Bank stock audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2014 1)In stock audit what would you consider in deciding drawing power?

2)is it right if i am doing debtors minus creditors except bank margin ?
or

3)if am doing Stock - Creditors & Debtors Consider less than 90 days? except bank margin?
Pl. guide me what is exactly procedure in calculate DP

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 January 2014 1. DP is to be calculated as per the terms of sanction as provided in the sanction letter in relation to the time cover period for receivables, limits for exposure to subsidiaries, limit to exposure to specific countries and margins...

As I said, you need to calculate as per the sanction...that answers 2 and 3.

There are certain cases where banks allow computation on gross debtors instead of netting the same with creditors figure..

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