Drawing power
This query is : Resolved
20 November 2011
I WOULD LIKE TO KNOW THAT WHAT IS THE MEANING OF DRAWING POWER & HOW IT IS DIFFERENT FROM SANCTIONED LIMIT FOR A OD/CC ACCOUNT?
Ram Avtar Singh
(Expert)
20 November 2011
Basicly a company takes loan from bank by hypothicated his stock & debtor up to 90 days,
Drawing power calculated on
(stock+debtors up to 90 days+margine money)-(creditors+Buyers credit)and less 25% margine = Drawing power.
if he will issue cheque after D.P. banks can stop payment. if DP is excess then you can issue cheques to your vendor up to loan suctioned limit.
Drawing power calculated on
(stock+debtors up to 90 days+margine money)-(creditors+Buyers credit)and less 25% margine = Drawing power.
if he will issue cheque after D.P. banks can stop payment. if DP is excess then you can issue cheques to your vendor up to loan suctioned limit.
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