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Question ID : 26309

Export Finance

I have the following Packing Credit Rs 10 The unit is gettiI have the following aspects to be clarified on Export credit for a finished leather manufacturing unit. Packing Credit Rs 10 Crs FBD non -LC Rs 5 Crs . The unit is getting 2 subvention in interest.The firm is availing PC to the full level .Export bills are sent on collection basis .FBP is utilized sparingly. Now I have the following observations- The concern makes local sales of finished leather to a shoe manufacturing unit -a sister concern in which 2 are common partners.The shoe unit is engaged manufacture of shoe uppers and full shoes for foreign buyers. * is the first unit eligible for subvention in respect of local sales to the sister concern.? * is the reply to this question is no or not available to the extent of local sales can the unit be given a sub-limit in the form of Cash-credit? * in the latter option the Domestic receivables to sister concern can be taken for Drawing power calculation of the Cash-credit sub-limit? * Again the Duty Drawback receivable can that be given as a form of Post shipment credit. You may give your considered opinion . CA S Balasubramanian

Posted by S.Balasubramanian. on Dec 04, 2017

Filed Under AUDIT