{"id":240,"date":"2024-04-04T11:48:11","date_gmt":"2024-04-04T11:48:11","guid":{"rendered":"https:\/\/www.thekgac.com\/blog\/?p=240"},"modified":"2024-04-04T11:48:11","modified_gmt":"2024-04-04T11:48:11","slug":"preliminary-check-disbursement-and-post-disbursement-inspection","status":"publish","type":"post","link":"https:\/\/www.thekgac.com\/blog\/preliminary-check-disbursement-and-post-disbursement-inspection\/","title":{"rendered":"Preliminary Check, Disbursement and Post Disbursement Inspection."},"content":{"rendered":"\n

<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

We may have encountered numerous cases where individuals engage in fraud and forgery to deceive banks and obtain financial benefits. The core principles of lending primarily center on ensuring safety, maximizing profitability, and maintaining liquidity in loans.<\/p>\n\n\n\n

The principles of lending revolve mainly around the concepts of safety, profitability and liquidity of advance. The verification of Loan Accounts is divided into three parts, viz.\ud835\udde3\ud835\uddff\ud835\uddf2\ud835\uddf9\ud835\uddf6\ud835\uddfa\ud835\uddf6\ud835\uddfb\ud835\uddee\ud835\uddff\ud835\ude06 \ud835\uddd6\ud835\uddf5\ud835\uddf2\ud835\uddf0\ud835\uddf8, \ud835\uddd7\ud835\uddf6\ud835\ude00\ud835\uddef\ud835\ude02\ud835\uddff\ud835\ude00\ud835\uddf2\ud835\uddfa\ud835\uddf2\ud835\uddfb\ud835\ude01 \ud835\uddee\ud835\uddfb\ud835\uddf1 \ud835\udde3\ud835\uddfc\ud835\ude00\ud835\ude01 \ud835\uddd7\ud835\uddf6\ud835\ude00\ud835\uddef\ud835\ude02\ud835\uddff\ud835\ude00\ud835\uddf2\ud835\uddfa\ud835\uddf2\ud835\uddfb\ud835\ude01 \ud835\udddc\ud835\uddfb\ud835\ude00\ud835\uddfd\ud835\uddf2\ud835\uddf0\ud835\ude01\ud835\uddf6\ud835\uddfc\ud835\uddfb.<\/p>\n\n\n\n

\ud835\udc0f\ud835\udc2b\ud835\udc1e\ud835\udc25\ud835\udc22\ud835\udc26\ud835\udc22\ud835\udc27\ud835\udc1a\ud835\udc2b\ud835\udc32 \ud835\udc02\ud835\udc21\ud835\udc1e\ud835\udc1c\ud835\udc24:<\/p>\n\n\n\n

The careful selection of a borrower stands as the paramount consideration. Numerous cases have occurred where individuals engage in fraud and forgery to deceive banks and access financing. Banks can prevent many of these instances by diligently adhering to the KYC principles in both word and deed.<\/p>\n\n\n\n

An auditor should look at the following documents to check the bank’s preliminary process:<\/p>\n\n\n\n

\u2705Loan Application in the prescribed application form.
\u2705KYC compliance.
\u2705 Assessment of project report, projected turnover, Projected balance sheet and P&L, and flow\/funds flow statements.
\u2705 List of Sundry creditors and Sundry debtors during the current financial year and estimated balance sheet as of the end of the current financial year, etc.
\u2705Latest Audited Financial papers.
\u2705Board Resolution for availing credit facilities in case of Limited companies.
\u2705Caution advice and defaulter list of RBI\/ECGC caution list\/CIBIL.<\/p>\n\n\n\n

\ud835\udc03\ud835\udc22\ud835\udc2c\ud835\udc1b\ud835\udc2e\ud835\udc2b\ud835\udc2c\ud835\udc1e\ud835\udc26\ud835\udc1e\ud835\udc27\ud835\udc2d:<\/p>\n\n\n\n

An auditor must verify that disbursements occur only when all the terms and conditions outlined in the sanction letter have been met and an acceptance letter confirming the same has been obtained. The execution of the loan documents should align with the terms and conditions specified in the sanction letter. Payments for purchased goods or machinery should be made directly to the supplier through a demand draft based on the invoice. All original documents are securely stored in a fire-resistant safe.<\/p>\n\n\n\n

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\u2705The inspection shall ascertain the end use\/creation of assets from bank finance.
\u2705The bank\u2019s board of hypothecation\/pledge shall be displayed where the stocks\/machinery are placed.
\u2705The working capital limits sanctioned are usually valid for one year.
\u2705The documents obtained while releasing the limits shall be properly maintained, revival letters, acknowledgment of debts, etc., to be obtained periodically to keep the documents alive.
\u2705An asset created by bank finance shall be fully insured with a bank clause.
\u2705Verify the drawing power of the accounts is calculated properly and that a margin is maintained as per the sanction letter.
\u2705 Verify any adverse comments on the stock audit report or the audited balance sheet.<\/p>\n","protected":false},"excerpt":{"rendered":"

We may have encountered numerous cases where individuals engage in fraud and forgery to deceive banks and obtain financial benefits. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-240","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts\/240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/comments?post=240"}],"version-history":[{"count":1,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts\/240\/revisions"}],"predecessor-version":[{"id":242,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts\/240\/revisions\/242"}],"wp:attachment":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/media?parent=240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/categories?post=240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/tags?post=240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}