>>
Home / Knowledge / News / Apparel/Garments / TEA advises banks to keep overdue receivables in suspense account

TEA advises banks to keep overdue receivables in suspense account

07
Jan '09
Shri. A.Sakthivel, President, FIEO and also President of TEA, today mentioned that he has submitted a memorandum to Union Commerce Minister Shri. Kamalnath with a requisition to advise the banks to keep the overdue receivables from derivative contract in a suspense account without deducting interest rates.

Shri. Sakthivel said that many exporters, including knitwear garment exporters in Tirupur have lost substantially in derivatives products offered by financial institutions at a time when exporters hedged their risk in the wake of appreciation of Rupee against dollar.

The Small and Medium Enterprises (SMEs) loss itself in the country is over Rs 2000 crore and the Derivative products as a whole were miss sold by banks to all SME sector by utilizing the adverse situations and ignorance of the customers. Shri. A. Sakthivel stated Banks also violated all the stipulated norms and procedures of RBI's guidelines & rules.

Shri. A. Sakthivel informed that the Parliamentary Committee has already included all the all the affected exporters in detail and also RBI and added that subsequently RBI issued a circulars vide letters dated 13th October 2008 and 29th October 2008 to all the involved banks that all the derivative bookings happened in the period of “April 2007-June2008” and their proceeds either loss or profit should be maintained in a suspense account without deducting the interest rates. It should not be taken into consideration to paralyze the other funding if this particular dues exceeds the stipulated 90 days period.

Shri. A. Sakthivel pointed out that the Banks have to be instructed to solve this issue on the basis of “no-profit no-loss” basis wherein the clients would be made to pay back whatever the profit accrued by them through this derivative product and further the banks should not claim any loss out of it. This could be made valid for those contracts entered between April 2007 & June 2008.

Tirupur Exporters' Association


Must ReadView All

Pic: Anton_Ivanov / Shutterstock.com

Retail | On 27th Jan 2022

UK retail sales volumes fall at fastest rate in 11 months in Dec 2021

UK retail sales volumes fell by 3.7 per cent in December 2021, the...

Pic: Shutterstock

Textiles | On 26th Jan 2022

Vietnam-US trade hits $111.56 bn in 2021

Vietnam-US trade hit $111.56 billion in 2021, up by nearly $21...

Pic: Shutterstock

Textiles | On 26th Jan 2022

Turkey using less coal, hydropower; use of renewables, gas up: Ember

The use of coal and water for energy in Turkey reduced in 2021, while ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Instagram & fashion will go a long way together

Water stewardship, Stakeholders

Water stewardship
Stakeholders

Water use efficiency remains relatively unexplored

Florian Heubrandner, Lenzing AG

Florian Heubrandner
Lenzing AG

Sustainable and eco-friendly fibres remain in the minority

Yawer Ali Shah,

Yawer Ali Shah

Synthetic colours and dyes were all the rage till the very first ban on...

Shivaani Jain,

Shivaani Jain

Established in 2015, Once Upon A Trunk is a one-stop-shop with almost...

Shyam Gupta,

Shyam Gupta

Established by <b>Shyam Gupta</b> in 1978, Gargee Designer's (GD) offers...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Asif Rahman, MIP

Asif Rahman
MIP

MIP is a manufacturer and distributor of high-performance textiles and...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

Ritu Kumar, Label - Ritu Kumar

Ritu Kumar
Label - Ritu Kumar

<b>Ritu Kumar</b> is the most respected designerwear brand in India...

Rocky Star, Label - Rocky Star

Rocky Star
Label - Rocky Star

<b>Rocky Star,</b> an Indian designer known for his inspiration from the...

Samant Chauhan, Label Samant Chauhan

Samant Chauhan
Label Samant Chauhan

Delhi based fashion designer, <b>Samant Chauhan</b> who mostly works on...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments

ESTEEMED CLIENTS

Sateri (Jiujiang) Fiber Co.,Ltd
Rayonese Textile Inc., Division de Culp Inc.
Etam Group Strategy Hong Kong Limited
The Top Form Brassiere Manufacturing Company Limited
Seasalt Limited
Page Industries Limited (Bangalore)
LC Waikiki
Benetton Group
Under Armour Global Sourcing Ltd
Lifestyle
Gatsby Africa
Gloria Jeans
Tommy Hilfiger
Babyshop
Desigual - ABASIC, S.A.
Groz-Beckert East Asia LLP
Gokaldas Exports Limited
Target Corporation (MN)
Alix Partners
PVH Corporation
Vianney Textil Hogar S.A. De C.V.
Chori Company Limited
Midas Clothing Limited
Sportmaster Ltd.
SYNERGIES HONG KONG LIMITED
Tory Burch Hong Kong Ltd
Chico’ FAS
Gap International Sourcing Limited
Puma
Reiter India Private Limited
Rosset ;& Cia Limited
Cat Tuong Real Estate Group Joint Stock Company
THE BOMBAY DYEING ;& MFG.CO. LTD
Hela Clothing Pvt Ltd
Lacoste (Wanchai)
HYOSUNG CORPORATION INDIA PRIVATE LIMITED
Lenzing Aktiengesellschaft
Lululemon Athletica Inc
Bluestem Global Sourcing Limited
International Textile Manufacturers Federation
Phong Phu international JSC (PPJ)
Huntsman (Singapore) Pte Ltd
Abit
Eastman Chemical Company
T.T. Limited
Lisa S.P.A.
Restoque S.A.
BIRLA CENTURY A DIVISION OF CENTURY TEXTILES AND INDUSTRIES
Vardhman Textile Ltd
Splash
Decathlon
SHAHI Exports Pvt Ltd
Helly Hansen Far East Ltd
C;&A Sourcing International Ltd
Landmark Group
Deckers Outdoor (Guangzhou) Consultant Co., LTD.
Varner AS Retail
G-Star Raw C.V.
Brandix Lanka Limited
Hirdaramani International Export Private Limited
OVS Hong Kong Sourcing Ltd.
Guess Europe Sagl,
Sainsbury's Argos Asia Limited
TESCO INTERNATIONAL SOURCING LIMITED
Grasim Industries Limited
BIANCA
Walmart
IKEA of Sweden AB
Amazon China
Sportswear Company Spa
Recron Polyester from Reliance Industries Limited
Truetzschler India Private Limited
MAS Active / MAS Kreeda / MAS Bodyline
Aramark Uniform ;& Career Apparel, LLC
Esprit Europe Services GmbH
John Varvatos
H;&M Hennes ;& Mauritz (Far East) Ltd
KAS Direct Sourcing
Green Fibre
J ;& P Coats
Tchibo GmbH
Aquarelle Clothing Limited
NITI Aayog
Permoda(Koaj/Armi/Pronto/Bkul)
KIABI
BIMBA ;& LOLA SL
Alison Hayes Romania
The LYCRA Company Singapore  Pte. Ltd
Boardriders Asia Sourcing Limited
Arvind Limited

January 2022

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search