How to make Stock Statement for Submission in Bank.

Stock Statement

When a company or a firm takes a loan from the bank, they take it against their stock value. The physical stock lying with them is counted as Hypothecated. In case of non payment/default of loan, bank can seize the stock to recover theor losses. This is also insured by bank. 

Now coming to the part where we learn about submitting stock statement to bank. 

Stock Statement is that statement which represents the stock lying with you, your past sale, your current month sale, prediction of annual sale & amount of sundry creditors and debtors. 

Stock Statement needs to be submitted on Monthly basis. some banks required it to be submitted on quarterly basis. Quarterly stock statement report has a threshold limit. This limit is your Loan limit.  for example: if you have taken a loan of upto 25 lakh, then some banks needed the stock statement to be submitted after every quarter end. More than 25 lakh loan, then stock statement is needed on a monthly basis. Remember this is as per bank's own rules. 

If you failed to submit Stock Statement on Time, then Bank Charges penalty on Non-submission of Stock statement on time. 

Stock statement is calculated by taking values as said above, and calculating them according to the following formula. 

1. Take Stock value in rupees (minus) (-) Sundry creditors value = net value x 75% = 1st Loan eligibility amount. 

2. Take sundry debtors value (0 to 90 days only) (receivables older than 90 days are not counted for loan eligibility)= 50% of this value = 2nd Loan eligibility amount. 

3. Add 1st and 2nd amount = This is your Final Loan Sanctionable amount. 

For example :- 

1.  20 lakh - 10 lakh = 10 lakh x 75% = 7.5 lakh 

2.  25 lakh (0 to 90 days is 20 lakh) then = 20 lakh x 50% = 10 lakh

3. 7.5 lakh + 10 lakh = 17.50 lakh is loan amount whoch you can get approved from bank. 

A Crucial Point 

This is the most important point of it. Suppose you took a loan of 17.5 lakh from bank. 

If at any given month the eligible value of Loan amount as per formula becomes Lower, then your Loan amount also becomes Lower. 

for example : 

if in June month eligible value comes at 12 lakh, then Bank limit is also capped at 12 lakh only, Not 17.5 lakh. You can only use limit in next month upto 12 lakh only. 

Now we hope that you learn something.

Please leave a comment if there is any problem in understanding.