Working Capital Loan Application Letter

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 CMA		Submitted
3.	Details of Other Income shown in the CMA data for 2013 & 2014		Other Income 2011 2012 2013 2014 Interest 10.15 10.55 10.75  8.00 Dividend on Investment   2.50   5.00  5.00  5.00 Insurance Claim 17.28  13.46  1.60  2.90 Liabilities no longer required written back 14.91  19.13  8.34  8.75 Profit on sale of fixed assets   0.05 0.00  1.50  1.75 Provision for Doubtful Debts written back   0.41 0.79  0.49  0.54 Gain on Exchange Fluctuation     0 10.79       0     0 Sales Tax Refund   0.17 0.00       0    0 Miscellaneous Income   3.96 5.08   5.32  3.18 Total  49.00 65.00 33.00 30.00
4	Loss for fire not shown in CMA data.: 1. Effect of loss on fire not shown in the projection. 2. Insurance claim not shown		In the unfortunate incidence of fire ( 8th  Oct,2013) our Blast Furness system got damaged, which is under process of repair. The company has not suffered any loss of its material and finished product. Since there is no material loss we have not shown the same in our CMA, as the company is to incur repairing cost only which will be capitalized.
5		Advance Income Tax , if paid , during the current financial year.	No Advance Tax paid
6		MAT for the Loss in last year ended March, 2012	No MAT paid as we there were no book profits in the preceding year.
7		MAT for the current financial year 2012-2013	No Mat would be payable as we there is no projected book profits.
8		Justification for non achievement of Sales for the year ended March, 2013 against sales projected in last CMA.	Our production was less (13458 MT) in the financial year 2012-2013, in comparison to the financial year 2011-2012. We projected our sales based on our production for the financial year 2011-2012. So our sales were less.
9		Justification for loss booked of Rs.15.23 crore as per ABS 31.03.2013 against the estimated profit  of Rs.50.58 crores projected in last CMA	The loss Rs.15.23 Cr against projected profit Rs.50.58 Cr is due to above reasons. Moreover the input & interest cost were high during this period which was temporary in nature.
10		Current status and write up of each contingent liability as well as Disputed Statutory dues appearing the Audited Balance Sheet of Rs.105.48 crores as on 31.03.2013	Status of Contingent Liability is enclosed in separate sheets.
11		Details of ICD with the Company with amount and rate of interest & interest paid against ICD till date during the financial year 2013-2014.	13.75 Cr -   8%  25.00 Cr -  11% 45.00 Cr – 10.50%
12		Amount of interest on Cash Credit and Term loan paid till Feb,2014 during the current financial year 2013-2014	1. Cash Credit  Intt upto Feb,14 -     1500.00 lacs 2. Term Loan A/c 14  - Do-       -       400.00 lacs 3. Term Loan A/c 57   - Do-     -       100.00 lacs 4. Total Interest upto Feb,13     -     2000.00 lacs 5. Other interest paid upto Feb,13 -   600.00  lacs
13		Non compliance of Infusion of Capital. ( Rs. 5 Crores )	We have already informed in Consortium meeting that it is Management decision, not to convert ICD to Equity.

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