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
B 0.9
C 1.0
D 1.2
E 1.4
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