14 March 2009
A Pvt. Ltd. Co. has three C/C Limits. All these are to be shown in the final balance sheet. Is there going to be any problem due to more than one C/C Limit? If yes, please tell about that. Further, If the company increases its C/c Limit, then it has to modify the charge already created or nothing is to be done with regard to increase in C/C Limit. Please guide me as it is very urgent.
14 March 2009
If the three limits are on the same assets with different bankers,according to me, it is not a healthy practice of the company. If the situation is so the auditors has to comment upon that in the notes as well as in the audit report. In situations other than what is mentioned above I don't see any harm in having three c/c limits. Second para of the query is o.k.
14 March 2009
Thanks for the answer sir. The reply of the IInd part of the query is not clear i.e. in an increase in C/C Limit, one has to modify the charge or not. Please reply again. Thanks a lot
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