How to determine overdue c/c or packing credit account

Internal Audit 3426 views 2 replies

ABHINANDAN JAIN

CA Student

891 Points Joined August 2009

How to check or determine cash credit (c/c) A/c or PC Accts when it gets overdue..

I mean to say that if bank's automated generated reports in system is showing some overdue c/c or pc account,then how can i verify that whether it has actually become a overdue pc or c/c account or not...?

pls correct if i'm wrong:Rule for getting overdue is that if a borrower does not pays continously 90 days from the due date of any installmnt or interest due,then that account will become ovrdue..

but my prob is that for any c/c account, there may be many disburshment (credits), then in that case 90 days calculation will start from which credits..is it star frm very last disburshment..or something else...pls share ur views..

Replies (2)

Vinay Karwa

Practicing Chartered Accountant

30 Points Joined January 2009

Dear Abhinandan,

Kindly note that the credits into the account are based on the funds realised by the CC Account Holder. And you need to calculate 90 days

When the credits recieved into the account are unable to meet the interest charged by the bank & it is due for more than 90 days then it is overdue.

Smriti Dhawan

Company Secretary

347 Points Joined June 2009

In case of SME wheather TEV charges are to be charged by banker if working capital demand loan is obtained ? According to me no TEV charges are to be taken as TEV charges are for the Technical Analysis of Project for which term loan is given to the Company which is not required in case of WCDL.