The Canara Bank Form NF 902 is a mandatory monthly stock statement required from borrowers who maintain an Open Cash Credit (OCC) account. While the official form is often distributed in PDF format, many businesses prefer an Excel format to automate calculations for Drawing Power (DP), which determines the actual amount they can withdraw from their sanctioned credit limit. Understanding Form NF 902

The NF 902, officially titled the OCC Stock Statement cum MSOD (Monthly Statement of Operations and Data), serves as a report on the quantity and value of inventory held by a business. This statement is used by the bank to:

Calculate Drawing Power (DP): Banks typically offer credit after deducting a "margin" (e.g., 25%) from the total stock value.

Assess Financial Health: Monitoring inventory levels helps the bank evaluate the operational stability of the borrowing entity.

Ensure Compliance: It verifies that the goods serving as collateral are adequately insured and held in approved locations. Key Components of the Stock Statement

A complete NF 902 statement generally includes two main sections: Part A: Detailed Stock Position:

Commodity Description: Clear identification of items (raw materials, work-in-progress, finished goods).

Quantity Tracking: Opening stock, items received, items sold/dispatched, and final closing stock units.

Valuation: Unit rate and total value of each item as of the statement date.

Storage Location: Details of the godown or warehouse where the goods are stored. Part B: Declarations and Financial Data:

Production & Sales Statement: Summary of monthly production and sales figures.

Insurance Details: Confirmation that the stock is insured against risks like fire and theft.

Aging Report: Specific reporting for goods older than six months or those nearing expiration (especially for pharmaceuticals/chemicals). How to Prepare Form NF 902 in Excel

To create an efficient Excel template for your monthly submissions, follow these structural steps: Stock Statements to Bank - Dhruva Industrial Consultants

Frequently Asked Questions (FAQ)

Step 1: Set Up Columns

Open a new Excel sheet and create the following headers:

| A | B | C | D | E | F | G | |---|---|---|---|---|---|---| | S. No. | Particulars / Item Name | Unit | Opening Stock (Qty) | Purchases (Qty) | Sales (Qty) | Closing Stock (Qty) |

Common Mistakes to Avoid When Submitting NF 902 in Excel

Even a well-formatted Excel stock statement can be rejected if you make these errors:

  1. Using Estimated Figures: Bank auditors physically verify stock periodically. Inflated quantities or rates will lead to penal interest or account classification as NPA (Non-Performing Asset).
  2. Ignoring Slow-Moving Stock: If you don’t age your stock, the bank may assume it is all fresh, but a surprise inspection will reveal the discrepancy.
  3. Incorrect Margin Application: Some borrowers apply a uniform margin. Check your sanction letter – margins differ for raw material (e.g., 25%), finished goods (30%), and work-in-progress (40%).
  4. Missing Insurance Details: Your Excel statement should have a note or column indicating the insurance policy number and expiry date. Without insurance, stock is not considered valid security.
  5. Circular References in Formulas: Double-check that your total value does not depend on the drawing power cell. That will break the calculation.
  6. Submitting in .xlsm (Macro-Enabled) Format: Canara Bank systems often block macros for security. Always save as standard .xlsx or .xls.