Stock Statement Format for Bank: Stock and Book Debts
Last updated: 16 October 2026
Quick Answer: A stock statement format lists each inventory class (raw material, work-in-progress, finished goods, stores) with opening, inward, outward and closing quantity, rate and value. The bank deducts ineligible stock, unpaid stock and margin, adds eligible book debts net of margin, and caps the result at the limit. Under RBI rules, a statement older than three months makes the outstanding irregular.
For a cash credit (CC) limit or overdraft, this guide covers the stock statement format, eligibility, drawing power and an Excel build.
What Columns and Stock Classes Does the Bank Expect?
Bank forms ask for:
- as-on date, branch and limit;
- item group and location (factory, godown, job worker, third-party warehouse);
- opening, inward, outward and closing quantity by class;
- rate and closing, ineligible and eligible value.
Classes follow the balance sheet: raw materials, work-in-progress, finished goods, stock-in-trade, stores and spares, and loose tools. Closing quantity is opening plus inward less outward; report the counted figure, explaining any difference.
Why Does a Cash Credit Limit Need a Stock Statement for Bank?
Cash credit runs against goods and book debts hypothecated or pledged to the bank, which resets drawing power from each return's eligible current assets. The limit is usually assessed from the CMA data submitted with the loan proposal. The sanction sets the cycle (monthly or quarterly); most banks print their own form, differing in layout, not substance.
Stock Statement Format for Bank: Which Stock Counts as Security?
Sanction letters commonly exclude:
- goods the borrower does not own, such as customer material held for job work, or consignment stock;
- non-moving, obsolete or damaged stock past the sanction's age limit;
- stock financed elsewhere, as under a letter of credit;
- often, stores, spares and packing material.
Own stock at a job worker or third-party godown normally counts with a written quantity confirmation as on the statement date.
Book Debt Statement: The Receivables Half of the Return
Where receivables also secure the limit, a book debt statement, usually on the same form, lists trade receivables by customer with invoice number, date, amount and age; staff loans, deposits and tax refunds do not count. The sanction sets an age cut-off (90 days is a common illustration) and usually excludes group-company dues, disputed amounts, discounted or factored invoices and unadjusted credit notes.
Drawing Power Calculation: How the Bank Turns the Statement Into a Limit
Drawing power is eligible stock less creditors for goods and margin, plus eligible book debts less margin, capped at the limit. Margins come from the sanction letter, not an RBI rule, and are often higher on receivables. As verification by an agency the bank appoints is common, the return should survive a count on any day.
Stock Statement Format in Excel: Sheets, Columns and Formulas
Roll one workbook forward monthly. Parts 2 and 3 are in ₹ lakh; use your sanction terms.
Part 1: sheet plan
| Sheet | Columns | Formula |
|---|---|---|
| Stock | Class, item group, location, opening (C), inward: purchases or production (D), outward: sales or issues (E), book closing (F) | =C2+D2-E2 |
| Stock | Counted quantity (G), sanction-basis rate (H), value (I) | =G2*H2 |
| Stock | Ineligible value with reason (J), eligible (K) | =I2-J2 |
| Debtors | Invoice date (D), amount (E), days to as-on date B1 (F) | =$B$1-D2 |
| Debtors | Related party, disputed or financed flag (G), eligible (H) | =IF(AND(F2<=90,G2="No"),E2,0) |
| DP | Lower of computed drawing power (B9) and limit (B10) | =MIN(B9,B10) |
| Checks | Totals against the trial balance | =Stock!I100-TB!C12 |
Part 2: illustrative spinning mill stock summary
| Stock class | Value per count | Ineligible | Eligible |
|---|---|---|---|
| Raw material (cotton) | 420.00 | 0.00 | 420.00 |
| Work-in-progress | 85.00 | 0.00 | 85.00 |
| Finished goods (yarn; lots unmoved over 180 days ineligible) | 260.00 | 35.00 | 225.00 |
| Stores and spares | 40.00 | 40.00 | 0.00 |
| Total | 805.00 | 75.00 | 730.00 |
Part 3: illustrative drawing power working
| Working | ₹ lakh |
|---|---|
| Eligible stock (Part 2) | 730.00 |
| Less creditors for goods (180.00): paid stock | 550.00 |
| Less 25% margin (137.50): drawing power on stock | 412.50 |
| Book debts: eligible (300.00) less 40% margin (120.00) | 180.00 |
| Drawing power: total (592.50) capped at the sanctioned limit (550.00) | 550.00 |
Statements Must Agree With the Books: CARO 2020 and Schedule III
Under CARO 2020 paragraph 3(ii)(b), where a covered company has working capital limits above ₹5 crore in aggregate, sanctioned at any point in the year by banks or financial institutions on the security of current assets, the auditor reports whether the quarterly returns or statements agree with the books. Under ICAI's Guidance Note, the auditor checks the sanctioned limit, not utilisation.
The Schedule III disclosure on quarterly statements of current assets, from 1 April 2021, requires a company with borrowings from banks or financial institutions on the basis of security of current assets to state whether those statements agree with the books and, if not, summarise the reconciliation and reasons for material discrepancies.
What Happens When a Stock Statement Is Older Than Three Months?
RBI's asset classification directions for commercial banks (2025, updated as on 1 October 2026) say stock statements relied on for drawing power should not be older than three months. Drawings against an older one are deemed irregular, and irregular drawings allowed for 90 continuous days make the account a non-performing asset. Directions replacing them from 1 April 2027 keep the test and expressly name receivable statements.
Who Prepares the Statement and Who Verifies the Stock?
The borrower prepares and signs the return; the bank and, under CARO, the statutory auditor check it, and any chartered accountant's certificate the sanction requires is a separate report.
Astral Business Consulting LLP, a Coimbatore-based management consulting and audit firm, supports the borrower. Its Cycle Count division carries out physical verification of stock at plants, job workers and third-party godowns. Its Best Accountant division offers customer ageing and inventory and control account reconciliation.
Is the Closing Stock in Your Return a Counted Figure?
Has the stock in your return been counted at every location? If not, talk to the Cycle Count team before the next quarter-end return.