A. ARRIVING DRAWING POWER
The SBA should verify the details of stock statement dated 31st March of 2021 submitted to the bank and the values of drawing power claimed therein with the values reported in audited balance sheet of 31-03-2021 and compare the drawing power as given below:
Rs In Lakhs
|
SL NO |
Description |
As per audited Balance sheet Dt 31-03-2021 |
As per Stock Statement submitted for March 2021. |
|
1. |
Stocks |
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|
Less: Creditors /LC /Funded BG * |
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|
Paid Stocks |
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|
Margin @25% |
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|
Drawing Power against Stocks |
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2 |
Book Debts of Less than 90 Days- |
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|
Margin @25% |
|||
|
Drawing Power |
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|
I |
Total DP (1+2) |
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|
CC Limits Outstanding as on 31-03-2022 |
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|
Clean Debt-Not supported by Primary securities |
*BG given for procurement of raw material and outstanding as on that date.
In case there is a deviation, the drawing power as arrived based on the audited balance sheet of 31-03-2021 needs to be reconciled to the stock statement of latest date of 28-02-2022, based on the monthly stock statements submitted to the bank during the year 2021-22, and arrive the drawing power as on that date, if not 31-03- 2022, as given below:
Rs in Lakhs
|
SL NO |
Description |
Amount |
|
A |
Raw Material |
|
|
Opening -01-04-2021 –As per audited balance sheet of 31-03-2021 |
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|
Add :Material Purchases |
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|
Less: Consumption |
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|
Closing Stock as at 28-02-2022* |
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|
B |
WIP: |
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|
Opening Stock As at 01-04-2021 as per Audited B/Sheet of 31-03-2021. |
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Add: Raw Material consumption & added costs |
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|
Less: Production during the year |
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Closing WIP -as at 28-02-2022. |
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|
C |
Finished Goods: |
|
|
Opening Stock as at 01-04-2021 as per audited balance sheet dt 31-03-2021 |
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Add: Production during the year |
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|
Less :Cost of goods sold |
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|
Closing Finished Goods as at 28-02-2022 |
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|
D |
Drawing Power Total (A+B+C) |
|
|
Drawing Power as reported in the stock statement Dt 28-02-2022 |
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|
Shortfall in Drawing Power |
*In case the Stock Statement of 31-03-2022 is not submitted to the bank.
In case there is shortfall in value of assets declared and drawing power claimed in the latest stock statement submitted to the bank and values as reconciled with the audited balance sheet, the excess of limits drawn over and above the reconciled drawing power needs to be declared as NPA as the same is not supported by primary securities.
B. CHECKING AVAILABILTY OF WORKING CAPITAL MARGIN
The banks would stipulate the percentage of margin to be maintained against stock and receivables as part of terms and conditions of sanction letter. The borrower shall have to bring in their margin money for availing the sanctioned working capital loan limits. The non-availability of required margin money with the borrower is violation of terms of bank sanction letter. Therefore, the SBA needs to check whether required margin money for CC limits being availed has been brought in by the borrower or not in the following format:
Rs in Lakhs
|
Description |
31-03-2021 |
|
a) Equity |
|
|
b) Reserves |
|
|
c) Term Loan from Bank |
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|
Total-Long term source |
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|
a) Fixed Assets |
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b) WIP |
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c) the Non-Current Assets |
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|
Total-Long term application |
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W.C Margin(A-B) |
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Required Margin money for CC limits being availed as per sanction letter. |
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|
Shortfall in W.C Margin |
C.REPORTING FUNDS DIVERSION
The absence of working capital loan margin money as at 31-03- 2021 and shortfall in the value of stocks and receivables as reconciled above as on the date of 28-02-2022 indicates that the borrower has not brought in their margin money and the working capital loan of CC limits have been diverted for longterm purpose. In which case, there is professional responsibility on the part of
SBA to report the fact of funds diversion by calculating the same in the following format:
|
Particulars |
Amount |
||||
|
(A) Source As per audited B/S dated 31-03-2021 - |
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|
Profit after tax |
xxx |
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Depreciation |
xxx |
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|
Other intangible assets W/O |
xxx |
||||
|
Additional Equity brought in |
xxx |
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|
New Term loan |
xxx |
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|
Total A |
xxx |
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B) Application As per audited B/S dated 31-03-2021 - |
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Term loan instalments paid |
xxx |
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Fixed assets acquired, if any. |
xxx |
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New investments made |
xxx |
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Total B |
xxx |
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|
CC Fund Diversion (A-B) as at 31-03-2021 |
(xxx) |
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