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Cash Credit

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(Querist)
04 July 2008 what financial ratios are used for fixing cash credit limit & what values of these ratios are considered as safe?
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
04 July 2008 Maximum working capital credit limit is generally fixed on the basis of the following formulla

75% of the value of current assets less current liabilities.
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CA Rajesh S

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CA Rajesh S (Expert)
04 July 2008 it's nomally 75% of working capital gap




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