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Can calculate CC Limit on short term FD

This query is : Resolved 
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(Querist)
22 February 2023 Dear Sir/ Madam,
Our Company has a CC account so every month we have to provide a stock statement for margin of working capital. They fix margin 25% for Stock and 50% for Debtors balance. We have an idea to make a Short-Term Fixed Deposit for a sum and as it will be more liquid than Stock and Debtors, there won’t be without margin and can be taken 100% value in calculation of CC Limit.
Our query is
1) Whether we can make a short term fixed deposit and calculate CC limit on 100% value of FD?
2) On what reasons will the bankers not allow to calculate on FD value?
Kindly advise us whether this idea is work out.
Thanks in advance,
With regards,
Bazeer L
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
22 February 2023 1 yes.
2 No reason.
Yes it will work.
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Bazeer Ahmed

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Bazeer Ahmed (Querist)
23 February 2023 OK Sir. Thanks a Lot, Sir.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
23 February 2023 You are welcome....
......
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