ACCOUNTS AND FINANCE

GENERAL INSTRUCTIONS

1. L.C.amount includes :-

a. Invoice value of F.P. Cotton bales with 4% S.T.
b. Carrying charges and incidental Expenses mentioned in Debit Notes.
c. L.C. facility charges Rs. 6/- per bale
d. Transit Insurance charges.
e. Interest @ 16.0% per annum on the sub total of (a), (b), (c) & (d) mentioned above for the period of ___________ days.

2. All Bank Collection charges, Bank Commission etc., are to be borne by L.C. & Opener.

3. Interest @ 19.0% p.a. for the period of transit of funds from L.C. opener's Bank to the Beneficiary's Bank is to be borne by L.C. opener. Payment will be so well arranged that the Beneficiary's Bank Account is credited on due date of draft.

4. Rate of Interest applicable for the period beyond the due date shall be 19% p.a. and the L.C. Opener will make payment of this extra interest in addition to Draft amount. In case the payment is delayed beyond the due date, for this purpose, date of payment means the date on which the payment is credited in Beneficiary's Bank Account.

5. Partial deliveries allowed, Transshipment prohibited.

6.a. Last date available for delivery is ___________ and for Negotiation is _________________.
b. Negotiation of documents to Beneficiary's Bank is specifically allowed within 30 days from the date of despatch of bales.

7. Drafts drawn under this letter of credit are available for Negotiation through any Bank at the discreation of the Beneficiary.

8. Drafts so negotiatedare to be sent to Mumbai Fort Branch of L.C. Opening Bank, who are authorised to make payment on due date.

9. We hereby engage Drawers, Endorses and Bonefide Holders of the said Draft that the reimbursement will be duly effected to Negotiating Bank by Mumbai Fort Branch of the L.C.Opening Bank on due date of payment.

10. We hereby guarantee to protect the Drawers, Endorsers and Bonafide Holders from any consequences which may arise in the event of non acceptance or non-payment of the drafts drawn with the terms of this credit and undertake to honour the Hundi even with discripanceis.

11. L.C. opening Bank or its Branch should send confirmation to the Banker of Federation within a period of three days's from the date of receipt of documents failing which an additional interest @ 3% (in addition to regular interest will have to born by L.C. opener from the date of receipt of documents till date of confirmation.

Kindly ask your Banker to make the necessary amendments and submit ammended copy of the L..C. so as to enable us to issue D.O.

Thansking You,

Yours faithfully,

Manager (A/C)