Drawing Power Calculation Rbi at Drawing

Drawing Power Calculation Rbi. I think this concept is clear to everyone. Ensure that the drawing power calculation does not consider the old stocks & old debtors as per the terms of sanction.

PPT Sugar Industry In India PowerPoint Presentation, free download ID238829
PPT Sugar Industry In India PowerPoint Presentation, free download ID238829 from www.slideserve.com

Calculation of drawing power : Ensure that the drawing power calculation does not consider the old stocks & old debtors as per the terms of sanction. Posted by shreyas at 8:44 pm.

PPT Sugar Industry In India PowerPoint Presentation, free download ID238829

It is used as a part of credit monitoring practices of the lending institution. The general formula for calculating drawing power (dp) is as under: However, considering the difficulties of large borrowers, stock statements relied upon by the banks for determining drawing power should not be older than three months. Drawing power is required to be arrived at based on the stock statement which is current.