PROJECT LETTER FOR RENEWAL OF CASH CREDIT LOAN FROM BANK.

PALASH (Nothing) (2000 Points)

14 June 2013

"" PROJECT LETTER ( FORMAT ONLY ) FOR RENEWAL OF CASH CREDIT LIMIT & BANK GUARANTEE LIMIT TO A NATIONALIZED BANK ""

( FORMAT ONLY ):-

To
The Chief Manager,
State Bank of India,
KOLKATA-1.

Re:- Renewal of Cash Credit and Bank Guarantee Limit.

Dear Sir,

This has reference to your query against our proposal for renewal of cash credit along with Bank Guarantee Limit, we would like to inform you the following :-

1. That the excess limit shown in the balance sheet as on 31.03.2013 relates to the cheques issued but not presented to the bank for encashment at the year end. A copy of reconciliation statement is enclosed for your kind perusal.

2. That the unsecured loan taken from XYZ Bank Ltd. and ABC Bank Ltd. as a temporary measure for urgent necessity payable within two/three years. Moreover, due to present economic recession the Product BCD under the Govt. of India could not paid our dues in time correspondingly our creditors has been abnormally high for such non-payment. However, after the balance sheet date we have already reduced our creditors by infusion of fresh capital as well as regular payment of sundry debtors from the Product BCD.( As an example ) .

3. That though the current ratio was 1.05 as on 31.03.2012, we have already projected in our proposal that we will increase our current ratio to 1.43 by means of infusion of fresh capital with a premium as well as plough back of profit.

4. That we also enclosed herewith an estimated statement of accounts for the period from 01.04.2012 to 31.03.2013 along with total outstanding bank guarantee against 100% cash margin.

Please renew our existing cash credit limit and enhance the bank guarantee limit of Rs.5 Crores at your earliest.

Thanking You,