Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: VAT RATES :: articles on VAT and GST in India :: VAT Audit :: cpt :: TDS :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: empanelment :: due date for vat payment
 
 
ę ICAI »
 ICAI International Conference, 8-9 December 2017, Mumbai
 Report on Audit Quality Review (2016-17) of the Quality Review
 CPE Events 13th November - 18th November 2017
 Information Systems Audit (ISA) Course Assessment Test which is open to the members of the Institute, will be held on 23rd December, 2017 (Saturday) from 9.00 AM to 1.00 PM (IST) at 61 Cities.
 ICAI Survey for Capacity Building and Global Presence of Indian CA Firms - Request to submit response by November 15, 2017
 Paper 2, Strategic Financial Management of Final Examination, Group - I scheduled on 3rd November 2017 (Friday) at Chennai only, was postponed, on account of heavy rains and disruption of normal life there. The said examination will now be held 17th November 2017 (Friday).
 Group to Review the Criteria for Formation of Branch
 Postponement of Group I Paper- 2 Strategic Financial Management of Final Examination, Scheduled on 3rd November, 2017 (Friday) in Chennai (in The State of Tamil Nadu) Only.
 President's Message - November 2017
 CBDT extends the 'due-date' for filing income-tax returns and reports of audit pertaining to Assessment Year 2017-2018 from 31st October, 2017 to 7th November, 2017.
 CPE Events 30th October - 4th November 2017

ICAI - Auditors Responsibilities Relating to Restructuring of Advances
March, 27th 2009

Auditors Responsibilities Relating to Restructuring of Advances

1. Attention of the members carrying out audit of financial statements of banks for the year ended March 31, 2009, is drawn to Reserve Bank of Indias circular no. DBOD.BP.BC.No.105/21.04.132/2008-09 dated February 4, 2009 on Prudential Guidelines on Restructuring of Advances by Banks.  The said circular:

Applies to advances to which Special Regulatory Treatment was extended in terms of RBIs circular no.      DBOD.BP.BC.93/21.04/132/2008-09 dated December 8, 2008 and also were Standard Assets as on September 1, 2008;

Extends the date of receipt of application for restructuring from January 31, 2009 to March 31, 2009; and

Clarifies that the general framework of Restructuring of Advances by banks continues to be governed by the circular dated August 27, 2008.

2. In view of the above, the members may note that mere receipt of an application for restructuring does not by itself makes the advance(s) referred to above qualified to retain its classification as Standard Asset(s).  Such retention can be done only if the following criteria are met:

The conditions subject to which the benefits of restructuring under Special Regulatory Treatment can be availed in terms of the circular no. DBOD.BP.BC.No.37/21.04.132/2008-09 dated August 27, 2008 read with paragraph 4(c) of RBIs circular no. DBOD.BP.BC.No.104/21.04.132/2008-09 dated January 2, 2009 are met; and

The restructuring package is implemented within a period of 120 days of taking up of restructuring package.

3. In case of advances where the above conditions are not fulfilled then in terms of paragraph 6.2 of RBIs circular no. DBOD.BP.BC.No.37/21.04.132/2008-09 dated August 27, 2008 on Prudential Guidelines on Restructuring of Advances by Banks read with paragraph 3.1.2 of the said Circular, the usual asset classification norms would continue to apply.  Accordingly, an adequate provision in respect of such accounts needs to be made in the financial statements of the bank.  Where the bank has not made such a provision in the financial statements, the auditor should consider the impact of such non-provisioning on his audit opinion in terms of the principles laid down in Standard on Auditing (SA) 700, The Auditors Report on Financial Statements. 

4. Where the member, in accordance with the requirements of SA 700, decides to issue a modified audit opinion in respect of the above, his audit report should clearly bring out matters such as the fact of non-provisioning, the amount involved, the impact of such non provisioning on the relevant items of financial statements, reference to the relevant circular(s) of the Reserve Bank of India. 

5. Further, the member would also need to consider the need for giving a suitable comment in this regard in his Long Form Audit Report.  For example, in case of a bank branch, the Long Form Audit Report requires the auditor to provide details of such advances where the auditor disagrees with the branch classification of the advance(s) into standard/ sub-standard/ doubtful/ loss assets, along with the reasons therefor.

6. In addition to the above, it may also be worthwhile to reiterate that while carrying out statutory audit of the financial statements of banks, the members should ensure compliance with the applicable Standards on Auditing as well as the Guidance Note on Audit of Banks issued by the Institute of Chartered Accountants of India.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions