Question
A borrower submits Stock ₹120 crore and Debtors ₹80
crore. Margin is 30% on stock and 50% on debtors. Obsolete stock ₹20 crore and debtors over 180 days ₹30 crore are ineligible. What is the Revised Drawing Power?Solution
Eligible Stock = 120 – 20 = 100 → DP = 70% = 70 Eligible Debtors = 80 – 30 = 50 → DP = 50% = 25 Total DP = 70 + 25 = ₹95 ≈ 96 crore
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