Stock and Debtors Report

HomeLoan DocumentationStock and Debtors Report

Stock and Debtors Report

A Stock and Debtors Report (SDR) is a monthly or quarterly statement submitted by businesses to banks/financial institutions showing the value of:

  • Stock (Inventory): Raw materials, work-in-progress, finished goods.
  • Debtors (Receivables): Amounts due from customers/clients.

Banks use this report to:

  • Assess working capital utilization.
  • Ensure drawing power (DP) against CC/OD (Cash Credit/Overdraft).
  • Monitor whether business is running as projected in CMA data.

In short: SDR = a control document for banks to check if your stock + debtors cover the working capital loan they've sanctioned

    1. Monthly SDR

    • Most common, submitted monthly to the bank.
    • Used to calculate Drawing Power (DP).

    2. Quarterly SDR

    • Sometimes accepted by banks for smaller loans.

    3. Interim / Ad-hoc SDR

    • Submitted in between if bank specifically requests.

    4. Audited SDR

    • Certified by CA during loan renewal or enhancement.

1. Basic Business Details

  • PAN, GST, Udyam (for MSMEs).
  • Loan account details (CC/OD).

2. Stock Details

  • Quantity & value of raw materials, WIP, finished goods.
  • Valuation method (FIFO/LIFO/Weighted Avg).
  • Insurance copy for stock (if pledged).

3. Debtors (Receivables) Details

  • Party-wise breakup of debtors (with outstanding > 90 days separately).
  • Ageing analysis of receivables.

4. Creditors (Optional, some banks ask)

  • Trade creditors list for cross-check.

5. Certification

  • Self-certified by proprietor/partner/director.
  • Sometimes CA certification required.

  • Businesses with Cash Credit (CC), Overdraft (OD), or Working Capital Limits.
  • Manufacturers, Traders, Service Providers availing secured working capital facilities.
  • MSMEs/Companies who pledge stock & receivables to banks.

Individuals without loans are not required to submit SDR.

  • 1. Helps in Drawing Power (DP) Calculation Bank decides how much you can draw from CC/OD based on SDR.
  • 2. Improves Loan Monitoring Shows that business is running as per projections.
  • 3. Increases Transparency Builds trust with banks by showing real stock & debtor position.
  • 4. Loan Renewal/Enhancement Mandatory for working capital renewal, additional loan request.
  • 5. Financial Discipline Keeps track of receivables, reduces NPAs, helps maintain working capital cycle.
  • 6. Better Planning Business owner can use SDR to track inventory management and debtor collection efficiency.
 
     
695 Times Visited