Danendra jain

FDR held as margin onf LG or LC -------------Are they treated as current asset for computing permissible bank finance ?


If yes why?


Are such FDR current asset for calculating current ratio?


If yes why?


Why FDR held as margin against LG or LC are treated differently , yes as current asset for current ratio and not as Current asset for computing Net working capital and MPBF?

Replies (1)

FDR Related to LC Given is to be Treated as Current Asset, For Permissible Bank Finance, Since Treat This as a Normal FD.

Just You Have Collateral These FD to Bank.

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