Dear Friends,
Please guide us in respect of the following query in respect of Agricultural Advances for a Branch based in Andhra Pradesh.
In view of the order of the Andhra Govt. ( G.O.M.s No. 174 dt. 14.08.2014- Finance (IF) Department) where the Govt. has given Debt relief to farmers, women self help groups for agricultural loans not exceeding Rs. 1.50 lakh per family.
Whether this waiver which does not have any sanction from the RBI or the Head Office of the Bank, have any effect on the classification of the Loans which would have otherwise been classified as NPA.
Whether this State Govt. debt waiver would save these accounts from being classified as NPA.
Please reply asap.
Thanks
Manish
On Thursday, April 9, 2015 8:15 AM, "Nitesh More moreassociate@gmail.com [Panipat_CA]" <Panipat_CA@yahoogroups.com> wrote:
Window Dressing by Bank Branches As you all know that all of us are busy in the Statutory Bank Branch Audit. Here the some important observations which should be noticed during Branch Audit: Window Dressing It has been noticed these days that most of the branches have done the window dressing in the Financial Statements, which is required to be reported as per RBI Guidelines in LFAR. For this what we can do? Please take the Account Balances of Deposits as well as Advances from 29th March to 3rd. April. The Balances can be obtained from the Day Book Balance.Once you take the balance, kindly scrutinize the moment in figures. For Example Day End Balance | Date | 29.3 | 30.3 | 31.3 | 2.4 | 3.4 | | Advance | 100 | 150 | 200 | 160 | 150 | | Deposits | 200 | 180 | 230 | 190 | 180 |
Kindly Note Above figures depict that On 31.3, The advances have suddenly jumped to 200 Crores & there is also suddenly Jumped in the figures of deposits to 230 Crores. Again on 2/4 & ¾, The figures of Advances have again come to 160 Crores i.e. Near about the figures which was on 30th March & similarly the deposits have decreased by 40 Crores i.e. 190 crores which is similar to Deposits Balance on 30th March. This simply shows that the bank has tried to manipulate the figures. The figures simply depict that these transactions are solely represented by the book entries. The bank in order to achieve the target figures has shifted some amount from deposits to advances & viceversa. It is a very critical matter which should be considered while conducting Statutory Audit. RBI Guidelines require the auditor to report upon the window dressing specifically in audit report. Utility to Find out NPA Kind find the link mentioned below. The Attached link is of EMI Calculator which can be proved very useful for you in finding out NPA Accounts. To use this Utility we need 5 things Amount of Loan Period Rate of Interest Period Elapsed till today from starting date of Installments O/s Balance What we need to do? Just provide the inputs to the utility? The software will automatically calculate the o/s balance which should be there. In case the Exisiting o/s Balance is more than the o/s balance calculated by the utility. Then After Adjusting 3 installments, the account can be declared as NPA. Kindly Donwload the Utiilty | |
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CA. VINAY MITTAL, FCA
34 Navyug Market, 2nd. Floor
Ghaziabad -201001
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Posted by: Vaibhav <vaibhav_c_2000@yahoo.com>
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