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CONCURRENT AUDIT CERTIFICATION COURSE LOANS AND ADVANCES BY C.A. SHASHISH CHANDRA GUPTA

CONCURRENT AUDIT CERTIFICATION COURSE LOANS AND ADVANCES BY C.A. SHASHISH CHANDRA GUPTA 9810178013. CREDIT APPRAISAL. 1. Loan Application 2. Preparation of Proposal : a) Business of the applicant b) Existing Unit - its functioning c) Financial Viability

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CONCURRENT AUDIT CERTIFICATION COURSE LOANS AND ADVANCES BY C.A. SHASHISH CHANDRA GUPTA

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  1. CONCURRENT AUDIT CERTIFICATION COURSE LOANS AND ADVANCES BY C.A. SHASHISH CHANDRA GUPTA 9810178013

  2. CREDIT APPRAISAL 1. Loan Application 2. Preparation of Proposal : a) Business of the applicant b) Existing Unit - its functioning c) Financial Viability d) All Primary and Collateral Securities e) Compliance of RBI Guidelines : i) Due Diligence Certificate/ Report ii) CIBIL and RBI Defaulters List.

  3. CREDIT APPRAISAL f) Whether applicant is a “relative” of any Director or Senior Officer of the Bank. g) Evaluation of Permissible Bank Finance h) Appraisal made by authority as per Delegated Financial Powers (DFP). i) Valuation of Prime and Collateral Securities.

  4. SANCTION 1.Delegated Power of the Sanctioning Authority as per DFP. 2. Reporting by Branch for temporary/ adhoc facilities and its ratification. 3. Terms and Conditions of sanction for financial facilities. 4. Compliance of Statutory and other Restrictions for Loans and Advances. 5. Takeover finance from Other Bank. 6. Consortium/ Multi-banking financing.

  5. DISBURSEMENT 1. Compliance of terms & conditions of sanctioned facilities. 2. Whether all securities are received by the Branch. 3. Whether charge has been registered on the Securities as per Terms of Sanction. 4. Legal Report for title of securities. 5. Valuation Report of Securities. 6. Utilization of funds.

  6. DOCUMENTATION 1. List of Documents required. 2. Proper execution of Documents. 3. Verification of personal/ corporate undertakings. 4. Compliance of payment of Stamp Duty as per State’s Stamp Duty Act. 5. Inter-se Agreement in consortium funding. 6. Exchange of Credit information under Multiple Banking.

  7. REVIEW 1. Procedure for Review/ Renewal of Borrowal Accounts. 2. Proper procedure for Renewal – Analysis of Financial Performance. - Any adverse features. 3. Reconciliation and Analysis of Audited Accounts of Borrower with QIS and Projections. 4. Repeated Review should be avoided and regular Renewal within specified period of Review. 5. Periodic Balance Confirmation of Debt.

  8. MONITORING Proper and Timely monitoring of Borrowal Accounts : a) Term Loans b) Cash Credit/ Overdraft Limits. c) Housing Loans. d) Book Debts/ Bill Discounting. e) Advances against FDRs, NSGs, LIPs, KVIPs etc. f) Agricultural Loans. g) Other Advances and facilities.

  9. SUPERVISION 1. Periodic Inspection/ Physical Verification of Securities. 2. Post sanction Inspection and adverse comments. 3. Unauthorized Over-drawings, inadequate Insurance Cover, non submission of stock statements, QIS, Audited Balance Sheet. 4. Recovery in accordance of Compromise Agreement. 5. Timely Submission of claims to DICGC. 6. Fresh Loans & Advances by Delegated Authority.

  10. SUPERVISION 7. Restructuring of Accounts. 8. Compliance of Prudential Norms for Income Recognition. 9. Suit filed cases – follow up. 10. NPA Reporting and Valuation of Securities thereof. 11. Irregularities in Accounts – Reclassification.

  11. STATUTORY RESTRICTIONS ANDREGULATIONS RELATING TO LOANS 1. ADVANCES TO BANK’S DIRECTORS : - Section 20(1) of Banking Regulation Act. 2. RESTRICTIONS ON LOANS & ADVANCES TO RELATIVES OF DIRECTORS : - Not without prior approval of the Board and No loan on reciprocal basis. 3. RESTRICTIONS ON GRANT OF LOANS & ADVANCES TO OFFICERS AND RELATIVES OF SENIOR OFFICERS OF BANK : - Any officer in Grade IV and above in Nationalized Bank. - Equivalent grade in SBI & its Associate Banks. - In any Banking Company Incorporated in India.

  12. STATUTORY RESTRICTIONS ANDREGULATIONS RELATING TO LOANS 4. RESTRICTIONS ON CREDITS TO COMPANIES FOR BUY-BACK OF THEIR SECURITIES : - Banks should not provide such loans. 5. RESTRICTIONS ON GRANT OF FINANCIAL ASSISTANCE TO INDUSTRIES PRODUCING/ CONSUMING O’ZONE DEPLETING SUBSTANCES (ODS) : a) Foam Products. b) Refrigerators & Air Conditioners. c) Aerosol Products. d) Solvents in cleaning applications. e) Fire Extinguishers.

  13. STATUTORY RESTRICTIONS ANDREGULATIONS RELATING TO LOANS 6. RESTRICTIONS ON ADVANCES AGAINST SENSITIVE COMMODITIES UNDER SELECTIVE CREDIT CONTROL (SCC) : - Food grains, major oil seeds, Raw Cotton and Kapas, Sugar, Gur, Cotton Textiles etc. 7. Restrictions on payment of Commission to staff members including officers. 8. Restrictions on offering Incentives on any Banking Products. 9. Restrictions on Loans and Advances against Shares, Bonds and Debentures.

  14. STATUTORY RESTRICTIONS ANDREGULATIONS RELATING TO LOANS 10. Advances to Share Brokers/ Commodity Brokers. 11. Bank Finance to Market Makers. 12.Bank Loans for Financing Promoters Contribution etc.

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