M/s XYZ, a Partnership Firm sanctioned a Cash Credit Limit of ₹ 25.00 lakhs by a bank on 03.04.2025 on the Margins and other conditions as per Sanction letter issued by the Bank is as follows: On Stocks (Moving) = 20% On

M/s XYZ, a Partnership Firm sanctioned a Cash Credit Limit of ₹ 25.00 lakhs by a bank on 03.04.2025 on the Margins and other conditions as per Sanction letter issued by the Bank is as follows: On Stocks (Moving) = 20% On Stocks (Non-Moving) = 100% On Debtors (not more than 60 days) = 30% On Debtors (61 days to 90 days) = 60% On Debtors (more than 90 days) = 100% The following are the data submitted by the firm on 31.3.2026. Total Stock of ₹ 30.00 lakhs, out of which ₹ 2.00 Lacs for creditors and Non-Moving Stock of ₹ 2.00 lakhs. Total Book Debts of ₹ 10.00 lakhs, out of which ₹ 2.00 lakhs ageing for than 61 days but less than 90 days and ₹ 2.00 lakhs ageing is more than 90 days and balance of ₹ 6.00 lakhs ageing is less than 60 days. Required: What is your opinion if the sanction limit is of ₹ 26.00 lakhs ?