From: ALPESH+DEVESH=A. D. ASSOCIATES <adassociates2004@yahoo.com>
Subject: [aurangabad_ca] BANK BRANCH AUDIT-NPA QUERY
To: "THANE CA GROUP" <thaneCAs@yahoogroups.com>, "Aurangabad CA Study Group" <aurangabad_ca@yahoogroups.com>, "VADODARA CA GROUP" <vadodara_CA@yahoogroups.co.in>, "MISSION IS MORE IMPORTANT" <lucknowca_reinvented@yahoogroups.com>, "GLOBAL CA GROUP" <globalindianCAs@yahoogroups.com>
Date: Thursday, 1 April, 2010, 9:41 AM

 

LOAN AGAINST GOLD JEWELLERY   We are Branch Statutory Auditor of One of Nationalised Bank, .   Our Query: The Bank has Advances Scheme called "XXX BANK GOLD", the advances are given against security of gold, which is described as "DEMAND LOAN" under "SECURED LOAN". The scheme is operative all over the India in all the 1125 Branches of bank.   As per Scheme, Out of total value of gold, the bank keeps 25% margin and advances 75%  loan to loanee. As per loan scheme, the bank only debit interest on monthly basis to loanee account, but do not recover the same through out year, the loan account renews after one year, as per bank's scheme and circular. And grant new loan by revaluation of  Gold jewellery, as an option, or recover the full amount with interest at the end of the year.   The bank is cover with Core Banking services, and the software also do not show the interest overdue for more than 90 days to classify the same as NPA, and bank management argue that the scheme is operative all over India in same way, and can not be classify the account as NPA.   What stand we should take for Interest not serviced for more than 90 days.   Whether we can consider the NPA norms at par with loans against Deposit, KVP, NSC, LIC policy etc and not to consider the same as NPA?     Kindly reply urgently.   your valued advice whould be highly apreciated.   Thanks in advance.   CA. ALPESH SHAH  +  CA. DEVESH PARIKH = A.D.ASSOCIATES Chartered Accountants 205, Apollo Shopping Centre, Above Siddharth Hospital, Station Road, Virar(w).

• From today more interest on your Saving Bank account
• Stamp duty is applicable on purchase of Property in Public Auction
• Exchange Rate notification for Import / Export of goods with effect from 1st April, 2010
• Service tax on rail fright deferred till 1st July 2010 in Public Interest
• Service tax Notification No. 20/2010 amending notification No.07/2010-Service Tax, dated the 27th February, 2010
• DGFT Policy Circular No 29/2009-14 – Invitation for applications for Import licences for Rough Marble Blocks – Issue of quota for the financial year 2010-11
• DGFT Policy Circular No 28/2009-14 – Drawing of export samples of basmati rice for variety identification purposes
• DGFT Public notice No. 53/2009-14- Amendment in Appendix 37D, Table-6, Handbook of Procedure Vol.I, for benefits on exports made from 1.4.2010 till 30.9.2010
• DGFT Public notice No. 52/2009-14- Amendment in Appendix 37D, Table 6, Handbook of Procedure Vol.I – for benefits on exports made on or after 1.1.2010
• DGFT notification 36/2009-2014- Policy for issue of import licenses of Rough Marble Blocks for the Financial year 2010-11
• Job Work: Better late than never
• MCA press release- Roadmap for banking companies, insurance companies and NBFCs
• Retrospective Amendments – High-time for Introspection by India

From today more interest on your Saving Bank account Posted: 31 Mar 2010 08:58 PM PDT Here's some good news for savings account holders. The savings account will yield 30 to 40 basis points more to the account holder from Wednesday with the banks shifting to the new method for calculating interest on savings deposits. Following the... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Stamp duty is applicable on purchase of Property in Public Auction Posted: 31 Mar 2010 08:36 PM PDT The Madras High Court has held that an instrument, whether a certificate of sale or sale deed, issued in a public auction of properties, was chargeable with stamp duty under Article 18 read with Article 23 of Schedule I to the Indian Stamp Act, 1899. [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Exchange Rate notification for Import / Export of goods with effect from 1st April, 2010 Posted: 31 Mar 2010 08:33 PM PDT the Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall,... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Service tax on rail fright deferred till 1st July 2010 in Public Interest Posted: 31 Mar 2010 08:28 PM PDT The finance ministry has deferred levying 10 per cent service tax on railway freight by three months to July 1 amid inflation nearing double-digit mark. "The service tax on railways freight has been deferred by three months," a Central Board of... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Service tax Notification No. 20/2010 amending notification No.07/2010-Service Tax, dated the 27th February, 2010 Posted: 31 Mar 2010 08:01 PM PDT In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do,... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

DGFT Policy Circular No 29/2009-14 – Invitation for applications for Import licences for Rough Marble Blocks – Issue of quota for the financial year 2010-11 Posted: 31 Mar 2010 07:53 PM PDT Applications are invited for issue of import licences for rough marble blocks only for the financial year 2010-11 from the eligible applicants as per the Marble Import Policy announced vide Notification No.36/2009-2014 dated 31st March, 2010. The... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

DGFT Policy Circular No 28/2009-14 – Drawing of export samples of basmati rice for variety identification purposes Posted: 31 Mar 2010 07:50 PM PDT In continuation of Policy Circular No. 33 dated 30th September, 2010 it has been decided to designate Basmati Export Development Foundation (BEDF), Modipuram as an authorized centre for testing of samples of basmati rice for variety... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

DGFT Public notice No. 53/2009-14- Amendment in Appendix 37D, Table-6, Handbook of Procedure Vol.I, for benefits on exports made from 1.4.2010 till 30.9.2010 Posted: 31 Mar 2010 07:45 PM PDT PUBLIC NOTICE No. 53 / 2009-14.NEW DELHI: the 31st March, 2010. In exercise of the powers conferred under Paragraph 2.4 of the Foreign Trade Policy, 2009-14, the Director General of Foreign Trade hereby makes the following amendments in HBPv1, for... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

DGFT Public notice No. 52/2009-14- Amendment in Appendix 37D, Table 6, Handbook of Procedure Vol.I – for benefits on exports made on or after 1.1.2010 Posted: 31 Mar 2010 07:42 PM PDT PUBLIC NOTICE No. 52 / 2009-14.NEW DELHI: the 31st March, 2010.In exercise of the powers conferred under Paragraph 2.4 of the Foreign Trade Policy, 2009-14, the Director General of Foreign Trade hereby makes the following amendments in HBPv1, for... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

DGFT notification 36/2009-2014- Policy for issue of import licenses of Rough Marble Blocks for the Financial year 2010-11 Posted: 31 Mar 2010 07:38 PM PDT A number of representations have been received from the various Associations of marble manufacturers/processors for review of the regime governing import of marble. The matter has been considered carefully by the Government. The following Policy... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Job Work: Better late than never Posted: 31 Mar 2010 07:17 PM PDT Rule 6 of the Cenvat Credit Rules, 2004 provided that the cenvat credit will not be admissible on the inputs or input services which are used in the manufacture of exempted goods or which are used in providing the exempted services. The Rule 6 ibid... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

MCA press release- Roadmap for banking companies, insurance companies and NBFCs Posted: 31 Mar 2010 07:05 PM PDT A meeting of the Core Group constituted by the Ministry of Corporate Affairs for convergence of Indian Accounting Standards with International Financial Reporting Standards (IFRS) from the year 2011 was held on 29th March, 2010 under the... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Retrospective Amendments – High-time for Introspection by India Posted: 31 Mar 2010 01:04 AM PDT 1.0 In any civilised society, a taxing statute is expected to be prospective i.e. levying the tax on the income / transaction which will take place in future. This is for the reason that, at the time of entering into the transaction, the tax... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

LOAN AGAINST GOLD JEWELLERY   We are Branch Statutory Auditor of One of Nationalised Bank, .   Our Query: The Bank has Advances Scheme called "XXX BANK GOLD", the advances are given against security of gold, which is described as "DEMAND LOAN" under "SECURED LOAN". The scheme is operative all over the India in all the 1125 Branches of bank.   As per Scheme, Out of total value of gold, the bank keeps 25% margin and advances 75%  loan to loanee. As per loan scheme, the bank only debit interest on monthly basis to loanee account, but do not recover the same through out year, the loan account renews after one year, as per bank's scheme and circular. And grant new loan by revaluation of  Gold jewellery, as an option, or recover the full amount with interest at the end of the year.   The bank is cover with Core Banking services, and the software also do not show the interest overdue for more than 90 days to classify the same as NPA, and bank management argue that the scheme is operative all over India in same way, and can not be classify the account as NPA.   What stand we should take for Interest not serviced for more than 90 days.   Whether we can consider the NPA norms at par with loans against Deposit, KVP, NSC, LIC policy etc and not to consider the same as NPA?     Kindly reply urgently.   your valued advice whould be highly apreciated.   Thanks in advance.   CA. ALPESH SHAH  +  CA. DEVESH PARIKH = A.D.ASSOCIATES Chartered Accountants 205, Apollo Shopping Centre, Above Siddharth Hospital, Station Road, Virar(w).