Bank Audit
Who Needs This?
Bank Audits are conducted for:
Banks and Branches (as per RBI guidelines).
Borrower Companies/Firms availing loans & credit facilities (Concurrent/Revenue audits mandated by banks).
Why It Matters
Bank audits ensure:
Verification of loan accounts, cash flow, and NPAs.
Compliance with RBI norms & internal bank policies.
Transparency in utilization of funds by borrower companies.
Builds trust with lenders and ensures smoother loan processing.
Process of Bank Audit
Verification of loan documents, sanction terms, and securities.
Checking end-use of funds and compliance with covenants.
Review of repayment schedules, interest, and charges.
Reporting discrepancies to the bank through audit reports.
Penalty / Risks of Non-Compliance
Misreporting or misuse of funds may lead to loan recall, NPA classification, or legal proceedings.
How Law to Corporate (LTC) Helps
Conducting independent borrower audits as per bank requirements.
Reviewing financial & compliance status for banks.
Supporting companies in preparing for bank audits to avoid negative remarks.