Question
A borrower submits stock of ₹150 crore and debtors of ₹100 crore. Ineligible items include obsolete stock ₹30 crore and debtors over 180 days ₹40 crore. Margins prescribed are 25% on stock and 40% on debtors. What is the revised Drawing Power?
Solution
DP = (120 × 75%) + (60 × 60%) = 90 + 36 = ₹126 crore.
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