I have a doubt :
1. Generally a company avails Fund Based and Non Fund based limits from the banker with which they hold accounts.
2. For the purpose of the limits Quarterly as well as annual results (audited) are submited to the banks. along with other performance related information.
3. Wouldnt the banker notice any discrepency in the the Bank Balance they are holding with them and that of the financials?
4. Does this prove that the bankers blindly sanction limits based on Audited Financials and dont verify their own Bank Statements?
Please answer this... To what extent banks should be held responsible?
If there are any bankers in the Forum. Kindly throw some light on this issue.
CAclubindia
