Tanash Chakraborty (KPMG) (292 Points)
14 September 2011
Vivek Kurup
(.)
(355 Points)
Replied 14 September 2011
When the total deposits in the OD/CC for a quarter(90 days to be exact), is insufficient to cover the interest accrued during that period..
Ashish
(B.Com)
(244 Points)
Replied 15 September 2011
for the classifaction of Npa following criteria shoukld be full filled
1. if cc/od accounting is ovedrwan for more than 90 days.
2. credits to the cc accounts are insufficent to cover the interest portion.
CA Ameya Anil Kulkarni
(9820430059)
(75 Points)
Replied 15 September 2011
In the following 5 situations Cash credit / Overdraft account can be treated as NPA :
1. Continuous overdrown (more than sanction limit or DP whichever is lower) for more than 90 days.
2. No credits in account for more than 90 days.
3. Interest (fully or partially) unserved for more than 90 days.
4. Status of A/c is Unrenewed (i.e. period expired) for more than 90 days.
5. Non receipt of Stock Statements / Receivable statement for more than 90 days.
CAclubindia
