Saturday, April 11, 2015

Re: [aaykarbhavan] Re: [Panipat_CA] Window Dressing by Bank Branches- Discussion On Important Bank Audit Issues



Mr. Manesh,

    In Andhra Pradesh government debt waiver secheme is running in a special nature where there is no RBI Sanction for the same.  Government asked the banks with some specific guidelines and taken the list and directly crediting the amount in to the formers accounts directly.  Means as if my friend is payment the amount on behalf of me.  So for that there is no RBI Sanction for this scheme.  There is a web site where you can check the loan accounts of all banks which states that the eligible accounts and non eligible accounts with the reason given.  If Bank managers tells about this scheme you can verify the accounts in that web site and if non eligible accounts found then you can make then NPA.  If eligible account then the government mentioned the fund released to that account in that web site.  You can found that web site in google search with the quote "Debt waiver scheme of AP".  Any further clarification required you can call me on my mobile 9849121421.

On Fri, Apr 10, 2015 at 1:59 PM, Vaibhav vaibhav_c_2000@yahoo.com [aaykarbhavan] <aaykarbhavan@yahoogroups.com> wrote:
 

Dear Friends,

Please guide us in respect of the following query in respect of Agricultural Advances for a Branch based in Andhra Pradesh.

In view of the order of the Andhra Govt. ( G.O.M.s No. 174 dt. 14.08.2014- Finance (IF) Department) where the Govt. has given Debt relief to farmers, women self help groups for agricultural loans not exceeding Rs. 1.50 lakh per family.

Whether this waiver which does not have any sanction from the RBI or the Head Office of the Bank, have any effect on the classification of the Loans which would have otherwise been classified as NPA.

Whether this State Govt. debt waiver would save these accounts from being classified as NPA.

Please reply asap.

Thanks
Manish



On Thursday, April 9, 2015 8:15 AM, "Nitesh More moreassociate@gmail.com [Panipat_CA]" <Panipat_CA@yahoogroups.com> wrote:


 
Window Dressing by Bank Branches
 
As you all know that all of us are busy in the Statutory Bank Branch Audit. Here the some important observations which should be noticed during Branch Audit:
 
Window Dressing
It has been noticed these days that most of the branches have done the window dressing in the Financial Statements, which is required to be reported as per RBI Guidelines in LFAR. 
 
For this what we can do?
Please take the Account Balances of Deposits as well as Advances from 29th March to 3rd.  April. The Balances can be obtained from the Day Book Balance.Once you take the balance, kindly scrutinize the moment in figures.
 
For Example
 
Day End Balance
Date
29.3
30.3
31.3
2.4
3.4
Advance
100
150
200
160
150
Deposits
200
180
230
190
180
 
Kindly Note Above figures depict that
On 31.3, The advances have suddenly jumped to 200 Crores & there is also suddenly Jumped in the figures of deposits to 230 Crores.
 
Again on 2/4 & ¾, The figures of Advances have again come to  160 Crores i.e. Near about the figures which was on 30th March  & similarly the deposits have decreased by 40 Crores i.e. 190 crores  which is similar to Deposits Balance on 30th March. This simply shows that the bank has tried to manipulate the figures.
The figures simply depict that these transactions are solely represented by the book entries. The bank in order to achieve the target figures has shifted some amount from deposits to advances & viceversa. 
 
It is a very critical matter which should be considered while conducting Statutory Audit. RBI Guidelines require the auditor to report upon the window dressing specifically in audit report.
 
 
Utility to Find out NPA 
 
Kind find the link mentioned below. The Attached link is of EMI Calculator which can be proved very useful for you in finding out NPA Accounts.
 
To use this Utility we need 5 things
 
Amount of Loan
Period
Rate of Interest 
Period Elapsed till today from starting date of Installments
O/s Balance
 
What we need to do?
 
Just provide the inputs to the utility?
The software will automatically calculate the o/s balance which should be there.
 
In case the Exisiting o/s Balance is more than the o/s balance calculated by the utility. Then After Adjusting 3 installments, the account can be declared as NPA.
 
Kindly Donwload the Utiilty

 


CA. VINAY MITTAL, FCA
34 Navyug Market, 2nd. Floor
Ghaziabad -201001





--
Ch. Amar Sudheer
Chartered Accountant
Vijayawada


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