Auditaudit Staff asked 2 years ago
1 Answers
RaviRavi Staff answered 2 years ago

Following is extract from our notes, which talks about some key points in DTL calculations
Demand & Time Liabilities 
While examining the computation of DTL, specifically examine that the following items have been excluded from liabilities

  • Part amounts of Recoveries from the borrowers in respect of debts considered bad and doubtful of recovery. (Recovery of Bad Debts is not a liability)
  • Amounts received in Indian currency against import bills and held in sundry deposits pending receipts of final rates. (Such money is not returnable hence not liability)
  • Un-adjusted deposits/balances lying in Link branches for agency business like dividend warrants, interest warrants, refund of application money, etc., in respect of shares/debentures to the extent of payment made by other branches but not adjusted by the link branches. (Link branch of bank deals with RBI and other Banks, if money is received by such branches but not yet used or adjusted)
  • Margins held and kept in sundry deposits for funded facilities. (Money deposited in bank before giving loan)

Ask for clarification on above points

Call Back Request