Every cash-credit borrower must submit a stock and book-debt statement each month. The bank applies margins (typically 25% on stock, 40% on debtors up to 90 days) and arrives at drawing power. This tool produces the statement and the DP calculation in the usual bank format.
Commonly 25% on paid stock and 40% on book debts not older than 90 days; creditors are deducted from stock. Margins are set in your sanction letter.
The account is treated as irregular; repeated irregularity for 90 days can lead to the account being classified as NPA. Submit statements on time and keep stock paid.
Normally not — most banks exclude debtors above 90 days (some allow 120–180 days for specific trades).
Prepared by Avani Corporation, Indore — Solutions for every financial need. Formats follow standard bank appraisal practice; the sanctioning bank's own assessment is final. Free to use; WhatsApp 9183020110 for help.