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Drawing power detailed

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jigna jain

11 Points Posted on 13 July 2021

can any1 plz expain drawing power formula...I mean what does full insured stock mnz...whether it is finished goods stock or raw materials...and what does margin means

Replies (6)

Quick Summary

This discussion clarifies the drawing power formula, particularly concerning 'fully insured stock' and 'margin'. Participants confirm that fully insured stock includes raw materials, work-in-progress, and finished goods. The margin is determined by the bank, and the discussion also touches on whether loans from other banks should be considered, with the consensus being that banks will factor this in.

Balamurali Unnithan MS

STUDENT

1631 Points Posted on 14 July 2021

Question not clear Ji.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 14 July 2021

Full insured stock means the stock you have which are fully insured in case of any emergency happens and margin is the amount of profit on stock

jigna jain

11 Points Posted on 14 July 2021

I mean to ask whether it is a finished goods stock or including raw material or work in progress....and margin I meant by that whether it is the margin decided by the bank or margin which we had levied during sales.