Baking Knowledge for Accountant formalities & documentation

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22 July 2010 Baking Knowledge for Accountant formalities & documentation
I am an accountant I want to know what is knowlege required banking following point i required know procedure & documentation
1. New company current Account Opeing Procedure & documentation
2. Authorities for signature what is procedure & documentation
3. Bank Gurantee for Business procedure & documentation
4. Cash Credit Facilitie & Overdraft facilities formalities procdure & documentation
5. bank gurrantee for export procedure & documentation
6. Letter of Credit for delivery of Goods procedure & documentation

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24 July 2010 . New company current Account Opeing Procedure & documentation

The bank may requires the following .

A certified photocopy of Memorendum and Articles of Association.
Certified copy of the certificate of incorporation, and certificate of trading (for public limited company).
Resolution of the company's Board of Directors on appointing the bank to act for the company, and the appointing of officers to operate the accounts and detailing on how the account is to be conducted. The bank would ensure that none of the powers confererred by the mandate conflicts with the Articles of Association since the latter would take priority.
Specimen signature of the Authorised signatories and also the company's rubber stamp.

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20 December 2010 AUTHORISATION TO OPERATE THE BANK ACCOUNT

"RESOLVED THAT __________ Bank (hereinafter called "the Bank") be and is hereby designated a depository of funds of the Company and the below mentioned officials is/are hereby authorised to sign (and shall be deemed to have been so authorised):

(i) Sh. __________

(ii) Sh.___________

(iii) Smt.__________

Singly Sh. _______________ and any one /two other (s) for and on behalf of the Company any and all cheques, drafts or other orders with respect to any time with the Bank whether any such account (s) be for the time being in credit or otherwise inclusive of any such cheques, drafts or other orders in favour of any of the above designated officer (s) and/or other person (s) and that the Bank be and is hereby further authorised to pay and debit the same to any account of the Company then maintained with it and that the Bank is hereby further authorised to receive for deposit to the credit of the Company and/or for collection for the account of the Company any and all cheques, drafts, notes or other instruments for the payment of money, whether or not endorsed by the Company each such item being deemed to have been unqualifiedly endorsed by the Company and also to receive as the act of the Company, reconcilement of account (s) and that the above designated officer (s) and/or other person (s) is/are authorised to transact any and all such business with or through the Bank at any time (s) as may be deemed by him/them to be advisable including without limiting the generality of the foregoing authority.

1. To discount and/or negotiate notes, drafts or other commercial paper.

2. Apply for letters or other forms of credit

3. Sign and settle exchange contracts.

4. Sign and/or endorse bills of lading and other documents of title to goods.

5. Sign and obtain delivery of merchandise against trust receipt

6. Borrow money with or without security from time to time provided that the monies so borrowed together with monies previously borrowed and remaining outstanding at any one time shall not exceed Rs. __________/- only.

7. Pledge mortgage or otherwise hypothecate any property to the Company.

8. Purchase exchange sell or otherwise deal in or with any stocks, bonds or other securities.

9. And in reference to any of the business or transactions of the Company to make/enter into, execute and deliver to the Bank such negotiable or non-negotiable instruments, indemnities, guarantees or other mortgages, pledges and/or other documents to any such officer (s) or other person(s) as may seem to be necessary or desirable or as may be required by the Bank.

That any withdrawals and borrowings of money and/or other transactions here-in-before had on behalf of the Company with the Bank are hereby ratified, confirmed and approved and that the Bank may rely upon the authority conferred by this entire resolution until the receipt by it of a certified copy of a resolution of this Board revoking or modifying the same”.

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20 December 2010 Performance Guarantee: Documents

The borrower and/or the guarantors have to provide the following documents to the banks or the lending institutions while submitting Performance Bank Guarantee Application. Certain documents may be demanded by the bank or the lending institutions in post sanction phase or on periodical basis.

Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence or Office Premises.

Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds, Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any such legal suit or proceedings are pending then the details of such legal suit or proceeding.

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20 December 2010 Performance Guarantee: Process

The following are the sequence of steps taken by the banks on receipt of completed application forms.

Application form is accepted and acknowledged.
Personal interview /discussions is held with the customers by the bank’s officials.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the authenticity of the same.)
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the Technical feasibility/financial viability of the project based on various parameters and also the existing market conditions.
Depending on the size of the project the file is put up for sanction to the appropriate level of authority.
SANCTION AND DISBURSEMENT :

On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
The processing charges as specified by the bank have to be paid to proceed further with the disbursement procedure.
The documentation procedure takes place viz.Legal opinion of various property documents and also the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
All the necessary documents as specified by the legal dept., according to the terms of sanction of the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.

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20 December 2010 Cash Credit : Documents

The borrower and/or the guarantors have to provide the following documents to the banks or the lending institutions while submitting Cash Credit Application. Certain documents may be demanded by the bank or the lending institutions in post sanction phase or on periodical basis.

Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds, Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any such legal suit or proceedings are pending then the details of such legal suit or proceeding.

CA Sanat Pyne

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20 December 2010 Cash Credit : Process

The following are the sequence of steps taken by the banks on receipt of completed application forms.

Application form is accepted and acknowledged.
Personal interview /discussions is held with the customers by the bank’s officials.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the authenticity of the same.)
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the Technical feasibility/financial viability of the project based on various parameters and also the existing market conditions.
Depending on the size of the project the file is put up for sanction to the appropriate level of authority.
SANCTION AND DISBURSEMENT :

On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
The processing charges as specified by the bank have to be paid to proceed further with the disbursement procedure.
The documentation procedure takes place viz.Legal opinion of various property documents and also the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
All the necessary documents as specified by the legal dept., according to the terms of sanction of the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.

CA Sanat Pyne

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20 December 2010 FOR LC

https://www.caclubindia.com/share_files/details-of-letter-of-credit-28711.asp

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