Audit of utilization of loan
This query is : Resolved
19 December 2015
Dear Sir/Madam,
Plz any one tell me how to do audit in detail for utilization of loan, which is borrowed by the borrower form XYZ bank.
for example XYZ bank disbursed to borrower Rs.5 Crore for project and borrower spend for this project Rs.3 crore and in progress now bank appoints to me as an auditor for ensure the amount which is spent by the borrower. waiting for reply..
Thanks
Plz any one tell me how to do audit in detail for utilization of loan, which is borrowed by the borrower form XYZ bank.
for example XYZ bank disbursed to borrower Rs.5 Crore for project and borrower spend for this project Rs.3 crore and in progress now bank appoints to me as an auditor for ensure the amount which is spent by the borrower. waiting for reply..
Thanks
Ankur Singhal
(Expert)
19 December 2015
First get the list of expenses included in Rs. 3 cr.
Check that the payment made for the expenses is made through bank and same is reflected in the bank statement.
Reconcile the amount of expense and the amount withdrawn from loan account.
Note the cheque issued but not cleared.
Record any deviation you notice in this.
Check that the payment made for the expenses is made through bank and same is reflected in the bank statement.
Reconcile the amount of expense and the amount withdrawn from loan account.
Note the cheque issued but not cleared.
Record any deviation you notice in this.
Message likes :
1 times
19 December 2015
What is the purpose for " Cheque issued but not cleared".
Thanks for reply...
Thanks for reply...
Ankur Singhal
(Expert)
19 December 2015
Dear
When you go to the audit the clients books always show the expense amount more than the amount withdrawn from bank, they always say that this difference is the cheque issued but not cleared till now.
ANd such type of payments is not the application of money. So beware
When you go to the audit the clients books always show the expense amount more than the amount withdrawn from bank, they always say that this difference is the cheque issued but not cleared till now.
ANd such type of payments is not the application of money. So beware
Message likes :
1 times
19 December 2015
sir do you have any report format for this....
and sir what we call for this type of audit like stock audit, internal audit etc.
and sir what we call for this type of audit like stock audit, internal audit etc.
CA Mahesh Vekariya
(Expert)
21 December 2015
Dear PTL
for loan which is under disbursement procedure you have to verify following things
1.Kindly verify disbursed amount with amount mentioned in bank proposal and quotation submitted to bank at the time of sanction of credit facility
2 Verify payment was made to domestic supplier or overseas supplier with quotation and proposal
there may be a chance that amount sanctioned by bank for overseas supplier was paid in domestic
3 also verify there me be a supplier change during the disbursement procedure
(this situation often occurs because of discount given by other supplier and in this case even banker also does not know about this effect .)
4 Also verify margin money with receipt submitted (if any)
5 Also verify invoices of payment made
for loan which is under disbursement procedure you have to verify following things
1.Kindly verify disbursed amount with amount mentioned in bank proposal and quotation submitted to bank at the time of sanction of credit facility
2 Verify payment was made to domestic supplier or overseas supplier with quotation and proposal
there may be a chance that amount sanctioned by bank for overseas supplier was paid in domestic
3 also verify there me be a supplier change during the disbursement procedure
(this situation often occurs because of discount given by other supplier and in this case even banker also does not know about this effect .)
4 Also verify margin money with receipt submitted (if any)
5 Also verify invoices of payment made
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
