Tax season is when most CAs get their clearest look at an SME client’s finances. But by then, the gaps have already compounded. The mismatched GST filings, the months where outflows quietly exceeded inflows, the informal loans disguised as irregular credits, the salary that shows up three days before a suspiciously large withdrawal. None of […]
A Credit Appraisal Memorandum is the backbone of any lending decision. It brings together bank statement analysis, GST returns, credit bureau data, and financial ratios into a single document that tells the lender whether a borrower is creditworthy or not. The problem? Building one manually is slow, error-prone, and not a great use of a […]
The Income Tax department has a new tool in its enforcement playbook, and it’s one that finance professionals should pay close attention to. India’s I-T department is increasingly tapping into GST filings to widen the country’s direct tax base. The intent is straightforward: cross-check what businesses declare to the GST Network against what they report […]
If you’ve been a Direct Selling Agent for any length of time, you know the frustration: you work hard to source a loan application, put it through to the lender, and it comes back rejected. Your ratings take a hit. The borrower is disappointed. And you’ve spent hours on something that didn’t move forward. More […]
An MSME applies for a ₹25 lakh working capital loan. GSTR shows ₹60 lakh annual turnover. Bank statements show a healthy cash flow. The credit officer approves. Six months later, the loan defaults. What went wrong? Most lenders verify GSTR data and bank statements as separate documents. GSTR confirms business legitimacy and turnover. Bank statements […]
DSAs and NBFCs approve thousands of loan applications monthly, but manual credit analysis misses sophisticated fraud patterns. A borrower shows a ₹80,000 monthly salary, maintains an average balance of ₹ 1.2 lakh, yet defaults within six months. The income was real. The bank statements were genuine. But the cash flow pattern revealed something the manual […]
A borrower submits bank statements showing ₹85,000 monthly income. Credit approved. Three months later, the EMI bounces. Investigation reveals digital alteration—the original showed ₹42,000 with irregular deposits. The fonts didn’t match. The PDF metadata showed recent edits. But nobody checked. This scenario plays out more often than most lenders realise. When processing 50+ applications daily, […]
When a company’s Mumbai office transfers ₹50 lakh to its Bengaluru branch for operational expenses, that’s standard business practice. When the same ₹50 lakh cycles through three related entities and returns within 48 hours whilst appearing as “sales revenue” on loan applications, that’s fraud. According to PwC’s Global Economic Crime Survey, 59% of Indian organisations […]
When a lending officer reviews a single bank statement showing consistent salary credits and manageable expenses, the account appears creditworthy. When a forensic auditor examines an isolated statement, the transactions seem ordinary and when a chartered accountant analyses one account for tax compliance, the categorisation looks straightforward. But what these professionals are missing is the […]
Financial criminals rarely announce their intentions. They exploit gaps in monitoring systems, and one of their preferred entry points is dormant bank accounts that suddenly spring to life after years of inactivity. As of the latest available data, unclaimed deposits in Indian banks stood at ₹78,213 crore, reflecting persistent challenges in dormant account monitoring. When […]
