Declaration from Public Limited Companies or a Private Limited Company which is a subsidiary Company of a Public Limited Company in the matter under section 293 of Companies Act
With reference to the limit/increased limit of Rs. __________ applied for by us/ sanctioned to us for advances on Cash Credit/Overdraft/Pronote Account against pledge/hypothecation of _________ and, further, with reference to the provisions of Section 293 of the Companies Act, we confirm that the present total borrowings of the Company, together with the aforesaid limit of Rs. ___________ applied for by/sanctioned to us and borrowings of all kinds from other banks/financial institutions do not exceed the aggregate of the paid-up capital of the Company and its free reserves i.e., reserves not set apart for any specific purpose.
We further confirm that the Company and its Board of Directors would see that the provisions of Section 293(1)(d) of the Companies Act are complied with at all times.
It is clearly understood that it is on the basis of the foregoing declarations/ representations, that the Bank would consider sanction of the aforesaid borrowing arrangement applied for/has allowed the aforesaid borrowing arrangement to continue.