C/c limit
Querist : Anonymous
Sale of last year(2009-10) 1.30 cr
Sale of 2008-09 75 lacs
Net Profit shown in last year 4 lacs
Tax Paid - 13000
Proprietorship concern
Sir i am not convergent with formalities involved. Plz guide me. I dnt want to loose the client as he will also provide me audit.
Plz guide in detail
Thanks
Some points which are generally considered while preparing CMA Data >
- The current ratio should be at least greator than 1.33.
- The sales should be generally 4 or 5 times of the amount of loan.
- There should be sufficient stock to act as collaterally to the loan amount.
- In case, there is another loan, the bank requires the status of the loan and defaults made, if any.
- The loan payback capacity of the firm identified by the cash and bank balance, debtors collection period etc.
- Various ratios are to be computed related to working capital and assets.
- The capital contribution in relation to the loans and liabilities.
Link for some formats is given below. also check the files section for more.
https://www.caclubindia.com/share_files/cma-data--20547.asp
https://www.caclubindia.com/share_files/cma-data-19315.asp
Querist : Anonymous
Can u suggest me the links where i can get complete information about how to get a fresh c/c limit?
I want to gather all relevant details.
Thanks
What sort of information you require. generally, every bank has different rules and conditions for issuing CC Limits.
C/C = Cash Credit : Granted against hypothecation of goods. here the goods in the stores / godown / factory is kept as security and the client/s enjoy the running loan against these. They are to keep a margin and submit the Stock Statement which will speak for the goods in the list and its latest valuation. It is verified and stale items excluded.
In CC Limit, bank will open a current account anf you are allowed to withdraw from the account the amount upto the maximum of the limit sanctioned. You can make transactions of deposits and withdrawls within the sactioned limit. The nterest will be charged on the amount outstanding only.
Terms and conditions, amount of loan etc. differs from bank to bank. Please, let me know for which bank you require, may be i Can collect some information.
Regards
Querist : Anonymous
Do i have to prepare project report also?
so it better to check the bank requirements, whatever they require you need to present it.
Querist : Anonymous
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