Q.Draft a letter, on behalf of Godavari Foods Limited, to the Branch Manager of its bank, requesting a Cash Credit facility of ₹8,00,000 against hypothecation of its stock-in-trade, to finance its working-capital needs.

A Cash Credit request must state the exact amount, the security (stock-in-trade offered for hypothecation), the purpose, and must refer to the Board Resolution authorising the borrowing.

GODAVARI FOODS LIMITED

Registered Office: MIDC Area, Nashik – 422010

CIN: U15100MH2013PLC154321

Date: 6th November

The Branch Manager

Bank of Baroda

Nashik Industrial Area Branch

Nashik

Dear Sir/Madam,

Sub: Request for a Cash Credit facility of ₹8,00,000 against hypothecation of stock-in-trade

We are engaged in the processing and sale of packaged food products, and our business requires us to hold a continuous stock of raw materials and finished goods to meet customer orders through the year. To finance this ongoing working-capital requirement, we request you to sanction a Cash Credit facility of ₹8,00,000 against hypothecation of our stock-in-trade.

Our Board of Directors, at its meeting held on 30th October, resolved to seek this facility and authorised the undersigned to correspond with you and to complete the necessary documentation, including the Deed of Hypothecation. We enclose a certified copy of the said Resolution, our audited financial statements for the last two years, and a statement of our present stock-in-trade.

We request you to kindly assess our proposal and sanction the Cash Credit limit at the earliest, and advise us of the applicable rate of interest, the margin required to be maintained, and any further documents to be executed.

Thanking you,

Yours faithfully,

For Godavari Foods Limited

(Shalini Patwardhan)

Company Secretary

Encl: Certified Board Resolution; audited financial statements; stock statement

This letter states the exact facility, amount, and security sought, refers to the Board Resolution authorising the borrowing under Section 179(3), and encloses the financial evidence the bank needs to assess the proposal — everything the bank requires to act without a follow-up query.

Students sometimes ask for Cash Credit while offering a Fixed Deposit as security instead of stock-in-trade/book debts — that combination of facility and security belongs to an Overdraft, not Cash Credit, and the letter should keep the two consistent.