On September 11, 2024, Jammu & Kashmir Bank Limited issued Circular No. 31-350, clarifying the certification work authorized for Cost Accountants (CMAs) in relation to bank operations. The circular addresses concerns raised by the Institute of Cost Accountants of India regarding the acceptance of CMA certificates by certain operative levels within the bank. It confirms that CMAs holding a valid Certificate of Practice are permitted to perform various certification tasks under government statutes, including certifying financial statements, verifying stock statements, issuing turnover and net worth certificates, assessing working capital requirements, and preparing project reports. Additionally, CMAs must generate a Unique Document Identification Number (UDIN) for each certificate issued, similar to the requirements for Chartered Accountants. The bank emphasizes the importance of compliance with these guidelines across all branches and offices.
Jammu & Kashmir Bank Limited
Corporate Headquarters
M A Road, Srinagar 190001
Kashmir India
P: +91 (0)194 248 1930
F:
CIN:
L65110JK1938SGC000048
E: [email protected]
W: www.jkbank.net
J&K Bank
Consumer & Commercial Banking
Ref: JKB/CHQ/CCB/2024/285
Circular id: 16945
September 11, 2024
All Branches /Offices
Circular No: 31-350
Sub: Certification Work by Cost Accountants for Banks
Reference is invited to existing Credit Dispensation Policy of the bank whereby the eligibility of Cost Accountants to carry out various certification works for banks has been explicitly mentioned at par with that of Chartered Accountants. However, as stated by the Institute of Cost Accountants of India-Srinagar Chapter, certain operative levels are not accepting certificates provided by Cost accountants.
In this backdrop, it is hereby clarified that the Cost Accountants (CMAs) holding valid Certificate of Practice (CoP) are authorized to carry out certification work of banks under different Statutes of Govt which include:
- Certification of Financial Statements: A practicing Cost Accountant can certify financial statements, which include Balance sheets, Profit and Loss accounts, and Cash Flow statements.
- Verification of Stock Statements: A practicing Cost Accountant can verify stock and receivable statements submitted by borrowers to banks to ensure the accuracy and authenticity of the data provided.
- Turnover Certificate: A practicing Cost Accountant can certify and verify the total sales or revenue generated by a business over a specified period.
- Net Worth Certificate: A statement prepared by a practicing Cost Accountantthat certify the net worth of an individual or that of business.
- Assessment of Working Capital Requirements: A practicing Cost Accountantcan assess the working capital needs of a business/project and recommend appropriate financing options.
- Utilization Certificate: A certificate issued by a practicing Cost Accountantthat confirms the funds allocated for a specific project or purpose have been used appropriately.
- Preparation of Project Reports: A practicing Cost Accountant can prepare detailed project reports that include financial forecasts, cost estimates, and revenue projections, which are crucial for obtaining financing.
- Income Certificate: A document that certifies an individual’s income, typically used for various applications such as scholarships, loans or other financial assistance programs.
- Other Certificates of Bank: Besides the aforementioned list of certificates, apracticing Cost Accountant can also issue other certificates based on various circulars issued from time to time by RBI, SBI and other scheduled banks.
The Unique Document Identification Number (UDIN) is mandatorily generated for every certificate issued by the practicing Cost Accountant through the UDIN portal of the Institute. As such, as is the case with documents/ certificates issued by Chartered Accountants, it must be ensured that UDIN has been mentioned on the documents/ certificate issued by the Cost Accountants.
Operative levels are advised to take note of above mentioned guidelines and ensure strict compliance.
Rakesh Magotra (DGM)
Deputy General Manager
*** For internal use only. ***
