Drawing Power Calculator
| Sr.No. | Particulars | Amount (Rs. in Lacs) | Margin (%) | Drawing Power (Rs. in Lacs) |
|---|---|---|---|---|
| 1 | Stock (1) | |||
| 2 | Less : Creditors (2) | |||
| Paid up Stock (1-2)=(a) | 0.00 | 35%
| 585.00 | |
| 3 | Debtors (b) | 30%
| 70.00 | |
| (less than 90 days) | ||||
| 4 | Drawing Power (a+b) | 655.00 | ||
| 5 | Eligible Drawing Power | 655.00 |
What is DRAWING POWER CALCULATOR?
The limit up to which a company can withdraw from their working capital limit sanctioned is the Drawing Power of the company. It is generally addressed as “DP” for Cash Credit (CC) facility made available by banks and financial institutes. Updates of the same by a banking authorities is a significant practice to monitor one’s credit.
Calculation of DRAWING POWER
To calculate monthly Drawing Power, take the total value of paid stock (paid stock = stock fewer creditors) and add book debts (not over 90 days old) and then deduct margin. If the business has longer credit than 90 days, it needs to be clearly mentioned in the sanctioned terms.
