export packing credit

Hi.. kindly advise on the audit procedure to be carried out in respect of 'export packing credits'(pre shipment loan) availed by companies. What are the aspects to be verified??

Replies (1)

@ Srikanth

Packing credit account is just like a cash credit account. This pc account is specifically for exporters.

From the view point of Company:

* As a auditor U can check bank vouchers i.e. conduct normal bank vouching

* check whether the funds are properly being utilised for fulfulment of export order or not.

From the view point of Banks:

* as a auditor u need to check whether there is any NPA pc account account or not

* U can check Interest calculation on pc account to be charged by the bank

* U can check whether account is becoming overdue or not..

 

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