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How do I verify the Repayment of amount of fore...

How do I verify the Repayment of amount of foreign loan for purchase of an asset, as shown in the...

How do I verify the Repayment of amount of foreign loan for purchase of an asset, as shown in the books of my client's company?

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Chiranjibi Chapagain Mar. 12, 2018

You can use the following list to verify the

  • Check the loan agreement, rate of interest, terms of security.
  • Check the remittances made during the year towards installments of repayments made.
  • Check the receipted voucher/account confirmation for the balance of outstanding.
  • The year end liability of foreign loan should be translated to the rate of exchange prevalent as on the closing date.
  • The gain or loss arising on exchange conversion is to be credited or debited to Statement of Profit and Loss in accordance with the Accounting Standard 11.
  • Check banker exchange rate chart for correctness of the conversion.
  • Check RBI or other agencies’ permission for remittances outside India.

How do I verify the Repayment of amount of foreign loan for purchase of an asset, as shown in the books of my client's company?

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