Sir I differ , I have different experience/view..If the branch is covered by effective concurrent audit then I can say that majority NPA A/cs will be classified as NPA , but if it is not then there is high probability that A/cs other than chronic NPAS will not be classified as NPA rather than set aside for next financial year !! NPA does not only mean non payment of installment / interest, If there is inherent weakness , a/c should be classified as NPA, depositing some money just before the year end does not change the asset character /classification. If the branch is not under audit, this type of adjustment will increase in due course and SCA can not take care of all a/cs specially small a/cs.You are talking about Kingfisher loan but I am sorry to say that there is probably very little to do for an Auditor, restructuring aspect itself is not clear to me , is it not something like providing some extra time to A/cs which should have already been classified as NPA in true sense ? Of course , there is some loss of revenue , I agree, but it is a certain % and CAs are competent enough to compensate this loss.
From: sethuraman ramachandran <sethuramchand@yahoo.com>
To: "ThaneCAs@yahoogroups.com" <ThaneCAs@yahoogroups.com>; aaykar <aaykarbhavan@yahoogroups.com>; AURANGABADCAs <aurangabad_ca@yahoogroups.com>; bhilai-ca <bhilai-ca@yahoogroups.com>; "cacscwaindia@yahoogroups.co.in" <cacscwaindia@yahoogroups.co.in>; taxfin <taxfinsoft@yahoogroups.com>; GLOBAL CA GROUP <globalindianCAs@yahoogroups.com>; New Delhi <new_delhi_ca@yahoogroups.com>; "ludhiana-ca@googlegroups.com" <ludhiana-ca@googlegroups.com>; lucknow <Lucknowca_reinvented@yahoogroups.com>
Sent: Monday, 25 February 2013 8:52 PM
Subject: MMM- Re: [Thane CAs] AUDITING WOES MAY WORSEN BANK DEBT
By simply bringing all branches under audit NPAs will not come down.
If that be so King Fisher Loan should not have been called back by banks as the branches advances to that company were all under audit.
Like wise so many NPA accounts of bank branches were under audit
There is no corelation between NPA and audit.
One can argure for want of argument sake that branches should be under audit so that loss of revenue is not there for CAs. Evey one of us should say that they have done justice to tyhe audit they had carried out
Ramachandran
From: Ramachandran Mahadevan <ramachandran_ca@yahoo.co.in>
To: aaykar <aaykarbhavan@yahoogroups.com>; AURANGABADCAs <aurangabad_ca@yahoogroups.com>; bhilai-ca <bhilai-ca@yahoogroups.com>; "cacscwaindia@yahoogroups.co.in" <cacscwaindia@yahoogroups.co.in>; THANECAs GROUP <ThaneCAs@yahoogroups.com>; taxfin <taxfinsoft@yahoogroups.com>; GLOBAL CA GROUP <globalindianCAs@yahoogroups.com>; New Delhi <new_delhi_ca@yahoogroups.com>; "ludhiana-ca@googlegroups.com" <ludhiana-ca@googlegroups.com>; lucknow <Lucknowca_reinvented@yahoogroups.com>
Sent: Saturday, 23 February 2013 10:05 PM
Subject: [Thane CAs] AUDITING WOES MAY WORSEN BANK DEBT
The books of a large number of bank branches are likely to go unaudited this March, leading to a rise in the level of bad loans. Non-performing assets (NPAs) are loans that do not yield any return for banks.
According to a recent government directive, only branches with advances
Though the move is aimed at providing more autonomy to banks, experts suggest otherwise.
"This new rule could prove detrimental especially as we see NPAs rising," Amarjit Chopra, former president, Institute of Chartered Accountants of India (ICAI) told HT. Though core banking solution has been implemented by banks, the system is yet to "settle in," said Chopra.
A senior government official, however, said that the finance ministry is keeping a close watch on the situation. "There is no need to raise an alarm and things are well regulated and even the government gets a regular update on the performance of banks."
Indian banks have been witnessing a surge in the level of bad assets in recent years.
--
CA Ramachandran Mahadevan,M.Com.,F.C.A.,
I-708,Mantri Tranquil,Subramanyapura Post,
Bangalore-560061
Karnataka,India.
+91 80 42011024
You never achieve success unless you like what you are doing."
--Dale Carnegie,
American self-help author and lecturer
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