The Institute of Cost Accountants of India Erode

The Institute of Cost Accountants of India Erode Chapter Banking Sector—Role of CMA 17 TH November 2018 ----SATURDAY--6. 00 p. m to 9. 00 p. m . Discussion will be lead by Banking Professional CMA G NARAYANAN

Project and feasibility report • Project and feasibility report based on detailed production cost is to be validated by CMA only, as cost is determined by CMA

Monthly stock statement • Monthly stock statement produced by borrowers (Cash Credit), to be validated and certified by Practicing Cost Accountant only, as cost accountant are competent to calculate ACTUAL cost of product. So that risk of bad debts will be reduced tangibly.

stock audit • Regarding stock audit, of-late fast moving Vs slow moving analysis, FIFO LIFO analysis are not effectively followed. Valuation of FIFO LIFO AND Fast Moving vs Slow Moving can be done by cost accountant effectively Because Cost accountant are competent to calculate cost

WIP • WIP, Actual cost of WIP can be analysed and validated by CMA only.

credit worthiness To arrive credit worthiness, is to be certified by CMA only

Concurrent audit • Concurrent audit can also be done by cost accountant. So that NPA can be minimised.

cost-benifit analysis Transaction cost, cost-benifit analysis can be done by CMA

right utility • Investigating, right utility of funds by the borrower can be ascertained by CMA. Holding and hoarding of funds can be monitored (AML)

Treasury operation • Treasury operation – fund management of bank can be monitored by CMA

Non fund based facilities • Monitoring of Non fund based facilities can be done by CMA

Specialised certification • Specialised certification for conducting of audit should be made compulsory (DISA by CA Institute), UPDATION in computer and information knowledge and skill is must

leakage of income • Certification and scrutinising of leakage of income can be done by cost accountant

Thanks • Query plz • ? ? ?