Letter Format for enhancement of L/C and Bank Guarantee Limit by Rs.500 Lacs

Sample Letter enhancement of L/C and Bank Guarantee Limit

ABC Corp/ SBI/ 2012-13 /002

October 18, 2012

Shri SN Khan

General Manager

State Bank of India

Local Head Office

New Delhi                  

Dear Sir,

Sub : Request for enhancement of L/C and Bank Guarantee Limit by Rs.500 Lacs

We are pleased to inform you that during half year ending 30.09.12 sales of our Company have shown a growth of about 45% as compared to the immediately preceding accounting year and the company has earned a cash profit of Rs.226.89 lacs. A copy of our Unaudited Results for the half year ended 30^th September, 2012 is enclosed as Annexure "A".

You may kindly recall that on your specific intervention, the L/C limit of Rs.150 lacs was sanctioned to us in the first week of October 2004 to enable us to import CLO (Calibrated Lump Ore), one of the principal raw materials for our Company. We would like to inform you that out of this limit, a limit of about Rs.90 lacs was immediately utilised by us to cover the shipment which arrived at Pune Port in the 2^nd week of October 2012.

We have contracted another shipment of 700 MT and the vessel carrying the material is likely to sail around 30.10.12 and to reach Pune Port about 10.11.12. The value of the material will be around Rs.100 lacs. Therefore, a limit of Rs.150 lacs sanctioned by you is not sufficient to take care of our requirement.

The L/C limits which are being availed by us are on 90 days usance basis. Naturally we require higher limits to sustain our business operations. We had, therefore, vide our letter No.ACB Corp/ SBI / 2012-13/001 dtd.07.10.12 requested to the Chief Manager, State Bank of India, New Delhi to consider enhancement of our L/C and Bank Guarantee limits by Rs.500 lacs. We had given the basis of the aforesaid requirements in our aforesaid letter. A copy of our aforesaid letter is enclosed as Annexure "B".

Since our request for enhancement of the L/C and Bank Guarantee is pending, we requested Shri Y N Sharma, Dy. General Manager (CB), New Delhi  to kindly intervene in the matter and take immediate steps for processing of our request. We would request if you could kindly look into the matter and consider our request for immediate enhancement of our L/C and Bank Guarantee by Rs.500 lacs. We would like to submit that, as detailed in our letter of 07.10.12, the operations of the Company have shown a significant improvement during the last few months and we need immediate action by State Bank of India to sustain our operations.

Contd…… P/2

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Since our vessel will be arriving any time in the 2^nd week of November 2012, we would request if an early action is taken on our request.

Should you required any further information, kindly inform us.

Thanking you,

Yours faithfully,

For ABC Corporation

A BACHCHAN

MANAGING DIRECTOR

Encl. As above

C.C.

Y N Sharma

Dy. General Manager(CB)

State Bank of India

New Delhi