Regulation of Bank Finance^441
borrower within a period of 12-months, shall be treated part of Total
Current Liabilities. Similarly, if the borrower has made investments in
ICDs for a period lesser than-12-months, then, such ICDs shall be
treated as Current Assets and the other ICDs shall be treated as Non-
current Assets.(d) The instruments/outstandings, such as, Commercial Paper (CP),
Certificate of Deposits (CD) and other money market instruments,
represent temporary (for a period less than 12 months) parking of the
funds by the borrower. Such instruments/outstandings are to be treated
as Current Assets.
(e) However, ICDs, investments in shares and debentures (including in
associates and subsidiaries), even held for a period of less than 12
months, shall be treated as Non-current Assets.(f) Wherever, DBF-method envisages any itemís classification different,
from the extant CMA-guidelines, the classification of Current Assets
and Current Liabilities shall be done in conformity with the DBF-method.
(4) Before sanction of any adhoc/excess over the sanctioned limit (whether
funded or non-funded facility), the borrower shall be asked to submit a
proper Cash Flow statement so as to satisfy timely adjustment/liquidation
of the adhoc-excess. The adhoc-excess may be subjected, at the
discretion of the sanctioning authority, to levy of additional interest
upto 2.00% p.a. to moot the cost of arranging additional funds/
obligations for the adhoc/excess.(5) Banksí instructions on follow-up and supervision of working capital
finance shall continue to be in force, mutatis mutandis with DBF-method
and its guidelines narrated hereinafter.(6) There shall be no commitment charge on unutilised portion of working
capital finance. However, on a persistent default in availing at least
80% of the sanctioned limit, the Branches, where such accounts are
maintained, shall ensure to review/to get reviewed, as the case may
be, the borrowerís working capital credit requirement by the competent
authority for necessary revision/modification in the sanctioned limit.
(7) At the time of fresh sanction and sanction for review with modifications
in the existing limits, and also for modifications in any of the stipulated
terms and conditions, the borrowers are at present required to furnish
following forms to which following modifications are proposed in
TabIe-3