Use of Bank Statements

The Reserve Bank of India vide its communication DBR.BP.No. 1777 /21.06.007/2018-19 dated 30 August 2018 has advised the inclusion of bank statement analysis in determining the debt servicing capacity of the rated issuers.

Acuite will seek relevant bank loan statements from the issuers undergoing a rating exercise (for both fresh and review cases). Acuite has specified bank statements as part of the information requirements wherein bank statement(s) for the last 6 months for the cash credit account/s and the term loan account/s are sought from all entities undergoing the rating exercise.

Bank statement analysis is an additional / complementary step and is not intended to replace the feedback which Acuite seeks from bankers. Bank statement analysis is primarily used in its credit rating as one of the inputs to assess the liquidity position of the company. Acuite will not be in a position to carry out an audit or forensic analysis of the bank statement.