Bank has sanction a limit of Rs. 80lacs & add a condtition that "nature of limit will be ODBD Margin 40% of BD and BG with 25% Margin" what is the meaning of this??
Pl help me.
With regards
Amit Verma
AMIT VERMA (Accountant) (33 Points)
06 July 2012Bank has sanction a limit of Rs. 80lacs & add a condtition that "nature of limit will be ODBD Margin 40% of BD and BG with 25% Margin" what is the meaning of this??
Pl help me.
With regards
Amit Verma
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 18 July 2012
Amit, this is refer to your drawing power. Thats means though they sactioned you Rs. 80 Lac but it is limited 40 % of your Book Debt and 25 % of Bank Guarantee
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