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Drawing power
how to calculate drawing power if stock is 34550000 and creditors 83750420 and debtors 104612450
Replies (6)
Drawing Power is calculated after deducting margin from “Stock Less Creditors + Book Debts” for the month.
if creditors is more than stock then how to calculate
If creditors are more, you won’t be granted the LC and BG limits. If you already have LC and BG limits, same will be deducted from the calculated limits
Agree with Nitesh joshi...
creditors here means trade creditors from whom stocks are purchased. if the trade creditors are more than stock. your dp is debtors less margin.
provided ur sanction
provided ur sanction
Stock + Debtors - Creditors= Net
The Drawing power ranges from 70% to 80 % depending upon the Banks sanction letter
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