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APIDC has been a leading player in the Bill Discounting business and undertakes bill discounting to satisfy short term funding requirements of its clients.
A. Direct Bills Discounting

Sale Bill Discounting

The bank discounts bills of exchange representing sales of a
company, which are duly accepted by the drawee (buyer of the
goods). The bills of exchange to be accompanied by -The invoice
drawn by the drawer of the bill

1) Proof of movement of goods to the drawee (generally a goods
transport receipt is insisted from IBA approved transporters)

2) Acknowledgement from the drawee that he has received the
goods in good condition

3) Rate of Interest 11.50%. Collateral Security 125%

* Bills of exchange with tenors up to 90 days

Purchase Bill Discounting

The facility is extended to well-established Corporates for procuring
raw materials. The bills of exchange, drawn on the corporate by their
suppliers, and duly accepted by the corporate (to whom the facility
is extended), are discounted by APIDC and the payment is made
directly to the supplier's bank.

Other documents required would be the same as in sale bill

The Bank extends both the above facilities after satisfying itself
about the financials of both the drawer and drawee of the bills.

Rate of Interest 11.50%. Collateral Security 125%

Tenor : 90 days

B. L/C Backed Bills Discounting.

We arrange discounting of L/Cs opened by Nationalised Banks
Under Letter of Credit Backed Bills Discounting the drawee arranges
to establish a LC in favour of APIDC and the bills are discounted and
proceeds are paid to drawer after deducting the commission. On due
date the Bank, which established the LC makes the payment to

Rate of Interest 10.50% Collateral Security Nil

Tenor: 90 days

C. Bills Rediscounting.

APIDC also offers Bills Rediscounting of bills discounted by NBFC's.
The Product is designed to provide a convenient short-term
investment avenue for investors.

Tenor: 90 days

Terms and Conditions.

* The company should be a profitable company for the past 2 years.

* The company has to provide 125% of the discounted bill value as
collateral security.

Rate of Interest 11.50%. Collateral Security 125%

* The company should provide the following as applicable.

1) Audited balance sheets for 3 years, if the audited not available
provisional duly certified may be enclosed.

2) Current years provisional working results for the period.

3) Certified copies of the Memorandum and Articles of Association.

4) In case of SSI units SSI Registration certificate.

5) Copies of the title deeds for the collateral security.

6) Valuation Certificate.

7) Regarding Industry performance, enclose copies of published
material if any.

8) Working capital sanction given by bank.

9) If enhancement of working capital limits is under consideration,
enclose copy of the CMA data submitted to the bank.

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