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BANK OF MAHARASHTRA

HEAD OFFICE: 1501, SHIVAJINAGAR, PUNE 411 005

Concurrent Audit Report

BRANCH NAME : Thane Zonal Office

BRANCH CODE : 5531

CATEGORY : CPC Commercial, Thane

ZONE NAME : Thane

ASSTT. GENERAL MANAGER / CHIEF : Mr. Prashant S Gajbhiye- Asstt. General Manager-
MANAGER I/C CPC-Thane

NO. OF OFFICERS WORKING IN BRANCH : (POSITION BE GIVEN FOR ALL CATEGORIES)

NO. OF PROPOSALS RECEIVED DURING : (POSITION BE GIVEN FOR ALL CATEGORIES OF


THE MONTH LOANS) : 24

NO. OF PROPOSALS SANCTIONED : (POSITION BE GIVEN FOR ALL CATEGORIES OF


DURING THE MONTH LOANS) : 13 (Position as per Sanction register)

NO. OF PROPOSALS REJECTED DURING : (POSITION BE GIVEN FOR ALL CATEGORIES OF


THE MONTH LOANS) : 11 ( includes returned for resubmission
and rejected)

NO. OF PROPOSALS PENDING : (POSITION BE GIVEN FOR ALL CATEGORIES OF


LOANS) : 0

Name of the Branches submitting less 74 branches


than 10 proposals in the previous month

Name of the Branches submitting Zero Annexure A


proposals in the previous month

AUDIT DATE : 24/11/2017

NAME OF THE CURRENT AUDITOR : G K Sureka & Co.

Chartered Accountants

MANDAYS WORKED DURING THE MONTH : 8

REPORT SUBMITTED ON : 24/11/2017

SIGNATURE OF AUDITOR SIGNATURE OF BRANCH HEAD

Copy to :1) The Asstt. General Manager / Chief Manager, Retail Asset Branch,
2) The Regional Manager,
3) The Chief Manager, Inspection Cell,
Check List Format for Monthly Submission of Report

Sr. Particulars Yes / No Irregularity Spot


No. No. Rectified
1. All proposals received including applications received Yes
through internet during the month are entered in Inward (CPTMS)
Register, affixed with specially designed seal and
distinct continuous serial number for each category of
loan application is given.
2 Acknowledgement of receipt of proposal is sent to Yes
concerned Branch (updated
in CPTMS)
3 Scrutiny / Verification of documents submitted by the Yes
Branch is undertaken at RAB for each proposal
4 Deficiency in the received proposal is conveyed to Yes
concerned branch / customer immediately by fastest
mode of communication e.g. email,SMS etc.
5 Verification of scoring model exercise is undertaken at Yes (CRR
RAB to decide the eligibility of loan proposal as per Done)
extant guidelines.
6 Before giving the sanction for the proposal non Yes
appearance of the Applicant / Co-applicant / Guarantors
names with CIBIL data, RBI defaulters list and CREAM
data base is confirmed by the RAB and Date of such
verification is recorded in the appraisal
7 Due diligence / Cross Verification of income proof, Yes
correctness of salary income, statement of account and
KYC documents submitted by Applicants and guarantors
is undertaken before giving sanction and recorded.
8 Security of Agriculture land is taken for Tractor Loans Yes
only
9 Whether property of third party guarantor, not related to No
borrower is obtained as security for the loan?
10 Pre sanction visit at Customers home / business place / Upto
units is made before giving the sanction and duly signed Rs.5cr
visit report thereof is kept on record done by
branch
11 Due Diligence work such as search report, valuation Yes
report with the help of empanelled advocates is
undertaken and reports in stipulated standard formats
are obtained and kept on record. Authenticity and
genuineness of property documents is confirmed by
Panel Advocates
12 Non Encumbrance Certificates wherever applicable are Yes
obtained from the Advocates and kept on record.
13 In case of bank approved housing projects, a copy of N.A.
approval letter is kept on record and confirm that Project (Applicable
is approved by Regional Office only. for CPC
Retail)
14 In case of second sale of the property panel valuers N.A.
valuation report is obtained before sanctioning the loan. (Applicable
for CPC
Retail)
15 All the appraisal notes are duly processed and signed Yes
by the processing officer with his recommendations
within stipulated time as per prescribed guidelines.
(Refer Cir.AX1/Priority/RAB/2010-11/Cir.No.65 dated
11/12/2010) Time taken for each activity is recorded in a
jacket.
16 If the proposal is falling beyond the delegated powers of Yes
head of RAB, it is referred to Regional Office with
specific recommendations. Regions approval for
deviations, if any, from guidelines is obtained and kept
on record duly stating specific deviation for which
approval is taken.
17 While conveying the sanction along with sanction and Loan Docs
appraisal note, the list of documents to be executed and
in case any specific document other than the standard
documents circulated by Legal Department is required,
format of the same duly approved by Law Officer is
conveyed to Branch.
18 In case proposal is scouted by RAB, letter of Yes
acceptance of terms and conditions of sanction is
obtained from prospective borrower and kept on record.
19 Record of follow up with the Branches for early
disbursement is maintained.
20 Duly signed Monthly Noting Statement to Regional Yes
Office is sent and that previous months noting is
received duly noted from R.O. and kept on record.
21 For any deviation /relaxation in norms for bulk finance N.A.
confirmation from appropriate authorities is obtained
(Details of deviations be mentioned in the report)
22 List of Builders / developers / dealers in the command N.A.
area is maintained and updated at RAB (Applicable
for CPC
Retail)
23 All the necessary charges such as Legal charges, Yes
valuation charges etc. are duly recovered at RAB or
originating branches separately (not to be included in
loan amount) and specific amount to be recovered is
communicated to the branch in sanction letter. These
charges should not be capitalized.
24 Scheme wise weekly progress report of the proposals Yes
sanctioned, pending, returned / rejected and disbursed
is sent to Credit Priority Department and Planning
Department, Central Office under copy to respective
Regional Offices at the end of every Friday.
25 All guidelines applicable to the product under which Yes
finance made are complied with.

List of Irregularities /Observations of Concurrent Auditor pertaining to Branch

Name of the Account & Particulars Status of


Branch Name Complia
nce
M/s Rasool Textiles 1. In the proposal note, the sales for the CY upto 31 st August, 2017 is Open
Bhiwandi Branch considered Rs.260 lakh. However, Actual Sales as per the stock
statement submitted for the month ending 31st August 2017 the
total sales are Rs.200 lakhs.
2. Branch should obtain the undertaking from borrower-If disputed
Creditors liability becomes the Actual Liability in future amounting
to Rs.39.86 lakhs, then Borrower should pay the same from
Internal sources and should not utilize the limits for such
payments- Condition should be stipulated in Sanction letter.
3. Satisfactory CR should have been obtained from KVB pre sanction
of facilities.
M/s GYD Textiles 1. In the proposal note, the sales for the CY upto 31 st August, 2017 is Open
Bhiwandi Branch considered Rs.275 lakh. However, Actual Sales as per the stock
statement submitted for the month ending 31st August 2017 the
total sales are Rs.228 lakhs.
2. Satisfactory CR should have been obtained from KVB and HDFC
Banks pre sanction of facilities.
3. As per Nayak Committee under Projected Turnover Method,
calculation of WC limits under MPBF is Rs.112.81 Lakhs whereas
the actual limits sanctioned are Rs.150 lakhs which is excess of
MPBF. No Justification available for the same in Sanction letter.
M/s Islam Textiles 1. In the proposal note, the sales for the CY upto 31 st August, 2017 is Open
Bhiwandi Branch considered Rs.270 lakh. However, Actual Sales as per the stock
statement submitted for the month ending 31st August 2017 the
total sales are Rs.200 lakhs.
2. Satisfactory CR should have been obtained from ICICI and HDFC
Banks pre sanction of facilities.
3. In the sanction letter, the cover period of Book debts is 90 days.
However, in Other Terms and conditions of the sanction letter, the
condition is DP should not be allowed on Book Debts beyond 180
days.
M/s H M Elevators & 1. Review/ Renewal of Credit Facilities is overdue for more than 6 Open
Engineering Company months and hence, the account should be classified as NPA.
TMC Branch (previous sanction date-10.02.2016 and Current sanction date-
04.10.2017)
2. CIBIL score of Partner Bincy Thomas is Just 585 and also shows
overdues of Rs.1.67 lakhs in Auto loans.There are Account
delinquencies in CIBIL of both the partners.
3. Latest Networth statement of Partners to be obtained- Condition
not stipulated in sanction letter.
4. Compliance certificate of previous sanction still not obtained and
fresh sanction also sanctioned.
5. GST Registration certificate should be obtained.
6. It is observed that the Govt. License for the maintenance of lifts is
in the name of Sister concern M/s hail Mary Enterprises and the
orders received from them are being shared with the borrower.
CPC should have directed borrower towards obtention of Fresh
license in its own name, otherwise using license of other company
may result into heavy penalties and litigations which even may
lead to shut down of the business of the borrower.
M/s Ambika Tours and 1. Stamped Receipts for Promoters contribution should be obtained- Open
Travels condition not stipulated in sanction letter.
Kalwa Branch 2. Original Tax Invoice of Machinery to be obtained- condition not
stipulated in sanction letter.
M/s Kulsum Textiles 1. Intermediate search Report should be obtained from the period Open
Bhiwandi Branch 11.11.2010 till September 2017.
2. GST Registration certificate should be obtained.
3. Status of Stock Audit for the FY 2016-17 is not included anywhere
in the proposal note- CPC should ensure whether the same has
been done or not,
M/s Bhagyashree 1. Limits are assessed on the basis of Stock statement for the month Open
Petroleum of June 2017. Latest CA certified Stock and Book Debts statement
Nirmal Branch should be obtained for the purpose of Valuation of primary security.
2. Average Debit Balance of the Account is
FY 2016-17- Rs.4.20 lakhs
CY upto 07.10.2017- Rs. 1.47 lakhs
Whereas Limits are Renewed at Rs. 30 lakhs.
Since average utilization in CY is very less CPC should have reduced
the limits.
M/s Ramgopal Jagannath 1. Average Debit Balance of the Account is Open
Sikchi & Co. FY 2016-17- Rs.12.25 lakhs
Bhiwandi Branch CY upto 07.10.2017- Rs. 9.75 lakhs
Whereas Limits are enhanced from Rs. 25 to Rs.40 lakhs.
Average Utilization in the account is even less than 50% of the
original limits.
2. Intermediate search Report should be obtained from the period
02.11.2012 till September 2017.
M/s Sana Textiles 1. Value of primary Security i.e. Stock and Book debts is Rs. 150.83 Open
Bhiwandi Branch lakhs considered on the basis of Estimates of September 2017.
Further, the Audited Balance sheet for the FY 2016-17 is also not
submitted. So, the CPC should have obtained the CA certified
Stock and Book Debts statement of the month September 2017 for
the valuation of Primary Security.
2. The Cover period of Book debts is nowhere mentioned in the
sanction letter except in the Other Terms and Condition
mentioning- DP should not be allowed on Book Debts beyond 180
days. So, the Specific condition should be stipulated for Book
debts up to 90 days shall only be considered.
M/s Amber Bush Rubber 1. Review/ Renewal of Credit Facilities is overdue for 10 months and Open
Industries Pvt Ltd hence, the account should be classified as NPA. (previous
Vartak Nagar Branch sanction date-10.02.2015 and Current sanction date-October
2017)
2. Average Debit Balance of the Account is
FY 2016-17- Rs.11.10 lakhs
CY upto 07.10.2017- Rs. 0.87 lakhs
Whereas Limits are enhanced from Rs. 151 to Rs.195 lakhs. CPC
should have reduced the limits instead of enhancing the same
because there is hardly any utilisation in the account.
3. Status of Stock Audit for the FY 2016-17 is not included anywhere
in the proposal note- CPC should ensure whether the same has
been done or not,
4. Specific Conditions should have been stipulated to Create charges
for ALL the Credit Facilities with CERSAI, ROC & Sub Registrar
respectively because the charge was created only for CC facility in
the previous sanction.

POSITION OF REVIEW/RENEWAL OF CASH CREDIT ACCOUNTS

S NO. PARTICULARS
1 NO. OF CASH CREDIT PROPOSALS RECEIVED 6
FROM THE BRANCHES FOR REVIEW/RENEWAL
DURING THE MONTH

2 NO. OF CASH CREDIT PROPOSALS RECEIVED 6


FROM THE BRANCHES REVIEWED/RENEWED
DURING THE MONTH

3 NO. OF CASH CREDIT REVIEW/RENEWAL 0


PROPOSALS RETURNED TO THE BRANCHES FOR
WANT OF REQUIRED PAPERS ALONG WITH THE
PROPOSAL OR FOR ANY OTHER REASON DURING
THE MONTH

4 NO. OF CASH CREDIT PROPOSALS PENDING FOR 0


REVIEW/RENEWAL AT THE END OF THE MONTH

SIGNATURE OF AUDITOR SIGNATURE OF BRANCH HEAD

Annexure A: Name of the Branches submitting Zero proposals in the previous month

Alyali Tisgaon
Ambarnath Ulhasnagar IV
Arnala Vartaknagar
Asangaon Vevji
Badlapur mankoli
Bhayendar SHG
Charotinaka Shreenagar
Meera road
Dahanu
east
Dandi Vrundavan
society
Dapchari Vasai West
Dombivali
Virar east
(East)
Dombivali Nallasopara
(West) west
Ganeshpuri Boisar
Jawhar Tilaknagar
Kalwa Thane

Kasara
Kasarawadaval
i
Kausa-
Mumbra
Khardi

Kinhavali

Kopri Thane

Malwada

Manor

Naigaon

Murbad
Nallasopara
east
Narpoli

Navali

Padgha

Palghar

Panchpakhadi

Pargaon

Patharli

Saiwan

Shahapur

Shiroshi

Station Road

T.M.C. Branch

Tarapur
Thakurli