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Working Capital Loan Application Letter

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					Sample / Template Request Letter Format to Bnk for Working Capital
Loan ( SBI, ICIC, AXIS, IDBI, HDFS, HSBC etc) in word/ .doc

RCL/SBI/2013-2014/
March 16, 2014

The General Manager,
State Bank of India,
Casa Branch
Nariman Point
Mumbai 458 458

Dear Sir,

Sub : Renewal of Limits A/c Rocket Sales Ltd.

In order to renew our existing limit, we furnish pointwise reply to your query made by you on the
above score.

We also furnish our revised CMA data based on our workings for the month ended February,
2014.

     Requirements                Our reply /Status
1    Request for SBI Limit       Submitted
2.   Submission of Revised       Submitted
     CMA
3.   Details of Other Income      Other Income            2011    2012    2013    2014
     shown in the CMA data        Interest                10.15   10.55   10.75    8.00
     for 2013 & 2014              Dividend          on     2.50    5.00    5.00    5.00
                                  Investment
                                  Insurance Claim         17.28   13.46   1.60    2.90
                                  Liabilities       no    14.91   19.13   8.34    8.75
                                  longer      required
                                  written back
                                  Profit on sale of        0.05   0.00    1.50    1.75
                                  fixed assets
                                  Provision         for    0.41   0.79    0.49    0.54
                                  Doubtful      Debts
                                  written back
                                  Gain on Exchange          0     10.79      0       0
                                  Fluctuation
                                  Sales Tax Refund         0.17   0.00        0    0
                                  Miscellaneous            3.96   5.08     5.32   3.18
                                  Income
                                  Total                   49.00   65.00   33.00   30.00

4    Loss for fire not shown     In the unfortunate incidence of fire ( 8th Oct,2013)
     in CMA data.:               our Blast Furness system got damaged, which is under
     1. Effect of loss on fire   process of repair. The company has not suffered any loss
        not shown in the         of its material and finished product.
        projection.              Since there is no material loss we have not shown the
     2. Insurance claim not      same in our CMA, as the company is to incur repairing cost
     shown                          only which will be capitalized.
5    Advance Income Tax , if        No Advance Tax paid
     paid , during the current
     financial year.
6    MAT for the Loss in last       No MAT paid as we there were no book profits in the
     year ended March, 2012         preceding year.
7    MAT for the current            No Mat would be payable as we there is no projected book
     financial year 2012-2013       profits.
8    Justification    for  non      Our production was less (13458 MT) in the financial year
     achievement of Sales for       2012-2013, in comparison to the financial year 2011-2012.
     the year ended March,          We projected our sales based on our production for the
     2013       against   sales     financial year 2011-2012. So our sales were less.
     projected in last CMA.

9    Justification    for    loss   The loss Rs.15.23 Cr against projected profit Rs.50.58 Cr is
     booked       of    Rs.15.23    due to above reasons. Moreover the input & interest cost
     crore     as    per     ABS    were high during this period which was temporary in
     31.03.2013 against the         nature.
     estimated profit          of
     Rs.50.58              crores
     projected in last CMA
10   Current status and write
     up of each contingent
     liability as well as           Status of Contingent Liability is enclosed in separate
     Disputed Statutory dues        sheets.
     appearing the Audited
     Balance        Sheet      of
     Rs.105.48 crores as on
     31.03.2013
11   Details of ICD with the
     Company with amount                1. 13.75 Cr - 8%
     and rate of interest &             2. 25.00 Cr - 11%
     interest paid against ICD          3. 45.00 Cr – 10.50%
     till date during the
     financial     year    2013-
     2014.
12   Amount of interest on          1. Cash Credit Intt upto Feb,14 -    1500.00 lacs
     Cash Credit and Term           2. Term Loan A/c 14 - Do-        -    400.00 lacs
     loan paid till Feb,2014        3. Term Loan A/c 57 - Do-       -    100.00 lacs
     during      the      current   4. Total Interest upto Feb,13     -  2000.00 lacs
     financial year 2013-2014       5. Other interest paid upto Feb,13 - 600.00 lacs
13   Non      compliance       of   We have already informed in Consortium meeting that it is
     Infusion of Capital. ( Rs.     Management decision, not to convert ICD to Equity.
     5 Crores )

Kindly peruse our reply and CMA data. In case you require any further information, please inform
us.

Thanking you,

Yours faithfully,
For Rocket Sales Ltd
Authorized Signatory

Encl : As above

				
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