banner_ad

Drawing power

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
09 May 2017 Banks while granting Cash Credit limit calculate Drawing power. It is said that drawing power is calculated against stock in hand. But How Banks calculate and feed DP in the system while disbursing CC for thefirst time to a new firm, as the firm does not have stock in hand rather it will purchase the same after using CC. So how Bank will compute DP.
Profile Image

Amol S Joglekar

Profile Image

Amol S Joglekar (Expert)
10 May 2017 The DP gets calculated from the end of the first month, based on the stock and debtors statement provided by the borrower. For the initial amount, the system does not compute.
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
10 May 2017 Sir thnx for kind reply. Regards.
Profile Image

Amol S Joglekar

Profile Image

Amol S Joglekar (Expert)
10 May 2017 you are most welcome.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
ARTICLESHIP 30 April 2026
Article Assistant

M/s G.K. Choksi & Co.

New Delhi

CA Inter

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
03 May 2026
Senior Chartered Accountant

Nirmal Jain & Co

New Delhi

CA

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details