Question

Attempt the following:

Write a letter requesting the bank for granting overdraft facility

Answer 1

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