As a share holder, I had written to the Co. asking for the break up of interest outgo between Fund based & Non Fund based limits, as it was creating a lot of doubts in the minds of investors.
The following is the clarification recd from the Co.
" The total finance cost of the company is Rs. 1585.06.The break up is as under.
Interest on fund based limits and term loan is Rs.529.23 lacs
Interest on non fund lc/Bg bills discounting is Rs.766.21 lacs.
Bank processing charges Rs.289.62 lacs.
** Corresponding Bills discounting payables shown in Balance Sheet as creditors.**
Bank limits varies from month to month as per business volume in peak/lien season.
Effective average interest is in the range of 12 to 13%"
Hope it helps in getting a better understanding & insight into the Co.'s working.