CGTMSE Ref. No.9443/Claims                                                       February 24, 2015

 

 

To SME Heads of all Member Lending Institutions

 

 

Dear Sir / Madame,

 

 

Follow up of recovery after settlement of CGTMSE claim

 

 

            Please refer to our letter Reference No. 6707/claims dated March 4, 2014 on the above subject requesting you to provide a certificate from your Statutory Auditors that recoveries made, post settlement of claims by CGTMSE in respect of proposals covered under the CGS, have been duly passed on to CGTMSE as per the provisions of the CGS.  The said certificate was requested to be submitted once in a year i.e. as on March, 31 of that year by September, 30 of every year commencing from the period ended March 31, 2014.

 

            We observe from our records that very few MLIs have submitted the requisite certificate and many of the certificates so provided are ambiguous or not worded properly. We observe from few certificates that only CGTMSE's portion of recovery, as per the MLIs calculations, has been passed on to CGTMSE. In this regard, you may please note that the entire recovery made, be it in installments, needs to be passed on to CGTMSE immediately upon recovering the amount after deducting the legal expenses and CGTMSE, on its part, would refund its share of amount to MLIs in the ratio of net loss incurred only after receipt of entire recovery. Further, it is observed in few cases that the certificate has not been forwarded in respect of all the Controlling offices. You are once again requested to strictly adhere to the guidelines.  You are now

 

requested to forward us your statutory auditors certificate for the period ended on March 31, 2014 expeditiously as per format enclosed.   

 

 Yours faithfully,

 

 

   Sd/-

  (S.S.Bakshee)

Encl: As above                                                             General Manager

 

 

Certificate

 

Certificate relating to recoveries made post settlement of claims by CGTMSE- Remittance made to trust for the period from 01.04.2013 to 31.03.2014

 

 Certified that _______ (Name of Bank) has duly remitted the entire amount to CGTMSE out of recoveries made post settlement of claims as per the provisions of Credit Guarantee Scheme. However, where no recovery has been passed on or short recovery has been passed on to CGTMSE, the details of the same are given in the table below :

Member ID

Total Recovery (Rs.)

[Excluding legal expenses]

Amount pass on to CGTMSE (Rs.)

Short Amount (Rs.)

 

 

 

 

 

 

 

 

Total :

 

 

 

P.S: 1] "Nil" to be indicated in the table in case there is no shortfall in passing on the recovered amount to CGTMSE.

2] Consolidated MLID wise information to be submitted in the above table as a single figure in case of each MLID covering all its CGTMSE covered cases. The compilation of information to be done at HO level of respective MLIs.

The above position certificate is true and correct as on 31st March2014 as per the books of accounts of the bank.

 

                                                                                                                            

Chartered Accountant

 

 

(Signature of the authorized person with seal)

 

Date:                                                                                                            

Place: