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What are all the Major Disqualifications in Audit Report a Banker may view before sanctioning for the Renewal for credit facilities with your Bank?

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/08/29
Subhranshu Ganguly
by Subhranshu Ganguly , Quality Analyst. , WIPRO

I just want to add if there is any idication of WINDOW DRESSING , IE liablities and expenses have been grossly undervalued the bank may not renew a loan or an Over draft fascility (if there is no adequate fixed deposit with the bank.

The major disqualificaitons may be regarding:

They doubt the ability of the company to continue operations as a going concern.

The doubt the collectibility of accounts receivables in view of past history and turn-over ratios.

They doubt the value of inventory reported in balance sheet reflects true market value., etc.

محمد رشدى محمد
by محمد رشدى محمد , Internal auditor , Intersect For Contracting

completely Agree with answer Mr. Muhammad Ahmed Siddiqui

Mian Muhammad Naeem Jan
by Mian Muhammad Naeem Jan , Chief Finance Officer , Management Company

The major disqualificaitons may be regarding:

It includes

1. If there is doubt of the ability of the company to continue operations 

2. If there is any problem collectibility of accounts receivables in view of past 

3. If Bank has a doubt that the value of inventory reported in balance sheet reflects true value.

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