How to Write Letter of Credit Facility FAPC

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Letter of Credit Facility FAPC

July 31,2000

Mr.Imran Quershi

AVP – Chief Manager

Allied Bank of Pakistan Limited

WAPADA House Branch,

Lahore.

Dear Sir,

Re:                           Credit Facility – FAPC

We are one of the latest and modern knitwear, 100% export based units inPakistanoperatiing on 100% equity / self-finance basis. Our manufacturing unit is located in Industrial Area, Karim Block,Allama Iqbal Town Lahore. We have 20 flatlock, 33 overlock, 75 Juki, 2 button machines, 2 cutters, 12 Presses which gives us a daily production of  4,000 pieces. Under the dynamic leadership of Khawaja Nadeem Ahmad (CEO), ANNS Textiles has managed to grow from a turnover of Rs. 23 Million in 1997-98 to Rs. 53 million in 1998-99. Whereas we have achieved Rs. 65 Million Sales in merely six months ending as onDecember 31, 1999.

Dec 31, 1999 (unaud)    Jun 30,1999 (aud)       Jun 30,1998 (aud)

6 months                       12 months                     12 months

Sales                            64,943                           53,495                           23,283

Net Profit                    7,618                            6,521                            698

CR                               3.09                              1.01                              1.45

DER                            0.23                              1.00                              1.23

In order to finance growth, we request you to grant FAPC P-II Rs.15 Million, FAPC P-I line of Rs. 10 Million against LCs, in addition to Bank Risk Lines and Local L/C of Rs. 5 Million (D.A. basis for 60 days) and Rs.3 million for import L/C at sight (180 days) against which we offer at least 2 times export business. We offer 1st charge over stocks/book debit of the Company and legal/equitable  mortgage over residential property located in Gulberg (estimated value above Rs. 50 million) as collateral. We enclose our Company background, Actual financial, projected financial and copied of EE statement for your perusal.

We hope that our request would be considered on its business merits. For any information, we would be more than willing to provide.

Thanking you and best regards.

Mahmood Qureshi

      (Manager Finance)

letter_of_credit

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