Question
Based on the following parameters—CC limit ₹10 lakh,
stock margin 25%, book debt margin 40%, stock value ₹4 lakh, and book debt ₹10 lakh—what is the maximum Drawing Power?Solution
DP = (4 × 75%) + (10 × 60%) = ₹3L + ₹6L = ₹9L.
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