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Question
Attempt the following:
Write a letter requesting the bank for granting overdraft facility
Solution
ASTROPHEL COMPANY LIMITED
Registered Office: 32, Moonlight View, Marine Drive,
Mumbai - 400 020.
CIN: L20209MH2020PLC5691320
Tel. No. (022) 298 5618
Fax No. (022) 298 9632
Website: www.astrophelcoltd.com
Email: astrophelcoltd07@gmailcom
Date: 1st July, 2021
Ref. No. ACL/986/E/19-21
The Bank Manager,
The Bank of Maharashtra,
Marine Drive Branch,
Mumbai - 400 020.
Sub: Request for overdraft facility
Ref: Account No. 003035533563
Dear Sir,
As you are aware, our Company has a current account in your bank for the last ten years (Current A/c No. 3563). The Board of Directors in its Board meeting held on 25th June 2021 has decided to request you to grant us an overdraft facility of 5 lakh for a period of three months from August to October 2021. This facility is required for meeting the financial needs of the Company during the ensuing Diwali festival season.
As you know, we are the manufacturers of electronic goods and Equipment. Our experience in this field for the last ten years tells us that the festival season creates a heavy demand for the products of our Company. In view of this, we have started placing orders for the supply of raw materials required for the production of electronic goods and Equipment.
As the suppliers in this line generally do not extend fairly long-term credit facilities, we have to request you to grant us an overdraft facility as stated above. We offer stock in trade worth Rs 3 lakh and a personal guarantee of two directors as security for the proposed overdraft. We shall complete other formalities after hearing from you.
An early reply will be appreciated.
Thanking you
Yours faithfully,
For ASTROPHEL COMPANY LIMITED
Sd./
Company secretary
APPEARS IN
RELATED QUESTIONS
Write a word or a term or a phase which can substitute the following statement:
The account which is generally opened by business organization.
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) Lost cheque | 1) Board of Directors |
| b) Appointment of Banker | 2) Higher rate of interest |
| c) Cash credit | 3) Used for depositing cash and cheque |
| d) Fixed Deposit Account | 4) Stop Payment |
| e) Savings Account | 5) Restrictions on withdrawals |
| f) Pay-in-slip | 6) Separate Account |
| g) Overdraft facility | 7) Current Account |
| 8) Recurring Account | |
| 9) Shareholders | |
| 10) No interest is paid | |
| 11) Used for withdrawing amount from account | |
| 12) Long term credit facility | |
| 13) Certain restrictions on withdrawals | |
| 14) Dealing in foreign exchange |
State whether the following statement is true or false :
Generally no interest is paid by bank on Current Account.
State whether the following statement is true or false :
Overdraft facility is granted to Savings account holders.
State whether the following statement is true or false :
Bank overdraft facility is a long term facility.
State whether the following statement is true or false :
Banks grant long term loans only.
Select the correct option from below
| Group ‘A’ | Group ‘B’ |
| Primary Function | __________ |
Select the correct option from below
| Group ‘A’ | Group ‘B’ |
| International Trade Transactions | __________ |
Answer in one sentence:
What do you mean by stop payment of cheque?
Attempt the following:
Write a letter to bank for opening a current account
Distinguish between the following:
Loan and overdraft
Explain the following term/concept:
Stop payment of cheque
Explain the following term/concept:
Discounting of Bills
Explain the following term/concept:
Cash Credit.
Explain the following terms/concept:
Advances
Explain the following term/concept:
Bank
Correct the underlined word and rewrite the following sentence:
Businessman opens Fixed Deposit Account.
Explain the following term/concept:
Loans
