29 November 2009
Hello members, i have a query regarding calculation of DP in case of Cash Credit Facility. If a party has availed a limit against Stock and Book Debts whether unpaid stock i.e. creditors will be deducted from Stock or Book Debts as margin in case of Book debts is higher. Whether it will make any difference if Sanctioned Limit is bifurcated against Stock and Book Debts in one account or for that matter if two C/C accounts are opened. Please someone clarify on this matter and whether we have to look at sanction note if a banker contends that unpaid stock is to be deducted from debtors only.