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    • Question

      A term loan outstanding is ₹90 crore. Security

      comprises Plant valued at ₹100 crore with FSV 50% and land valued at ₹40 crore with FSV 80%. The bank wants to compute coverage on forced sale value basis. What is the security coverage ratio?
      A 0.8 Correct Answer Incorrect Answer
      B 0.9 Correct Answer Incorrect Answer
      C 1.0 Correct Answer Incorrect Answer
      D 1.2 Correct Answer Incorrect Answer
      E 1.4 Correct Answer Incorrect Answer

      Solution

      Total FSV = 50 + 32 = 82. Coverage = 82 / 90 = 0.91.

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