Ashuthosh Mukherjee is a Civil contractor enjoying credit facilities at ABC Bank, Kolkata. He undertakes construction work on behalf of Central/State Governments, besides private projects. Bank sanctioned him the followi

Ashuthosh Mukherjee is a Civil contractor enjoying credit facilities at ABC Bank, Kolkata. He undertakes construction work on behalf of Central/State Governments, besides private projects. Bank sanctioned him the following limits as on 1st January, 2025. Working Capital limits : (1) Overdrafts (OD) of ₹ 100 Crores (Drawing Power-DP). Primary Securities : (I) Hypothecation of raw materials & work in progress, duly certified by civil engineers; (II) Debtors (other than government departments). Monthly Stock Statement is to be submitted by 7th of next month for calculating the Drawing Power. Mr. Ashuthosh follows FIFO method for stock consumption and old stocks of materials of more than 3 months are to be excluded from DP Calculation. Debtors Aged more than 90 days are also to be excluded for Drawing Power (DP) Calculation. Margin is 25%. (2) Bill Discounting facility (BD) ₹ 50 crores (Against the bills drawn, on Government Departments) (3) Term Loan (TL) ₹ 25 Crores for the Machineries, including Cranes/JCBs and other equipment purchased (Machineries are Hypothecated to the Bank) In addition to the primary securities, Mr. Ashuthosh also furnished his landed properties worth ₹ 50 Crore as collateral securities to the Bank for the entire facility and his personal guarantee. As on 30th June, 2025, the balance outstanding on the above loan accounts at the Bank are as follows: Overdraft— ₹ 92 crores; Bills Discount— ₹ 42 crores; Term Loan— ₹ 23.75 crores. Stock Statement as on 30th June shows the following particulars : Value of Raw materials ₹ 100 crores, consisting of the following: Raw materials purchased on 20th January, 2025 was ₹ 4 crores and on 10th March, 2025 was ₹ 6 crores. Remaining Stocks were bought on different dates in May and June, 2025. Semi-finished work duly certified ₹ 20 crores. Creditors for materials outstanding is ₹ 10 crores. Work completed and certified by approved engineers ₹ 30 Crores (Work for Government Department worth ₹ 20 crores and Private Projects ₹ 10 crores) Bills raised on 30th June. As the Stock Auditor appointed by the Bank, calculate the Drawing Power for Overdraft and Bills Discount Limits for July, 2025, available to Ashuthosh and ascertain whether the balance outstanding is within the eligible Drawing Power.