You are on page 1of 11

Punjab National Bank

REVENUE AUDIT REPORT


FOR THE QUARER/YEAR ENDED___________
BO _______________ DISTINCTIVE NO _______ CIRCLE OFFICE _________

CATEGORY OF BRANCH____________ DATE OF SUBMISSION____________

Instructions to the Auditors/CA firms

1. Auditor must discuss undercharges/audit observations with incumbent and ensure


that only applicable undercharges are reported.
2. Recovery certificate signed by the Incumbent Incharge and counter signed by the
Auditor will be taken as final confirmation as to the correctness of detection. Thus
all such undercharges shall be subject matter of recovery only and no subsequent
correspondence shall be entertained on this score.
3. In case any amount of undercharges remains unrecovered due to any reason, the
detailed reasons/comments may be furnished on Annexure A. Even, if all the
undercharges are recovered during the course of audit, the Incumbent Incharge
and Auditor must sign Annexure A.
4. Auditor should compile the report complete in all respect. In case of any column
does not warrant any information word Not Applicable or Nil should be invariably
mentioned.

248

Punjab National Bank


REVENUE AUDIT REPORT
FOR THE QUARER/YEAR ENDED___________
BO _______________ DISTINCTIVE NO _______ CIRCLE OFFICE _________
1. BUSINESS FIGURES

(Amt. in lacs)
At the end of previous
quarter/year

No.
Agg. Deposits
DRI Deposits
Total Deposits
Total Advances
- Fund Based
- Non Fund Based
NPAs
Cost of Deposits
Return on Advances

BOBO-

At the end of present


quarter/year

Amt.

COCODuring previous
quarter/year

No.

BOBO-

Amt.

COCODuring present
quarter/year

Income HO intt
Interest income
Income on other heads
Expenditure Interest
Expenditure - others
Profit / Loss
2.

POSITION OF UNDERCHARGES DETECTED DURING THE REVIEW PERIOD

(Amt. in Rs.)
Total
Undercharges
detected

Recovered
on spot

Outstanding

Out of Undercharges detected relating to


previous quarter/year
Detected
Recovered
Outstanding

3. UNDERCHARGES IN NON PERFORMING ASSETS:


(Amt. in Rs.)
Detected

Recorded in Ledger

249

4. INTEREST ON ADVANCES
It is certified that correct Interest Table Codes are fed in system in all eligible loan accounts
and there is no redundant Interest Table Code. Debit/Credit Interest preferential fields are
correctly fed in. It is also certified that all the revisions in the interest rates have been
correctly applied in all the relevant loan accounts with effect from the effective date of each
revision. Deviations are as under:
________________________________________________________________________

__________________________________________________________________
__________________________________________________________________
5. PENAL INTEREST
It is certified that penal interest has been recovered for non-submission of stock/QMS
statement and other financial data, default in repayment of loan, non-payment of bills, noncompliance of terms & conditions etc. except in cases where undercharges have been
reported in the report. Deviations are as under:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
6. SERVICE CHARGES
It is certified that service charges (Credit & Non-credit Segment) wherever applicable have
been recovered. Deviations are as under:
________________________________________________________________________

__________________________________________________________________
________________________________________________________________
7. INTEREST SUBSIDY/SUBVENTION / CENVAT CLAIM
It is certified that interest subsidy/subvention/ CENVAT claim has been timely & correctly
claimed/received in all eligible accounts. Deviations are as under:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
8. COMMISSION ON GOVERNMENT BUSINESS / THIRD PARTY PRODUCTS:
It is certified that commission on Government Business / third party products from Link
Branch/focal point branch/RBI has been timely and correctly claimed and got obtained.
Deviations are as under:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

9. DAY TO DAY EXPENSES


It is certified that day-to-day expenditure incurred by the branch including expenditure
incurred on telephone provided at residence of officials is within the prescribed limits / not
within the prescribed limit but approval of the authorities obtained. Deviations are as
under:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

250

10. OVERCHARGES
It is certified that overcharges on account of excess interest /service charges, charged
have been refunded and short interest paid on deposits have been credited in Customers
A/c. Details are as under:
(Amt. in Rs.)
Particulars

As per
branch

As per
Auditor

Refund
Amount

Reasons for
mistake

Short interest paid on deposits


Excess interest charged on adv.
Excess Service Charges levied
Total

11. Outstanding Irregularities observed on running R-Audit Menu


It is certified that various R-Audit Menu were run during the period as prescribed.
Irregularities observed have been got removed. Necessary corrective steps including
correction in system have been taken to avoid recurrence. Details of outstanding
irregularities are as under:
(It may be noted that R-Audit may facilitate Revenue Audit but in no case, be treated as
complete Revenue Audit.)
________________________________________________________________________
________________________________________________________________________
Signature of Auditor

RECOVERY CERTIFICATE
(To be signed by Incumbent Incharge)

Branch _________

Distt.No.____

Circle________Category_______

We Certify as under:
Total undercharges detected
Recovery during the Audit
To be recovered

i)
ii)

Rs_______________
Rs_______________
Rs_______________

In addition to the above, Rs_______were detected in NPA accounts out of which


undercharges of Rs _____________ were recorded in the ledger. (Please note no interest
is to be reckoned after the date of filing of Suit)
The report has been discussed with the auditors.

It is confirmed that all observations have been reported in the daily observation report and discussed
with the branch officials and undercharges under each observation head have been debited to the
parties. Reason for non-recovery, if any; has been furnished in the report.

Date

Officer
Branch Seal
Incumbent Incharge
Auditor
(with PA No)
(with PA No)
Note: Incumbents are advised to go through instruction No.2 & 3 on page 1 before signing the
Recovery Certificate.
Enclosures: Annexure A, B, C, D & E (duly compiled)

251

ANNEXURE-A
SUMMARY OF UNDERCHARGES
Branch___________________ Circle Office ___________ Audit Quarter/Year_________
No. of
events

Detected

A. INTEREST INCOME
Interest on :
i)
Cash Credit
ii)
Overdraft
iii)
Term Loan
iv)
Demand Loan
v)
ODD
vi)
Export Loan/Packing credit /
FOBP/FOUBP
vii)
FIBNLC/FOBNLC/FOUBNLC
viii) Any other head

Total (A)
B. NON INTEREST INCOME
i)
Issuance of Solvency
Certificate/ Co-acceptance
of Bills
ii)
Processing/Upfront Fee
iii)
TL Review Charges
iv)
Inspection charges
v)
Charges for change in
T&C/Handling Charges
vi)
Documentation charges
vii)
Charges on ILCs/ Commission
of BGs
viii)
Charges relating to
Consortium/Multiple
Banking Finance
ix)
Limit Allocation Charges
x)
Issuance of Balance/ Interest
/No Dues certificate
xi)
Diligence Report charge
xii)
Pre-payment/ Commitment
charges
xiii)
Facility Cancellation
xiv) Different Card Issuance
charges (KCC, GCC etc.)
xv)
Intt. Subsidy/ Subvention
xvi) FEX Service Charges
xvii) CIBIL charges
xviii) Cash handling charges

252

No. of
events

Recovered

No. of
events

Outstanding

No. of
events

Detected

B. NON INTEREST INCOME


xix)
Replacement of ATM, Old
record Enquiry, Attestation of
signatures, revalidation of
drafts, change in nomination,
reconstitution of A/C, change
of authorized signatory,
Issuance of duplicate pass
book/ statement of account
xx)
Hundian, Comm. on bills
(Inland/Foreign)
xxi)
DD/Cheque Issuance, DD
cancellation, Stop Payment,
Cheque/ Bill returning
charges
xxii) RTGS/NEFT/ECS charges
xxiii) ISO charges
xxiv) Depository charges
xxv) Minimum Balance/QAB/
Incidental Charges (CA,SF,
Inoperative)
xxvi) SDV/Safe Custody charges
xxvii) Commission on Govt.
Business / Third party
products
xxviii) Out of pocket expenses
xxix) Issuance of Certificates /
attestation in respect of export
transactions
xxx) Inward / outward remittance
credited/debited to/of EEFC
xxxi) Application to RBI for
extension of time for
realization of export proceeds
beyond prescribed period
xxxii) Follow up of Bill of entry
xxxiii) Approval for Write-off of Export
Bill
xxxiv) Processing charges for any
other application to RBI
xxxv) Foreign Bank Charges
(For LC advising where
charges are to be recovered
from foreign bank)
xxxvi) Attestation Charges for
application of Importer /
Exporter Code
xxxvii) Issuance of GR Waiver
Certificate
xxxviii) For Bills: Foreign exchange
transactions where no
exchange commission if
earned by the bank
xxxix) Central Registry Charges
xl)
Other charges
Total (B)

253

No. of
events

Recovered

No. of
events

Outstanding

No. of
events

Detected

No. of
events

Recovered

No. of
events

Outstanding

C. PENAL INTEREST

Total ( C)

D. EXPENDITURE HEADS
Excess Interest paid On:
i)
Saving Fund
ii) Fixed/Term Deposit
iii) Any other deposit
iv) Excess amount paid to any out
sourcing agency
total (D)
TOTAL UNDERCHARGES
(A+B+C+D)

Signature of Auditor

254

Annexure B
STATEMENT OF UNRECOVERED UNDERCHARGES
Name of
The party

Head of
Undercharges

Brief Description
Of undercharges
& Period to
which
it relates

Amt. to be
recovered

Comments of
Auditors

Comments of
incumbent incharge
Reasons for NON
RECOVERY of
Undercharges in detail
(quote relevant
circular)

We confirm that all the revisions in the interest rates have been correctly applied in all the relevant
loan accounts with effect from the effective date of each revision.

Incumbent Incharge

Auditor

255

Annexure C
Statement of Under/ Overcharges for the Quarter/year ended_________

Branch.
(Amount in Rs.)
Name of
the party

Description
of error

Branch
record

Our
calculation

Excess
paid or
short
charged

Recovered
during the
audit

Short
paid or
excess
charged

Refunded
during
the year

Reasons for
not affecting
recovery
during the
audit

If the
undercharges
are Rs.5000/or above give
the name and
designation
of the erring
employees

10

Amount as per

Note: Reasons for not affecting recovery must be furnished. In case of closed accounts date of closure
should be given.

Signature of Auditor

256

Annexure D
Certificate/confirmation by Auditor
1. It is confirmed that interest success/ failure report is generated & preserved
regularly. The same is being monitored by incumbent and checked by the
undersigned. The deficiencies observed in the report have been got removed.
2. It is confirmed that overridden charges report (CHGIR) for charges levied by system
is generated and checked by the undersigned. Undercharges identified has been got
recovered. Further service charges, which are not automatically levied by the
system, have been checked as certified on Annexure E of the report.
3. It is confirmed that All non-financial changes report (AFP) is being generated at
regular intervals. The same is being monitored by Incumbent and checked by
undersigned.
4. The various menu of R-Audit has been generated and placed on record. The
deficiencies have been got removed or have been reported under item 11 of the
report.
5. It is confirmed that interest Table is set as ZERO only in eligible accounts.
REASONS FOR UNDERCHARGESAuditor must provide here the reasons for occurrence of undercharges, branch
response to reporting of undercharges in daily report.
FOR CHARGES/INTEREST AUTOMATICALLY LEVIED BY THE SYSTEM
__________________________________________________________________
__________________________________________________________________
FOR OTHER CHARGES

COMMENTS ON STAFF ACCOUNTABLITY (Auditor to comment about undercharges


arising out of gross negligence, malafide of staff, dereliction of duty and also on repetitive
nature of undercharges)
_____________________________________________________________________
_____________________________________________________________________
COMMENTS ON COST OF DEPOSITS & RETURN ON ADVANCES (Auditor to analyze
the cost of deposits and return on advances of branch as well as of concerned Circle
Office and comment if there is any variation)
_____________________________________________________________________
_____________________________________________________________________
Waivement of undercharges:

The competent authority has waived following undercharges detected by us


Revenue Head

Amount

Authority

It is confirmed that branch is maintaining proper record of waivement in service


charges by Incumbent and higher authorities and the requisite quarterly
statement is being sent regularly to the controlling authority.

Signature of Auditor

257

Annexure E
CERTIFICATE OF CHECKING
It is further certified that we have checked the service charges/ other charges which are not
automatically being charged by system during the quarter/year to the extent mentioned
against each item in percentage:
S.No.
1

Name of Head
Penal Interest: I.e. due to Non compliance of T&C of sanction/banks guidelines, Overdue
Risk rating / External Risk Rating etc. Where Panel Interest is not being charged by
system automatically.
2
Issuance of Solvency/No Dues/ interest/Balance Certificates,
Commitment charges, Prepayment charges, charges for change in terms & conditions,
Limit allocation charges, Escrow Account Maintenance charges, Lead Bank Fee
Processing & Upfront Fee, Handling Charges, Documentation charges in advances, TL
Review Charges, CIBIL Charges, Inspection Charges
Consortium/Syndication/Project implementation and Monitoring Fees
Security Agency Fees, Escrow A/C Maintenance Fees etc. ECS returning charges,
Diligence Report charges
3
Cash handling Charges, Safe Custody Charges, Old Record Enquiry
Power of Attorney & Standing instruction charges
Cheque issued to Premium Customer beyond prescribed free cheque leaves
Charging for drawing cheques less than Rs. 50/-.
Change of Authorized signatory in A/c, Charges for recording reconstitution of A/c
Revalidation of drafts, Co-acceptance of bills
Attestation of Invoice on every subsequent occasion, Attestation of signatures
Recovery of out of pocket expenses from customers wherever applicable including
expenses on inspection of securities
4
Depository Charges, Different Card Issuance Charges
5
Service charges on Forex Business which are not automatically levied by system e.g.
Forwarding export documents to another bank due to some reasons, Comm. on
reimbursement claimed from another bank, Giving guarantee on discrepant documents,
LC confirmation charges, Outward remittance to the debit of EEFC A/C, Follow up of Bill of
entry, Write off of Export Bills, Processing charges for any application to RBI, Issuance of
GR Waiver Certificate, Attestation charges for application of Importer/Exporter Code,
Bank Realization Certificate, Attestation of any other document including invoices,
Registration of export contracts etc.
6
Any other service charges or other charges
7
All debits to various income heads
8
Interest on deposits with other Banks
9
Capital & Revenue expenditure incurred under various heads are within the prescribed
limit as per the financial Power Chart and in case it exceeds, confirmation has been
obtained competent authority.
10
All expenditure incurred under the head Misc. expenditure HO/RM sanction are
supported by proper sanction from higher authority
11
Water & Electricity charges, postage (Courier) telephone, remitting charges, conveyance
to officers please also ensure that there is no wide variations
12
Interest charged by bankers on borrowing
13
Establishment- Salary, Leave Encashment, officiating allowance any increment
due/PQA/FPA, if any, etc.
14
Staff Welfare expenses
15
Discount allowed on sale of Gold Coins
Generation of R-audit Menus (Give the dates)

%age

Note: Cent per cent checking of above items is required to be done by auditor.

Signature of Auditor

258