Question

A borrower shows book stock of ₹120 lakh in stock statement. However, unpaid creditors amount to ₹45 lakh and old unpaid purchases are included in stock. While calculating DP, the credit officer notices mismatch in ownership of stock. Which stock should be considered for DP?

A Total book stock
B Gross stock less margin only
C Paid stock owned by borrower
D Market value of stock
E Stock certified by CA
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