Drawing power calculation using a stock statement is a necessary concept all bankers should know. DP or drawing power calculation is as important as the estimation of working capital requirements. This tutorial teaches you the main concepts of drawing power calculation so that you become confident in calculating DP even without using Excel.

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We cover:
How to calculate the drawing power of a working capital or cash credit account?
What are the two types of margin in a working capital account?
What to enter in CBS as stock during first disbursement of working capital?
What is a chargeable inventory?
What happens when DP is more than the sanctioned limit?

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