Dear Shri Rajeshji,
Thanks for appreciation. Sir, I have worked with due diligence all the time. Let me give you one case. I always start with from last step like. In the case of Loan granted to persons , I started checking with Loan amount sanctioned and through checked , one sight the accounts details during th year. I found one case of Group concerns having limit of Rs 8 lacs average varying from 5 to 8 lacs. Believe me I checked it with due care and found that Balance allowed for overdrawn up Rs 1,00,00,000 in each account without any authorization. I just drawn attention of the Branch Manager and also accountant. It , Branch, was out side Gujarat. We have to be careful for our security. During the last day of audit and reporting I did not discuss the point at all. SECURITY.
After pointing this query on the same day night , I am not habituated by Drink, never touched , never tested, Manager came out with a Good looking Bottle of wine Big Round and lucrative to offer me. I said to him you should not come here with this bottle. To show their Bonafide shown me a simple tissue paper second copy letter addressed to the Regional Manager for sanction.
As per say, It is the duty of some one , I did not look in to this approach. of course it was the duty of Concurrent Auditor to point out in their report , but failed to do so. After my reporting , separate DO Letter to RM, MD of the Bank, Statutory Auditor . My Restriction outside Gujarat and alone. At this juncture 7 Members of Concurrent Auditor of the Bank Staff are under suspension. Do not leave any area where any information you have. Always put them in to writing.
This also reminds me of one Branch. Where all the documents in Bunch , all, were shown me 3 years and more old. I checked all documents 700 Loan accounts. I asked the Manager at every checking of documents, and asked him are there any other fresh documents? His answer was no!!!
In my report I stated bluntly that they are Bad and should be written off. After submission of my report to Regional Manager the other day a phone call came to me to see RM. They showed me that the New documents have been taken and also sanctioned by R M. In explanation to him I pointed out to R M that asked the manger that I had asked every time and all documents checking that there are any other fresh documents or not. R M told me that Branch Manager is a Matriculate only. What you can expect from Him?
Another case was a Company , end use of Loan funds, inspection. All checking after 1 year and more , I checked stock statements all submitted with actual stock with Accounts??? very difficult to , I found from stock statement there was overdraw of amounts. Stock statement included Machinery to be installed. !!
after completion of all there was a recovery of Rs 1,35,000 penal interest to be recovered. There were another 10 CA firms , who worked with other units, their Report was NIL!!! My was a different. The Company went to Liquidation within 2 years!!!
For next year in September I went to for inquiry for about allotment , if any!! I was told by the Person Concerned that Bank Do not want C A as You are.!! But in life I do not leave any thing behind and allow.
As you stated about TDS lapse. I would not have allowed not to be reported. It is in the LFAR also , Tax Audit also you have to report.
As a small person do not leave any thing against professional ethics. Do not do any thing wrong in life. I am survived from many actions against me!!!! Due to reasoning that all and every aspect of cases pointed Bad Practices during my observations. We being small persons can not afford to without any bread and butter for life. Those who are hand packed they can afford to do any practices.
I may tell you another case. Wherein a person asked the manger to grant OD against clearing cheque. His account normal balance was more than 10 lacs in the year!! Manger grant and immediately facility was accepted and done the transaction for Rs 800000. Since then the person did not come to the Branhc for one year. I had to start audit for 20 days later. During 20 days I was told that he is tired and like. On 21 day I ask the reason from Manager what is the matter? Then only Accountant told me this case. This overdrawal was also not reported to Higher Authority.!! Then I just called to the person. On the same day he came to my Home. I told him that nothing at this time. Meet me in the Bank only. It was settled within 2 days , surprise to all.!!! Manager told me to go to any where in India as much as I wish. He will pay me all the expenses!! I did not accept the offer.
You have to cultivate the practices during the Audit , time and experience the difference than the practice ordinarily.
Good Luck,
Regards,
Shah D J
On Thursday, 5 February 2015 7:39 AM, "'Rajesh Gupta' rajesh100gupta@yahoo.co.in [ICAI_CIRC_MEERUT_CA]" <ICAI_CIRC_MEERUT_CA@yahoogroups.com> wrote:
Dear Sir Shah ji,Sir First Thanking to you for valuable guides regarding of bank audit... but one thing happen with me about allot the small branch after given the found the non- deduction of TDS on appx 30 laks intt on FDRs which belong the one person in joint name and other thing is NPA and provision.... ( Not Disclose the name of bank for our professional ethic)Because branch manager and circle AGM said to drop this but do not report on this and say next time to not allotted any bank from our circle.. and after we got small branchRegardsCA Rajesh GuptaChandigarhFrom: ICAI_CIRC_MEERUT_CA@yahoogroups.com [mailto:ICAI_CIRC_MEERUT_CA@yahoogroups.com]
Sent: 02 February 2015 23:37
To: ICAI_CIRC_MEERUT_CA@yahoogroups.com
Subject: [Bulk] {Amresh's CA's} Re: {Amresh's CA's} Re: {Amresh's CA's} First Leasing: RBI, internal auditors did not flag any wrongdoing, says auditor | Business LineDear Shri Rajeshji,You are right. But I may tell you that you should ask the Management of Bank , before conducting audit meeting of Statutory Auditor is held . I think so. At that time your should also represent this Log in problem and time constraint and other issues.When such representation is made at the meeting , management also tells you to approach the higher authority from the Branch itself.This reminds me a case of one branch where for documents verification we had been kept waiting till 3.30 every day for 2 days . When at 3.30 told to Branch Manager he shows the reasoning that cash and all transaction is over safe is closed!!!! Now what to do ? Believe me after second day I discontinued the Branch Audit. Came back to Ahmedabad. From Ahmedabad I wrote a letter to the Regional Manager stating all these facts in two pages. 3 days later there was a call from Regional Manager that I should start Audit. If again there is a problem let us know from the Branch itself. The other day I visited the Branch in the Morning all staff members were in front of door to receive me and told me that I did gave good treatment to the Branch Manager which was required and no body could do !!!!!.So never think negative. You are doing best Job for the Bank . This is how the Management of Audit work is required.
Small branch allotment and other issue to be considered. But this reason should be also disclosed to Bank Management .The limitation of number of days as told to Auditor should not be a constraint at all. You should not think for number of days at all.
Good luck.Regards,Shah D JOn Sunday, 1 February 2015 11:55 PM, "'Rajesh Gupta' rajesh100gupta@yahoo.co.in [ICAI_CIRC_MEERUT_CA]" <ICAI_CIRC_MEERUT_CA@yahoogroups.com> wrote:Dear Members,So Many things reflect the audit report in case of bank BSA's mainly these reason:1. System login problem i e no login id provide by bank to auditor. (that depend of bank staff during the audit period)2. Time limit 10 days for three branches.3. Third most important is – freedom of auditor appointment ; if any auditor found any major arrear then next time bank given so small or nil advance branch for audit.So RBI taken the such condition also.CA. Rajesh GuptaChandigarhFrom: ICAI_CIRC_MEERUT_CA@yahoogroups.com [mailto:ICAI_CIRC_MEERUT_CA@yahoogroups.com]
Sent: 02 February 2015 10:16
To: ICAI_CIRC_MEERUT_CA@yahoogroups.com
Subject: Re: {Amresh's CA's} Re: {Amresh's CA's} First Leasing: RBI, internal auditors did not flag any wrongdoing, says auditor | Business LineDear Members,RBI inspection,investigation can discover frauds.Financial audit is not for discovering frauds.Tax audit report and cost audit report,secretarial audit alsoAre not for shareholders inspectionRamachandran M
Sent from my iPad
On Jan 31, 2015, at 19:47, "Dipak Shah djshah1944@yahoo.com [ICAI_CIRC_MEERUT_CA]"<ICAI_CIRC_MEERUT_CA@yahoogroups.com> wrote:Dear Annaji,All goes together . Nobody can blame others. At every stage one should work as professionals. Unlike , just now said by R B I , on points of Bank Audits? C A are failed and R B I Investigators get success.At every year Auditors should look for back years and also see the ways and means and way of working in every matter fully. For all these years it can not failed!!!!It is 2000 to 2014!!!!Take the case of Ratnamani Engineering Limited in 31.03.1994 !! The same Auditor Reported in Tax Audit Report the income shown as Real income and allowed Company to pay dividend out of mere book entry of profit !!! At the same time in Tax Audit Report the same mere book entry of profit was deleted as Profit Taxable under Income Tax !!!In the same way in another Company well known big name cultured name benind, Rs 300 crore loss was wiped out by mere book entry of profit of Rs 325 Crores by transfer of assets Holding company to subsidiary company.!!!!!!!!!!!Such bad practices will be out shortly when I will file a petition in CLB for Members as a Right to see and inspect the Tax Audit Report along with Published accounts are sent to shareholders and right to have Tax Audit report. This will restrict the Bad Practices by Companies.The defense point taken is surprising !!!!Regards,Shah D JOn Thursday, 29 January 2015 4:05 AM, "Ramachandran Mahadevan ramachandran.mahadevan@gmail.com [ICAI_CIRC_MEERUT_CA]" <ICAI_CIRC_MEERUT_CA@yahoogroups.com> wrote:
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Posted by: Dipak Shah <djshah1944@yahoo.com>
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