Q & A: Professional Fees for Stock Audit
P.D.RUNGTA
Query: Professional Fees for Stock Audit
Hello Dear Professional Colleagues
We are practising Chartered Accountants. Recently we are appointed as Stock auditor of a Manufacturing Company by a Bank.
Bank have not intimated us the professional fees that we should charge for the stock Audit.
I request for guidance what is the basis of Professional Fees to be charged for Stock Audit.
Thanking You,
Rabin Agarwala & Co.
Chartered Accountants
CA Rabin Agarwala
(Proprietor)
Cell: 09301010881
Reply:1
Dear All
So far as the Auditors Remuneration structure is concerned all banks has their individual norms considering their the days of work provided by the Stock Auditors as their prescribed shedule of timing.The Problems with the stock Audit by the Auditors is that most of the borrower does not want produce their details of account to the stock auditors and they treat the stock Auditors as strangers/ or their enemy perhaps in a view that if qualify reports will be their , the bank may reduce their limit position, on the other hand the auditors feel guilty if they not able to checked all position of accounts and stock audits majorly related to larger borrowal account only perhaps more than 1Cr limit , the Stock Auditors want to check last year statutory Auditors B/S and the stock Audit Report filed with bank and other non-stock related items then the dispute starts.
Considering moderate ways of checking and the the days requirement involed in stock audit and the staff engaged the Stock Audit fees should be finalised .
CA Siddhartha Naik
Reply:2
Dear CA.
Ranbirjee Agarwala
Regarding your query on Stock audit fees, there is
a fees structure ( based on funded based working capital limit or value of
stock assessed during audit) in every bank and basis varies bank to
bank.It is normally mentioned in the appointment letter . If fees is not
specified then we should follow the respective circular / policy in
respect of stock audit of a particular bank and fees will paid accordingly.
CA.Bishnu Basia, FCA,AICWA,LLB
Kolkata
E-mail:bishn...@yahoo.com
Reply:3
Dear Rabin,
Its very
simple charged as per your office costing and the time involved in
conducting such audit including skilled, semi skilled and unskilled staff used
for conducting the same.
Thanking You,
Yours Truly,
Ca. Prince P. Jain
Prince Jain & Co.
Chartered Accountants
"Ssukhi-Paras Niwas", 7, Brite CHS Ltd., Agyari Lane, Tembhi
Naka, Thane
(W)-400601.
Reply:4
*Dear Rabin *
*Diffrent Banks allow different slab of fees but
all are based on fund based
sanctioned limit to borrower like*
*sanction Limit Fees to Charged*
* manufacturing
concern Trading Concern*
*up to 2crore Rs
3500 Rs 2500*
*2-5 crore RS
6000 Rs 5000*
*5-10 crore Rs
9000 Rs 7500*
*10-25 crore
Rs12,500 Rs 10000*
*above 25
crore Rs15000
Rs
12,000
*
*Above fees is Excluding Travelling and out of
pocket expenses*
*some Banks Paid*
*sanction Limit Fees to Charged*
*up to 10 crore Rs 10000*
*10-30 Crore Rs20000*
*30-50 Crore Rs30000*
*Over 50 Crore Rs 40000*
**
*Above fees is Excluding Travelling and out of
pocket expenses*
ca.j.p.sharma
09334460555
0651-2201322
Reply:5
Mr agarwalla
The stock audit fees varies from bank to banks.
Kindly discuss with the concerned bank about their scale of fees. Many times it
is also mutually settled with the auditee in consultation with the bank. For
banks like united bank of india, bank of baroda usually its around 10000-15000
depending upon the size of advance to the auditee. However it is always
advisable to settle to fee amount in advance.
Rgds
Ca gaurav agarwal,FCA
G.AGARWAL & ASSOCIATES
Sent on my BlackBerry® from Vodafone
Pramod Dayal Rungta
M.Com.,LL.B.,AICWA.,DISA(ICAI).,FCA
Member EIRC ICAI (2010-12)
P.D.Rungta & Co.
Chartered Accountants
Board : +91 33 3028 2500 / 1
Direct Line : +91 33 3028 2502/3
Cell : +91 98310 07253
email: pdru...@gmail.com
Head Office:
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Kolkata-700 001,West Bengal, India
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