Para 11.12 — MSO (A&E)
Original Rule Text
11.12 The ledger balance should be verified against the outstanding principal of the loan shown in the Subsidiary Loan Registers. It should also be seen whether the balances due at the end of the year (or if, in the case of any loan, another periodical date is fixed for making up the account, then at the last previous date of making up the account) have been communicated to, and not been challenged by the debtors. This verification may be separately reported to the Government vide paragraph 6.13.
What This Means
For government loans, the AG must verify that the ledger balance matches the outstanding principal shown in the subsidiary loan registers. The AG must also confirm that year-end (or other periodic) balances have been communicated to debtors and have not been disputed. This verification may be separately reported to the government as per the prescribed procedures.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Ledger balance must match outstanding principal in subsidiary loan registers
- 2Year-end balances must be communicated to debtors for confirmation
- 3If a different periodic date is used for a specific loan, that date applies
- 4Unchallenged balances are considered accepted
- 5Verification results may be reported separately to government
Practical Example
The AG maintains a subsidiary register showing the State Government loaned Rs. 500 crore to a municipal corporation with Rs. 350 crore still outstanding. The AG first checks that the main ledger also shows Rs. 350 crore. Then, the AG sends a confirmation letter to the municipal corporation stating the outstanding amount. If the corporation does not challenge the balance within the prescribed period, it is deemed accepted. The verification is included in the AG's report per paragraph 6.13.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the subsidiary loan register?▼
What happens if a debtor challenges the balance?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.