26/03/2020

 
 
Dear Sir/s
 
Refund of Excess cash collateral of Rs. 26.04 lacs lien to our TL for Rs 5.00 Cr
 
 
This is in reference to the above subject matter. We have been sanctioned a TL for Rs. 5.00 Cr.
06.09.2019 and for that we had offered a cash collateral @ 25%  amounting to Rs.1.25 cr by way of  FD
lien marked.   Further to that, we have not been sanctioned any additional credit facilities since the first
sanction.
 
Out of Rs.5.00cr of original sanction, outstanding as on date is Rs,3.96 cr only which requires an amount
of Rs.98.96 lacs as cash collateral as against the current cash collateral of Rs.1.25 cr which works  out to
31.57% coverage. An amount of Rs.26.04 lacs is in excess of  the sanction requirement. 
 
Our statutory auditor in their interim audit observed & directed us to get the excess CC refunded
immediately before this Quarter.  Further, in the present scenario of CoVID19, we need to manage our
tight cash flows to service our obligations on time  in the absence of NIL collections during the national
lock out period and suspended new sanctions from our lenders . Hence, we do not have the luxury of
keeping excess cash in any of  our accounts as we  normally do when the business were as usual.
 
Under these circumstances, please refund the excess cash collateral of Rs.26.04 lacs immediately to our
current account on an urgent  priority basis before the end  of this month

Thanks & Regards

Subramannian
Director
Magalir Micro Capital Private Ltd