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 4 2017 12:00AM