Question

A commercial lender establishes a working capital facility with a 25% margin applied to eligible inventory and a 40% margin applied to outstanding book debts. If a corporate borrower reports ₹600 lakh in total inventory, ₹200 lakh in trade creditors, and ₹300 lakh in eligible short-term debtors, what is the calculated Drawing Power?

A ₹540 lakh
B ₹480 lakh
C ₹420 lakh
D ₹380 lakh
E ₹630 lakh
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