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    Question

    A borrower submits stock of ₹100 crore and debtors of

    ₹60 crore. Audit reveals slow-moving stock of ₹35 crore and debtors over 180 days of ₹25 crore. Margin prescribed is 25% on both. What is the correct supervisory action?
    A Continue DP as submitted Correct Answer Incorrect Answer
    B Reduce DP after excluding ineligible items Correct Answer Incorrect Answer
    C Recall entire limit Correct Answer Incorrect Answer
    D Stop all disbursements Correct Answer Incorrect Answer
    E Classify account as NPA Correct Answer Incorrect Answer

    Solution

    Slow stock + old debtors are ineligible → DP must be recomputed downward.

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