Auditor’s Report in case of Bank Borrowers :
The RBI vide its circular no. DBOD.No. CAS(COD)BC.146/27-77 dated December 22, 1977 had prescribed that all borrowers having credit limit of Rs.10 lakh and above from the banking system should get their annual accounts audited by chartered accountants. Further the RBI vide its circular DBOD.No.BP.BC.33/21.04.018/2002-03 dated October 21, 2002 has authorised the Board of Directors of banks to fix a suitable cut off limit with reference to the borrowing entity’s overall exposure on the banking system, over which audit of accounts of borrower by chartered accountants would be mandatory.