Drawing power calculation : Banknet India


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Name :	Vikas Chandra Guru
Subject:	Drawing power calculation
Message :	Drawing power is calculated by adding all current assets. This is subject to debate whether it is correct to subtract creditor which form partof current liabilities. Some bank who do not deduct the creditor agrue that creditor has already been deducted at the time of sancion while fixing the limit and hence and if it is deducted once again it is deducted twice. In my view it is correct to deduct creditor .