Question

A borrower has stock ₹120 lakh and receivables ₹80 lakh. Out of receivables, ₹30 lakh is overdue beyond 180 days and margin is 40%. The branch is computing eligible DP. What is the correct first adjustment?

A Apply margin on total assets
B Exclude overdue receivables
C Take only stock
D Take CA as per balance sheet
E Reduce creditors first
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