CA Niteshkumar Delvadiya

Samples of Situations leading to MOC   At least go into depth to find MOC for every aspect as below:   1.          Wrong EMI calculations. So short of excess recovery of intt/principal. 2.          Moratorium intt not added to principal for EMI calculation like edu loan. 3.          Incorrect feeding of Loan term, RoI, date of 1St EMI, 6.          Income leakage like processing, penal, inspection. Two rectification entries in MOC. One for leakage. 2nd for reversal of it. 7.          Non provision of expenses 8.          Wrong calculations of intt subventions 9.          Wrong entitlement of intt subvention. Like not a KCC, paid prompt but not a genuine source credit. 10.  ...

  In CC accounts, some imp. points of attention:   1. no debits being diverted to pay any other loan. Chk thru cust id of other loans.   2. Where debit are going. Just read narrations carefully. If other than for buying of related stock,, it is diversion of funds. 3. Use ctrl+f n chk debit of insurance, insp, processing for renewals etc. debited or not. 4. If acc. opened 6m back, why insurance done so later. 5. Credit submissions must be at least 5 times of limit. Cross chk thru PL stat. and cr. total of cc acc. 6. Chk source of credits be from genuine sources. 7. In large cc acc., Demand from party, monthly list of creditors from his tally to calc. value of paid stock for monthly dp set n allowed. If excess allowed for 90 days, its npa. 8. In insurance cover note of cc stock, chk: -short sum insured, be at least 125% of limit. -bnk clause -type of coverage like fire, theft etc. be there. -no break in period of ins. 9. Stock st.: -whether sho...

Illustration: For Non funded Facilities   Fill the following types of facities availed by Borrower Mr. Nirav in below example given:   1. Letter of Undetaking 2. Letter of Comfort 3. Bank Guarantee 4. Letter of Credit 5. Buyer's Credit 6. Seller's Credit   Example:   1. Mr. Nirav, a diamond dealer, imprter/exporter, has availed a non fund based facility in his firm from PNB, Mumbai and thus issued a __ to undetake a diamond cutting contact from a surat based firm mehul & co.   2. On. 1.4.22, He visited PNB with a need to import diamonds from china firm abc inc. and requested to issue___to china firm's bank.   3. On 1.7.22, He, with a need to import diamonds from dubai, thought to get__, being a cheaper finance option from dubai pnb overseas branch. And thus requested pnb, mumbai to issue_.   4. On 1.10.22, He, with a need to import diamonds from singapore, thought to get__ from sbi overseas branch. And thus req...