I have changed by bank limits and have given 100% FDR to old bank against outstanding LCs. But my old bank is saying that it cannot satisfy the charge with ROC till LCs are paid even though 100% cash margin is with them.
I am of the view that as LCs are 100% backed by cash margin there is no need for charge
You are right if LC is backed by 100%margin money (by way of FD) no further security is required.
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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Triveni Turbine Limited
Bengaluru
CA
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