What is the requirement to obtain CC Limit Rs.5 Lakh ?
This query is : Resolved
Vijay Kr. Mishra
(Querist)
25 July 2009
How should prepare a Balance Sheet and Profit & Loss A/c to obtain CC Limit Rs.5 Lakh from a Bank and What should be the income in ITR ?
CA. B.SRINIVASULU
(Expert)
25 July 2009
(1) Debt Equity Ratio after considering loan should be not exceed 1 : 3.
(2) Net profit + depreciation should be more than repayment of interest and loan principle part if any. (ie 1.33)
(3) Current ratio should be 1: 2
(4) Any loans existing should not be withdrawn or repaid during the pendency of the Bank loan.
(5) Turnover should be 5 times of your loan expectation. ie 25 Lakhs.
(6) Your stock should be minimum of rs.7.5 Lakhs paid stock.
(2) Net profit + depreciation should be more than repayment of interest and loan principle part if any. (ie 1.33)
(3) Current ratio should be 1: 2
(4) Any loans existing should not be withdrawn or repaid during the pendency of the Bank loan.
(5) Turnover should be 5 times of your loan expectation. ie 25 Lakhs.
(6) Your stock should be minimum of rs.7.5 Lakhs paid stock.
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