What CAs can do in financing loans for clients from banks?
What CAs can do in financing loans for clients from banks?
banks require audited balane sheet from organisation
to provide loan to organisation
CA provides assurance to banks that data provided by organisation is correct
Hi Naina!
Very Interesting Question!
CAs make Projected Financial Statements based on past financials & the current internal as well as external environment of the organisation and other relevant factors.
CAs use their expert knowledge & analysing skills to make these projections, making it reasonably reliable for the Banks.
Apart from Projected Financials, there are formalities which the CAs comply with to get the loan sanctioned.
this is Commonly referred as " Project/Loan Financing"
Thanks Sumit, Vivek and Rahul.
I know that CAs prepare project reports to help banks about the feasibility of the project.
AUdit will be required only when it is required under some act.
I have heard that CAs help their clients in getting loans at cheaper interest rates.
Rahul, what are the "other formailities" that CAs do for their clients in loan financing.
CA's also assist in preparing CMA (credit monitoring arrangement) data for raising loans from banks
it is very simple
if a CA have a goodwill in the market
and have good relationship with some bank managers
they can issue loan on very marginal rate of intrest
not a big issue
CAclubindia
