How to calculate Drawing Power of a Company availing the Packing Credit Facility.?
2 Replies
Ritesh Kumar Batsh
(Asst. Accounts Manager)
(63 Points)
Replied 08 January 2017
Its a kind of working capital loan... but its free from fixed installments .Bank sanctioning your limit on review of Financial & Security value. So simply you can calculate your DP, but Bank to Bank DP limit fluctuates, normally 17 to 20 % of turn over or 60 to 100 % of your security, also they have a another restriction, they cant offer you more then 75% of costing of your estimation.
Ramanuj
(Accountant.)
(834 Points)
Replied 09 January 2017
I think
Drawing Power calculation as Total Stock -Creditor - Dead stock = New Stock @ 80 % Given to Amount
thanks & regards
Ramanuj
Recent Topics
- Gratuity under CTC
- GST refund paid as estimated tax liability
- Salary Income and Professional services income
- Sec 54 and TDS on sale of property
- Airbnb Manager - I manage properties for owners
- Wrong head ed for late fee
- Inter Company trnafer
- Job work-Reg
- Who is liable to pay GST if bank charges excl GST
- Cost of Acquisition IPO cases
Related Threads
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
