Statutory bank Audit program and audit checklist in excel

STOCK AUDIT REPORT FORMAT IN WORD

LETTER HEAD

                                                                        Date:-15/03/2015

STOCK AUDIT REPORT

M/s……………….                                                                                                                              ……………………………………

Name of the Directors
Conducted on Behalf ofBank Of Baroda
Name of the            Auditors
Date of Visit         (Unit/Plant wise)
Banking                     Arrangements
If Consortium,      Then Lead BankBank Of Baroda
Stock/Receivables Verified as of23/02/2015

Position of the account as on the date of inspection

Fund Based:-

Bank NameCC Account NoBalance as onSanction Limit
 23-Feb-2015
Bank of Baroda
Corporation Bank
Canara Bank
Syndicate Bank
Oriental Bank of Commerce
 Total265.15275
Bank of Baroda
Bank of Baroda
Bank of Baroda
Bank of Baroda
Bank of Baroda
Bank of Baroda
Total31.9237.6

Non Fund Based: –     NIL

1Brief Comments         on:                                  StockComposition Of stockAmount                                                   (Crores)Percentage
Raw Material
Finished Goods
Stores Spares / Other Inventory
Total
ACondition of       StocksRaw Material is % of the total stock held by the company. Raw material such as Solvent Mustard, Sunflower & R B Oil is properly stored in tanks situated at factory site. From here Oil is taken for filter process to remove unwanted Particles from oil and finally it is transferred to packing Department where it is packed in various packing at various brand name. All stock Raw Material, Finished products, and packing material is properly stored at factory site .  Overall  condition of stock was found satisfactory.
BAge of StocksNot older than 90 days
CValuation of      StocksRaw Material at Cost, Finished goods at net Realizable Whichever is lower.
DRejected stocks         if anyNil
  EInsurance CoverageAll Stocks, Building, Plant & Machinery and Stock etc are adequately insured.
2 (a)Receivables:                Age of ReceivablesBook Debts as on 23-02-2015 –
(b)Disputed receivable If anyNo disputed receivables were reported.
( c)Doubtful Debts
Reportedly there are no doubtful debts.
3CreditorsParty has submitted creditors List of Rs

Creditors are subjected to verification.

4Other areas covered (such as turnover in account, transaction with other Bank etc.)Satisfactory

Part II 1. Main Report Working Capital facilities (fund based and non fund based) enjoyed with Bank / Consortium of Banks and position of account with various Banks.

Bank NameCC Account NoBalance as onSanction Limit
 23-Feb-2015
Bank of Baroda
Corporation Bank
Canara Bank
Syndicate Bank
Oriental Bank of Commerce
 Total
Bank of Baroda
Total31.9237.6
2    (a)Security:                          Primary* First Parri Pasu charges on entire fixed assets of the company for term Loan.   * First Parri Pasu charges on entire Current Assets of the company and 15 % Margin on Bank Guarantee and Letter of Credit in the form of FDR.
(b)Collateral* Various Commercial & Residential Assets in the name of Smt.Ragini Khandelwal , Ashish Khandelwal,
 Swati Khandelwal, Shri Ghanshyam Khandelwal, Smt Richa Ravikar, M/s B.L. Agro Oils valuing at
 Rs  68.95  Crore
3System of maintenance of stock & stock recordAll Records are maintained computerized
(a)Physical verification & condition of stocks
Display of Bank’s name plateYes, Bank Name Plate was  properly displayed at site
(i)Basis of valuation: ScaleWe have carried out physical verification of stock lying at the factory site on 23.02.2015. All the stock is properly stored at factory site. We have taken stock as per stock register and tried to tally the stock with Physical stock register on sampling basis. As per our observation on sampling result and in a view, Stock declared by the borrower is acceptable.
(ii)Location and Upkeep of godowns Stock were lying in the factory area which is situated at various site situated in Parashkhera Industrial Area . Divided in Packaging Unit, Refinery Unit. The factory & storage tanks are well maintained
(iii)Location, storage &  upkeep of stockSeparate area are allocated for storage of raw material and finished goods. All the raw material stocks were lying in large tanks with reasonable protection thereof and finished goods is stored at factory site which is properly covered. Condition of storage is quite satisfactory.
(iv)Observation of VerificationRaw Material
 It consists of edible oils, Soya oil which is 75.69 % of total stock. Oil is directly stored in tanks situated at factory site through pipelines and stored properly. We have carried out sample physical verification and have not found any material discrepancy while comparing the same with the stock records on test check basis.
 Finished Goods
 Finished Goods of the company are packed oil such as peti pecked and tin in various brand name maintained by the company which is 17.79 % of total stock. Stock is properly packed and stored and ready to dispatch. No discrepancy was found on physical verification done on a Sample basis.
 Stores & Spares
 Reported on estimation basis. As discussed and application given to us by the management, in our opinion stock position at the factory was good. However the Stores & Spares Ratio have reduced from 13.35% to 6.52% in the current year.
(b)Verification of stocks sent/ received for job work/ in transitNot Applicable
(cMaintainance of Stock records (including excise records, if any)The company is maintaining computerized records for raw material and finished goods. These were up to date.
(d)Age and quality of stock including position of slow/non-movie stock in %All stock is well maintained and stored at factory site. Quality of stock is good and stock is ready to use/sale As company is its peak season so no non-moving/slow stock is lying at factory site.
4(a)Whether stock statements are submitted in prescribed  format and within stipulated time.Yes, Stock statements are submitted monthly in prescribed format and within stipulated time period
(b)Whether letters of credit opened during the relevent period and stock received on account of the same properly reflected in the borrower’s books and submitted to the branch.Yes
5Analysis of ReceivablesAs per sanction book debts upto 90 days are to be taken in consideration to arrive at drawing power
(a)Verification of Receivables age of receivables chances of recovery position regarding confirmation of balances from debtors, dispute on outstanding receivables if any:-Book Debts as on 23-02-2015                 Rs. 195.97 Book Debts upto 90 days                                  Rs. 195.97 Book Debts beyond 90 days                             Nil                                                   Doubtful Debts:                               No Doubtful debts were reported to us.
(b)Whether book debts statements are submitted party wise and age wiseYes,
c)Whether Quarterly statement of debtors submitted to the branch are duly verified by the Chartered AccountantsYes,  Borrower submitted quarterly statements of debtors but branch should properly follow the same.
(d)Discrepancies, if any found in reporting in verification of borrower’s records/ bills/ invoices/ raised and statement of book debts submitted to the bankNo such discrepancies found to us during test check
(e)Whether advance received from the are properly accounted.Yes
6Position of Creditors for purchase of raw material, stores and spares
(a)Whether outstanding amount of creditors is properly stated in the stock statement (including unpaid bills under LC for goods)Yes
(b)Any long outstanding creditors, if so give reasons There are no long outstanding creditors .
7Comment on treatment of inter-group/ inter divisional sales/ purchase and comments thereonYes
8Routing of banking transactions & other key observationsSatisfactory

Value of security available for drawing power as on:23/02/2015

(As assessed by the Auditors)

S.no.ParticularsAmount (Rs. in crores )
1Raw Material & Loose Oil
2Finished Goods
3Consumable Stores / Chemicals
Total Stock
3Less: Sundry Creditors
4Less: Margin 25%
Total Value (A)
5Debtors ( Less than 90 days)
6Less: Margin 25%
Total Value (B)
Calculated Drawing Power (A+B)
Sanctioned Limit
CC Account Outstanding
  • Value of security available for drawing power as on:23/02/2015

(As reported by the Company in Stock/Book Debt Statement)

S.no.ParticularsAmount (Rs. in crores )
1Raw Material & Loose Oil
2Finished Goods
3Consumable Stores / Chemicals
Total Stock
3Less: Sundry Creditors
4Less: Margin 25%
Total Value (A)
5Debtors ( Less than 90 days)
6Less: Margin 25%
Total Value (B)
Calculated Drawing Power (A+B)
Sanctioned Limit
CC Account Outstanding

Shortfall in drawing power, if any, as assessed by Auditors.NIL

Variance, if any, in calculations of drawing power as per Bank’s guidelines .

(Rs in Crores)

Value as assessed by the AuditorsValue as reported by the CompanyVariance, if anyReasons for variance
StocksNILN/A
ReceivablesNILN/A

For …………………

Chartered Accountants

.

           (Partner)

       FRN: – .

LDOC FOR BANK LOAN

LDOC 75 (75)

DRAFT OF BOARD RESOLUTION FOR

AVAILING & SECURING CREDIT FACILITIES

(Unstamped)

Minutes of the meeting of Board of Directors of________________ Ltd. held on______________________ (date) at______________________________ (Place)

The Board was informed that Bank of Baroda ________________ branch has agreed, at the request of the Company, to grant/ continue to grant the Company a cash credit / demand loan / overdraft / packing credit / Term Loan / BP / BD / LC / guarantee facilities as under :-

Facility                                     Limit

1.

2.

3.

INTER ALIA against the following securities and on the terms and conditions as contained in the Bank’s letter of sanction dt. ____________________ and after noting that it was :

(1) Resolved that sanction be and is hereby given to the Company to avail/continue to avail from Bank of Baroda, _________________ Branch the facilities upto the limits mentioned above inter alia against the following securities namely :

  1. Demand Promissory Note.
  1. Letter of Continuing security.
  1. Hypothecation/Pledge of goods / Machinery / Book Debts and other movables.
  1. Mortgage over the fixed assets / immovable properties of the Company.
  1. Personal guarantee of Shri ________________________

Shri________________________,Shri________________________

Shri_________________________,Shri________________________

  1. Letter of Instalment with Acceleration clause.
  1. BP/F.B.P. Undertaking.

8 . L. C. Application

  1. Counter Indemnity

and the Company do execute the relevant documents therefor and create a mortgage over the fixed / immovable properties of the Company situate at

_________________ in favour of Bank of Baroda to secure the due repayment of the outstandings in the various credit facilities.

  • Resolved further that the documents be executed by the Company and the common seal of the Company be affixed to the Demand Promissory Note / Letter of continuing security / letter of pledge / Instrument of Hypothecation of goods /movable Machinery / Book Debts / Instrument of Power of Attorney / modifying agreement in the presence of Mr. _________________________ and Mr.________________________ two of the directors of the Company who do sign the same in token thereof and the same be countersigned by Shri

________________________, of the Company and that other documents, Such as counter-indemnity letter, letter of Instalment, L.C. Application. B.P./FBP undertaking and Form No. 8/13 be executed by any one/two of the Directors for the time being of the Company.

  • Resolved further that the Company do create a mortgage / extension of mortgage by deposit of title deeds in favour of Bank of Baroda by depositing the title deeds, documents, evidences, writing with Bank of Baroda, by giving an oral consent to Bank of Baroda to continue to hold and retain the title deeds, documents, evidences, writings in respect of the Company’s immovable properties situate at

________________________ together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth (hereinafter collectively referred to as the said immovable properties) to secure the due repayment by the Company of outstanding due under the facilities indicated above together with interest, additional interest, further interest by way of liquidated damages, compound interest, commitment charges, premia on repayment or on redemption, guarantee commission/ L.C. commission , costs, charges, expenses and other moneys including any increase as a result of devaluation / Revaluation / Fluctuation in the rates of Exchange of Foreign currencies involved payable by the Company to Bank of Baroda under their Heads of Agreement / Loan Agreement / Letters of Sanction / Memo. of terms and conditions amended from time to time.

  • Resolved further that Shri _____________________________________ and Shri ____________________________, Directors of the Company, be and are hereby severally authorised to deliver to and deposit with Bank of Baroda the various title deeds, writings and evidences and to give oral consent as aforesaid for and on behalf of the Company with an intention to create a mortgage / extend the mortgage over the said immovable properties belonging to the Company.
  • Resolved further  that  Shri  __________________________  and  Shri

________________________ Directors of the Company be and are hereby severally authorised to state on behalf of the Company that the said title deeds so deposited are the only documents of title in the possession, power and control of the Company and that the Company has a clear and marketable title to the said immovable properties and that the security in favour of Bank of Baroda shall enure in respect of the Company’s said immovable properties both present and future and also to give a declaration on oath to the satisfaction of Bank of Baroda.

  • Resolved further that any one/two of the Directors of the Company be and are hereby authorised to execute Letters of Acknowledgment of Debt/Balance

Confirmation letters favouring Bank of Baroda for and on behalf of the Company acknowledging the liabilities of the Company to Bank of Baroda in respect of the various credit facilities availed by the Company from time to time as and when called upon to do so by Bank of Baroda.

(7 ) Resolved further that Shri _______________, Shri __________________ and Shri ________________________ be requested to create a mortgage by deposit of title deeds / make extension of mortgage in respect of their immovable properties situate at ___________________________ for securing the dues of the Company to Bank of Baroda in respect of the various credit facilities availed / to be availed by the Company from Bank of Baroda.

  • Resolved further that Shri _________________, Shri ________________ and Shri ________________________ be and are hereby requested to execute letters of guarantee and letters of Acknowledgment of Debt/Balance Confirmation letters in their respective personal capacity as guarantors favouring Bank of Baroda to secure the various credit facilities availed/ to be availed by the Company from Bank of Baroda and acknowledging their liability as guarantors to the said facilities.
  • Resolved further that Bank of Baroda be and is hereby authorised to debit the cash credit or any other account or open any separate account for the purpose of debiting the amounts of Bills purchased by the Bank which have not been paid on due dates by the drawee/s, amounts paid to the beneficiaries under guarantees issued by the Bank on behalf of the Company and amounts paid by the Bank under letters of credit facilities, and to apply and recover interest at applicable rates.
  • Resolved further that the cash credit accounts and other accounts with Bank of Baroda be operated by any one/two of the directors of the Company for and on behalf of the Company.
  • Resolved further that Bank of Baroda be and is hereby requested to honour all cheques, Bills of exchange, promissory notes drawn, endorsed, accepted or made by the Company and to act on the instructions given by any one/two of the directors relating to the above accounts whether the same be overdrawn or not and whether or not relating to the transactions of the Company.
  • Resolved further that the Company do file the requisite particulars of charge / modification of charge to be created by the Company with the Registrar of Companies.

13) Resolved further that copies of the foregoing resolutions certified to be true by Shri ________________________ Chairman / secretary of the Company be furnished to Bank of Baroda and they be requested to act thereon.

Certified to be true,

CHAIRMAN / SECRETARY

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COMPANY AUDITOR’S REPORT AS PER COMPANY ACT 2013

 

AUDITOR’S REPORT

To,

The Members

 

Kanpur

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of, which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company’s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 (the Act) read with the  General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

  • In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;
  • In the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and
  • In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

  1. As required by the Companies (Auditor’s Report) Order, 2003 (the Order) issued by the Central Government of India in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
  1. As required by Section 227(3) of the Act, we report that:
  1. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
  1. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
  1. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
  1. In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with Accounting Standards notified under the Act read with the  General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
  1. On the basis of the written representations received from the directors as on March 31, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 274(1) (g) of the Act.

 

Chartered Accountants

 

 

Partner

 

Place: Kanpur

   Date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNEXURE TO AUDITOR’S REPORT

 

The Annexure referred to in our report to the members of for the year Ended on March 31, 2015. We report that:

S.

No.

Particulars Auditors Remark
 (i) (a) whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets; Yes
(b) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account; Yes
(ii) (a) whether physical verification of inventory has been conducted at reasonable intervals by the management; Yes
(b)    are the procedures of physical verification of inventory followed by the management reasonable and adequate in relation to the size of the company and the nature of its business. If not, the inadequacies in such procedures should be reported; Yes
(c)     whether the company is maintaining proper records of inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of account; Yes company is maintaining proper records of inventory and there is no any material discrepancy noticed
(iii) (iii) whether the company has granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act. If so, No
(a)       whether receipt of the principal amount and interest arc also regular; and
(b)           if overdue amount is more than rupees one lakh, whether reasonable steps have been taken by the company for recovery of the principal and interest;
(iv) is there an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system. Yes
(v) in case the company has accepted deposits, whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under, where applicable, have been complied with? I I not, the nature of contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal, whether the same has been complied with or not? Not Applicable
(vi) where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, whether such accounts and records have been made and maintained; Not Applicable
(vii)  (a) is the company regular in depositing undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor. Yes
(b)    in case dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute). Appeal for Sales Tax for Rs…… is pending .
(c)     whether the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time. Not Applicable
(viii) whether in case of a company which has been registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year; No
(ix) whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders? If yes, the period and amount of default to be reported; No
(x) whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company; No
(xi) whether term loans were applied for the purpose for which the loans were obtained; No
(xii) whether any fraud on or by the company has been noticed or reported during the year; If yes, the nature and the amount involved is to be indicated. No Fraud During the year
 

 

 

 

Place- Kanpur

 

Date-

 

For                           .

Chartered Accountants

 

 

Partner

Membership number:

 


 

 

SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH, 2015.

 

(I)   SIGNIFICANT ACCOUNTING POLICIES:

 

  • Basis of preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles and comply with accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of Companies Act, 2013 to the extent applicable.

  • Fixed Assets

 

Fixed Assets are stated at cost, less accumulated depreciation. Depreciation on Fixed Assets is applied on Written down value basis over the useful life of the asset at the rates applicable as per Schedule II of the Companies Act, 2013. Company has recalculated the Depreciation since inception in the term of company Act 2013 and rate prescribed there under resulting into short depreciation of Rs. ……………./-  which has been accounted for in the General Reserve Account.

  • Current Assets

Current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business.

  • Inventory

 

Raw material has been valued at cost and as per FIFO basis. Work in progress has been valued at cost incurred in bringing the inventory to its stage of production. Finished goods have been valued at cost or net realizable value whichever is less.

  • Revenue Recognition

 

Sales are recognized on the basis of delivery of goods and passage of title. Interest income is      recognized on accrual basis and on time proportion basis.

  • Taxation

 

  • Provision for current tax is made on the taxable income in accordance with the rates applicable as per the Income Tax Act, 1961.
  • Deferred Tax liability appearing on the financial statements reflects the tax effect of timing difference arising due to difference in the rates of depreciation provided on the fixed assets as per the Schedule XIV of the Companies Act, 1956 and the Income Tax Act, 1961.

 

 

 

 

 

 

 

 

 

(II) NOTES ON ACCOUNTS:

 

  • Previous year figures are regrouped or rearranged wherever necessary to correspond with the current year figures.
  • Debit and credit balances are subject to confirmation of parties.

 

  • Related Party Disclosures.

 

As per Accounting standard  AS-18 on Related Party disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related party as defined in the Accounting standard are given below:

  • List of Related Parties

 

  • Key management personnel :
  • Companies controlled by Directors.
  • Summary of transactions

 

Sr. no. Particulars Current year 2015 Previous Year 2014
1.
2.
3.
4.
5.
6.
7.

 

  • Imports ( valued on cost, insurance and freight basis)

  

Particulars Year ended 31.3.2015 (Rs.) Year ended  31.3.2014

(Rs.)

Raw Material  

 

 

As per our report of even date attached.

For                                                                     For and on behalf of Board of Directors

Chartered Accountants                                           For

 

                                                                       

Partner                                                                    Managing Director            Director

Place: Date:

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LFAR FORMAT OF BANK FOR 2015-16

From,

 

………………..

.

…………………

LONG FORM AUDIT REPORT (LFAR)

           

 

We advise having submitted the LFAR to the respective authorities.

  1. The salient Points of the report have been discussed with the Branch Manager.

               

For.

                                                                                                Chartered Accountants

 

                                                                                                    

  1.    No

                                                                                                       F R N

Date:-

Place:-

The Deputy General Manager/The Asstt.General Manger/

Chief Manager/Manager,

   Branch

I confirm that the salient points have been discussed with me as mentioned above.

Date:               Deputy General Manager/

Assistant General Manager/

Chief Manager/Manager

CC:The Zonal Manager

The Head Office

 

 

 

 

                       LONG FORM AUDIT REPORT AS AT 31-03-2015

BRANCH.                    ADVANCES RS.

 

LONG FORM AUDIT REPORT (LFAR) TO MANAGEMENT IN CASE OF BANK BRANCHES

The following paragraphs list the matters which the branch auditors of banks are expected to comment upon in their Long Form Audit Reports.  The appendix to this questionnaire contains questions which are relevant to specialized branches dealing in foreign exchange transactions, recovery of non-performing assets, clearing house operations and branches having very large advances.  Auditors of foreign branches of Indian Banks should also furnish this report.  In the case of such branches, reference to the Reserve Bank of India should be construed to include the Reserve Bank of India, as well as the relevant regulating authority of the foreign country where the branch is located.

Where any of the comments made by the auditors in their LFAR is adverse, they should consider whether a qualification in their main report is necessary.  It should not, however, be assumed that every adverse comment in the LFAR would necessarily result in a qualification in the main report.  In deciding whether a qualification in the main report is necessary, the auditors should use their judgement in the facts and circumstances of each case.  Where the auditors have any reservation or adverse remarks with regard to any of the matters to be dealt with in their Long Form Audit Reports, they may give the reasons for the same.  Also, where relevant, instances of situations giving rise to their reservations or adverse remarks may also be given.

 

QUESTIONS COMMENTS
I. Assets

 

1. Cash

a)      Does the branch generally carry cash balances, which vary significantly from the limits fixed by the controlling authorities of the bank? Whether excess balances have been reported to the controlling authorities of the bank?

 

The branch cash retention limit is Rs. 5.00 Lacs. However it is crossed many times. It is suggested that cash retention limit is very low keeping in view volume of business so it should suitably be increased.

b)      Does the branch hold adequate insurance cover for cash-on-hand and cash-in-transit?

No Insurance policy for Cash in Hand or Transit is shown to us at branch.. We were informed that insurance is arranged at H.O
c)      Is cash maintained in effective joint custody of two or more officials, as per the instructions of the controlling authorities of the bank? Yes the cash is maintained in the effective joint custody of two officials as per the instructions of the controlling authority.
d)     Have the cash balances at the branch been checked at periodic intervals as per the procedure prescribed by the controlling authorities of the bank? Yes, the cash balance at the branch has been checked at  periodic intervals prescribed by the controlling authorities.

2.BALANCES WITH RESERVE BANK OF INDIA, STATE BANK OF INDIA AND OTHER BANKS

a)       Were balance confirmation certificates obtained in respect of outstanding balances as at the year-end and whether the aforesaid balances have been reconciled?  The nature and extent of differences should be reported. NOT APPLICABLE
b)      Your observations on the reconciliation statements may be reported in the following manner NOT APPLICABLE
(i)                 Cash transactions remaining unresponded(give details) NOT APPLICABLE
(ii)    Revenue  items requiring adjustment/write-off(give details) NOT APPLICABLE
(iii)Old outstanding balances remaining unexplained / unadjusted.  Give details for

-outstanding between six months and one year; and

-one year and above

NOT APPLICABLE
c)      In case any item deserves  special attention of the management, the same may be reported NOT APPLICABLE
3.MONEY AT CALL AND SHORT NOTICE
Has the branch kept money-at-call and short notice during the year?  If so, whether instructions / guidelines, if any, laid down by the controlling authorities of the bank have been complied with? NOT APPLICABLE AT BRANCH
4.INVESTMENTS

(A) For Branches in India

a)      Are there any investments held by branches on behalf of head office/other offices of the bank?  If so, whether these have been made available for physical verification or evidences have been produced with regard to the same where these are not in possession of the branch? No investment held by Branch on behalf of Head Office
b)      Whether any amounts received as income on such investments have been reported to the Head Office? Not applicable
c)      In respect of investments held by branches on behalf of head office/other offices of the bank whether any income is accrued/received and recognized as income of the branch contrary to the instructions of the controlling authorities of the bank? Not applicable
d)     Whether there are any matured or overdue investments which have not been encashed?  If so, give details Not applicable
e)      Whether the guidelines of the Reserve Bank of India regarding transactions in securities have been complied with? Not applicable
f)       Whether the guidelines of the Reserve Bank of India regarding valuation of investments have been complied with? Not applicable
(B) For Branches Outside India

 

 
a)      In respect of purchase and sale of investments, has the branch acted within its delegated authority, having regard to the instructions/guidelines in this behalf issued by the controlling authorities of the bank? Not applicable
b)      Have the investments held by the branch whether on its own account or on behalf of the Head Office/other branches been made available for physical verification? Where the investments are not in the possession of the branch, whether evidence with regard to their physical verification have been produced? Not applicable
c)      Is the mode of valuation of investments in accordance with the RBI guidelines or the norms prescribed by the relevant regulatory authority of the country in which the branch is located whichever are more stringent? Not applicable
d)     Whether there are any matured or overdue investments which have not been encashed? If so, give details Not applicable
5. ADVANCES
(The answers to the following questions may be based on the auditor’s examination of all large advances and a test check of other advances.  In respect of large advances, all cases of major adverse features, deficiencies, etc., Should be reported.  In respect of other advances, the auditor may comment upon the relevant aspects generally, along with instances of situations giving rise to his reservations or adverse remarks.  For this purpose large advances are those in respect of which the outstanding amount is in excess of 5% of the aggregate advance of the branch or Rs.2 crores, whichever is less).
a)      CREDIT APPRAISAL
In your opinion, has the branch generally complied with the procedures/instructions of the controlling authorities of the bank regarding loan applications, preparation of proposals for grant/renewal of advances, enhancement of limits, etc., Including adequate appraisal documentation in respect thereof. Yes, the branch has generally complied with the procedure/instruction of the controlling authority regarding loan applications, preparation of proposals for grant / renewal of advances, enhancement of limits, etc.
b)      SANCTIONING/DISBURSEMENT
i)                    In the cases examined by you, have you come across instances of credit facilities having been sanctioned beyond the delegated authority or limit fixed for the branch?Are such cases promptly reported to higher authorities? No, we have not come across any case in which the limit has been sanctioned beyond the delegated authority.
ii)                  In the cases examined by you, have you come across instances where advances have been disbursed without complying with the terms and conditions of the sanction?  If so, give details of such cases. No, we have not come across instances where advances have been disbursed without complying with the terms and conditions of the sanction.
c)      DOCUMENTATION
i)                    In the cases examined by you, have you come across instances of credit facilities released by the branch without execution of all the necessary documents?  If so, give details of such cases. No, we have not come across instances of credit facilities released by the  branch without execution of all the necessary documents.
ii)                  In respect of advances examined by you, have you come across instances of deficiencies in documentation, non-registration of charges, non-obtaining of guarantees, etc., If so, give details of such cases. Yes, we have examined the advances and in some cases we have found some discrepancies which are discussed separately in Annexure 1.
iii)                Whether advances against lien of deposits have been properly granted by marking a lien on the deposit in accordance with the guidelines of the controlling authorities of the bank Lien on the deposits is checked in computer in few cases and found marked.
d)   REVIEW/MONITORING/SUPERVISION
i)  Is the procedure laid down by the controlling authorities of the bank, for periodic review of advances including periodic balance confirmation / acknowledgement of debts, followed by the branch?  Provide analysis of the accounts over due for review/ renewal.

-between 6months and 1year, and

-over 1 year

Almost all the cases checked by us were reviewed however except the cases refered in annexure 1 the quality of Some review was not up to mark.
ii)   Are the stock/book debt statements and other periodic operational data and financial statements, etc., Received regularly from the borrowers and duly scrutinized?

Is suitable action taken on the basis of such scrutiny in appropriate cases?

Following deficiencies were noticed in stock statements.:  (Annexure 2 attached)

  1. In all the  cases we observed that creditors were not deducted in calculation of DP Few Parties are not regular in submitting stock statements.
  2. Some Stock statements are not checked and signed by the credit officer.
iii)    Whether there exists a system of obtaining reports on stock audits periodically?  If so, whether the branch has compiled with such system? There was no case in which stock Audit was carried out
iv)    Indicate the cases of advances to non-corporate entities with limits beyond Rs.10 lakhs where the branch has not obtained the accounts of borrowers, duly audited under the RBI guidelines with regard to compulsory audit or under any other statute. No Such Case Found
v)      Has the inspection or physical verification of securities charged to the bank been carried out by the branch as per the procedure laid down by the controlling authorities of the bank? Yes
vi)    In respect of advances examined by you, have you come across cases of deficiencies in value of securities and inspection thereof or any other adverse features such as frequent/unauthorized over drawing beyond limits, inadequate insurance coverage,etc.,? As per Annexure 3
vii)  In respect of leasing finance activities, has the branch complied with the guidelines issued by the controlling authorities of the bank relating to security creation, asset inspection, insurance, etc.,?  Has the branch complied with the accounting norms prescribed by the controlling authorities of the bank relating to such leasing activities? There was no such account.
viii)   Are credit card dues recovered promptly? Not Applicable
ix)          Has the branch identified and classified advances into standard/sub-standard/doubtful/loss assets in line with the norms prescribed by the Reserve Bank of India? Yes the branch has been identified and classified advances into standard / sub standard / doubtful / loss assets in line with the norms prescribed by the Reserve Bank of India.
x)            Where the auditor disagrees with branch classification of advances into standard/sub-standard/doubtful/loss assets, the details of such advances with reasons should be given.  Also indicate whether suitable changes have incorporated/suggested in the memorandum of changes. There is no such instance where we disagree with the branch on the classification of advances into standard / sub standard / doubtful / loss assets.
xi)          Have you come across cases where the relevant controlling authority of the bank has authorised legal action for recovery of advances or recalling of advances but no such action was taken by the branch?  If so, give details of such cases. We have not come across cases where the relevant Controlling Authority of the bank has authorized legal action for recovery of advances or recalling of advances but no such action was taken by the branch.
xii)        Have all non-performing advances been promptly reported to the relevant controlling authority of the bank?  Also state whether any rehabilitation programme in respect of such advances has been undertaken, and if so, the status of such programme. Yes, there is a proper system at the branch of reporting the non-performing advances been promptly reported to the relevant Controlling Authority of the Bank.
xiii)      Have appropriate claims for DICGC and export credit guarantee/insurance and subsidies, if any, been duly lodged and settled? The status of pending claims giving year wise break-up of number and amounts involved should be given in the following format. There is no claim under DICGC claim pending at the branch.
PARTICULARS Number            Amount(Rs.)
CLAIMS AS AT THE BEGINNING OF THE YEAR

(GIVE YEAR WISE DETAILS)

NIL                              NIL
FURTHER CLAIMS LODGED DURING THE YEAR

In all the cases of NPA accounts, the property mortgaged under the loan is properly valued by the valuer.

TOTAL A
AMOUNT REPRESENTING:
(a)        CLAIMS ACCEPTED/SETTLED (GIVE YEAR WISE DETAILS)
(b)        CLAIMS REJECTED  (GIVE YEAR WISE DETAILS)
TOTAL B
BALANCE AS AT THE YEAR END

(GIVE YEAR-WISE DETAILS)

A-B
xiv)      In respect of non-performing assets, has the branch obtained valuation reports from approved valuers for the fixed assets charged to the bank, once in three years, unless the circumstances warrant a shorter duration?
xv)        In the cases examined by you has the branch complied with the recovery policy prescribed by the controlling authorities of the bank with respect to compromises/settlement and write-off cases?  Details of the cases of compromises / settlement and write-off cases involving write-offs / waivers in excess of Rs.50.00 lakhs may be given Yes, the branch has made vigorous efforts in recovering the money in NPA accounts.
xvi)      List of major deficiencies in credit review, monitoring and supervision No major deficiency in credit review, monitoring and supervision observed and noticed by us.
e)      GUARANTEES AND LETTERS OF CREDIT
i)                    Details of outstanding amount of guarantees invoked and funded by the Branch at the end of the year may be obtained from the management and reported in the following format:
Guarantees invoked, paid but not adjusted:

Sr.N. Date of Invocation Name of the Party Name of Beneficiary Amount Date of Recovery Re-mark

NIL

(b) Guarantees invoked, but not Paid:

Sr.

No.

Date of Invocation Name of the Party Name of Beneficiary Amount Date of Recovery Remark

 

             

              NIL

 

(c)        Details of the outstanding amount of letters of credit and co-acceptances funded by the Branch at the end of the year may be obtained from the management and reported in the following format:

 

Sr.

No.

Date of Funding Name of the Party Nature(LC/

Co-acceptance,etc.)

Amount Date of Recovery Remark

 

             

NIL

6. OTHER ASSETS
a)          STATIONERY AND STAMPS
i)          Does the system of the bank ensure adequate internal control over issue and custody of stationeryany comprising security items (term deposit receipts, drafts, pay orders, cheque books, traveller’s cheques, gift cheques, etc)? Whether the system is being followed by the branch? Yes, bank ensure adequate internal control over issue and custody of stationery comprising of security items (Term Deposits Receipts, Drafts, Pay Orders, Cheque Books, Travellers’ cheques, Gift Cheques, etc.
ii)        Have you come across cases of missing/lost items of such stationery? We have not come across cases of missing / lost items of such stationery.
b)         SUSPENSE ACCOUNTS/ SUNDRY ASSETS
i)                      Does the system of the bank ensure expeditious clearance of items debited to suspense account? Details of old outstanding entries may be obtained from the branch and the reasons for delay in adjusting the entries may be ascertained.  Does your scrutiny of the accounts under various sub-heads reveal balances, which in your opinion are not recoverable and would require a provision/write-off?  If so,  give details in the following format: Yes, the bank ensures expeditious clearance of items debited to Suspense Account. There is No Outstanding in suspence account.
Year
Amount Rs.
Remarks
ii)                  Does your test check indicate any unusual items in these accounts?  If so, report their nature and the amounts involved. NIL
II. LIABILITIES
1. DEPOSITS
i)       Have the controlling authorities of the bank laid down any guidelines with respect to conduct and operations of inoperative accounts? In the cases examined by you, have you come across instances where the guidelines laid down in this regard have not been followed?  If yes, give details thereof. There is a proper system of identifying inoperative accounts and the guidelines laid down are properly complied with.
ii)     After the balance sheet date and till the date of audit, whether there have been any unusual large movements (whether increase or decrease) in the aggregate deposits held at the year-end?  If so, obtain the clarifications from the management and give your comments thereon. No such movements were detected.
iii)   Are there any overdue/ matured term deposits at the end of the year?  If so, amounts thereof should be indicated. Overdue/matured deposits are automatically renewed.
2. OTHER LIABILITIES –  BILLS PAYABLE, SUNDRY DEPOSITS,ETC.,
i)       The number of items and the aggregate amount of old outstanding items pending for three years or more may be obtained from the branch and reported under appropriate heads.  Does the scrutiny of the accounts under various sub-heads reveal old balances?  If so, give details in the following format: NIL
Year
No of items
Amount Rs.
Remarks
ii)     Does your test check indicate any unusual items or material withdrawals of debits in these accounts?  If so, report their nature and the amounts involved. NIL
3. CONTINGENT LIABILITIES
List of major items of the contingent liabilities (other than constituent’s liabilities such as guarantees, letters of credit, acceptances, endorsements, etc.) Not acknowledged by the branch? We have not come across any such case.
III. PROFIT AND LOSS ACCOUNT
1.      Whether the branch has a system to compute discrepancies in interest/discount and for timely adjustment thereof in accordance with the guidelines laid down in this regard by the controlling authorities of the bank?  Has the test checking of interest revealed excess/short credit of a material amount? If so, give details thereof. The branch has a system to compute discrepancies in interest / discount and for timely adjustment thereof in accordance with the guidelines laid down in this regard by the controlling authorities of the Bank . The test checking of interest has not revealed excess / short credit of a material amount
2.      Has the branch complied with the income recognition norms prescribed by RBI? Yes, the branch complied with the Income Recognition norms prescribed by RBI.
3.      Whether the branch has a system to compute discrepancies in interest on deposits and for timely adjustment of such discrepancies in accordance with the guidelines laid-down in this regard by the controlling authorities of the bank?  Has the test check of interest on deposits revealed any excess/short debit of material amount?  If so, give details thereof. Yes, the branch has a system to compute discrepancies in interest on deposits and for timely adjustment of such discrepancies in accordance with the guidelines.
4.      Does the bank have a system of estimating and providing interest accrued on overdue/matured term deposits? Yes, dealt with at Head office.
5.      Are there any divergent trends in major items of income and expenditure, which are not satisfactorily explained by the branch?  If so, the same may be reported upon.  For this purpose, an appropriate statement may be obtained from the branch management explaining the divergent trends in major items of income and expenditure.
There are no major divergent trends in major items of income and expenditure as compared to the figures of the last year.
IV.GENERAL
1.BOOKS AND RECORDS
a)      In case any books of accounts are maintained manually, does general scrutiny thereof indicates whether they have been properly maintained, with balances duly inked out and authenticated by the authorised signatories? NO
b)      In respect of Computerised branches:
–       Whether hard copies of accounts are printed regularly? There is no procedure in the branch to print the hard copies of the account.
–       Indicate the extent of computerization and the areas of operation covered. Entire branch is computerized.

–       Are the access and data security measures and other internal controls adequate? Yes.

–       Whether regular back-ups of accounts and off-site storage are maintained as per the guidelines of the controlling authorities of the bank? Since the branch us under CBS system, hence this requiremnet is not applicable.

–       Whether adequate contingency and disaster recovery plans are in place for loss/encryption of data? There is adquate recovery plan in case of

loss/ encryption of data

–       Do you have any suggestions for the improvement in the system with regard to Computerised operation of the branch?
NIL
2. RECONCILIATION OF CONTROL AND SUBSIDIARY RECORDS
Have the figures, as at the year end, in the control and subsidiary records been reconciled? If not, the last date upto which such figures have been reconciled should be given under the respective heads, preferably in the following format Yes all accounts are reconciled.
A/C NIL
Date NIL
General ledger balance (Rs.) NIL
Subsidiary balance (Rs.) NIL
Last date on which balanced NIL
3. INTER BRANCH ACCOUNTS
i)                    Does the branch forward on a daily basis to a designated cell/head office, a statement of debit/credit transactions in relation to other branches? YES
ii)                  Does a check of the balance in the head office account as shown in the said statement during and as at the year-end reveal that the same is in agreement with the head office account in the general ledger? There is a automatic reconciliation at the Head Office level and the branch is nothing to report to the HO.
iii)                Are there any outstanding debits in the head office account in respect of inter – branch transactions? NOT APPLICABLE
iv)                Does the branch expeditiously comply with respond to the communications from the designated cell/head office as regards unmatched transactions?  As at the year-end are there any unresponded / uncomplied queries or communications?  If so, give details At present there is no such procedure of informing unmatched transactions to the Head Office. This entire exercise is done at the HO level.
v)                  Have you come across items of double responses in the head office account?  If so, give details. NOT APPLICABLE
vi)                Are there any old/ large outstanding transactions/ entries at debts as at year end which remain unexplained in the accounts relatable to inter-branch adjustments?
NOT APPLICABLE
4. AUDITS/INSPECTIONS

 

i)                    Is the branch covered by concurrent audit or any other audit inspection during the year? Inspection Carried out on 06.02.2015
ii)                  In framing your audit report, have you considered the major adverse comments arising out of the latest reports of the previous auditors, concurrent auditors, stock auditors, or internal auditors or in the special audit report or in the inspection report of the Reserve Bank of India?  State the various adverse features persisting in the branch, though brought out in these audit /inspection reports. No Concurrent audit, Stock audit, Inspection, Internal Audit, RBI audit is carried out at branch.
5. FRAUDS

 

 
i)                    Furnish particulars of frauds discovered during the year under audit at the branch, together with your suggestions.  If any, to minimise the possibilities of their occurrence.

ii)                  Comments on status of compliance of Gosh committee recommendations.

No Case of Fraud
6. MISCELLANEOUS
i)                    Does the examination of the accounts indicate possible window dressing? There is no window dressing.
ii)                  Does the branch maintain records of all the fixed assets acquired and held by it irrespective of whether the values thereof depreciation thereon have been centralized?  Where documents of title in relation to branch or other branches are available at the branch, whether same have been verified Yes the branch has record of all the fixed asset.
iii)                Is the branch in compliance with Anti Money Laundering Laws Yes
iv)                Is the branch in compliance with Know Your Customer (KYC) Norms    Yes
v)                  Are there any other matter, which you as a branch auditor would like to bring to the notice of the management or the Central Statutory Auditors?

               

For M/s..

                                                                                                Chartered Accountants

 

                                                                                                    

      

Date:-

Place:-

 

 DOWNLOAD LFAR_-_REPORT_non-spl_BRCH (2)

 

3CA 3CD FOR BANK AUDIT

FORM NO. 3CA

[See Rule 6G (1)(a)]

 

Audit Report under Section 44AB of the Income Tax Act, 1961 in a case where the accounts of the business or profession of a person have been audited under any other law.

We report that the statutory audit of M/s BARODA UP GRAMIN BANK  ,     Branch was conducted by us M/s in pursuance of the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, and We annex hereto a copy of our audit report dated …………………… along with a copy each of

(a)        the audited profit & loss Account for the year beginning from April 01, 2014 to ending on March 31 2015;

(b)        the audited balance sheet as at March 31, 2015; and

(c)        documents declared by the relevant Act to be part of, or annexed to, the profit and loss account and balance sheet.

  1. The statement of particulars required to be furnished under Section 44AB is annexed herewith in Form No. 3CD.
  1. In our opinion and to the best of our information and according to the examination of books of account including other relevant documents and explanations given to us, the particulars given in the said Form No. 3CD are true and correct subject to the following observations/qualifications if any;
  1. Nil

FOR …………………………………………………

 Chartered Accountants

                Partner

Place:

FORM 3CD

 [See Rule 6G (2) (a)]

 

Statement of particulars required to be furnished under

Section 44AB of the Income Tax Act, 1961

PART A

1. Name of the assesse
2. Address
3. Permanent Account Number
4 Whether the assesse is liable to pay indirect tax like excise duty, service tax, sales tax, customs duty, etc. if yes, please furnish the registration number or any other identification number allotted for the same
5. Status Company
6. Previous year From April 01, 2014 to March 31, 2015.
7. Assessment Year 2014-15
8 Indicate the relevant clause of section 44AB under which the audit has been conducted. Section 44AB (A) of the Income Tax Act 1961.

 

PART B

9.(a) If firm or Association of Persons, indicate names of partners/members and their profit sharing ratios Not Applicable
(b) If there is any change in the partners or members  or in their profit sharing ratio since the last date of the preceding year, the particulars of such change Not Applicable
10(a) Nature of business or profession (if more than one business or profession is carried on during the previous year, nature of every business or profession) Banking
(b) If there is any change in the nature of business or profession, the particulars of such change No change
11(a) Whether books of account are prescribed u/S 44AA, if yes, list of books so prescribed Not Applicable
(b) Books of account maintained and address at which the books of account are kept.(in case of books of account are maintained in a computer system, mention the books of account generated by such computer system. If the books of account are not kept at one location, please furnish the addresses of locations along with the details of books of account maintained at each location) The books are maintained in CBS Software (Finacle), which generates relevant reports.

The books and other records maintained are:

1. Journal Register

2. General Ledgers

3. Vouchers.

4. Agreements

 (c) List of books of account and nature of relevant documents examined. As mentioned against 11(b) above
12. Whether the Profit & Loss Account includes any profits & gains assessable on presumptive basis, if yes, indicate the amount & the relevant Section (44AD, 44AE, 44AF, 44B, 44BB,44BBA 44BBB, Chapter XII-G, First Schedule or any other relevant section) Not Applicable
13(a) Method of accounting employed in the previous year. Mercantile.
(b) Whether there had been any change in the method of accounting employed vis-a-vis the method employed in the immediately preceding previous year. There is no change from the method of accounting employed in the immediately preceding previous year.
(c) If answer to (b) above is in the affirmative, give details of such change, and the effect thereof on the profit or loss. Not Applicable
(d) Details of deviation, if any in the method of accounting employed in the previous year from accounting standards prescribed under Section 145 and the effect thereof on the profit or loss. Not Applicable
14(a) Method of valuation of closing stock employed in the previous year Not Applicable to Branches
   (b) Details of deviation, if any, from the method of valuation prescribed under Section 145A, and the effect thereof on the profit or loss. Not Applicable
15 Give the following particulars of the capital asset converted into stock-in-trade:
(a) Description of capital asset Not Applicable
(b) Date of acquisition Not Applicable
(c) Cost of acquisition Not Applicable
(d) Amount at which the asset is converted into stock-in-trade Not Applicable
   16

(a)

(b)

(c).

(d)

(e).

Amounts not credited to the profit and loss account being –

The items falling within the scope of section 28;

the proforma credits, drawbacks, refunds of duty of customs or excise or service tax or refund of sales tax or value added tax where such credits, drawbacks or refunds are admitted as due by the authorities concerned;

escalation claims accepted during the previous year;

any other item of income

capital receipt, if any.

Normally Nil for Branches

Normally Nil for Branches

Normally Nil for Branches

Normally Nil for Branches

   17. Where any land or building or both is transferred during the previous year for a consideration less than value adopted or assessed or assessable by any authority of a State Government referred to in section 43CA or 50C, please furnish

Details of property

Consideration received/accrued

Value adopted/assessed or assessable

Not Applicable to Branches.
18.

(a)

(b)

(c).

(d)

i.

ii.

iii.

(e).

(f)

Particulars of depreciation allowable as per the Income-tax Act, 1961 in respect of each asset or block of assets, as the case may be, in the following form:-

Description of asset / block of assets.

Rate of depreciation.

Actual cost or written down value as the case may be.

Additions/deductions during the year with dates; in the case of any addition of an asset, date put to use, including adjustments on account of

Modified value added tax credit claimed and allowed under the Central Excise rules, 1944, in respect of assets acquired on or after 1st March 1994.

change in rate of exchange of currency, and subsidy or grant or reimbursement by whatever name called.

Depreciation allowable

Written down value at the end of the year.

Not Applicable to Branches. Data will be generated and compiled at Head Office for the Bank as a whole.

Branch is only required to report the details of Sales Proceeds in Annexure forming part of closing returns.

19

(a)

(b)

Amounts admissible under sections 32AC, 33AB, 33ABA, 35 (1)(i), 35(1)(ii), 35(1)(iia), 35(1)(iii), 35(1)(iv), 35 (2AA), 35 (2AB), 35ABB, 35AC, 35AD, 35CCA, 35CCB, 35CCC, 35CCD, 35D, 35DD, 35DDA, 35 E

debited to the Profit & Loss Account (showing the amount debited and deduction allowable under each section separately)

amount admissible as per the provision of the Income Tax Act 1961 and also fulfills the conditions, if any specified under the relevant provision of the Income Tax Act, 1961 or Income Tax Rules 1962 or any other guidelines, circular, etc. issued in this behalf.

Not Applicable to Branches.
20(a) Any sum paid to an employee as bonus or commission for services rendered, where such sum was otherwise payable to him as profits or dividends [Section 36 (1)(ii)] Nil
(b) Any sum received from employees towards contributions to any Provident Fund or Superannuation Fund or any other fund mentioned in Section 2(24)(x); and due date for payment and the actual date of payment to the concerned authorities U/S 36(1)(va) Not Applicable to Branches. Data will be generated and compiled at Head Office for the Bank as a whole.
 21(a)

(b)

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

(c)

(d)

A

B

(e)

(f)

(g)

(h)

(i)

Amounts debited to the Profit & Loss Account being in the nature of capital, personal, Advertisement expenditure etc.

amounts inadmissible U/S 40(a);

as payment to non-resident referred to in sub clause (i)

as payment referred to in sub clause (ia)

 

Under sub-clause (ic).

Under sub-clause (iia)

Under sub-clause (iib)

Under sub-clause (iii)

Under sub-clause (iv)

Under sub-clause (v)

Amount debited to profit and loss account being interest, salary, bonus, commission or remuneration inadmissible under section 40(b)/40(ba) and computation thereof.

Disallowance/deemed income under section 40A(3)

On the basis of examination of books of account and other relevant documents/evidence whether the expenditure covered under section 40A(3) read with rule 6DD were made by account payee cheque drawn on a bank or account payee bank draft, if not please furnish the details.

On the basis of examination of books of account and other relevant documents/evidence whether the expenditure covered under section 40A(3) read with rule 6DD were made by account payee cheque drawn on a bank or account payee bank draft, if not please furnish the details.

Provision for payment of gratuity not allowable U/S 40A(7);

any sum paid by the assessee as an employer not allowable U/S 40A(9);

particulars of any liability of a contingent nature;

amount of deduction inadmissible in terms of section 14A in respect of the expenditure incurred in relation to income which does not form part of the total income.

Amount inadmissible under the proviso to section 36(1)(iii)

As per Annexure 1

As per Annexure 2

As per Annexure 3

Not Applicable to Branches

Not Applicable to Branches

Not Applicable to Branches

Not Applicable to Branches

Not Applicable to Branches

Not Applicable to Branches

Not Applicable

As per Annexure 4

As per Annexure 4

Not Applicable to Branches

Not Applicable to Branches

Normally, it should be Nil for Branches.

Not Applicable to Branches

Not Applicable to Branches

22 Amount of Interest inadmissible under Section 23 of the Micro, Small and Medium Enterprises Development Act, 2006 NIL
23 Particulars of payments made to persons specified in Section 40A(2)(b). As per Annexure 5
24 Amounts deemed to be profits and gains U/S 32AC, 33AB or 33ABA or 33 AC. Not Applicable
25 Any amount of profit chargeable to tax U/S 41 and computation thereof. Normally it should be ‘Nil’ for Branches
26  In respect of any sum referred to in clause (a), (b), (c), (d), (e) or (f) of Section 43B, the liability for which

(A) pre-existed on the first day of the previous year but was not allowed in the assessment of any preceding previous year and was

(a)  paid during the previous year;

(b) not paid during the previous year;

(B) was incurred in the previous year and was

(a) paid on or before the due date for furnishing the Return of Income of the previous year u/S 139(1)

(b)not paid on or before the aforesaid date;

(State whether sales tax, customs duty, excise duty or any other indirect tax, levy, cess impost etc. is passed through the Profit & Loss Account).

As per Annexure 6

As per Annexure 7

27 (a)

(b)

Amount of Central Value Added Tax credit availed of or utilised during the previous year and the treatment in the P & L A/c. and treatment of outstanding Central Value Added Tax credits in the accounts.

Particulars of income or expenditure of prior period credited or debited to the P & L A/C.

As per Annexure 8

As per Annexure 9

28 Whether during the previous year the assesse has received any property, being share of a company not being a company in which the public are substantially interested, without consideration or for inadequate consideration as referred to in section 56(2)(viia), if yes, please furnish the details of the same. Not Applicable
29 Whether during the previous year the assesse has received any consideration for issue of shares which exceeds the fair market value of the shares as referred to in section 56(2)(viib), if yes, please furnish the details of the same. Not Applicable
30 Details of any amount borrowed on hundi or any amount due thereon (including interest on the amount borrowed) repaid, otherwise than through an account payee cheque. (Section 69D) Not Applicable
31(a)

(b)

(c)

** Particulars of each loan or deposit in an amount exceeding the limit specified in Section 269SS taken or accepted during the previous year.

(i) name, address and Permanent Account Number (if available with the assessee) of the lendor or depositor;

(ii) amount of loan or deposit taken or accepted;

(iii)  whether the loan or deposit was squared up during the previous year;

(iv) maximum amount outstanding in the account at any time during the previous year;

(v)  whether the loan or deposit was taken or accepted otherwise than by account payee cheque or an account payee bank draft;

** These particulars need not be given in the case of a Government company, a banking company or a corporation established by a Central, State or Provincial Act.

Particulars of each repayment of loan or deposit, in an amount exceeding the limit specified in Section 269T made during the previous year

(i) name, address and Permanent Account Number (if available with the assessee) of the payee

(ii) amount of the repayment

(iii) maximum amount outstanding in the account at any time during the previous year;

(iv)  whether the repayment was made otherwise than by account payee cheque or an account payee bank draft;

Whether the taking or accepting loan or deposit or repayment of the same were made by account payee cheque drawn on a bank or an account payee bank draft based on the examination of books of account and other relevant records.

The particulars (i) to (iv) at (b) and the certificate at (c) above need not be given in the case of a repayment of any loan or deposit taken or accepted from Government, Government company, banking company or a corporation established by a Central, State or Provincial Act

Not Applicable

The management has certified that as per the policy of the policy of bank deposits exceeding the limits specified under section 269T of the Income Tax Act 1961 are not paid in cash. Such repayments are made either by account payee cheque or draft in favor of the depositors or are credited to their account held with the concerned branch.

As per Annexure 10

32(a) Details of brought forward loss or depreciation allowance, in the following manner to the extent available: Not Applicable to Branches
Sr.

No.

Assessment

Year

Nature of loss / allowance (in rupees) Amount as returned (in rupees) Amounts as assessed give reference to relevant order) Remarks
(b) Whether a change in shareholding of the company has taken place in the previous year due to which the losses incurred prior to the previous year cannot be allowed to be carried forward in terms of section 79. Not Applicable
(c) Whether the assesse has incurred any speculation loss referred to in section 73 during the previous year. If yes, please furnish details of the same. Not Applicable to Branches
(d) Whether the assesse has incurred any loss referred to in section 73A in respect of any specified business during the previous year. If yes, please furnish details of the same. Not Applicable
(e) In case of a company, please state that whether the Company is deemed to be carrying on a speculation business as referred to in section 73, if yes, please furnish details of speculation loss if any incurred during the previous year. Not Applicable
33 Section wise details of deductions if any, admissible under Chapter VIA or chapter III (Section 10A, Section 10AA). As per Annexure 11.
34(a) Whether the assesse is required to deduct or collect tax as per the provisions of Chapter XVII-B or chapter XVII-BB, if yes, pl. furnish As per Annexure 12
(b) Whether the assesse has furnished the statement of tax deducted or collected within the prescribed time, if not, pl. furnish the details. As per Annexure 13
(c) Whether the assesse is liable to pay the interest under section 201(1A) or section 206C(7), if yes, please furnish As per Annexure 14
 35(a) In the case of a trading concern, give quantitative details of principal items of goods traded.

i.                    Opening Stock

ii.                  Purchases during the previous year

iii.                Sales during the previous year

iv.                Closing stock;

v.                  Shortage / excess, if any

Not Applicable
(b) In the cases of a manufacturing concern, give quantitative details of the principal items of raw materials, finished products and by-products:

A  Raw Materials:

i.    Opening stock

ii. Purchases during the previous year;

iii. Consumption during the previous year;

iv.   sales during the previous year;

v.  closing stock;

vi.* yield of finished products;

vii.* percentage of yield

viii.* shortage / excess, if any.

B. Finished Products / By-products:

i.  Opening stock;

ii. Purchase during the previous year;

iii. quantity manufactured during the previous year

iv. sales during the previous year

v. closing stock

vi. shortage / excess, if any.

* Information may be given to the extent available

Not Applicable
 36 In the case of a domestic company, details of tax on distributed profits u/S 115O in the following form:

(a)  total amount of distributed profits;

(b) amount of reduction as referred to in section 115-O(1A)(i).

(c) amount of reduction as referred to in section 115-O(1A)(ii)

(d) total tax paid thereon;

(e) dates of payment with amounts.

Not Applicable to Branches
37 Whether any cost audit was carried out, if yes, give the details, if any, of disqualification or disagreement on any matter/item/value/quantity as may be reported/identified by the cost auditor. Not Applicable to Branches
38 Whether any audit was conducted under the Central Excise Act, 1944, if yes, give the details, if any, of disqualification or disagreement on any matter/item/value/quantity as may be reported/identified by the auditor.
39 Whether any audit was conducted under section 72A of the Finance Act 1994 in relation to valuation of taxable services, if yes, give the details, if any, of disqualification or disagreement on any matter/item/value/quantity as may be reported/identified by the auditor.
40

1.

2.

3.

4.

5.

Details regarding Turnover, Gross Profit, etc. for the previous year and preceding previous year.

Total turnover of the assessee

Gross Profit / Turnover

Net Profit / Turnover

Stock-in-trade / Turnover

Material consumed / Finished goods produced

Not Applicable to Branches
41 Please furnish the details of demand raised or refund issued during the previous year under any tax laws other than Income Tax Act 1961 and Wealth Tax Act, 1957 along with the details of relevant proceedings. As per Annexure 15

FOR ……………………………………………

 Chartered Accountants

                Partner

.

Place: .

Branch Manager/Zonal/CENTRE Manager

Place:

Date:.

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CARO REPORT AS PER COMPANY ACT 2013

_____Limited

Annexure to the Auditors’ Report

The Annexure referred to in our report to the members of ______________the Company’) for the year Ended on _________. We report that:

S.

No.

Particulars Auditors Remark
 (i) (a) whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account;
(ii) (a) whether physical verification of inventory has been conducted at reasonable intervals by the management;
(b)    are the procedures of physical verification of inventory followed by the management reasonable and adequate in relation to the size of the company and the nature of its business. If not, the inadequacies in such procedures should be reported;
(c)     whether the company is maintaining proper records of inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of account;
(iii) (iii) whether the company has granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act. If so,
(a)       whether receipt of the principal amount and interest arc also regular; and
(b)           if overdue amount is more than rupees one lakh, whether reasonable steps have been taken by the company for recovery of the principal and interest;
(iv) is there an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system.
(v) in case the company has accepted deposits, whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under, where applicable, have been complied with? I I not, the nature of contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal, whether the same has been complied with or not?
(vi) where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, whether such accounts and records have been made and maintained;
(vii)  (a) is the company regular in depositing undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor.
(b)    in case dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute).
(c)     whether the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time.
(viii) whether in case of a company which has been registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year;
(ix) whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders? If yes, the period and amount of default to be reported;
(x) whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company;
(xi) whether term loans were applied for the purpose for which the loans were obtained;
(xii) whether any fraud on or by the company has been noticed or reported during the year; If yes, the nature and the amount involved is to be indicated.

Place- __________

Date- __________________

for  _______________

Chartered Accountants

Firm’s registration number: ___________

___________________

Partner

Membership number: _________

DOWNLOAD Caro 2015 Report

BRANCH AUDIT REPORT OF BANK

REPORT OF THE BRANCH AUDITORS TO THE STATUTORY CENTRAL AUDITORS

 

To

Statutory Central Auditors

 

Report on Financial Statements

 

  1. We have audited the accompanying financial statements of Bank of India …………. Branch as at 31st   March, 2015which comprises Balance sheet as at 31 March, 2015, and statement of profit & loss account for the year then ended, and other explanatory information.

Management’s Responsibility for the Financial Statements

  1. Management of the Branch is responsible for the preparation of these financial statements that give true and fair view of the financial position and financial performance of the branch in accordance with the Banking regulation Act, complying with RBI guidelines from time to time. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

  1. Our responsibility is to express an opinion on these financial statements based on our Audit. We conducted our audit in accordance with the Standards of Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
  1. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The Procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Branch’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the management of the Branch, as well as evaluating the overall presentation of the financial statements of the Branch.
  1. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

 

Opinion

  1. In our opinion, and to the best of our information and according to the explanations given to us, read with the memorandum of changes mentioned in paragraph XI below, the financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:
  • In the case of the Balance Sheet, of the state of affairs of the branch as at 31st March, 2015 and
  • In the case of Profit & Loss Account,  of the profit/loss for the year ended on that date;

Report on other legal and regulatory Requirements

  1. The Balance-Sheet and the Profit & Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;
  1. we report that:
  1. We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit and have found them to be satisfactory.
  1. The transactions of the Branch which have come to my/our notice have been within the powers of the Bank.
  1. We further report that
  1. The balance sheet & Profit & Loss account dealt with by this report are in agreement with the books of account and returns;
  1. In our opinion proper books of accounts as required by law have been kept by the branch so far as appears from our examination of those books;

Other Matters

 

  1. No adjustments/provisions have been made in the accounts of the Branch in respect of matters usually dealt with at Central Office, including in respect of:

(a) Bonus, ex-gratia, and other similar expenditure and allowances to branch employees;

(b) Terminal permissible benefits to eligible employees on their retirement (including additional retirement benefits), Gratuity, Pension, liability for leave encashment benefits and other benefits covered in terms of ‘AS 15 –Employee Benefits’ issued by the Institute of Chartered Accountants of India;

(c) Arrears of salary/wages/allowances, if any, payable to staff;

(d) Staff welfare contractual obligations;

(e) Old unreconciled/unlinked entries at debit under various heads comprising Inter branch/office Adjustments;

(f) Interest on overdue term deposits;

(g) Depreciation on fixed assets;

(h) Auditors’ fees and expenses;

(i) Taxation (Current Tax and Deferred Tax).

  1. The following is a summary of Memorandum of Changes submitted by us to the branch management:

.

Memorandum of  Changes(summary)
No Increase Decrease
a.       In respect of income  
b.      Inrespect of Expenditure
c.       In respect of assets
d.      In respect of liabilities
e.       In respect of Gross NPAs
f.       In respect of provision on NPAs
g.      In respect of classification of Advances
h.      In respect of Risk Weighted Assets
i.        Other items (if any)

For M/s..

                                                                                                Chartered Accountants

 

                                                                                                    

Place:-                                                                                            M. No .

Date:-                                                                                             F R N

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