How to verify lc devolvement and bg invoked

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dharmender (Querist)
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26 December 2013 1.How to verify LC devolvement and BG invoked.
2.A company has working capital limits from different banks. Then how to verify whether the company has utilized for business activity or for capital expenditure.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 December 2013 Q1. LC devolvement will be checked with the LC out standing statement received from bank & BG invoked can be confirmed with bankers

Q2. Need to prepare the cash flow & fund flow statement and analysis the same

dharmender

dharmender (Querist)
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30 December 2013 is there any LC outstanding statement will issue by the bank?
if yes, monthly bank will issue?
bez i have not seen such statement till now.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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31 December 2013 Yes. Bank will issue the LC outstanding statement on request, based on that you can reconcile your development details if any.