D.p.
This query is : Resolved
11 September 2012
Drawing Power calculation is illustrated below.
Example:
If a Company opts for 20 Crore Loan based on 15 cr for stock & 5 Crore for Debtors.
the Bank will set up a margin like 25% on stock and 40% on debtors..
The Book Balance of the company shows that 20 cr of stocks and 10 cr of debtors then the DP Will be consider like this
Stock 20 cr
Less: Margin @ 25 % 05 cr
Then DP for stock value is 15 Cr
like that after deducting the margin the balance will be consider for DP.
Example:
If a Company opts for 20 Crore Loan based on 15 cr for stock & 5 Crore for Debtors.
the Bank will set up a margin like 25% on stock and 40% on debtors..
The Book Balance of the company shows that 20 cr of stocks and 10 cr of debtors then the DP Will be consider like this
Stock 20 cr
Less: Margin @ 25 % 05 cr
Then DP for stock value is 15 Cr
like that after deducting the margin the balance will be consider for DP.
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