Page 50 - MA - May 2017

COVER ST OR Y

are transferred to M2, M4, M5 and M1 branches No. of Drafts Issued 4750
respectively every Saturday by demand draft Amount involved Rs35,63,700
which is issued at par. Postages are recovered. No. of MTs issued 30
Amount involved Rs 6,000
3. Remittance facilities like demand drafts, mail No. of TTs issued 100
transfers and telegraphic transfers are offered Amount involved Rs 4,70,000
by the bank and availed of by MEWL and these No. of Cheques sent for Collection 1200
products are being charged at rates lower than Amount involved Rs 24,00,000
the rates charged to public and other outside No. of Bills sent for collection 170
parties. Amount involved Rs 6,00,000
No. of Cheques purchased 650
At the time of annual review of the account and its Amount involved Rs 72,15,000
facilities MEWL has proposed to Modern bank that the
miscellaneous services should be offered at par in view Interest rate charged on Advances (cash credit)
of the fact that they are solely banking with Modern 15.5%
bank and paying a huge interest on the cash credit Cost of Funds (for every 100 Rupees)
limits. While making the above request MEWL has also 7.5%
informed the bank that if these facilities are not given at Cost per voucher
par they may switch to another bank which has agreed (i) Cash Credit (debit or credit)/ Current Account Rs15/-
to extend such facilities. (ii) Drafts Issued/ Paid Rs32/-
(iii) MTs issued/paid Rs65/-
Account Information: (iv) TTs issued/paid Rs84/-
Average weekly outstanding in the cash credit (v) Cheques sent for collection/realised Rs 56/-
Account maintained at M1 during the year (vi) Bills sent for collection/realised Rs145/-
Rs 2.70 crores (vii) Cheques purchased Rs27/-
Average weekly outstanding in the cash credit Average transit time considered for settlement of
Accounts at M2 Rs 40 lakhs transactions
M3 Rs35 lakhs (i) Drafts 7days
M5 Rs20 lakhs (ii) MTs 8 days
M4 Rs30 lakhs credit bal. (iii) TTs Nil
(iv) Cheques sent for collection (Date of realisation to
No of debit/credit transactions in the cash credit the date of credit of in the account) 8 days
account during the year at (v) Bills sent for collection (Date of realisation to the
M1 12740 Date of credit in the account) 9 days
M2 1430 (vi) Cheques purchased (Date of purchase to date of
M3 1600 respondingat the other branch) 6 days
M5 720
M4 60 Notional Income on Float funds 9%
Exchange on
The transactions at the collection centres are as (i) Drafts/Mts/TTs 5 p%
under: (ii) Cheques purchase 45 p%
No. of Average Amt. Of weekly Collection charges
Daily Balance(in remittance (Rs) (i) Cheques 15 p%
Credits Rs) (ii) Bills 20 p%
C1 30 8 lakhs 20 lakhs
C2 50 10 lakhs 25 lakhs
Workout
C3 40 12 lakhs 30 lakhs 1. Direct Advances
C4 10 5 lakhs 10 lakhs (a) No. of vouchers at all centres 16550

50 The Management Accountant l May 2017 www.icmai.in