Drawing power

This query is : Resolved

Share Report Follow Query Ask a Query

Manisha Sharma

Manisha Sharma (Querist)
Follow

17 December 2010 What is the relevance of calculating D.P.?
And how it is related to stock audit?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

18 December 2010 1 A borrower can not withdraw more than the Drawing Power which is calculated on the basis of stock statement filed by him with his bank,
2 Bank allows him to utilise the Cash Credit or OD limits within the DP.
3.On the basis of Stock Statements and /or Book Debts filed (say -on or before 10th of the next month) the Bank Calculates DP and changes the DP accordingly.
4. Advances beyond the DP limit is considered as not secured by the banks.
5. In Stock Audit of the bank's customer, an auditor has to check whether the DP allowed to the constituent is in accordance with the Monthly/Periodically Stock Statements.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SHUBHANGI GOEL

Shailesh Prajapati

Adesh Mahajan

Angadi & Co

Jaipal Singh

Subscribe Now

Drawing power

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

GST CONSULTANCY

Article Assistant

GST CONSULTANT

Accountant

Manager- Finance and Compliance