not a loan sanction.

Tandon Method II is calculated separately in the API: current assets less non-bank current liabilities, less 25% of current assets. Existing bank cash credit is excluded from those other current liabilities. It does not cap or increase the Nayak recommendation. Form V in the current export shows Nayak MPBF.

These statements describe Munimly’s implemented formulas. They do not establish that a threshold or assessment method is mandatory for every lender or borrower.

Checks and limitations

• Accounts: balance-sheet differences and statement relationships.
• Funding: funding gaps, surplus cash and incomplete term-loan schedules.
• Assumptions: changes in sales, margins and holding periods.
• Ratios: interpretation flags and missing denominators.

Balance-sheet errors and incomplete secured term-loan schedules stay visible but do not block final Excel/PDF export. Invalid requests, network failures or export failures can still prevent a download. A completed download does not certify accuracy.

An undefined ratio prints as N/A rather than a made-up zero. DSCR depends on cash accrual, interest and principal repayment; missing or inferred repayment data affects its interpretation. Benchmark labels are product references and need checking for your lender.

A balance-sheet review example

If assets total ₹50 lakh and liabilities plus capital total ₹48 lakh, investigate the ₹2 lakh difference in the source accounts. Check omitted items and the capital account. Correct the actual cause, recalculate and review the issue list again. Do not insert unexplained cash or stock merely to hide the difference. Export remains available even if the difference is unresolved.

Assumptions you can change

Available controls include holding periods, growth, margins, drawings, capital expenditure and loan details. Changing an assumption recalculates dependent figures; not every derived figure has a direct override. Defaults and sales-floor rules can affect projections, so review the resulting figures and explanatory flags.

History entry supports up to two actual years. Projection length is selected in the app. On-screen money entry uses rupees; exported financial tables identify their units, commonly ₹ lakh.

Current report contents

1. Form I: existing/proposed limits and borrower details.
2. Form II: operating statement.
3. Form III: balance-sheet analysis.
4. Form IV: comparative current assets and liabilities.
5. Form V: MPBF computation.
6. Form VI: funds flow.
7. Form VII: ratio analysis.
8. Form VIII: performance and financial indicators.
9. Form IX: multi-year trends.

Additional warning justifications can appear when supplied. Excel and PDF presentation can differ. Check each output rather than assuming they show identical columns.

Before you use a report

Check units, year labels, source accounts, loan schedules, assumptions and bank-specific requirements. No external reviewer endorsement or universal bank acceptance is claimed.

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For a calculation question, email hello@munimly.in.