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 ?
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What is the requirement to obtain CC Limit Rs.5 Lakh ?
Replies (4)
Mr.Vijay Kr. Mishra
The working capital gap without considering the bank finance should be Rs.5/- lacs.
Best Wishes
Sathikonda
Nowadays, some banks are offering CC limit without even considering considering the gap or shortfall of Working Capital in the Balance Sheet. U just have to show Debtors balances and / or Stock balance and have to prepare CMA data as required by the bank. All the Best.
benchmarks for banks dscr=1.5 current ratio = 1.333
Client should have the following to obtain cc limit of Rs 5 lacs
1- asset to mortgage min 670000.00 (25% margin)
2- projected Turn over should be more than 25 lacs (5 times)
some banks can also required that (it is generally required for term loan)
3- Average( 3 years) income from business should be more than 125000.00 (i.e. 1/4 )
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