CCA - Q - Oct - NTB - Ghaziabad

CONCURRENT AUDIT REPORT QUARTER
The Nainital Bank Limited, B.O. Ghaziabad [Aug-18 to Oct-18]
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THE NAINITAL BANK LIMITED
CERTIFICATE
This is to certify that concurrent audit of NAINITAL BANK: GHAZIABAD Branch for the
quarter ended October 2018 has been conducted by our firm. The audit team was headed
by CA. GAURAV SINGHAL who is qualified chartered accountant and he had prepared
the enclosed statements.
We certify that the audit was carried out as per the instructions furnished to us and the
enclosed report covers the irregularities in the transactions observed in the quarter. We
certify that we have not omitted to report any serious irregularities in the books of
accounts verified by us.
For Gaurav Singhal & Co.

Chartered Accountants
CA. Gaurav Singhal

Branch Manager (Partner)
(B.O. Ghaziabad) M.No.: 414993
Place: Ghaziabad
Date : 06.11.2018
Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants

143, Street No. 3, Thapar Nagar, Meerut
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BRANCH GHAZIABAD
REPORT FOR THE QUARTER ENDED OCTOBER, 2018
BRANCH PROFILE
1. NAME OF THE BRANCH : GHAZIABAD
2. NAME OF THE BRANCH MANAGER : MR. T.D. TRIPATHI
3. Date of taking charge : 23rd May, 2016
4. Deposits : Rs.________ Lacs
5. Advances : Fund based : Rs. ________ Lacs

Non fund based : Rs. ________ Lacs
Total : Rs. ________ Lacs
6. Staff :
1. Officers : 4
2. Clerical : 3
3. Sub-staff (including 1 Part Time): 1
TOTAL : 8
7. Business per employee: Rs. _________ Lacs
8. Inspection Rating Previous year Current year

A A

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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Executive Summery of Report
Note: The Executive Summary Report should contain irregularities of serious nature requiring immediate
attention of the Management. It should be self contained without referring to Annexure of the Audit Report.
The deficiencies in the working of the branch which may lead to loss to he Bank, perpetration of fraud,
violation of directives/guidelines of RBI, Govt. of India should be incorporated in the Executive Summary
Report.
1. During the quarter ended Oct, 2018, the cash holding exceeded the Retention Limit of Rs.30 Lacs,
on ____ Days out of total of ___ days of operations. Average cash holding of the branch during the
quarter was Rs. _________ Lacs. Complete Details has been provided in Annexure ‘A’.
2. Stock Statements have not been submitted regularly in some cases, which will affect the correct
valuation the Drawing Power for respective accounts. Also, Penal interest is not being charged by
the branch on account of late/ non submission of the Stock Statements. The branch is advised to
strictly consider the terms and conditions of the sanction letter while computing the drawing power.
Special attention is required to be given on the values of inventory, Book Debts, Reduction in
Sundry Creditors, increase in sales/ purchases and comparative fluctuation in Book Debts and
Stock. Further, Stock Statements older than 3 months should not be considered for computing
Drawing Power.
3. Further, for large borrowal accounts, quarterly Book Debts Statements duly certified by the
Chartered Accountants should also be asked so as to improve the reliability of the Stock and Book
Debts Statements.
4. There are _____ Temporary Overdrawn in Deposit Account allowed by the branch as follows:
Account No. Nature of Accounts Name of Accounts TOD Amount
5. There are total of ____ Lockers, out of which ____ Lockers have been rented out and ____ lockers
are vacant. There are ___ locker, against which Rent is due but not yet recovered by the Branch as
follows:
S.N. Locker Name of Saving Bank Rent Due Action Taken by the Branch
No. Locker Holder Account
6. In the following cases of Corporate/LLP Borrowers, registration of Charge with the ROC has not yet
been filled uptill the date of report:
Account No. Name of Account Date of Sanction Sanction Amt
7. There are several accounts which being overdue for more than 60 days due to non repayment of
installments/interest/other charges, require special attention of the Branch. The details have been
provided hereinafter.
A/c No. Name of Account Product Balance Overdue Amt Overdue Days
8. There are Sundry creditors amounting to Rs._____/- as on the date of report, standing for more than
____ years.
9. Discrepancies in Insurance Cover:

Account No. Name of Accounts Sanction Limit Irregularity
10. Excess allowed in Cash Credit Accounts:

Accoun Name of Accounts Sanction Limit Balance Excess Reason for
11. In case of cash credit accounts, the operational data like GST returns etc. have not been submitted
by the borrowers. The branch should insist the borrower for the same for better observation of the
account.
12. Further, Latest Audited Financial Statements and Income tax Returns have also not been submitted
in case of some Cash Credit Accounts. The branch is advised to insist the borrower for the same.

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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A. Irregularities pointed out by the Concurrent Auditor in the last concurrent audit
report of the branch as on 31.07.2018 which were not rectified.
No major irregularities/ discrepancies were pending as on the date of report.
B. Status of rectification of irregularities pointed out by the Concurrent Auditor in the

last concurrent audit report of the branch as on 31.07.2018
We hereby report that except for the above mentioned, all irregularities pointed out in the last
concurrent audit report have been rectified.

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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CASH AND FUND MANAGEMENT
A.- (a) CASH VERIFICATION

Date of cash Details of Amount of soiled/ BRANCH MANAGER’S COMMENTS
Verification cash held cut notes (Rs.)
Amount (Rs.)
14-02-2018 6,08,948.00 No soiled/ cut notes found Satisfactory

- We certify that we have verified cash as stated above and found the same to be correct as per General Ledger.
- We confirm that the provision of RBI Clean Note Policy mainly in respect of stappling of notes, accepting/re-issuing of
Ashoka Pillar notes etc. are being complied by the branch.
(b) CASH EXCEEDING RETENTION LIMIT (CRL: Rs. 30.00 LACS)

During the quarter ending Oct, 2018, cash holding exceeded on a total of ___days out of ___days of
operations. Please refer to Annexure A for further details.
(c) Auditors comment on security aspects, abnormal receipts & payment of inward and outward
remittances. Expenses in connection with borrowing and remittances.
(i) Security Aspect Satisfactory subject to those mentioned in the Report.

(ii) Abnormal Receipt And Payment Appropriate record of cash transaction amounting to
Rs.10 Lacs and above is maintained at branch level.
(iii) Inward & Outward Remittances Satisfactory
(iv) Expenses in connection with No major discrepancy was recorded,
borrowings and remittances
B) BALANCE WITH BANKS (Rs. in lacs)

Rs. __________ with _________ as on 31.10.2018

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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STATEMENT OF VERIFICATION OF SECURITY FORMS
Certified that the stock of blank security forms kept in the branch, were duly verified with the stock register
on 31.10.2018 during the current quarter.
- We confirm that blank forms available in the branch as on 31.10.2018 duly confirm with the stocks
shown in the stock register wherein the security form receipts and issued are duly recorded
- We also confirm that the security forms, which do not bear printed name of the branch have been affixed
with rubber stamp of the branch name and code.
- We further confirm that we have verified the blank Security forms are found kept in joint custody in a
dual lock, Almirah.
- We confirm that the branch is verifying the security forms as per prescribed periodicity and the Official
other than Joint custodian carries out this verification.
- We found the following discrepancy in the stocks of security forms during checking of security forms:
NIL (No discrepancy found at the time of our verification.)

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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STATEMENT OF IRREGULARITIES/DISCREPANCIES OBSERVED IN PAYMENT OF PRINCIPAL AND
INTEREST ON TERM DEPOSITS
a) We certify that we have checked all the term deposit transactions of Rs. 20,000/- and above that are
paid in this quarter and they are in order except in cases mentioned below.
No major discrepancy was recorded.
b) We also certify that payment of interest is being authenticated under joint signatures of Manager & other
Officials.
c) We have verified that the TDS has been deducted as per provisions and remitted in time.
--- YES ---
d) We have verified that latest interest rates as per recent Circular were properly loaded in the computer
system as per value date conveyed in the said circular. We further certify that we have verified the
interest applied in the following accounts and found it correct/ the following discrepancies
e) The renewed deposits receipts are held under safe custody and are delivered to depositor against
submission of old receipts.
--- YES ---
f) Matured term deposits are automatically renewed by the branch as per H.O. instructions.
--- YES ---

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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DISCREPANCIES/ IRREGULARITIES IN NEW DEPOSIT A/CS OPENED
DURING THE QUARTER APRIL 2018
We certify that branch is taking all the precautions and observing KYC norms at the time of opening of new
accounts including sending of letter of thanks to introducers. The branch is not opening the accounts by
collection instruments. Further, we also certify that Risk Categorization is being done in each of the account
at the time of opening the account and the required format is duly filled-in in respect of Risk Categorization
of customers, is enclosed along with AOF.
a) Discrepancy in opening of new accounts including Proprietary concern accounts.
Name of Nature of account Nature of discrepancies/ Action/ efforts of the Branch Manager
Depositor irregularities branches for rectification Comment
During the course of verification of newly opened Current and Savings Accounts, we have found some
minor queries related to KYC, which have been rectified by the concerned officer/ staff. Therefore, there is
no major irregularity pending relating to KYC.
b) Discrepancies in conduct of new accounts (current and Savings Bank account).

We certify having verified the operations in the Savings Bank account and Current account opened during
last six months and observed certain unusual operations as under:
Details of unusual transactions
Type of
Date of Opening Title of Account Credit Debit
Account
Date Amount Date Amount
No major irregularity was recorded.
c) Discrepancies in old accounts (CA/SB), if any.
Nil

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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FRESH SANCTION AND REVIEW WITH ENHANCEMENT OF CREDIT FACILITIES

IN THE QUARTER (FUNDED AND NON-FUNDED)
IRREGULARITIES OBSERVED
We certify having verified all the fresh sanctions made in this quarter and certify that sanction, are made
after due appraisal and they are within the delegated authority and they have been reported to higher
authorities for PSS in time. The acknowledged copy of the sanction letter from the borrower has been kept in
branch record. We further certify that all the terms and conditions of the sanction have been complied with
before disbursement of advance facility. We further confirm that wherever required the documents were got
verified from branch advocate/ law department. Obtention of insurance, charge creation, registration
wherever required have been completed and the details of documents have been entered in security register
excepting the in under mentioned cases. We further certify having verified all the letter of credit and bank
guaranties issued during the month and confirm that the sanction are within the delegated powers and such
sanction are within the bank norms. We also confirm that bank guarantee have the restrictive clause
properly worded. In the case of LCs they are opened for the genuine trade transactions. We also confirm
that branch is observing KYC norms in case of borrowers also. It is certified by us that the branch
has correctly awarded the rating in all fresh sanctioned accounts during the quarter and
discrepancies if any, in awarding the rating are mentioned along with other irregularities. The
irregularities observed are reported below:
Nature of Account No. Name of Account Opening Date Remark/

Account Observation

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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POST DISBURSAL AND FOLLOW-UP AND SUPERVISION OF LOANS AND ADVANCES

SANCTIONED INCLUDING RENEWALS IN THE QUARTER
We certify having verified loans and advances, bills portfolio including disbursal of term loans and certify that
the branch has taken adequate follow-up measures in control of accounts and collection of data like stock
statements etc. except for instances reported below. We have also verified that the branch has monitored
the release of funds to avoid diversion except for instances reported below:
A. Insurance Expired/ not on Record:
Account No. Name of Accounts Sanction Limit Irregularity
B. ROC Charge not registered/ modified with the ROC:

Account No. Name of Account Date of Sanction Sanction Amt
C. Excess allowed in cash credit accounts:

Accoun Name of Accounts Sanction Limit Balance Excess Reason for excess
D. Stock Statements regularly not submitted:

Account No. Name of Accounts Sanction Limit Last Stock Statement recd
Note: Penal interest has not been charged by the branch for non/ late submission of the Stock/ Book
Debts Statements. The Branch should pay attention to the proper calculation of DP as per latest Stock
Statements and to Charge the Penal Interest for non/ late submission of the same.
E. Special Monitoring Accounts (As on 31.10.2018):
A/c No. Name of Account Product Balance Overdue Amt Overdue Days
F. Other Discrepancies/ irregularities recorded:

1. In case of cash credit accounts, the operational data like GST returns etc. have not been submitted
by the borrowers. The branch should insist the borrower for the same for better observation of the
account.
2. Further, Latest Audited Financial Statements and Income tax Returns have also not been submitted
in case of some Cash Credit Accounts. The branch is advised to insist the borrower for the same.

Branch Manager CA. Gaurav Singhal

(B.O. Ghaziabad) (Partner)
M.No.: 414993
Place: Ghaziabad
Date : 06.11.2018

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A.(i) Statement of bank guarantees expired but not reviewed or called back along with the steps taken by
the branch for obtaining expired guarantee bonds and reversal of entries.
S.N. Name of the BG No. Name of the Amt. of Cash Due date reason for branch
Constituent & date beneficiary BG Margin of BG not renewing manager’s
issued % Or adjustment remarks
No such case was observed.
(ii) We certify that branch has properly classified Bank guarantees as Financial Guarantee / performance
guarantee and has charged the commission according to the classification and for the full period
including extra liability period. The details of wrong classification of Guarantees is given hereunder:
No major irregularity was observed.
B. ADVANCE BILLS OUTSTANDING AT THE END OF QUARTER
We certify that we have verified the “Advance Bills Outstanding” at the branch at the end of the quarter and
furnish below the same. As regards these outstanding we certify the stock covered under the letter of credit
are either kept separately of excluded from the stocks covering working capital advance. We certify that the
branch has taken/not taken adequate steps as regards protecting the stock.
LC No. Name of the Date of Amount Value of stock follow up Auditor’s Branch
Borrower adv. Bill covering adv. Efforts comment managers
Bill for adju- remarks
stment
No such case was observed

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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A) STATEMENT OF OUTSTANDING BILLS PURCHASED (BP’S) AT THE END OF THE QUARTER:
We have verified the bills purchases/ discounted during the quarter and remained outstanding & in case of
bill discounted accepted bill of exchange is in record and certify that the branch has taken the adequate
steps for realization of all such bills. We furnish below the list of bills which remain overdue (for CBP beyond
15 days for DBP beyond 60 days).
S.N. Name of the Nature of Amt. of Date of due date reason for Action
Borrower bill bill purchase remaining taken
overdue
B) STATEMENT OF BILLS PURCHASED AND RETURNED UNPAID
S.N. Name of the Nature of Amount Date of Date of Reasons of

holder instrument purchase Return returning of BP
C) EXCESS WITHDRAWALS ALLOWED BEYOND DELEGATED AUTHORITY
We certify having verified operations in borrower accounts of the branch including the instances of
exceeding the delegated powers. We confirm that such transactions are being promptly reported by the
branch to higher authorities for confirmation on bank’s prescribed format. We also confirm having verified
frequency and genuineness for exceeding authority beyond the delegated powers. We give below the list of
transactions where the powers are exceeded, but reporting is not done and also cases where the frequency
of exceeding delegated power is unreasonable.
S.N. Name of Nature Limit D.P. Liability Amount No. of Instances Branch
The of Rs. Rs. Rs. Exceeded times where con- manager
Borrow- account Rs. Excess firmation comment
ers allowed is not
in the obtained
quarter
1 2 3 4 5 6 7 8 9 10 11

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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BALANCING OF BOOKS
We have checked the balancing of books of all the heads with the G.L. balance and certify that all books of
accounts as at the end of OCTOBER 2018 are balanced and duly certified by the bank officials. The
following are the heads of accounts which are not balanced and remain in arrears for more than one month:
S.N. Head of account Last balanced on Action taken by the branch
Remarks: All the accounts are electronically maintained by the branch in CBS. No major discrepancy was
recorded.
STATEMENT OF BANK RECONCILIATION AS AT THE END OF THE QUARTER
S.N. Name of Last Particulars of items not reconciled

bank reconciled ......................................…......... Branch
upto Credit Debit managers
.................................................... comments
date amount date amount
1 2 3 4 5 6 7 8
Not Applicable

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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LOCAL BRANCHES ACCOUNT (FOR GHAZIABAD, LUCKNOW AND HALDWANI BRANCHES)
We certify that we have verified the local branches account (Clearing etc.)and of the branch which was last
balanced on APRIL 2018 We report the items which remain un-reconciled as at the end of the quarter :
Date Name of Details of Cr. Dr. Action taken

Branch un-reconciled (Rs.) (Rs.) by the Branch
entry

CA. Gaurav Singhal

(B.O. GHAZIABAD, Ghaziabad) M.No.: 414993
Place: Ghaziabad
Date : 06.11.2018

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STATEMENT OF SUNDRY CREDITORS/ SUSPENSE ACCOUNT
We certify that we have verified the statement of sundry creditors and sundry suspense account and it was
last balanced on October 2018 We report the items which remain outstanding for more than 6 months. We
certify that credit in sundry creditors & reversal of entries from Sundry Creditors account is authorized by
Branch Manager and branch has transferred entries outstanding for more than five years in the month of
December, every Year to Head Office.
List of entries outstanding for more than 3 months in sundry creditors’ a/c is given below:
Date Insrument No. Particulars (Narration) Amount
Total
Sundry creditors consist of excess found in cash, unidentified accounts etc. a period wise breakup is given
as under :–
Period form Period to No of Entries Amount

Less than 3 months
3 month 6 month --- ---
6 month 1 Year 1 500.00
1 Year 2 Year --- ---
2 Year 3 Year 5 13,600.00
3 Years and above 5 4,300.00
5 Years and above
Total 11 18,400.00

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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STATEMENT OF SUNDRY DEBTORS
We certify that we have verified the statement of sundry debtors account and it was last balanced on APRIL
2018 We also confirm that entries in sundry debtors are authorized by the Branch Manager. We report the items
which remain outstanding in different categories as under:
A. ENTRIES OUTSTANDING IN SUNDRY DEBTORS A/C RELATING TO LEGAL EXPENSES & OTHERS
FOR MORE THAN –30- DAYS.
S.N. Date when Particulars Amount Action taken Branch managers reply
Transaction Rs. by the branch
Was allowed
B. ENTRIES OUTSTANDING IN SUNDRY DEBTORS A/C RELATING TO STAFF FOR MORE THAN -30-
DAYS.
S.N. Date when Particulars Amount Auditor's Branch managers reply
Transaction Rs. Remarks
Was allowed
C. TRANSACTIONS OF DEBITS TO INCOME HEAD:

We have verified all the debits to income heads in the profit and loss account and certify that all such debits
are duly authenticated by Branch Manager jointly with other Officer and are for genuine transactions. The
items which are unauthenticated or are abnormal are reported below:

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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EXCESS INTEREST PAID IN DEPOSIT ACCOUNTS:
We have verified the interest paid in deposit accounts and the excess interest paid in the accounts is
reported under we have also verified that whenever excess interest paid in the deposit accounts is being
reversed it is being credited to correct General Ledger Head and the entries in the Interest Paid on Deposits
are being authorized by the Branch Manager.
S.N. Name of the Ledger Folio Type of Amount of Remarks

account holder No. account excess
interest paid
Branch is charging interest as per the latest circular issued.
DEBITS TO EXPENDITURE HEADS
We certify that we have verified at random the debits to expenditure under profit and loss account We have
verified 50 % of the items (amount wise) under profit and loss miscellaneous head, telephone, telex, fax,
courier, postage and stamp, repairs to building property. We also confirm that related vouchers are jointly
signed/passed by the Branch Manager & other Officer. The discrepancies found are as under :
OBSERVATION OF THE AUDITOR:

A)
S.N. Name of the Date Amount Nature of Branch Manager

expenditure Discrepancy Remarks
head
B) Other irregularities/discrepancies, if any
No major irregularity/ discrepancy was recorded.

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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ABNORMAL FEATURES/TRANSACTIONS IN STAFF ACCOUNTS
We have verified the major transactions in staff accounts and point out the irregularities below:
PHYSICAL VERIFICATION OF STOCKS IN RESPECT OF LIMITS OF A/C Rs.10.00 LACS AND ABOVE:
We certify having physically verified stocks in the accounts having limits of Rs.10.00 lacs and above and our
observations are as under:
(amount in lakh of rupees)
S.N. Name of the party Limit O/s Value of D.P. Date of Remarks
Balance stock verification
1 2 3 4 5 6 7 8
No major irregularities were observed.
PHYSICAL VERIFICATION OF STOCKS IN RESPECT OF LIMITS OF BELOW Rs.10.00 LACS:

We certify having physically verified stocks in 25% of the accounts having limits less than10.00 lacs which were found in
order except for in the following cases:
(amount in lakh of rupees)
S.N. Name of the party Limit O/s Value of D.P. Date of Remarks
Balance stock verification
1 2 3 4 5 6 7 8
NA
List of accounts sanctioned / reviewed during the Month/Quarter and where rating is not done as per bank’s
norm
Sl.No. Name of Limit Fresh/ Date of Amt of Rating Remark on the
Party reviewed sanction Facility awarded rating done by
br.
No major irregularities were observed.
We have verified the rating done by the branch and observation made as per the remark column.

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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A) DETAIL OF SHORT RECOVERY OF INTEREST AND OTHER CHARGES ON ADVANCES

ACCOUNTS OF CURRENT QUARTER : We confirm having verified interest application in advances
accounts and found that branch is charging interest at proper rates, charging penal interest in
applicable cases (i.e. in case of overdues, delayed submission of statements etc.). The branch has
recovered processing and documentation charges etc. The irregularities observed are detailed as
under:
S.N. Name of the party Type of Ledger Amount of interest Remark

Account folio No. short applied (inform, if
recovered)
1 2 3 4 5 6
B) POSITION OF SHORT RECOVERY DETECTED & RECOVERED/NOT RECOVERED, RELATING

TO PREVIOUS QUARTERS :
S.N. Name of the party Type of Ledger Deducted Recovered To

Account folio No be recover
1 2 3 4 5 6 7
Total short recovery deducted as per A & B :– ……………NIL……………..

Total short recovery recovered as per A & B:– ……………NIL……………..
Balance to be recovered ……………NIL……………..

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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STATEMENT OF CUSTOMER SERVICE (COMPLAINT)
CERTIFICATE
We certify that we have verified the complaint register at the branch and also the statement submitted by the
branch to the controlling office. All the complaint received by the branch are noted in the register and
necessary action is initiated. There are no cases of complaints received but not reported in the statement to
the controlling office. Further we list out the complaints remaining un-attended as at the end of this quarter:
S.N. Date of Name and address of Date of Nature of Action taken Branch manager’s
Receipt Complainant complaint complaint remark
As per branch official no complaint received during the quarter.

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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STATEMENT OF TOD'S OUTSTANDING AT THE END OF THE QUARTER

(Outstanding beyond 15 day from the date of allowing the TOD'S)

1-1313 Current Account Kashmiri Devi Shiksha Samiti 15,24,401.50
1-1297 Current Account Ram Avtar Building Material 13,881.40
1-0926 Current Account Bammi Gaurav & Associates 14,595.13

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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INWARDS AND OUTWARDS REMITTANCES
We certify that we have verified the records of inwards of inwards and outwards remittances (DDs, TT's).
There had been no incidence of issuance/ payment of DD, MT,TT of Rs.50000/- and above in cash. The
irregularities observed and short recovery of exchange in issuance of D.D./MT are mentioned below :
POSITION OF S.I.B.R. ACCOUNT
Outstanding as on dated …………………
Date Name of Amount Steps taken

Branch (Rs.) by the Branch

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

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(REGD. OFFICE : G.B. PANT ROAD, NAINITAL)
BRANCH GHAZIABAD
REPORT FOR QUARTER ENDED OCTOBER, 2018
1. REPORT ON ASSET LIABILITY MANAGEMENT :
Certified that we have checked A.L.M. statements pertaining to fortnights of the quarter October, 2018 and
found them correct. Branch is submitting the same in time.
DETAILS OF THE LOCKERS PROVIDED AT THE BRANCH
We certify that branch has been provided with ____ lockers, out of which ___ lockers have been rented out
and ___ lockers are vacant. The branch is holding in its possession, the keys of un-rented lockers.
The branch is having documents in respect of all the lockers rented out.
We also confirm that branch is maintaining the required registers and observing all the safe guards in the
operation of the locker accounts. Branch is recovering the rent of lockers in advance and is not allowing
operations in the lockers where rents are overdue.
Branch is exchanging the locks of the lockers surrendered by the customer before allotting the same to a
new client.
No major discrepancy was observed in respect of the locker accounts operations.
Details of lockers where locker rents are overdue [lockers pertaining to staff members to be shown
separately] :
S.N. Locker Name of Locker Holder Due Date Rent Action Taken by the Branch
No. Due

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

A - 26
FOR COMPUTERIZED BRANCHES
The Auditor should verify and give his report on the discrepancies/irregularities observed in respect of:
1. Print out of Exceptional transaction Report is taken out and authenticated Yes
and filed on daily basis.
2. All the reports relating to system generated transactions like Interest, Yes
Incidental charges, Folio charges etc. are taken out and filed after authentication.
3. Jotting reports are being extracted as per prescribed periodicity Yes

and are authenticated and properly kept
4. Report of Over drawn accounts is extracted daily and are filed properly Yes
after authentication.
5. Non-financial Audit Report is extracted daily and are filed properly Yes
after authentication
6. User Profile Report is extracted daily and are filed properly Yes
after authentication
7. Parameters like PLR, Interest rates for Deposit Yes

are in accordance with Bank’s latest circular
8. Parameters like PLR, Interest rates for Advances Yes

are in accordance with Bank’s latest circular
9. Whether actual date of origination is inscribed while responding the advice/paying

DD from other branches as per Banks circular/instructions Yes
10. We have test checked interest application in accounts and found that the interest is being correctly
applied by the CBS.

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

A - 27

MISCELLANEOUS
The Concurrent Auditors should go through the observance of operational and control system being followed
by the branch. Besides compliance of H.O. instructions in different areas of branch working the Auditors
should go through the following aspects.
1- Submission of control returns prescribed by different departments at stipulated periodicity

Including Inter-branch statement (daily basis), monthly submission of HODD reports,
quarterly transfer of HODD balances to I/branch these are only a few to illustrate.
All control returns have been submitted upto date.
2- Maintenance of all important registers as prescribed by Head Office.
All registeres are maintained
3- Display of necessary information like address of Ombudsman Scheme, Complaint and

suggestion Box, interest rates etc.
The branch has maintained complaint box which is found empty because of branch best services
to their clients.
4- Maintenance and keeping of records of non-operational/dormant accounts in the following

aspects:
a. Specimen signature cards relating to these accounts are kept in safe custody. Yes
b. Safe keeping of dormant account ledger. Yes
c. Allowing operation in these accounts by the Branch Manager only after obtaining written
request by the account holder. Yes
d. The related precautions are also observed in computerized branches. Yes
5- Other observations, if any: -

No major irregularity was recorded in this section.

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018


BRANCH VIIKAS MARG
ANNEXURE - A
(i) DETAIL OF CASH BALANCE EXCEEDED OVER RETENTION LIMIT:–

Date Day Actual Cash Holding Excess over Retention Limit
(ii) DETAIL OF IRREGULARITIES IN DEPOSIT ACCOUNT

(Iii) DETAIL OF EXCESS INTEREST PAID IN PAYMENT OF DEPOSITS :–

_____________________________________________________________________________
S.N Nature of L.F. Deposit Interest Interest to interest excess Remark
Deposit Amount Paid be paid paid
_____________________________________________________________________________
(iv) DETAIL OF MATURED DEPOSITS OUTSTANDING BUT NO PROVISION FOR INTEREST MADE BY
THE BRANCH SINCE MATURITY OF DEPOSIT :–
_____________________________________________________________________________
S.N. NAME OF PARTY L/F DATE MATURITY AMOUNT MATURITY REMARK
No major irregularity was observed
(v) DETAIL OF TERM DEPOSIT ON WHICH INTEREST NOT CREDITED AS AT 31.10.2018

_____________________________________________________________________________
S.N. NAME OF PARTY L.F. AMOUNT OUTSANDING REMARK
(vi) DETAILS OF IRREGULARITIES IN POST DISBURSAL FOLLOW UP AND SUPERVISION :

(vii) L.A.D. DUE BUT NOT TAKEN BY THE BRANCH :
Sl.No. NAME OF THE PARTY ADVANCE FACILITY DUE DATE
(viii) STOCK STATEMENTS NOT SUBMITTED BY THE PARTIES IN CASH CREDIT ACCOUNTS
Account No. Name of Accounts Sanction Limit Last Stock

Statement received
Note: Penal interest has not been charged by the branch for non/ late submission of the Stock/ Book Debts
Statements. The Branch should pay attention to the proper calculation of DP as per latest Stock Statements
and to Charge the Penal Interest for non/ late submission of the same.
(ix) LIST OF CASH CREDIT, TERM LOAN AND DEMAND LOAN ACCOUNTS OVERDUE FOR REVIEW :
Sl.No. NAME OF THE PARTY LIMIT REVIEW DUE ON REMARK

A - 28

BRANCH GHAZIABAD
REPORT FOR THE QUARTER ENDED OCTOBER 2018
REPORT ON ‘ K.Y.C. ‘ NORMS
This is to certify that we carried out concurrent audit of Bank’s Ghaziabad branch, during the quarter ended
OCTOBER, 2018. During the course of audit we found that branch is complying with KYC norms of Reserve
Bank of India for identification of customers, categorization of accounts as per Risk Profile etc. as detailed in
Bank’s circular no.83/HO/Opns.& Servs./Cir.No.65/310 dated 28.02.2006 and subsequent guidelines, while
opening the accounts and is following the norms regarding ceiling and monitoring of cash transactions in
respect of remittances etc. Further, the branch is keeping a close watch on cash transactions of Rs.10.00
lacs and above including series of transactions aggregating Rs.10.00 lakh and above etc. as mentioned in
Bank’s circular no. 84/HO/Opns. & Servs./KYC-AML/Cir. No. 3/23 dated 4.5.2006 and is maintaining the
record of these transactions. The details of these transactions are being reported to Head Office also.
It is further certified that periodic review of risk categorization of accounts once in six months is being done
and enhanced and intensified due diligence and monitoring is being done in case of high risk customers. It is
further certified that periodic updation of KYC requirements (at least once in two years for high risk
customers, once in every eight years for medium risk customers and once in every ten years for low risk
customers) is being done to ensure that documents, data or information collected under CDD process is
kept up to date and relevant by undertaking reviews of existing records at periodicity prescribed by Reserve
Bank of India.

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

A - 30

BRANCH GHAZIABAD
GHOSH COMMITTEE RECOMMENDATIONS

Implementation status as on 31.10.2018
S. Nature of Recommendation Yes No N.A. Remarks, if any

No
1. Joint custody and dual responsibility of cash Yes
and other valuables.
2. Transaction in Currency Chest to be reported NA No currency chest at
to R.B.I. on the same day. centre.
3. Adhering to the prescribed norms and safe Yes
guards issued by R.B.I. on issue and payment
high value drafts, depositing large amounts in
new accounts without verifying antecedents,
opening of benami accounts etc. to prevent
misuse of banking channel.
a) System of excusive scrutiny of credit
portfolio with focus on large advances and
group exposures.
Special scrutiny of high value accounts shifted
on the bank along with executives and
accounts transferred from other branches
along with officials. The observations of R.B.I.
inspections should be promptly and effectively
followed up by banks.
4. Monthly certificate on inspection of associated Yes
units and on stocks pledged / hypothecated to
bank. Stock inspections are carried out Bi-
monthly.
5. Adoption of preventive measures of vigilance Yes
in letter and spirit as enumerated.
6. Rotation of staff / duties and transfer covering Yes
all categories of staff, including dealing rooms/
securities departments staff etc.
7. Desk card for staff to be prepared. Banks to Yes
designate one of the senior officer as a
Compliance Officer.
8. Financial and administrative powers of officials Yes
should be laid down.
9. Precautions in handling cash and valuables – Yes
restriction of entry of cash cabin, dual custody
of cash / valuables, surprise verification at
regular intervals etc.
10. Precautions against theft of cash-staff should Yes
not indulge in conversations / answering
queries, but direct such person to Inquiry
Counter only.
11. Precautions against shortage in cash reported Yes
by cashier. Introduction of surprise checking
at frequent intervals.

-(2)-
No
12 Precautions against misappropriation of cash Yes
by member of staff in the guise of customer
service. Only authorised personnel should
accept cash / issue counterfoils in cash
departments. Cashier should not be allowed
to make entries in Pass Book.
13. Proper systems should be evolved in respect Yes
of Cash balances, insurance and prompt
reporting of inter branch and inter bank
remittances of cash.
14. Banks should evolved proper systems of Yes
adequate security and custody of cash in
dacoit / terrorist attack prone areas.
15. Precautions against misusing banking Yes
channels for tax evasion. Pos / TCs in excess
of Rs.50000/- should be by way of debit of
Constituents’ account and not by cash.
Doubtful cases should be reported to higher
authorities.
16. Periodical reporting of deposits / withdrawals NA No currency chest
from currency chest to Issue Department of
R.B.I.
17. Exercise of caution at the time of opening of Yes
new deposit accounts of all types.
18. Customers to be educated about implications Yes
of introducing an account without knowing the
party.
19. Close watch on the operations in the new Yes
accounts should be kept.
20. Issue of fresh cheque books should be only Yes
against requisition slip from previous check
books and other precautions to be taken in
respect of cheque books.
21. Precautions in payment of cheques- Yes
verification of signature, custody and control of
blank- cheque books etc.
22. Balancing of ledgers periodically by staff other NA Balancing by System
than ledger keepers, scrutiny of unauthorized
entries, corrections and the other precautions
in respect of Ledgers.
23. In-operative accounts to be kept in separate Yes
ledger, specimen signature to be in custody of
Manager and other precautions.
24. Safe custody of / access to vouchers through Yes
written orders of Manager – records to be
maintained of those who have accessed such
records.
25. Safe custody of specimen signature cards and Yes
verification of instructions in respect of
operations of the account.
26. Blank draft and mail transfer forms to be Yes
treated as security items and usual
precautions should be taken in respect of their
issue and safe custody.
27. Precautions in writing of drafts / mail transfers Yes
– use of pin point typewriters or reverse
carbon.
(3)-
S.N Nature of Recommendation Yes No N.A Remarks, if any

o .
28. Way in which telegraphic / telex messages for NA Not in use
telegraphic remittances should be sent – use of
codes and accessibility to top most officers of
branch etc.
29. Precautions against frauds perpetrated by Yes
employee – effective supervision, timely receipt
of control returns and scrutiny thereof, rotation /
transfer of staff etc. strict watch on clearing
operations, house keeping, reconciliation of inter
bank / branch accounts.
30. Precautions against frauds perpetrated by staff Yes
in clearing – checking of Branch Clearing
General A/c, despatch of statement, verification
of instrument with relative schedules etc.
31. Safe transit of cheques and instruments Yes
between the branches / clearing house.
32. Precautions to be taken to prevent fraud through Yes
entries in suspense account – periodical
balancing and checking, signing of debit
voucher by Manager / Officer authorized by him,
sending periodical statement, specifying
reasons for non-adjustment for large and more
than a month etc.
33. Mechanization of operations – relating to inter Yes
branch reconciliation. All branches to clear
outstanding entries above Rs.2/- lacs and not
allow them to remain outstanding for more than
a month etc.
34. Unhealthy practice of granting advances beyond No Such practice is not
discretionary power or by oral or telephonic prevailed in our branch.
instructions. Issue of instructions by bank
management.
35. Post-disbursement safeguards to be followed – Yes
critical assessment of all advances periodically,
review of sticky advances and look into staff
side of case when there is shift in health code
status of account.
36. Observance of laid down rules / guidelines / Yes
safeguards by bank officials – credit appraisal,
pre sanction visit to borrowers premises / go
down, proper monitoring of end use of funds to
allowing payments to parties connected with
borrower/s line of business and not allowing
transfer of large amounts to sister concerns etc.
37. Check list of guideline to avoid misuse of Yes
hypothecation / pledge facilities – verification of
borrower’s title of goods pledged, safety of
godowns, obtention of stock statement etc.
38. Safeguards against frauds in bills portfolio – to Yes
ensure bills represent genuine trade
transactions, insistence on submission of all
related documents, ascertaining credit
worthiness of borrowers and drawees, lorry
receipts of approved transporters etc.

-(4)-

No
39. Precautions against frauds in bills portfolio – to Yes
ensure bills represent genuine trade
transactions, insistence on submission of all
related documents, ascertaining credit
worthiness of borrowers and drawees, lorry
receipts of approved transporters etc.
40. Precautions for averting frauds in the areas of Yes
letter of credit, issue of guarantees and co-
acceptance facilities.
41. Banks Guarantees / LCs to be issued in Yes
security serially numbered, under two
signatures above certain cut off point in
triplicate, binding on beneficiary to seek
confirmation of Controlling Officer (
incorporation of suitable condition in the
documents ) etc.
42. Bills discounting facility under L/C, co- Yes
acceptance should be extended only to
customers having regular sanctioned limit.
43. Precaution relating to deals in items like Yes
furniture and fixtures, stationery – proper
system of receiving quotations, delegation of
authority, proper inventory management and
periodical checking etc.
44. Devising standards for suitable internal control Yes
in computerised environment.
45. Micro filming of records, vouchers, books. No
46. Evolving standards for fully computerised Yes
branches.
47. Paper used for cheques / drafts should be Yes
such that any use of chemicals for making
material alterations in the instrument should
be visible to the naked eye.
48. Fraud cases upto Rs.25000/- having NA
involvement of an insider should not be
reported to Police where recovery is not
doubtful.
49. Banks should introduce a return for staff Yes
members to ensure strict submission of the
information of assets & liabilities and proper
scrutiny thereof.
50. Obtaining photograph of depositors at the time Yes
of opening accounts.

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018

A - 31

(REGD. OFFICE : B.G. PANT ROAD, NAINITAL)
BRANCH GHAZIABAD
JILANI COMMITTEE RECOMMENDATIONS

Implementation status as on 31.10.2018.
Note : If comments on any item is other than Yes or N.A., the branch must give reasons for the
same in ‘Remarks’ column and Regional Offices should follow up to rectify the same.
S. Recomm- Nature of Recommendation Yes No N.A. Remarks, if any

No endation
No.
1. 39 Follow-up on major / serious Yes
irregularities detected during
concurrent audit to be immediately
taken up with the H.O. A time-
bound action programme for
rectification to be drawn up and
closely monitored. Fraudulent
transactions to be reported to
vigilance / chief of inspection /
audit etc.
2. 41 Smaller / medium sized branches Yes
to rectify irregularities pointed out
during inspection / audit within 4
months.
3. 44 Inspectors / auditors to get majority Yes
of irregularities rectified during their
stay at the branches concerned
and guide them as well.
4. 45 Immediate action to be taken to Yes
plug gaps in serious irregularities /
revenue leakages, which have
surfaced due to loopholes in
existing procedures, abnormal
deviations from laid down
procedures / norms in consultation
with the departments concerned by
issue of fresh guidelines.
5. * 53 Appropriate control measures Yes
should be devised and
documented to prevent the
computer system from attacks of
unscrupulous elements. All
aspects of security, reliability and
accessibility are ensured before
introduction of EDP application in
place of manual system by having
pilot parallel runs.

-(2)-
S. Recomm- Nature of Recommendation Yes No N.A. Remarks, if any

No endation
No.
6.* 54 Various tests to be carried out to Yes
ensure that EDP applications have
resulted in consistent and reliable
system for inputting, processing
and generation of output of data.
7. 59 Entire domain of EDP activities be Not Applicable at Branch level.
brought under scrutiny of
Inspection and Audit including the
underlying financial aspects.
8. 61 In order to bring about uniformity of Not Applicable at Branch level.
software used by various branches
/ offices, there should be a formal
method of incorporating change in
standard software and it should be
approved by senior management.
Such changes to be inspected and
monitored continuously.
9. 71 Banks should complete enquiries Yes
expeditiously, and bring to book
the delinquent staff to deter other
from perpetuating frauds and
malpractices internet vigilance
machinery to be strengthened and
its working to be reviewed by the
Board every six months.
10. 74 Regular checking by inspectors / Yes
auditors to verify correctness of
information compiled / furnished by
branches regarding income
recognition, assets classification,
provisioning and NPA
quantification in conformity with
prescribed norms. Discrepancy to
be immediately brought to the
notice of Branch Manager for
rectification on the spot

CA. Gaurav Singhal

Place: Ghaziabad
Date : 06.11.2018


CCA - Q - Oct - NTB - Ghaziabad

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CCA - Q - Oct - NTB - Ghaziabad

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CONCURRENT AUDIT REPORT QUARTER

The Nainital Bank Limited, B.O. Ghaziabad [Aug-18 to Oct-18]

THE NAINITAL BANK LIMITED

For Gaurav Singhal & Co.

CA. Gaurav Singhal

Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants

THE NAINITAL BANK LIMITED

REPORT FOR THE QUARTER ENDED OCTOBER, 2018

1. NAME OF THE BRANCH : GHAZIABAD

2. NAME OF THE BRANCH MANAGER : MR. T.D. TRIPATHI

3. Date of taking charge : 23rd May, 2016

4. Deposits : Rs.________ Lacs

5. Advances : Fund based : Rs. ________ Lacs

3. Sub-staff (including 1 Part Time): 1

7. Business per employee: Rs. _________ Lacs

8. Inspection Rating Previous year Current year

For Gaurav Singhal & Co.

CA. Gaurav Singhal

Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants

THE NAINITAL BANK LIMITED

Executive Summery of Report

Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants

Account No. Name of Accounts Sanction Limit Irregularity

10. Excess allowed in Cash Credit Accounts:

For Gaurav Singhal & Co.

CA. Gaurav Singhal

Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants

THE NAINITAL BANK LIMITED

No major irregularities/ discrepancies were pending as on the date of report.

B. Status of rectification of irregularities pointed out by the Concurrent Auditor in the

For Gaurav Singhal & Co.

CA. Gaurav Singhal

Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants

THE NAINITAL BANK LIMITED

A.- (a) CASH VERIFICATION

14-02-2018 6,08,948.00 No soiled/ cut notes found Satisfactory

(b) CASH EXCEEDING RETENTION LIMIT (CRL: Rs. 30.00 LACS)

(i) Security Aspect Satisfactory subject to those mentioned in the Report.

B) BALANCE WITH BANKS (Rs. in lacs)

For Gaurav Singhal & Co.

CA. Gaurav Singhal

Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants

THE NAINITAL BANK LIMITED

For Gaurav Singhal & Co.

CA. Gaurav Singhal

Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants

THE NAINITAL BANK LIMITED

No major discrepancy was recorded.

No major discrepancy was recorded.

No major discrepancy was recorded.

For Gaurav Singhal & Co.

CA. Gaurav Singhal

Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants

b) Discrepancies in conduct of new accounts (current and Savings Bank account).

c) Discrepancies in old accounts (CA/SB), if any.

For Gaurav Singhal & Co.

CA. Gaurav Singhal

Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants

THE NAINITAL BANK LIMITED

FRESH SANCTION AND REVIEW WITH ENHANCEMENT OF CREDIT FACILITIES

Nature of Account No. Name of Account Opening Date Remark/

For Gaurav Singhal & Co.

CA. Gaurav Singhal

Concurrent Auditor : GAURAV SINGHAL & CO., Chartered Accountants