In case the company has given advances to the director, you can consider the following points to verify the amount:

• Verify articles of association for powers of the company to grant advances to director.
• Verify the compliance of Section 185 of the Companies Act, 2013.
• Check the bank book/cash book entries with vouchers.
• Study the contract /loan agreement, terms, rate of interest and inquire whether they are prejudicial to the interest of the company.
• Check the confirmation received from the director for outstanding advances.
• Check interest had been duly charged for the outstanding unless it is an interest free advance.
• The loan or advances made to the directors should be distinctly shown in the balance sheet.
• Check the related party transaction with director is disclosed in notes to the account (as per AS 18).