Branch Audit Guidelines 2018-19: Financial Management & Accounts Department

BRANCH AUDIT GUIDELINES
2018-19
Financial Management & Accounts Department
PHONE 020- 25614332; FAX 25533924
E-mail: bomcoacc@mahabank.co.in
Ref. No.: AX1/FM&A/AUDIT/G-LINES/Cir. No.16/2018-19 March 25, 2019
To
ALL BRANCHES UNDER AUDIT and ZONAL OFFICES &

STATUTORY BRANCH AUDITORS
Dear Sir,
Annual audit of branches pursuant to annual closing is undertaken at select branches, which
covers, inter alia, all branches having advances of Rs. 20 crore and above as of closing of the
previous financial year. One fifth of branches with advances below such level are also covered
under audit.
Accordingly, 1315 branches are identified for audit for FY 2018-19. Top 20 branches and TIBB will
be audited by Statutory Central Auditors. Necessary orders are being issued to the Statutory
Branch Auditors for audit of the remaining 1294 branches.
The schedule proposed for completion of annual audit work is as under:-
a. Completion of Branch audit April 8, 2019

b. Completion of Zonal Offices audit April 15, 2019
Branches must keep ready all closing sets / statements in time by adhering to closing guidelines
issued by various HO departments for verification, checking and certification by Auditors.
Any changes required to be made in financial data as on 31.03.2019, after closing day, as well as
those pointed out during audit should be effected ONLY by way of Memorandum of Changes
(MoC).
All the branch auditors are requested to complete audit of the branches as early as possible, but
positively before April 08, 2019.
/Hindi Version Follows/
Branch Audit Guidelines 2018-19 Page 2 of 43

INDEX
S.N.
Particulars Page No.
1. Branch Audit 4
2. Statements under Audit and Not under Audit 6
3 Memorandum of Changes – MOC 14
4 Remuneration to Auditors 17
5 Significant Accounting Policies 23
Annexures
Annex I Details of Statutory Central Auditors along with Zones allotted 25
Annex II List of Zonal Inspection Cells 26
Annex III Phone Numbers of Zonal Offices 27
Annex IV Format for claiming Audit fee & Expenses by Branch Auditors 28
Annex V Independent Bank Branch Auditors Report 31
Annex VI Explanation of MOC with Example 35
Annex VII Annexure to LFAR for Specialized Branches 37
Annex VIII Covering letter to be used by SBAs 41
Annex IX Format relating to GST Information 42
Annex X State/ Union Territory wise GSTIN of Bank 43

BRANCH AUDIT
 It is expected that audit of the branch/es is carried out as provided under the Banking
Regulation Act 1949 (as amended) read with Companies Act, 2013 (to the extent applicable),
various guidelines issued by RBI, auditing standards, etc. Accounts for the complete financial
year ending 31st March 2019 are to be audited.
 Branch audit also includes checking, verifying and carrying out audit of transactions for
issuing related certificates as mentioned in BS Set, Credit Set, Format A, B, C & D, RWA
summary, MOC & other certificates, etc. Soft copies of closing related statements are
provided through mailadmin.
 Branches are advised to make all records and statements available to auditors so that the
audit work can be completed within the stipulated time schedule. Auditors are requested to
obtain all circulars/guidelines of the Bank on annual closing as of 31.03.2019 or other
guidelines from the branches for reference before the start of audit. Branches are advised to
provide copies of circulars/guidelines to the Auditors as requested by them.
 It is expected that auditors should discuss with the Branch Head about any procedural
irregularities observed/pointed out by them during the course of audit. They may guide the
Branch Heads to rectify the same immediately wherever possible. Any general suggestion for
improvement in branch working may be given to the Zonal Office (ZO) / Head Office (HO) of
the Bank.
 In case of Nil MOC, the auditor MUST SUBMIT “Nil” MOC Certificate duly signed by him
with the rubber stamp (seal) of the audit firm.
 As far as possible auditors need not insist on passing MOC for items below Rs.5,000/-
(Rupees Five thousand only). These may be adjusted during the course of audit itself. Please
note that the above limit of Rs. 5,000/- does not apply to MOCs in respect of Furniture and
Dead Stock
 Auditors are requested not to add / delete / alter certificate formats prescribed by the Bank or
under relevant Schemes / Committees etc. and the certificates should be given without any
qualification, since any discrepancy located during the course of audit is to be rectified
immediately on the spot. Reconciliation statement or remarks, if any, may be attached
separately.
The following matters are handled at Head Office level:-
a) Accounting of Goods & Service Tax liability/ payment of Goods & Service Tax and other
related matters are handled at HO level for Bank as a whole.
b) Payment of staff salary is centralized at HO. TDS on salary and remittance thereof is also
handled at HO level. Accordingly, this aspect should be taken into account while finalizing tax
audit report (i.e. Form 3CD) at branch level.
c) Identification of NPAs, as well as computation of provision as per IRAC norms, is being done
by the CBS System. However, the Branches/Auditors are required to verify the classification of
advances, provisions held etc. In case of any variation, the same shall be reported to Recovery
Department, Head Office.
d) Further, all accounting of provisions relating to advances in profit & loss statement viz.,
NPAs, restructured Standard assets, SDR Accounts (including interest reversal on Standard
SDR Account), additional provision on NCLT Accounts, Additional Provision on MSME
accounts where relief in repayment is given to the borrowers registered under GST, Additional
Provision in case of Resolution of Stressed Assets as per the RBI Circular RBI/2017-18/131
DBR.No.BP.BC.101/ 21.04.048 /2017-18, dated 12.02.2018 and provision for entries in
Nominal Accounts for more than six months, & provision for taxes etc. are made at Head

Office. Hence, branch auditors are required to verify the correctness in reporting the category
of NPAs and outstanding entries under specified nominal accounts.
 Review of computation of Risk Weighted Assets for the year ended March, 31 2019 will be
done at Head Office by Statutory Central Auditors (SCA’s). It may be noted that computation
of error-free risk weighted assets depends upon correct data entry into the CBS and EXIM Bill
Software. Hence every branch must ensure correctness and accuracy of data entered in CBS
and EXIM bill Software. Detailed guidelines issued by Integrated Risk Management
Department in this regard be followed.
 It is to be noted that no marking is to be made on security/ loan documents / papers,

which are being verified by the auditors. No copy of security documents should be
given to the auditors.
 In terms of RBI guidelines (DBS.ARS.BC.No.04/08.91.016/2014-15 dated 11th Sep. 14),

Branch Managers / Zonal Heads are instructed to ensure that the external auditors of
the Bank are not permitted / facilitated to have direct discussions with the customers /
borrowers
 After completion of branch audit statutory branch auditor should submit their claim of TA/DA
duly certified by the Branch Mangers along with supporting bills as per format given in
Annexure IV to respective Zonal offices. The zonal office will reimburse the fee & TA/DA after
approval of results by the Board.
 Instructions regarding preparation of BS-15 (Statement of Furniture & Dead Stock) at

Branches and Consolidation at Zones
Following steps need to be undertaken by branches / zones to ensure smooth tallying of

BS-15 for the annual audit for the year ending on 31st March 2019.
i. At the time of preparing BS-15 for the year ending 31st March 2019, the Post-MOC closing
WDV balance and Closing cost as per BS-15 as of 31.03.2018 should be taken as opening
WDV balance and opening Cost respectively for 01.04.2018 by all the branches in your
Zone.
ii. The adjustment of MOC impact for March 2018 has been settled through respective zonal
offices in June 2018, zones are to ensure that the net impact of MOC has been effected at
branch level.
iii. Ensure that all the additions on account of purchases / transfer from other branches and
deletions on account of sale / transfer to other branches during the FY 2018-19 (i.e. from
1st April 2018 to 31st March 2019) have been entered in F & D Register in ROSW software.
iv. In case of sale of assets, Branches/Offices to mention the realized value of assets in
column no. 16 of BS-15-Statement of Furniture & Dead Stock. For e.g. If realized value of
the asset is Rs.15000/- and WDV is Rs.12000/- the actual realized value i.e. Rs.15000/-
should be shown in column no 16. Please note that in case of sale, column no 16 should
not be left blank.
v. There should be “NIL” balance in PL Depreciation (All heads) before releasing the
depreciation vouchers for 31st March 2019.
vi. Release depreciation vouchers after ensuring that the category wise closing cost (before
providing depreciation for 31.03.2019) tallies with WDV of Assets as per Trial Balance.
vii. After releasing depreciation vouchers, branch / zonal office has to confirm that category
wise closing WDV and depreciation for the year as per Trial Balance and Profit & Loss

statement tallies with the closing WDV and Depreciation respectively shown in the
projected depreciation report generated from ROSW software.
viii. The above stated exercise should be completed on or before 28th March 2019. Zonal
offices must obtain confirmation to this effect from each branch on 28th March 2019 before
EOD and keep it on record.
ix. Please ensure that there are nil / minimum MOCs on account of depreciation on F & D
items for the year ending on 31st March 2019.
We reiterate that the year-end depreciation is not to be reversed
STATEMENTS UNDER AUDIT & NOT UNDER AUDIT
The Statements to be audited are divided in following sets:
i) Statements in BS Set.
Statement Particulars Remarks Contact Person at Whether
Head Office UDIN
Required
BS-1 Post MOC- BOM Adjusted (ROSW System Mrs. Amruta Mohile No
Trial Balance generated) Mr. Keyur Talati
BS-2 Post MOC-Profit & Loss (ROSW System FM&A Dept
Account Statement (detailed) generated) 020-25614332
BS-6 Statement of average To be prepared Mr. Mudit Agarwal No
advances manually Format Navneet Kumar
provided through FM&A Dept
mail admin 020-25614447/230
BS-8 Statement of Inter Bank (ROSW System Mr. Anurag Anal No
Reconciliation along with generated) FM&A Dept
Balance Certificates 020-25614410
BS-10 Compliance Certificate Mrs. Amruta Mohile Yes
Mr. Keyur Talati
FM&A Dept
020-25614332
To be prepared
BS- 11A Statement of Ghosh Mrs. Peshve No
manually Format
Committee Recommendations Vigilance Dept
provided through
020-25614384
mail admin
BS- 11B Statement of Jilani Committee Mr. Bhagyawant/ Mr. No
Recommendations P C Gujarati
Inspection Dept
020-25614388
BS- 15 Statement of Furniture & Dead (ROSW System Mr. Vallabh Ubedal No
stock and SDV Lockers generated) Mr. Keyur Talati
FM&A Dept
020-25614333/332
BS- 16 Post MOC-Summary of (ROSW System Mr. Anurag Anal No
various Nominal Accounts generated) FM&A Dept
020-25614410
BS- 17 Consolidated statement of Mr. Mudit Agarwal No
To be prepared
income computation & Navneet Kumar
manually Format
disclosure standards (ICDS) FM&A Dept
provided through
BS- 23 Statement of prior period 020-25614447/230 No
mail admin
income & expenditure
BS- 24 Statement of Corporate & (ROSW System For IT related/ROSW No
Wholesale accounts generated) Gunjan Agarwal- 020-
25614252
For others
Mr. Sabir Ansari
FMA Dept
020-25614386
BS- 29 Statement of Penalty To be prepared Mr. B B Behera No
imposed on Bank* manually Format 020-25614385
provided through
mail admin
*introduced during current year
 Tax Audit Report and Long form Audit Report (LFAR)

Head Office UDIN
Required
3CA, 3CD Tax Audit Report Mr. Mudit Agarwal Yes
Navneet Kumar
FM&A Dept
020-25614447/230
LFAR Long Form Audit Report (LFAR) -- No
including that of specialized
branches and large branches
having advances of Rs.100 crore
and above To be prepared
manually Format
As a part of LFAR, apart from provided through
other matters, specific mail admin
observations on borrowal
accounts, having exposure of Rs.
2.00 crores and above shall
necessarily be covered
LFAR Other Long Form Audit Report (LFAR) No
than other than Advances (Zones
Advances should also consolidate the LFAR
other than Advances)
 Statements in Credit Set are to be certified by auditors

Head Office UDIN
required
Credit Set Account-wise details of To be prepared No
9A advances to Capital Market manually Format
provided through mail
admin
Credit Set Exposure to Sensitive sector Generated from CBS Mr. Sanket No
9B (Advances to Real Estate and Pushed to Branches Deshmukh/
Sector – Direct Exposure) Mr. Amit Singh
Credit Set Statements on Restructured To be prepared 020-25614391 No
11A Accounts balance Rs.100 lacs manually Format 020-25614249
and above provided through mail
admin
Credit Set Statements on Restructured Generated from CBS No
11C Accounts balance below and Pushed to Branches
Rs.100 lacs

 Statement of Advances & related statements

Head Office UDIN
required
Blue Pre MOC Statement of Advances Mr. Pramod Chive No
Statement To be Generated Recovery Dept.
Forms A, B & Pre MOC – Facility-wise, Sector- from BOM Credit 020-25614266 No
C wise and Asset-wise Classification Information and
of Advances / Provision. Monitoring System For IT support
Form D Movement of Gross NPA (with PRE (CIMS) Mr Sagar No
& POST MOC) Gawande
MOC Asset wise as well as Provision wise 020- 25614252 No
verification
reports-
applicable
only to Zonal
Offices
MOC I to IV MOC Sheets No
of Recovery
Form E Contingent Liabilities not To be prepared Mr Sunil Kumar No
acknowledged as debt. manually Format Mr, Jay Manohar
provided through Reddy
mail admin Legal Dept.
020-25614315
020-25614456
Branches may refer to the extant guidelines issued by Recovery Department, HO in this regard.
 Statement of Priority Department

Statement Particulars Remarks Contact Person Whether
UDIN
required
Credit Set Additional Interest Subvention Claim – Mr. Dinkar Yes
16-A Agriculture Budhe
Credit Set Regular Interest Subvention Claim – To be prepared Mr. Shriram Yes
16-B Agriculture manually Format Bhor
Credit Set Interest Incentive Claim – Agriculture provided through Agriculture Yes
16-C mail admin Dept.
020-25614342
020-25614426
Annexure- Central Sector Interest Subsidy (CSIS) Mr. Pankaj Jain Yes
1 Scheme on Educational Loans to Retail Dept.
Students Belonging to Economically 020-25614459
Weaker Sections (EWS)
Annexure- Padho Pardesh Interest Subsidy Yes
2 Scheme on Educational Loans for To be Generated
Overseas Studies for the Students from BOM
Belonging to Notified Minority CREAM
Communities
Annexure- Dr. Ambedkar Central Sector Interest Yes
3 Subsidy Scheme on Educational Loans
for Overseas Studies for the Students
Belonging to OBC & EBC Categories
Annexure- List of Districts eligible for interest Mr. Ashok Yes
4 subvention under NRLM Chavan
Annexure- Interest Subvention Claim at 7% under Priority Dept. Yes
5 NRLM 020-25614373
Annexure- Additional Interest Subvention Claim at Yes
6 3% under NRLM
Annexure- Recovery after Claim Settlement – Mr. Mohammad Yes
7 CGTMSE Imram
To be prepared
MSME
manually Format
Department
provided through
020-25614459
mail admin
Annexure- Consolidated Certificates for recovery Mr. Manish Yes
8 made in DICGC Claim Arora
Annexure- Statement of Recovery in SLGS 1971 Sucheth Yes
9 claim settled accounts D’Souza
Annexure- Statement of Recovery in Small Loans MSME Yes
10 (SSI) 1981 claim settled accounts Department
Annexure- Statement of Recovery in GSSSI 1971 020- Yes
11 claim settled accounts 25614264/281
Annexure- Implementation of Pradhan Mantri ULC – Portal for Mr. Pankaj Jain Yes
12* Awas Yojana (PMAY) - Credit Linked PMAY – CLSS Retail Dept.
Subsidy Scheme (CLSS) for EWS/LIG Scheme – Audit 020-25614459
OLD by National Housing Bank Certificate
EWS/LIG (OLD)
Annexure- Implementation of Pradhan Mantri ULC – Portal for Yes
13* Awas Yojana (PMAY) - Credit Linked PMAY – CLSS
Subsidy Scheme (CLSS) for EWS/LIG Scheme – Audit
Certificate
NEW by National Housing Bank
EWS/LIG (NEW)
Subsidy Scheme (CLSS) for MIG 1 by Scheme – Audit
Certificate MIG1
National Housing Bank
Subsidy Scheme (CLSS) for MIG 2 by Scheme – Audit
Certificate MIG2
National Housing Bank
Annexure- Interest Subvention on MSME To be prepared Mr. Manish Yes
16* Advances manually Format Arora
Annexure- Interest Subvention on MSME provided through Sucheth Yes
mail admin
17* Advances_Details 1 D’Souza
Annexure- Interest Subvention on MSME MSME Yes
18* Advances_Details 1 Department
020-
25614264/281
*introduced during current year
Branches may refer to the extant guidelines issued by Priority Department, HO in this regard
 Statement of Unhedged foreign currency exposure as per guidelines issued by

Credit Department (To be prepared manually Format provided through mail admin)- UDIN
Number is not required

About Unique Document Identification Number (UDIN)

To curb the malpractices, the Professional Development Committee of ICAI has implemented in
phased manner an innovative concept of UDIN i.e. Unique Document Identification Number. All
Certificates are being made mandatory with effect from 1st February, 2019 as per the Council
decision taken at its 379th Meeting held on 17th – 18th December, 2018. Further w.e.f 1st. April
2019 ICAI has made mandatory for Tax Audit Reports also. Further UDIN is to be generated for
Assignment wise and same UDIN is to be used in all documents signed under that assignment.
Say for Example while signing the various certificates while doing Bank Audit, same UDIN can be
used for all certificates to be signed for that particular Branch Audit Assignment (i.e. for each
Branch separate UDIN is to be generated). Auditors are requested to ensure due professional care
in generating and mentioning the UDIN No. for each Branch. UDIN No. is subject to verification at
Zonal Office/Head Office level.
Unique Document Identification Number (UDIN) is 18-Digits system generated unique number for
every document certified/attested by Practicing Chartered Accountants
 Statements Not under Audit but to be signed & submitted by Branch Managers/Zonal
Managers
Statement Particulars Remarks Contact Person at
Head Office
Credit Set LC/BG/DPG Devolved/Invoked To be
Mr. Sanket
2A/B/C prepared
Deshmukh/
Credit Set 8 Non Fund Business manually
Mr. Amit Singh
Credit Set Consortium Accounts Format
020-25614391
10A/B provided
020-25614249
Credit Set 17A Statement of Takeover Accounts through mail
admin
BS 3 Additional information of office account Generated Mrs. Amruta Mohile
from ROSW Mr. Keyur Talati
FM&A Dept
020-25614332
ZO 10 Statement of Stationery on Hand Mrs. Amruta Mohile
Mr. Keyur Talati
To be FM&A Dept
prepared 020-25614332
ZO 13 Statement of Suit Filed and Decreed Accounts manually Mr Sunil Kumar
ZO 13 A Statement of Suit Filed and Decreed Accounts Format Mr, Jay Manohar
having Ledger Balance Rs. 5.00 Lakhs & above provided Reddy
& Statement of SARFAESI Applications / through mail Legal Dept.
appeals. Accounts having Ledger Balance Rs. admin 020-25614315
1.00 Lakhs & above 020-25614456
ZO 15 Comparative statement on operating expenses Mrs. Amruta Mohile
ZO 29 Statement for Calculation of Provision for To be Mr. Keyur Talati
Interest on Overdue Deposit prepared FM&A Dept
manually 020-25614332
Format
provided
through mail
admin

Submission of Statements:-
Statements, duly signed by the branch manager and auditor, should be submitted by branches to
their zonal offices. Details of the same are given in the instructions for annual closing circular
issued by various HO departments.
Statutory Branch Audit Report, LFAR and other audit reports should be addressed to the
concerned Statutory Central Auditor of the Zone. Auditors are requested to prepare copies of the
reports for distribution as under:-
For Branches under Audit:

a) Statement under Audit
Four Copies (One Copy for Zonal Office, One Copy for Statutory Central Auditor, One copy
for Branch Auditor & One copy for Branch records)
b) Statements not under Audit
Two Copies (One Copy for Zonal Office and One Copy for Branch records)
For Branches not under Audit:

a) Statement under Audit
Three Copies (One Copy for Zonal Office, One Copy for Statutory Central Auditor & One
copy for Branch records)
b) Statements not under Audit
Two Copies (One Copy for Zonal Office and One Copy for Branch records)
No copy of the audit set should be sent by Branches to Head Office directly.
Zonal Offices shall compile them into two sets, one each for – (a) the respective Zonal Statutory
Central Auditors; and (b) Zonal Office.
After compilation and consolidation of all statements, received from the branches, the audited
consolidated reports / statements for the Zone as a whole should be sent to the respective
departments of Head Office.
The set meant for Statutory Central Auditors should be handed over to them during their visit to
Zonal Office.
Zones are requested to scan all the audit reports of the Branches as well as of Zonal Office
and keep in their FTP & inform the same through e-mail to:
1) amruta.mohile@mahabank.co.in
2) keyur.talati@mahabank.co.in
AUDIT REPORTS
For the sake of uniformity and convenience, the Audit Report is to be submitted in the following
parts:
a. Statutory Branch Audit Report:
The format of audit report is enclosed as Annexure V. Auditors are requested to use the format.
Statutory audit report should be addressed to the concerned Statutory Central Auditor. Name and
address of the Statutory Central Auditors and Zones being audited by them are given in
Annexure-I.
b. Long Form Audit Report (LFAR):
 As per RBI guidelines, a report covering various aspects of branch working is required to be
submitted by the branch auditors, in the prescribed format.

 In LFAR, detailed observations in respect of exposure towards single borrower of Rs.2 crore
and above (for which a separate format is prescribed and the same is made available to the
branches) have to be mentioned in respect of Large Branches (branches having advances of
Rs.100 crore and above)/ Asset Recovery Branches apart from other observations on lending
& non-lending matters.
 Apart from the main report of LFAR, a web based LFAR portal is made available in Bank’s
intranet, which is to be used by the auditors, for reporting their observations on advances
accounts.
c. Other Audit Observations:
If the Auditor has other important observations in respect of branch working, the same may be
reported through a separate report to respective zonal office & Head Office, Pune.
OTHER AREAS
1. Cash Retention Limits & Insurance:
At Head Office level, Bank has taken insurance on cash holding at branches, as well as cash in
transit, to the extent of Rs. 61 crore & Rs. 15 crore respectively with reinstatement clause. In
this regard, auditors are requested to report, instances of high cash holding vis-à-vis the retention
limit communicated to the branch by the concerned Zonal Office. Details of insurance policies, if
any, obtained by the branches in cases where the cash holding exceeds the aforesaid sum
insured during the year under audit may be ascertained and covered under LFAR.
2. Prior Period Income/Expenses:
 Auditors should ensure that prior period items are correctly reported by branches in the
designated statement (BS-23). It must be ensured that only prior period item which has
accrued in an earlier year and accounted for during 2018-19 is reported.
 Any liability which crystallizes during the FY 2018-19 cannot be termed as prior period
expenditure though it may pertain to previous year. Auditors should ensure that the figures
shown in this report tally with the corresponding figures reported under tax audit report. For
example, rent arrears (may be pertaining to previous years) paid during the year under audit
where the agreement is executed/reached in the year under audit, do not form part of prior
period expenditure.
3. Effective practices to prevent frauds and ensuring timely reporting & follow up action:
Govt. of India, Ministry of Finance, DFS (Vigilance Section) vide their communication No. 4 / 5 /
514 – Viz dated March 18, 2015 has directed all the PSBs to cover following aspects under
audit process:
 That the guidelines of RBI, as regards classification, reporting and other necessary action
like lodging of FIR etc., as prescribed in the Master Circular No. DBS. CO. CFMC. BC. No.
1 / 23.04.001/ 2014-15 dated July 1, 2014 are complied with (Further RBI has also issued
Master Circular No. DBS. CO. CFMC. BC. No. 1 / 23.04.001/ 2015-16 dated July 1, 2015).
 That there is no instance of not classifying fraud as fraud and / or not reported in timely
manner and / or reported at a very late stage and launch of ‘prescribed criminal / other
action is delayed which has resulted in huge losses to Banks and misappropriation of public
money.
 That there was tendency to ignore early signs to avoid / delay consequences like adverse
publicity / controversy, 100% provisioning and fixing of staff accountability.
The auditors are, therefore, requested to cover above aspects under audit process and such
instances, if any, shall be reported while submitting their report.

4. Income Computation & Disclosure Standards (ICDS):-
 W.e.f. 01.04.2016, ICDS (Income Computation & Disclosure Standards) provisions were made
applicable on Bank. ICDS requires revenue recognition on accrual basis. Hence the
income received on cash basis needs to be bifurcated into current and subsequent
period. For this purpose it is decided to bifurcate such income for the following items:
1. Locker rent
2. Commission on bank guarantee
3. Commission on letter of credit
4. Commission on bill discounted.
 For the above items separate BS sets i.e. BS17A to BS17F have been provided. An illustration
for reporting accrual income (for example BG- inland) is as under:
Mr. A has paid Rs 3600/- as commission for 3 years on 15th Jan -2019 then amount relating to
current year (i.e. for 76 days) should only be reported as commission for current year and
remaining amount should be reported as commission received for arrears or in advance.
Calculation:-
No. of days upto 31.03.2017= 76 (17 days for Jan + 28 days for Feb + 31 days for Mar); Total
No. of days = 1095 (365*3)
Commission related to current year = 3600* 76/1095= Rs.250/-
Commission received in advance = 3600-250= Rs.3,350/-
 Branches are requested to forward copy of BS 17 only (i.e. Summary of BS 17A to F) duly
certified by the auditor along with soft copy of same to their respective zonal offices.
 Branches need not sent ‘Subset of BS 17’ i.e. BS-17A, BS-17B, BS-17C, BS-17D, BS-17E,
BS-17F to zonal office. Same should be preserved at branch level only for subsequent 7 years.
 Zonal offices shall consolidate the statement- BS 17 branch wise in excel sheet and submit to
H.O both in soft and hard copy along with other BS Statements.
BS 17 statement is statistical information for reporting purpose only, hence no MOC is to

be passed in this regard.

MEMORANDUM OF CHANGES (MOC)
Memorandum of Changes (MOCs) is to be done for reporting and accounting of changes

due to –
a) errors/discrepancies in GL & PL
b) changes suggested by auditors
Entries may be required to be passed for rectification of errors/discrepancies as well as for

changes suggested by the auditors. A few examples of MOCs are given in Annexure VI. Since the
system of “Memorandum of Changes” (MOC) is in place, any changes required to be made in
BS1, BS2, BS15 shall be reported in MOC without any changes in these statements.
There are two sets of MOCs viz.

 those related to GL and PL accounts and
 those related to Credit (including Asset Classification and Recovery)
GL and PL MOCs deal with changes in GL & PL head-wise balances and these are reported &
consolidated through ROSW software.
Credit related MOCs deal with changes in assets classification of advances as well as provisioning
requirement there on. The impact of credit MOCs is given at account level through CIMS, at Zonal
office level. However, the impact of Credit MOCs on GL and PL must be included in the branch
level MOCs reported in ROSW.
GL and PL MOCs are required to be prepared and submitted in different parts for changes as
under, as per formats provided:
PART A - For items in Profit & Loss A/c. (Statement No. BS-2)
PART B - For item in Adjusted Trial Balance (Statement No. BS-1)
PART D - For items of Furniture & Deadstock and Safe Deposit Vault/Lockers (BS-15)
NOTE - MOC formats contain remarks/reasons column, which must necessarily be filled up with
the reasons in brief for the changes suggested by the auditors against each item.
Following aspects be noted while submitting the MOCs –
 The difference, resulting on account of entries that are required to be passed after 31 st March,
(which arise during the course of audit as stated above), is reported through the Memorandum
of Changes.
 While considering each correction/rectification, its effect on various heads and statements
must be included in the MOC. Needless to mention that figures given in the various supporting
statements in the Balance Sheet sets have direct relation with the figures in BOM Adjusted
Trial Balance and Profit and Loss A/c Statements.
 Based on the MOCs approved by the branch auditors, branches will punch the MOCs in the
ROSW system, and after validation, print out shall be taken, which should be certified by the
auditor. If there is any system related issue which is not resolved within reasonable time
period, manual MOCs may be submitted to Zonal Office.
 The Credit related MOCs are also to be prepared by the branch auditor/s; however, updating
(punching) of the entries therein, in CIMS, is made at the ZOs. The total amount of Credit
related MOC (GL / PL head wise) must be included while preparing GL / PL MOCs and
accordingly punched in ROSW. In other words, the Credit related MOC leading to change in
level of advances, interest income / other income etc. must be taken into account while
preparing GL /PL MOC and need to be punched in ROSW at branch level.

 Memorandum of Changes should be submitted for final figures after considering net effect of
all changes under each GL / PL head of item (i.e. MOC for consolidated amount in respect of
each GL / PL, impacted by such MOC).
 Auditors are requested to note that, as far as possible, MOC affecting profit/loss up to
Rs.5, 000/-, should be avoided. These changes, however, may be given effect to (in the year
2018-19) during the course of audit itself.
 In case of any difficulty, errors/discrepancies should be referred to Zonal Office for guidance.
 It may please be noted that the consolidation work and finalization of Balance Sheet at Head
Office is mainly based on the BOM Adjusted Trial Balance (BS-1) and the Profit and Loss A/c
Statement (BS-2) and other reports. It is therefore, necessary that those changes (if any) in
each individual item of the BOM Adjusted Trial Balance and/or Profit & Loss a/c and also in
asset quality (advances) are reported through MOC.
 Closing WDV in the statement of Furniture & Deadstock and SDV Lockers (BS-15) must tally
with the corresponding figure in BOM Adjusted Trial Balance; & Depreciation for the current
year must tally with the amount of depreciation in P&L A/c Statement.
 It must be ensured that effect of all corrections have been taken into account and in the
revised (Post MOC) position, figures in various statements tally with each other.
 MOC should be submitted in the format supplied. In case there is nothing to report under any
of the MOC parts, a certificate to the effect of NIL MOC must be submitted by the branch
auditors and countersigned by branch head.
 Branches will submit their MOC statements, certified by the auditors, to their respective Zonal
Offices.
CONSOLIDATION OF MOC & PASSING THE IMPACT OF MOC at zonal office level
 Credit related MOC suggested during ZO audit will be updated (punched) in CIMS as well as in
ROSW (GL & PL).
 Zonal Offices will consolidate the individual MOC entries of the branches, as well as any MOC
accepted at their end, which will reflect final position of MOC at Zonal Level.
 POST MOC TB, P&L A/c Statement and BS-15 position, along with the consolidated MOC of
the Zone as a whole will be submitted to Head Office together with other statements (after
giving effect of MoC). It must be ensured that the differences between PRE MOC & POST
MOC TB, P&L and Furniture & Deadstock A/c are checked and tallied with the consolidated
MOC at zonal Level.
Guidelines to the branches on completion of Zonal audit:-
 Branches should pass necessary vouchers, in the concerned accounting period (i.e. 2019-20),
for giving effect of MOCs pertaining to FY 2018-19 except MOCs relating to up-gradation and
down-gradation of advances (i.e. reversal of interest / application of interest on advances).
 The impact on account of reversal / application of interest, including down-gradation (NPA) /

up-gradation of advances account identified through MOCs, is given centrally in CBS System
by Recovery Department and therefore branches need not pass any voucher in this behalf.
However branches have to credit / debit respective PL heads for MOC on advances after
claimed / reimbursed by HO through ZO.

 In case of other MOCs, related TB head (BGL account) / customer’s account should be debited
/ credited with amount of MOC (i.e. MOC account relating to that particular BGL or Customer’s
account) and net consolidated amount, affecting Profit or Loss of the FY under audit (i.e. FY
2018-19) should be credited / debited to Closing Adjustment Account.
 The amount of MOC, impacting Profit or Loss of FY 2018-19 and that outstanding in closing
Adjustment Account after releasing vouchers as aforesaid, will be claimed / reimbursed by HO
through ZO, along-with amount of MOC related to reversal / application of interest in respect of
newly down-graded / up-graded accounts.

REMUNERATION FOR AUDIT OF THE BRANCH
a. Audit Fees –
The schedule of audit fees payable to the auditors for the audit work of the branches, (prescribed
as per RBI guidelines and subject to change from time to time), depending upon the level of
advances, is as under:
Category of bank branch Audit fees

(on the basis of quantum of advances as on 31/03/2019) (Rs.)
Upto Rs. 10 crore 40,250/-
Above Rs. 10 crore and upto Rs. 20 crore 57,500/-
Above Rs. 20 crore and upto Rs. 30 crore 79,350/-
Above Rs. 30 crore and upto Rs. 50 crore 1,20,750/-
Above Rs. 1000crore and upto Rs. 5000 crore 3,95,600/-
Above Rs. 5000crore 4,31,250/-
 In case of specialized branches (except TIBD/TIBB) such as Service Branch, Asset Recovery
Branch, Retail Asset Branch, credit processing centers etc., fee of Rs.17,500/- per branch is
payable. For TIBD fee payable is Rs.2,00,000/-
Fees for LFAR and Tax Audit:
 LFAR: 10% of the basic audit fees payable for audit of respective branch.
 Tax Audit: 15% of the basic audit fees payable for audit of respective branch.
 Goods & Service Tax (18% of audit fees) is also payable if GST is claimed by the Auditors in
their bill quoting Goods & Service Tax Registration Number of the Audit Firm as well as that of
the Bank.
 It may be noted that no GST will be reimbursed, if same is claimed without providing
the Goods & Service Tax registration number of the firm and Bank on the bill.
 Auditors are requested to inform the branch / Zonal Office on before commencement of audit
itself about charging of GST on audit bill to enable the concerned Zonal Office to calculate the
audit fee and TDS thereon.
 As per the Govt. of India guidelines, the amount of Goods & Service Tax should be
mentioned separately in the Auditor’s Bill. The Goods & Service Tax Registration Number
of the Audit Firm should necessarily be mentioned in the bill if GST is claimed by auditors.
 If any audit firm is exempt from Goods & Service Tax, it should be specifically mentioned in the
bill.
 No separate TA/DA will be paid for LFAR/Tax Audit of branches and for any certificate by
branch / zone.

b. Travelling & Halting expenses for the conduct of Branch Audit
Travel and stay arrangements for auditors during the period of audit for the year ending 31st
March 2019 should be made strictly by the branches/zones at minimum possible expense
within below mentioned limits prescribed by RBI and Invoices should be on name of the
Bank with GSTN of respective state. The expenses incurred beyond the eligibility of the audit
firm will be recovered from the respective Audit Firm only.
RBI has fixed rates of traveling and halting expenses for the auditors for audit of branches in India,
as given below
i. Travelling Allowance:-
For Proprietors / Partners For Assistants

Air conditioned First class railway fare or air First class / AC II tier railway fare or the actual
fare (by economy class) or the actual cost cost of conveyance by other modes of
of conveyance by other modes of transportation where the routes are not served
transportation where the routes are not by rail. (Air fare* by economy class as a special
served by air / rail. case whenever considered necessary)
* Branches should not permit air travel for audit assistants. Requests, if any, in
this regard should be referred to the concerned Zonal Head for sanction. Zonal
Heads while granting permission for air travel for audit assistants should take into account, inter
alia, need for timely completion of audit, distance and other relevant factors.
In case the audit assistants travel by air, claims submitted by auditors should contain the air ticket
bills in the name of audit assistant(s) and a copy of sanction for air travel obtained from the
competent authority.
ii. Halting Allowances:
The rates of Halting Allowance subject to production of bills/vouchers in the name of the Bank
shall be as under:
LODGING Charges approved rates are as under:
Category of Audit Officials Scale & designation of Bank Officials ( as per
IBA)
Partners / Proprietors of audit firms VII – General Manager
Qualified Assistants III – Senior Manager
Unqualified Assistants I – Dy. Manager
A table showing permissible reimbursement is given below.

(Rs. in actual)
Particulars Maximum Room Tariff permissible (exclusive of admissible taxes)
Major ‘A’ Class Cities Area I Other places
General Manager 8500 3,400 3,000
Grade Scale VII
Senior Manager 2,400 1,600 1,200
Grade Scale III
Officers 1,600 1,200 1,000
Grade Scale I
Major “A” class Cities Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Greater
Mumbai, Pune & Surat.
Area I Cities Agra, Allahabad, Asansol, Bhopal, Coimbatore, Faridabad,
Ghaziabad, Indore, Jabalpur, Jaipur, Jamshedpur, Kannur, Kanpur,
kochi, Kozhikode, Lucknow, Ludhiana, Madurai, Mallapuram, Meerut,
Nagpur, Nashik, Patna, Rajkot, Srinagar, Thiruvananthapuram,
Thrissur, Vadodara, Varanasi, Vasai – Virar City, Vijaywada.

BOARDING CHARGES:
(Rupees in actual)
Category of Audit METRO Major ‘A’ Class Area I Other Places
Officials (only Four cities) Cities* Cities
Proprietors/Partners 1800 1300 1100 950
Qualified Assistants 1300 1100 950 800
Unqualified Assistants 1300 1100 950 800
Metro Cities Delhi, Greater Mumbai, Chennai & Kolkata
Major “A” class Ahmedabad, Bangalore, Hyderabad, Pune & Surat.
Cities
Area I Cities Agra, Allahabad, Asansol, Bhopal, Coimbatore, Faridabad, Ghaziabad,
Indore, Jabalpur, Jaipur, Jamshedpur, Kannur, Kanpur, kochi, Kozhikode,
Lucknow, Ludhiana, Madurai, Mallapuram, Meerut, Nagpur, Nashik,
Patna, Rajkot, Srinagar, Thiruvananthapuram, Thrissur, Vadodara,
Varanasi, Vasai – Virar City, Vijaywada.
Boarding charges as above shall be subject to production of bills and when no bills are produced,
boarding charges @ 60% of the rates prescribed above to cover the boarding and other incidental
expenses will be paid. The above tariff is applicable for branch auditors and their assistants
(whether qualified or otherwise) respectively and also to the assistants (whether qualified or
otherwise) of Statutory Central Auditors.
No Halting charges are payable if lodging and boarding are arranged by the Bank
iii. Daily Conveyance Charges
Actual local conveyance charges incurred by auditors while working away from their headquarters
for conducting Bank’s audit may be reimbursed on the basis of self-declaration, as per the table
given below:
Category of Audit Officials Daily Conveyance Charges
(Rs. per day)
Proprietors / Partners of firm 188/-
Qualified Assistants 94/-
Unqualified Assistants 75/-
In the case of local auditors, i.e., branch auditors having office in the same city/town as of
the location of the branch, if the distance between auditors’ office and bank’s office/branch
is beyond 8 kms, actual expenditure as mentioned in the table above may be reimbursed on
a self-declaration basis.
All auditors are advised to note the instructions of Reserve Bank of India in this regard as
under:
(i) Traveling and halting expenses should be kept to the minimum.
(ii) It will be necessary to submit claims for actual expenses incurred for traveling, halting etc. for
conducting the audit work, duly supported by proper bills/vouchers/cash memos etc.
(iii) Where branch auditors have an office at the place where the auditee branches are situated,
they will not be eligible for traveling and halting expenses. However, local conveyance may be
reimbursed, as suggested at Para b (iii) above.
(iv) Where the branch auditors have offices at different centers, they will ordinarily be reimbursed
traveling expenses for branch audits from their offices nearest to the branch audited.
(v) Audit team for the branch should be constituted keeping in view the volume of work &
business at the branch (as per branch size).

(vi) In case of dispute between the auditors and the Bank regarding settlement of their bills
(including for travel by air/car/taxi), the decision of the Bank shall be final and binding
on the Auditors. The Bank will satisfy itself that the expenses have been actually incurred by
the auditors. Zonal Managers may take a rational decision in this regard.
It may please be noted that:
(vii) Expenses such as postages, telegram, telephones and stationery will not be reimbursed.
(viii) Auditors (Principal/partner and assistants) should undertake the journey for visits to branch
situated outside their headquarters generally by train or bus and only when absolutely
unavoidable and necessary for special reasons/circumstances they may undertake the
journey by their own car or by taxi and that too by the shortest route. Use of taxi/car will have
to be justified by giving reasons in detail in the covering letter. Generally travel by own car or
taxi for long distances for/up to routes/points served by railway must be avoided. The rate
charged per K.M. for travel by own car/taxi, will be subject Rs.9.00 per KM if car CC is >1000
& Rs.7.00 per KM if CC is < 1000and that too for the shortest route applicable. In such case,
no other conveyance charges will be payable.
The journey for long distance on daily basis (to / fro) must be avoided since time should be
the priority for such option. This should be shown in Form D which is to be certified by the
Branch. Receipts for taxi charges/bills for petrol expenses should be submitted to the Bank for
verification. Ticket jacket should be submitted in case of Air Travel.
(ix) No halting expenses are payable, if night halt is not involved. Further, if outstation branches
are located at a distance which can be covered by daily to & fro travel, expenses as per
cheapest mode of travel will be reimbursed.
(x) The rates stipulated by the Reserve Bank of India are only ceiling rates and not the floor rates
to be claimed uniformly in all cases and for all classes of branches (i.e. rural, semi-urban,
urban, and metropolitan). Bank will consider the bills only for reasonable actual expenditure
incurred. The necessary bill and vouchers in support of actual admissible expenses incurred
by the auditors will have to be submitted in support of their claims.
(xi) The claims for reimbursement of expenses is to be forwarded in the enclosed proforma
(ANNEXURE – IV) to the Zonal Office for each branch separately along with the report on
Audit Format D, (which will be supplied to the branch) duly certified by Branch Head.
(xii) The bills for traveling and out of pocket expenses should also contain a declaration
/certificate on the following lines:
“…. We hereby certify that all the expenses claimed by us for principal/partners and the assistants
in our bills have been actually incurred by us and that they do not include any element of
profit …”
(xiii) For conveyance expenses claimed, distance in kilometers and self-declaration/s should be
submitted.
(xiv) TA / DA is eligible during pre-closing visits of Branch Auditors in respect of branches having
advances of Rs.50 crore or more.
CLAIM FOR PAYMENT OF AUDIT FEES & TA / DA:
a. Detailed guidelines for payment of Audit Fees and TA/DA is issued by FM&A department as
per the circular AX1/FM&A/Auditors/Travelling & Halting Exps. /Cir. No. 02/2018-19, dated
13th April 2018).

b. Branch Managers / Zonal Managers are not authorized to grant any advance to auditors
against their audit bills or otherwise.
c. The payment of audit bills will be made only after approval of the Annual Accounts of the
Bank by the Board, and all the Zonal Heads would be informed in this regard, by the FM&A
Department, Head Office, Pune, by way of a separate communication.
d. Before payment of audit bills and reimbursement of TA/DA, it should be ensured that Post
MOC audited B.S. Set, Credit Set, LFAR, Tax Audit Report (3CA & 3CD) & Auditors Report,
audit observations and certificates, from the branch auditors have been duly received by
them in respect of the branches under audit in their Zone. The bills so received will be
scrutinized and passed for payment, at the Zonal Office, if they are in conformity with the RBI
instructions given above.
e. Auditors are advised to quote their PAN and Goods & Service Tax Registration
number in their bills / invoice, invariably.
f. Auditors must give their bank account number, name of the bank, name of the branch and
IFSC code on their bills so that payment of bills can be credited to their bank account.
PROVISION FOR PAYMENT OF AUDIT FEES and TDS THEREON

(Applicable only for Zonal Offices)
a. For the financial year 2018-19, provision for audit fees payable to Statutory Branch
Auditors (SBAs) for branches under audit (excluding Top 20 branches and TIBB which
will be audited by SCAs) is to be made at the respective Zonal Offices only.
b. The list of branches under audit is uploaded in the intranet (under Accounts Dept) & in ROSW→
Audit Information. Branches are requested to update the status of Audit on daily basis from 2 nd.
April 2019 onwards till the completion of Audit.
c. Provision for payment of audit fees in respect of TOP 20 BRANCHES, audited by the Statutory
Central Auditors will be made at Head Office. (The list of TOP 20 Branches is also uploaded in
the intranet & in ROSW→ Audit Information).
d. Provision for TA/DA, payable to Statutory Branch Auditors as well as Statutory Central
Auditors, will be made at Head Office.
e. The audit fee for a branch is based on the quantum of advances of that branch and the fee
structure is given in Page no. 17.
For example, if advances of the branch isRs.100 crore, total audit fees to be provided for is as
under.
No. Particulars Amount in Rs.

1. Basic Audit Fee for the branch 1,82,850.00
2. LFAR Fee @ 10% of Basic Audit Fee 18,285.00
3. Tax Audit Fee @ 15% of Basic Audit Fee 27,428.00
4. Total Audit Fee to be provided 2,28,563.00
The amount to be provided for payment of Audit Fee to statutory branch auditors is thus
calculated for all the branches under audit in the Zone, except the Top 20 branches of the Bank as
aforesaid.

TDS to be provided:
For calculating TDS to be provided on 31.03.2019, the above example is extended as follows:
No. Particulars Amount in Rs.

1. Basic Audit Fee for the branch 1,82,850.00
2. LFAR Fee @ 10% of Basic Audit Fee 18,285.00
3. Tax Audit Fee @ 15% of Basic Audit Fee 27,428.00
4. Total Audit Fee 2,28,563.00
5. Add Goods & Service Tax @ 18%* 41,141.00
6. Audit Fee + Goods & Service Tax 2,69,704.00
7. TDS @ 10% of item no 4 22,856.00
8. Audit Fee + Goods & Service Tax net of TDS 2,46,848.00
Please note that while making provision for audit fees, the Goods & Service tax portion is
not to be debited to G/L Input Tax Credit SGST/CGST/IGST.
In effect, amount shown under item no. 4 of above example should be debited to P/L - Statutory
Auditors Fee A/c. and amount in item no. 7 – TDS amount – should be credited to G/L TDS
(Others) and the difference between the figures in item no. 4 and item no. 7 should be credited to
G/L Outstanding Liabilities- Provision for Expenses.
Here, it is presumed that GST @ 18% is claimed by all the audit firms. The amount to be provided
for TDS on Audit Fee is thus calculated for all the branches under audit in the Zone. Please note
that TDS is not required to be deducted on GST amount if shown separately. Hence zones
are not required to deduct TDS on GST portion.
While making payment of Audit fees ensure that GST-TDS is also deducted at the rate of 2% (i.e.
1% CGST, 1 SGST or 2% IGST) in case of total fees payable to the GST registered Audit Firm
exceeds Rs. 2.50 Lakhs (celling of Rs. 2.50 Lakhs is Bank has a whole).

SIGNIFICANT ACCOUNTING POLICIES
The Significant Accounting Polices relevant to Branch Auditors is given below:
1. Accounting Conventions:
The financial statements are prepared under the historical cost conventions except as otherwise
stated and conform to the statutory provisions and practices prevailing in the Banking Industry in
India.
Revenue and costs are accounted for on accrual basis except as otherwise stated.
The accounting policies with regard to Revenue Recognition, Investments and Advances are in
conformity with the prudential accounting norms issued by Reserve Bank of India from time to
time.
2. Advances:
Advances shown are net of write offs, provisions made for non-performing assets, claims settled
with the credit guarantee institutions, Provision on restructured Advances and rediscounts.
Classification of advances and provisions are made in accordance with the prudential norms
prescribed by Reserve Bank of India from time to time.
3. Fixed Assets and Depreciation:
 Premises and other Fixed Assets are accounted for at cost except certain premises, which
are revalued and stated at revalued amount.
 Depreciation on fixed assets (other than those referred in para below) is provided for on the
diminishing balance method at the rates specified below, except in case of revalued assets,
in respect of which higher depreciation is provided on the basis of their estimated useful life.
S.N. Category of Asset Rate of Depreciation (%)
1 Building & Premises 5.00
2 General items including Safe 18.10
3 Electrical Equipments 13.91
4 Office Machinery 13.91
5 Motor Vehicles 25.89
6 Safe Deposit Vault 13.91
7 Bicycle 20.00
 On computers, depreciation is provided at the rate of 33.33% on Straight Line Method so as

to write down the asset value in three years to Rupee One as per RBI guidelines. Computers
include software, ATMs and UPS also.
 In respect of items whose original cost is Rs.5, 000/- or less, depreciation is charged at
applicable rates instead of providing 100% depreciation in the year of purchase except in the
case of telephones and fire extinguishers where 100% depreciation is provided for in the first
year and accordingly value of such assets (subject to 100% depreciation) is shown at Re.1/-
in the books of account.
 Depreciation is provided for full year irrespective of date of additions. No depreciation is

provided on assets sold/discarded during the year.
 Ineligible 50% GST ITC on Fixed assets is capitalized and accounted at Head Office level
only. No MOC related to the same is to be passed at Field Office level
 Leasehold land is amortized over the period of lease on straight line method.
4. Accounting basis for Revenue / Cost:
All revenues and costs are accounted for on accrual basis except the following items, which
are accounted for on cash basis:-
1. Interest on Advances and Investments identified as Non-Performing Assets according to the

prudential norms issued by RBI, from time to time.
2. Income from commission viz. on Guarantees, Letter of Credit, Government business,

Bancassurance, Mutual Fund business and Locker Rent.
3. Interest for overdue period on bills purchased and bills discounted.
4. Insurance claims.
5. Remuneration on Debenture Trustee Business
6. Loan Processing Fees.
7. Income from Merchant Banking Operations and Underwriting Commission.
8. Transaction processing fees received on utility bill pay services through internet banking.
9. Pursuant to RBI guidelines, the interest payable on overdue term deposit is provided on
accrual basis at Saving Bank rate effective from date of RBI circular dated 22.08.2008, and
the balance at the time of renewal.
5. Foreign Exchange Transactions:
Foreign currency transactions are translated at the weekly average closing rates for the preceding
week, as published by FEDAI. Revaluation of foreign currency assets and liabilities as on Balance
Sheet date is done at the closing rate published by FEDAI and the resultant profit/loss is
accounted for in the Profit & Loss Account.
Contingent Liabilities on account of Guarantees and Letters of Credit, issued in Foreign Currency
are stated in the Balance Sheet at the exchange rates prevailing on the date of Balance Sheet.

Annexure I
CONTACT DETAILS OF THE STATUTORY CENTRAL AUDITORS FOR THE FY 2018-19
501,Sujata,Off-Narsi Natha Street,

M/s. P Parikh & Associates Mumbai-400009
Delhi Tel. : 022 - 23443549, 23437853
PCR Fax : 022 -23415455
Solapur Mr. Sandeep Parikh (M) 9820122648
Goa Mr. Ashok Rajagiri (M) 9869204444
Satara
Latur Email:
Ahmednagar sandeep@pparikh.com
ashokrajagiri@pparikh.com
J 8 Green Park Extension,
M/s. M D Gujrati & Co New Delhi – 110016, India
Lucknow Tel. : 011 - 30004982
Jaipur Fax : 011 - 30004991
Ahmedabad Mr. Manohar D Gujrati (M)- 9810081022
Thane Mr. R K Agarwal (M)- 9312603480
Nasik
Amaravati Email:
Akola mdg@mdgco.in
carkagrawal@mdgco.in
M/s. P G Bhagwat Suites 101-102, Orchard,

Mumbai Dr. Pai Marg, Baner, Pune-411045.
Chandrapur Tel: 020-27290771, 27291772, 27291773
Nagpur
Chandigarh Mr. Nachiket Deo,Mob:9822875492
Kolkata Mr. Sandeep Rao,Mob:9822051160
Jalgaon
Aurangabad
Kolhapur Email:
nachiket_deo@pgbhagwatca.com
sandeep_rao@pgbhagwatca.com
21, Moosa Street, T Nagar,
M/s. K Gopal Rao & Co Chennai-600017
Chennai Phone:044-45522032,24343639,42128955,
Hyderabad 24342563
Bengaluru
Pune East Mr. Madan Gopal Narayan-9840053053
Bhopal Ms. B Meera Gopalan- 9840873269
Jabalpur
Indore Email:
Raipur madan@kgrca.in
kgrcas@gmail.com
raju@kgrca.in

Annexure - II
ADDRESSES OF INSPECTION CELLS
Sr. Inspection Cell & Address Zones Covered

No.
1. The Asst. General Manager, (Inspection) & RVO, Aurangabad
Bank of Maharashtra, Solapur
Mahabank Bhawan, Town Centre, C-3,N-1 Latur
Behind Bus Stand, CIDCO, AURANGABAD – 431 003
2. The Assistant General Manager, (Inspection & RVO) Bengaluru
Bank of Maharashtra, Hyderabad
15, Police Station Road, Basavangudi Chennai
BENGALURU 560004
3. The Chief Manager, (Inspection & RVO) Bhopal
Bank of Maharashtra, Jabalpur
1/14, Prashasanik Zone, Arera Hill, Jail Road, Indore
BHOPAL – 462 011
4. The Assistant General Manager, (Inspection & RVO) Delhi
Bank of Maharashtra Chandigarh
15,NBCC Tower,3rd Floor, Lucknow
Bhikaji Kama Place, Jaipur
NEW DELHI – 110 066
5. The Assistant General Manager, (Inspection & RVO) Mumbai
Bank of Maharashtra,
Dr. Ambedkar Road Branch, Dadar, MUMBAI – 400 014
6. The Chief Manager, (Inspection & RVO) Kolhapur
Bank of Maharashtra , Satara
517/A/1, Plot No. 7, Kawala Naka, Tarabai Chowk Goa
Station Road, KOLHAPUR – 416 001
7. The Assistant General Manager, (Inspection & RVO) Nagpur
Bank of Maharashtra, Amravati
Mahabank Building Chandrapur
Abhyankar Road, Sitaburdi Akola
NAGPUR – 440 012
8. The Asst. General Manager, (Inspection & RVO) Nasik
Bank of Maharashtra Jalgaon
Griha Nirman Bhavan, Gadkari Chowk, Ahmednagar
Old Agra Road, NASIK – 422 002
9. The Assistant General Manager, (Inspection & RVO) Pune City
Bank of Maharashtra, Pune East
Pawar Bldg.,,J M Road ,
1257, Deccan Gymkhana, PUNE – 411 004
10. The Asst. General Manager, (Inspection & RVO) Thane
Bank of Maharashtra, Near Old Passport Office Ahmedabad
Mahabank Bhawan
B-37, Wagale Ind Estate, THANE – 400 604
11. The Asst. General Manager, (Inspection & RVO) Kolkata
Bank of Maharashtra Raipur
1st Floor Eastern Plaza 161, MG Road, Kolkata- 700007

Annexure III
ZONAL OFFICES – PHONE NUMBERS& DZM e-mail ID’s
Sr. Name of the STD Phone Nos. DZM e-mail ID

No. Zone Code
1. Ahmedabad 79 25507573/25505157/25507901/ dzmahmedabad@mahabank.co.in
02/25508024
2. Ahmednagar 241 2430158/2430574/8/2430776/24 dzmahmednagar@mahabank.co.i
30428/2430659/2431705 n
3. Akola 724 2490353/2490842/3/5 dzmakola@mahabank.co.in
4. Amravati 721 2672165/2570313/2678206/267 dzmamaravati@mahabank.co.in
1452/2670901/2571380
5. Aurangabad 240 6645601/02/10/16/19/20 dzmaurangabad@mahabank.co.in
6. Bengaluru 80 46561220/1/6/7/9 dzmbengaluru@mahabank.co.in
7. Bhopal 755 2550808/2551003/ dzmbhopal@mahabank.co.in
2573623/2762838
8. Chandigarh 172 2726644/2713011 dzmchandigarh@mahabank.co.in
9. Chandrapur 7172 255537/254518/272218/271812/ dzmchandrapur@mahabank.co.in
271830/272718
10. Chennai 44 24364214/24356036/24364410/ dzmchennai@mahabank.co.in
24327650/24355434/24356187
11. Delhi 11 26172631/26164817/26100401/ dzmdelhi@mahabank.co.in
26172853
12. Goa 832 2431246/2235955/2223144/222 dzmgoa@mahabank.co.in
3136/2231074/2230782
13. Hyderabad 40 24756235/24757005/24755080 dzmhyderabad@mahabank.co.in
14. Indore 731 2543340/2531805/6/2435924 dzmindore@mahabank.co.in
15. Jabalpur 761 2480064/65/67/68 dzmjabalpur@mahabank.co.in
16. Jaipur 141 2379904/2369971/2379903/05 dzmjaipur@mahabank.co.in
17. Jalgaon 257 2224910/2233140/2225030/223 dzmjalgaon@mahabank.co.in
6005
18. Kolhapur 231 2654456/2533412/14/20/25/38 dzmkolhapur@mahabank.co.in
19. Kolkata 33 40374903/04/08/02/24 dzmkolkata@mahabank.co.in
20. Latur 2382 240241/240158/159 dzmlatur@mahabank.co.in
21. Lucknow 522 2739932/2739635/2739259/60 dzmlucknow@mahabank.co.in
22. Mumbai 22 22663144/22631700/22614945/ dzmmcz@mahabank.co.in
22663144/22663451/22675899/
22661167/22662670/22662407
23. Nagpur 712 2545027/2543516/2545020/1/8/ dzmnagpur@mahabank.co.in
9
24. Nasik 253 2577107/2570827/7479 dzmnasik@mahabank.co.in
25. Pune city 20 25537111/25573402/25530860/ dzmpcz@mahabank.co.in
25521008/25530861/2/3/4/5
26. Pune East 20 24459172/24514055/44 dzmpez@mahabank.co.in
27. Raipur 771 2887671/2887670/672/673/674/ dzmraipur@mahabank.co.in
605
28. Satara 2162 239680/237460/233130/230104/ dzmsatara@mahabank.co.in
232906/233170
29. Solapur 217 2733898/2733870 / 71/72 dzmsolapur@mahabank.co.in
30. Thane 22 25829406/25824808/25822723/ dzmthane@mahabank.co.in
25823040/25834596

Annexure IV
FORMAT FOR CLAIMING AUDIT FEE & EXPENSES (SEPARATELY FOR EACH BRANCH) BY
THE BRANCH AUDITOR TO THE ZONAL OFFICE
1 (a) Name of the Audit Firm
(b) Name of the proprietor / partners
(c) Full office address (including branch

offices)
(d) Mobile telephone numbers of
proprietor / partners
(e) E-mail address
(f) PAN
(g) Goods & Service Tax Registration No.
2. Name of the Branch audited for the

period ended 31st March 2019
3. Total outstanding advances as per the
Balance Sheet as at 31st March 2019
4. One way distance of the Branch under
audit from your office
5. Details of audit fee claimed
(a) Branch Audit Rs.
(b) LFAR (10% of Branch Audit fee) Rs.
(c) Tax Audit (15% of Branch Audit fee) Rs.
TOTAL AUDIT FEE Rs.
Goods & Service Tax Rs.
TOTAL Rs.
6. Name of person Date of visits Principal / Qualified Other
who visited the From To Partner Assistant Assistant
branch
i)
ii)
iii)
iv)
Total Number of man days taken for audit
7. Mode of Travel / Conveyance used (Pl. mention travel by Rail/ Bus/ Car)
A) If Travel by own Car/ Hired Car No.
i) Total kms. Covered for outward journey
ii) Total kms. covered for inward journey
iii) Total kms. of (i) & (ii) above @ Rate Rs. Rs. Rs.
B) If Travelled by Train
i) Amount incurred for outward journey Rs. Rs. Rs.
ii) Amount incurred for inward journey Rs. Rs. Rs.
TOTAL OF A(iii) + B (ii) Rs. Rs. Rs.
Please furnish the ticket numbers in respect of
journey by train and the class of travel & attach
the same to the claim form

8. HALTING EXPENSES INCURRED:
A) Lodging / Hotel accommodations From:
for the period To:
i) No. of Partners/ Assistants visited
ii) No. of days stayed
iii) Expenses incurred Rs. Rs. Rs.
B) BOARDING CHARGES:
Boarding charges for the period From:
To:
i) No. of Partners/assistants visited
ii) No. of days claimed
iii) TOTAL EXPENSES INCURRED Rs. Rs. Rs.
9. DAILY CONVEYANCE CHARGES From:
INCURRED: To:
i) No. of Partners/assistants visited
ii) No. of Days for daily conveyance claimed at
the rate of Rs.
iii) Total amount of daily conveyance Rs. Rs. Rs.
SUMMARY OF TOTAL EXPENSES INCURRED & CLAIMED BY WAY OF REIMBURSEMENT

For For For Total
Principal Partner/ s Qualified Other Assistants (A+B+C)
Assistants
(A) (B) (C) (D)
Total Man Days taken for audit
1. Fare Claimed Rs. Rs. Rs. Rs.
2. Halting Expenses
a) Lodging Expenses Rs. Rs. Rs. Rs.
b) Boarding Expenses Rs. Rs. Rs. Rs.
3. Daily conveyance Rs. Rs. Rs. Rs.
TOTAL 1+2+3 Rs. Rs. Rs. Rs.
CERTIFICATE BY BRANCH AUDITOR
I / we have enclosed the relevant bills/vouchers/cash memos etc. supporting my / our claim for
reimbursement of actual expenses (for travelling, halting, conveyance, boarding) incurred for
conducting the audit work. I / we hereby declare that the daily conveyance expenses have been
actually incurred by me / us. We further certify that all the expenses claimed by us for our principal /
partners, qualified and unqualified assistants, in our bills, have been actually incurred by us and they
do not include any element of profit.
I / we are aware that the payment of audit fee and reimbursement of expenses will be made by the
Bank only after finalization of the Annual Accounts of the Bank.
We enclose a copy of Form ‘D’ duly signed by the Assistant Gen. / Chief / Branch Manager.
(Signature of the Partner / Proprietor of the Audit Firm)
CERTIFICATE
All reports related to audit, duly signed by the Auditors, have been received by the Branch.
( Seal of the Branch) Assistant Gen. /Chief / Branch Manager
Encl: Form D

Form D
(Copy of this is to be forwarded by the Branch Auditors as soon as audit is completed)
To,
Zonal Office Ref no:
Bank of Maharashtra Zone:
--------------------- Zone Branch
Date:
Dear Sir,
st
Subject: Report on the Audit of our Branch for the year ended on 31 March
2019
With reference to above subject, we have to inform you as under:

1. Audit of our branch was completed on ______________.
2. Two copies of Audited BS Set & Format ABC, Credit Set along with two copies of
Memorandum of Changes, Audit Report, LFAR & 3CA, 3CD forms of Tax Audit Report
are sent to your office.
3. Consolidated Statement of Advances, Provisions & certificate regarding classification of
assets as per RBI Norm of the branch has been prepared and submitted to your Zonal
Office duly signed by the Branch Auditors.
4. An amount of Rs. __________ being entertainment expenses was incurred by us during
the course of audit. The same has already been adjusted to P/L Sundry Charges-Others
A/c.
5. We have not granted any advance to the Auditors against their bills for Audit Fees / T.A./
D.A etc.
6. Details of visits of the Auditors are as under :
Sr. Name of the Date of Visit Hours of Visit Mode of Journey
No. Principal/Partners/ Assistants Rly/Own
visited the Branch from to from to Car/Bus/Taxi
1
2
3
7. Details of residential accommodations for Auditors are as under:

Sr. Name of the Principal/Partners/ Assistants Name of the Duration of Stay
No. visited the Branch Hotel and place from to
1
2
3
8. Nearest Dist. Place________________Distance___________K.M.s from the Branch
CERTIFICATE
All reports related to audit duly signed by the Auditor have been received by the Branch.
Yours faithfully
Branch Manager, Branch
M/s. Chartered Accountants (Seal of Auditors)

Annexure V
Independent Branch Auditor’s Report
To,
The Statutory Central Auditors
________ Zone, Bank of Maharashtra
Report on the Audit of the Financial Statements
Opinion
1. We have audited the Financial Statements of _______________Branch of
____________Zone, Bank of Maharashtra which comprise the Balance Sheet as at 31st March
2019, the Statement of Profit and Loss for the year then ended and other explanatory
information [in which are included the Returns for the year ended on that date].
2. In our opinion, and to the best of our information and according to the explanations given to us,
read with the Memorandum of Changes (mentioned in paragraph 7 below), the aforesaid
financial statements give the information required by the Banking Regulation Act, 1949, in the
manner so required for bank and give a true and fair view in conformity with the accounting
principles generally accepted in India of the state of affairs in case of the Balance Sheet of the
branch as at March 31, 2019 and true balance of profit/loss for the year ended on that date.
Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI.
Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the bank in accordance with the code of ethics issued by the Institute of
Chartered Accountants of India together with ethical requirements that are relevant to our audit
of the financial statements in [jurisdiction], and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the code of ethics. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Management’s Responsibilities for the Financial Statements

4. The Bank’s management is responsible with respect to the preparation of these financial
statements that give a true and fair view of the financial position and financial performance of
the Bank in accordance with the accounting principles generally accepted in India, including
the Accounting Standards issued by ICAI, and provisions of Section 29 of the Banking
Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (‘RBI’)
from time to time. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the Bank
and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Bank’s
ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements

5. Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
 Report that the audit at branch level is not be able to conclude on the appropriateness of
management’s use of the going concern basis of accounting and, based on the audit
evidence obtained at branch, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Bank’s ability to continue as a going
concern.
 Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
Other Matter
6. No adjustments/provisions have been made in the accounts of the Branch in respect of
matters usually dealt with at Head Office, including in respect of:
a) Bonus, ex-gratia, and other similar expenditure and allowances to branch employees;
b) Arrears of salary/wages/allowances, if any, payable to staff;
c) Staff welfare contractual obligations;
d) Terminal permissible benefits to eligible employees on their retirement (including additional
retirement benefits), Gratuity, Pension, liability for leave encashment benefits and other
benefits covered in terms of ‘AS 15 (Revised)–Employee Benefits’ issued by the Institute of
Chartered Accountants of India;
e) Old unreconciled/unlinked entries at debit under various heads comprising Inter
branch/office Adjustments;
f) Auditors’ fees for SCA’s and TA/DA for SBA’s & SCA’s;
g) Taxation (Current Tax, Deferred Tax and Goods & Service Tax);
h) Provision for Non-performing, Standard & restructured assets, Teaser Loan, FITL, Unhedged
Foreign Currency Assets, Projects where DCCO has been extended.

7. The following is a summary of Memorandum of Changes submitted by us to the branch

management1.
Memorandum of Changes (summary)
S. No. Particulars No Increase Decrease
a. In respect of Income
b. In respect of expenditure
c. In respect of Assets
d. In respect of Liabilities
e. In respect of Gross NPAs
f. In respect of Provision on NPAs2
g. In respect of Classification of Advances
h. In respect of Risk Weighted Assets
i. Other items (if any)
Report on Other Legal and Regulatory Requirements

8. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with
Section 29 of the Banking Regulation Act, 1949;
9. Subject to the limitations of the audit indicated in paragraphs 4 to 6 above and as required by
the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and
subject also to the limitations of disclosure required therein, we report that:
a) We have obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of the audit and have found them to be
satisfactory;
b) The transactions of the branch which have come to our notice have been within the powers
of the Bank.
c) the returns received from the branch have been found adequate for the purposes of our
audit
10. We further report that:

a) in our opinion, proper books of account as required by law have been kept by the Bank so
far as it appears from our examination of those books;
b) the Balance Sheet, and the Profit and Loss Account dealt with by this report are in
agreement with the books of account;
c) In our opinion, the Balance Sheet, and the Profit and Loss Account comply with the
applicable accounting standards, to the extent they are not inconsistent with the accounting
policies prescribed by RBI.
We have also audited the under mentioned statements (countersigned by me / us) as at March
31st 2019 and found them to be true and correct:
a) Annexure to Balance Sheet and Profit & Loss Account (BS-6, BS-8,BS-10, BS-11A, BS-
11B, BS-15, BS-16, BS-17, BS-23, BS-24, BS 29 and Memorandum of Changes (MOC)
pertaining to G/L, P/L, Furniture and Dead Stock and advances;
b) Credit Set nos. Cr.-9A & B, Cr.-11A & C, Statement on unhedged foreign currency
exposure
c) Other statements on forex matters (in case the branch under audit is a FEX center or an
Overseas branch as per guidelines of Treasury and International Banking Branch)
d) Pre-MoC- statement of Advances
e) Pre-MoC Form A, B & C (Facility wise, Sector wise and assets wise)
f) Form-D- Movement of NPA (with PRE and POST MoC)
g) Form E- Contingent Liability not acknowledged as debt
h) R&R MoC wherever applicable
i) All priority advances statements as per Priority department guidelines.
For ABC and Co.

Chartered Accountants
Signature
(Name of the Member Signing the Audit Report)
(Designation) 3
Membership Number
Firm registration number
Date
1
Where Applicable.
2
Applicable in cases where banks determine provision at Branch level.
3
Partner or proprietor as the case may be.

Annexure VI
Explanation of MOC with Example
A few examples of Memorandum of Changes that may be required to be considered at branch

level:
1. Total reversal of interest of Rs. 10,000.00 on Non-Priority Loan Account (Fresh

Slippages):
Particulars Debit Credit
P/L Intt Recd Non Priority Loans 10,000.00
Customer’s Non Priority Loan account 10,000.00
2. Processing fee of Rs.15, 000.00 not charged on review of Cash Credit Account
Customer’s Loan account – Cash Credit 17,700.00
P/L Processing Fee 15,000.00
G/L GST Pool Manual A/c 2,700.00
3. Depreciation provided less by Rs. 20,000.00 on Electrical Equipment

P/L Depreciation – E E 20,000.00
G/L Electrical Equipment 20,000.00
4. F&D item of Rs.1,00,000.00 purchased during the year wrongly categorized under GIS
(General Items Including Safe) instead of Office Machinery.
G/L F&D - Office Machinery 1,00,000.00
G/L F&D – General Items incl Safe 1,00,000.00
P/L Depreciation – Office Machinery 13,910.00

G/L F&D – Office Machinery 13,910.00
G/L F&D – General Items incl Safe 18,100.00

P/L Depreciation – General Item incl Safe 18,100.00
Note:
Earlier, on purchase of capital goods, branches / offices were instructed to capitalize
the tax component in respective F & D BGLs. In GST regime, Bank is allowed to get
credit of GST component in bill / invoice on purchase of capital goods. Therefore,
branches / offices are advised to do the accounting of GST component in respective
Input Tax Credit BGLs
5. Goods & Service tax of Rs. 1800/- was wrongly charged to P/L instead of debiting to
Input Tax Credit (SGST/CGST/IGST)
G/L Input Tax Credit (SGST/CGST/IGST 1,800.00
P/L Telephone / Fax 1,800.00
In case MoC affecting GST is passed, invoice wise details of the MoC needs to be sent to
respective Zonal office in the format enclosed and the Zone shall consolidate all such
details and send it to HO (both in hardcopy and softcopy) in the same format for giving
effect in GST returns. The invoice-wise details required are given in Annexure IX
The net impact on Profit & Loss account will be effected through closing adjustment
account.

For the above examples the procedure for reporting MOC details in MOC sheet (Audit Part A &
Part B) is as under:-
Part – A Profit & Loss Account
MOC Effect on Profit & Loss A/c
A – INCOME SIDE
Sr. P L PL Head MOC Remarks
Code Amount
1 424413 Interest Recd – Non Priority Loans -10000.00 Interest reversal on fresh
Others NPA
2 451209 Processing fees 15000.00 Processing recovered on
review of Cash Credit limit
Sub Total – A 5000.00
B – EXPENDITURE SIDE
1 342201 Depreciation – Electrical Items 20,000.00 Depreciation provided
2 342301 Depreciation – Machinery Items 13,910.00 Depreciation provided
3 342101 Depreciation – General Items -18,100.00 Depreciation reversed in
respect of wrongly
categorized F&D items as
General Item instead
Machinery Item
4 352802 Telephone / Fax -1800.00 Input Tax Credit wrongly
charged to PL
Sub Total – B 14,010.00
IMPACT ON PROFIT = Subtotal A – Subtotal B -9010.00
Part B – Trial Balance

MOC Effect on Trial Balance
A – LIABILITIES SIDE
Sr. G L Code GL Head MOC Remarks
Amount
1
2 181162 GST Pool A/c 2,700.00 GST on Processing Fee
Charged
151102 Closing adj – If net impact 0.00
as per part A is positive
Grand Total 2,700.00
B – ASSETS SIDE
1 224413 Loans - Non Priority – -10000.00 Interest reversed
Others
2 223108 Cash Credits – Other 17700.00 Processing fee recovered
Priority Sector
3 242201 Electric Items -20000.00 Depreciation provided
4 242301 Machinery Items 86090.00 F&D item wrongly classified
as General item rectified net
of depreciation
5 242101 General Items -81900.00 Same as above
6 285123/ Input Tax Credit 1800.00 Input Tax Credit on telephone
285124/ (SGST/CGST/IGST) expenses
285125
251102 Closing adj – If net impact 9010.00
as per part A is negative
Grand Total 2,700.00

Annexure VII
Annexure to LFAR for Specialized Branches
(For branches where the advances are Rs. 100 crore or more and for specialized branches
such as Overseas branches, Corporate/Industrial Finance Branch/asset recovery branches,
etc for each account having limit / o/s bal of Rs. 2 crore & above.)
Branch: ______________________ Code No. :_________________

1 Name of the Borrower
2 Address
3 Constitution
4 Nature of business / activity
5 Other units in the same group
Total exposure of the branch to the group.
6 Fund Based [Rs. In lacs]
Non-Fund Based [Rs. In lacs]
7 Name of Proprietor / Partners / Directors
8 Name of the Chief Executive, if any
9 Asset Classification by the Branch
(a) As on the date of current audit
(b) As on the date of previous Balance
Sheet
10 Assets Classification by the Branch
Auditor
(a) As on the date of current audit
(b) As on the date of previous Balance
Sheet
11 Are there any adverse features pointed
out in relation to asset classification by the
Reserve Bank of India Inspection or any
other audit.
12 Date on which the asset was first
classified as NPA [where applicable]
Facilities sanctioned :
Date of Nature of Limit [Rs. In Primary Collateral Margin % Balance Outstanding at
Sanction facilities lacs] Security Security the year-end [Rs. In lacs]
[Rs. In lacs] [Rs. In lacs]
Current Previous
Year Year
Provision Made : Rs ____________ lacs

13 Whether the advance is a consortium
advance or an advance made on multiple-
bank basis
14 If Consortium,
(a) Names of participating banks with their
respective shares
(b) name of the Lead Bank in Consortium
15 If on multiple banking basis, names of
other banks and evidence thereof

16 Has the Branch classified the advance
under the Credit Rating norms in
accordance with the guidelines of the
controlling authorities of the Bank?
17 (a) Details of verification of primary

security and evidence thereof;
(b) Details of valuation and evidence
thereof
Date verified Nature of Security Value [Rs. In lacs] Valued by
Insured for Rs. ____________ lacs [expiring on ________]
18 (a) Details of verification of collateral

security and evidence thereof
(b) Details of valuation and evidence
thereof
Date verified Nature of Security Value [Rs. In lacs] Valued by
Insured for Rs. ____________ lacs [expiring on ________]
19 Give details of the Guarantee in respect of Guaranteed Amount [Rs. In Valid upto
the advance lacs]
(a) Central Government Guarantee;

(b) State Government Guarantee;
(c) Bank Guarantee or Financial Institution
Guarantee;
(d) Other Guarantee
Provide the date and value of the Guarantee in respect of the above.
20 Compliance with the terms and conditions of
the sanction
Terms and Conditions Compliance
(i) Primary Security
(a) Charge on primary security
(b) Mortgage of fixed assets
(c) Registration of charges with Registrar of
Companies
(d) Insurance with date of validity of policy
(ii) Collateral Security
(a) Charge on collateral security
(b) Mortgage of fixed assets
(c) Registration of charges with Registrar of
Companies
(d) Insurance with date of validity of policy
(iii) Guarantees - Existence and execution of valid
guarantees
(iv) Asset coverage to the branch based upon the
arrangement (I.e. consortium or multiple-bank basis)
(v) Others :
(a) Submission of Stock Statements/Quarterly
Information Statements and other Information
Statements
(b) Last inspection of the unit by the Branch Officials
: Give the date and detail of errors/omissions
noticed
(c) In case of consortium advances, whether copies
of documents executed by the company favouring
the consortium are available
(d) Any other area of non-compliance with the terms
and conditions of sanction
21. Key financial indicators for the last two years and projections for the current year
[Rs. In lacs]
Indicators Audited Year Audited Year Estimates for year
ended 31st ended 31st March ended 31st March
March _______ _____ _______
Turnover
Increase in turnover % over previous
year
Profit before depreciation, Interest
and tax
Less : Interest
Net Cash Profit before tax
Less : Depreciation
Less : Tax
Net Profit after Depreciation and tax
Net Profit to Turnover Ratio
Capital (Paid-up)
Reserves
Net Worth
Turnover to Capital Employed Ratio
[The term capital employed means
the sum of Net Worth and Long Term
Liabilities]
Current Ratio
Stock Turnover Ratio
Total Outstanding Liabilities / Total
Net Worth Ratio
In case of listed companies, Market
Value of Shares
(a) High
(b) Low; and
(c) Closing
Earnings Per Share
Whether the accounts were audited If
yes, up to what date; and are there
any audit qualifications

22. Observations on the operations in the account:
Excess over Excess over limit
drawing power
1. No. of occasions on which the balance
exceeded the drawing power / sanctioned
limit [give details]
Reasons for excess drawings, if any

Whether excess drawings were reported to
the Controlling Authority and approved.
Debit Summation Credit Summation [Rs. In

[Rs. In lacs] lacs]
2. Total summation in the account during the
year
Less : Interest
Balance
23. Adverse observations in other Audit reports / Inspection Reports / Concurrent Auditor'
Report / Internal Audit Report / Stock Audit Report / Special Audit Report or Reserve Bank of India
Inspection with regard to:-
i. Documentations;
ii. Operations;
iii. Security / Guarantee; and
iv. Others
24 Branch Manager's overview of the account and its operation.

25. (a) In case the borrower has been identified / classified as Non-performing Asset during the
year, whether any unrealized income including income accrued in the previous year has been
accounted as income, contrary to the Income Recognition Norms.
(b) Whether any action has been initiated towards recovery in respect of accounts
identified / classified as Non-performing Assets.
26. Branch Auditor's comments.
Date: Signature and Seal

Of Branch - in - Charge
STATUTORY AUDIT 2018-2019
COMMENTS ON LARGE ADVANCES
Sr. No. NAME OF THE BORROWER :

BRANCH :
[Rs. in lacs]
Asset Facility Limit DP O/S. Irregularity Auditor’s
Classification Fund based/ Observations
Non-fund
based

Annexure VIII
COVERING LETTER TO BE USED BY SBAs
Ref. No. Date From :

To
M/s M/s ________________________________
____________________________________ Chartered Accountants
Chartered Accountants Address :
Statutory Central Auditors
(Together with 1 to 8 above)
(THROUGH ZONAL OFFICE)
Dear Sir,
Ref.: Audit of __________________________________Branch as on 31 March 2019.
We refer to your letter no. AX1/FM&A/Branch/ dated _______________ from DGM, FM&A, Bank
of Maharashtra, Head Office, Pune.
We have carried out the audit of above branch and as per instructions; we are submitting following
Audit Reports, Audited Statements and Certificates with UDIN:
S. No. Particulars Details

1. Statutory Branch Audit Report ENCLOSED
2. Audited BS Set etc. ENCLOSED
3. Memorandum of Changes * ENCLOSED/NIL
4. Certificate regarding classification of asses as per RBI Norms ENCLOSED
5. Long Form Audit Report & Special LFAR wherever applicable ENCLOSED
6. Other Audit Observations on Branch Working (if any) ENCLOSED
7. Tax Audit Report (3 CA, 3 CD) ENCLOSED
8. Statement on Unhedged Foreign Currency Exposure ENCLOSED
9. Soft copy of LFAR, Audit Report & Other Observations, if any ENCLOSED
We hope you will find the same in order. Please acknowledge receipt.
Yours faithfully,
M/s _____________________________ SEAL

Chartered Accountants
*Strike out whichever is not applicable.
Encl: As above
Copy to:
The Branch Manager The Zonal Head The Chief Manager
Bank of Maharashtra Bank of Maharashtra Bank of Maharashtra
____________ _____________Zone Inspection Cell
Branch (Together with 1 to 9 above) _______________Zone
(Together with 1 to 8 above) (Together with 5 and 6 above)
All the Audit Reports and Audited statements duly signed by the statutory auditors have been
received by us.
The Branch Manager

Bank ofAudit
Branch Maharashtra
Guidelines 2018-19 Page 41 of 43
____________ Branch
Annexure-IX
Invoice wise Details of Transaction as actually punched in GST expense utility (ULC)
Input tax
Transa Tax Type Description Total credit BGL
Sr. B. Journal Vendor Vendor Inv Inv HSN / Basic Total SGST /
ction BGL (GSTY/GSTN/ of Goods/ CGST IGST Cess Invoice Debited in
No. Code No. Name GSTIN No Date SAC Cost Tax UTGST
Date Composite) Service Value CBS? (Yes/
No)
1
2
3
4
5
Invoice wise Details of MOC Passed
Invoice Descript
BGL BGL Total
Sr. B MOC Wise Journal Vendor Tax Vendor ion of Inv Inv HSN / Basic Total SGST /
Debited Credited CGST IGST Cess Invoice
No. Code Date MOC No. Name Type GSTIN Goods/S No Date SAC Cost Tax UTGST
for MOC for MOC Value
Amt ervice
1
2
3
4
5
Branch Audit Guidelines 2018-19

Page 42 of 43
Annexure -X
STATE/ UNION TERRITORY WISE GSTIN OF BANK
State
Sr. No. State/ UT Nodal Branch/ Office GSTIN
Code
1 Andhra Pradesh 37 Vijaywada- 396 37AACCB0774B3Z1
2 Arunachal Pradesh 12 Itanagar- 1510 12AACCB0774B2ZE
3 Assam 18 Guwahati- 1275 18AACCB0774B2Z2
4 Bihar 10 Patna- 701 10AACCB0774B2ZI
5 Chandigarh 04 Chandigarh Zone 04AACCB0774B2ZB
6 Chhattisgarh 22 Raipur Zone 22AACCB0774B1ZE
Dadra and Nagar
7 Silvassa -1899
Haveli 26 26AACCB0774B2Z5
8 Daman & Diu 25 Daman-1910 25AACCB0774B2Z7
9 Delhi 07 Delhi Zone 07AACCB0774B1Z6
10 Goa 30 Goa Zone 30AACCB0774B3ZF
11 Gujarat 24 Ahmedabad Zone 24AACCB0774B1ZA
12 Haryana 06 Gurgaon Sector 15- 1189 06AACCB0774B2Z7
13 Himachal Pradesh 02 Solan- 1869 02AACCB0774B1ZG
14 Jammu & Kashmir 01 Jammu -1240 01AACCB0774B2ZH
15 Jharkhand 20 Ranchi- 1233 20AACCB0774B3ZG
16 Karnataka 29 Banglore Zone 29AACCB0774B1Z0
17 Kerala 32 Thiruanantpuram- 399 32AACCB0774B3ZB
18 Madhya Pradesh 23 Bhopal Zone 23AACCB0774B5Z8
19 Maharashtra 27 Head Office(FMA Dept) 27AACCB0774B1Z4
20 Manipur 14 Imphal- 1640 14AACCB0774B2ZA
21 Meghalaya 17 Shillong- 1565 17AACCB0774B2Z4
22 Mizoram 15 Aizawl- 1592 15AACCB0774B2Z8
23 Nagaland 13 Dimapur - 1722 13AACCB0774B2ZC
24 Odisha 21 Bhubaneshwar- 1182 21AACCB0774B3ZE
25 Puddicherry 34 Puddicherry- 458 34AACCB0774B2Z8
26 Punjab 03 Ludhiyana- 382 03AACCB0774B1ZE
27 Rajasthan 08 Jaipur Zone 08AACCB0774B1Z4
28 Sikkim 11 Gangtok- 1506 11AACCB0774B2ZG
29 Tamil Nadu 33 Chennai Zone 33AACCB0774B3Z9
30 Telangana 36 Hyderabad Zone 36AACCB0774B3Z3
31 Tripura 16 Agartala- 1583 16AACCB0774B2Z6
32 Uttar Pradesh 09 Lucknow Zone 09AACCB0774B3Z0
33 Uttaranchal 05 Dehradun- 1015 05AACCB0774B3Z8
34 West Bengal 19 Kolkata Zone 19AACCB0774B3ZZ
Branch Audit Guidelines 2018-19

Page 43 of 43

Branch Audit Guidelines 2018-19: Financial Management & Accounts Department

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Branch Audit Guidelines 2018-19: Financial Management & Accounts Department

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BRANCH AUDIT GUIDELINES

Financial Management & Accounts Department

PHONE 020- 25614332; FAX 25533924

Ref. No.: AX1/FM&A/AUDIT/G-LINES/Cir. No.16/2018-19 March 25, 2019

ALL BRANCHES UNDER AUDIT and ZONAL OFFICES &

The schedule proposed for completion of annual audit work is as under:-

a. Completion of Branch audit April 8, 2019

/Hindi Version Follows/

Branch Audit Guidelines 2018-19 Page 2 of 43

2. Statements under Audit and Not under Audit 6

3 Memorandum of Changes – MOC 14

5 Significant Accounting Policies 23

Annex I Details of Statutory Central Auditors along with Zones allotted 25

Annex II List of Zonal Inspection Cells 26

Annex III Phone Numbers of Zonal Offices 27

Annex V Independent Bank Branch Auditors Report 31

Annex VI Explanation of MOC with Example 35

Annex VII Annexure to LFAR for Specialized Branches 37

Annex VIII Covering letter to be used by SBAs 41

Annex IX Format relating to GST Information 42

Annex X State/ Union Territory wise GSTIN of Bank 43

Branch Audit Guidelines 2018-19 Page 3 of 43

The following matters are handled at Head Office level:-

Branch Audit Guidelines 2018-19 Page 4 of 43

 It is to be noted that no marking is to be made on security/ loan documents / papers,

 In terms of RBI guidelines (DBS.ARS.BC.No.04/08.91.016/2014-15 dated 11th Sep. 14),

 Instructions regarding preparation of BS-15 (Statement of Furniture & Dead Stock) at

Following steps need to be undertaken by branches / zones to ensure smooth tallying of

Branch Audit Guidelines 2018-19 Page 5 of 43

We reiterate that the year-end depreciation is not to be reversed

STATEMENTS UNDER AUDIT & NOT UNDER AUDIT

The Statements to be audited are divided in following sets:

 Tax Audit Report and Long form Audit Report (LFAR)

 Statements in Credit Set are to be certified by auditors

Branch Audit Guidelines 2018-19 Page 7 of 43

 Statement of Advances & related statements

 Statement of Priority Department

 Statement of Unhedged foreign currency exposure as per guidelines issued by

Branch Audit Guidelines 2018-19 Page 9 of 43

About Unique Document Identification Number (UDIN)

Branch Audit Guidelines 2018-19 Page 10 of 43

For Branches under Audit:

For Branches not under Audit:

a. Statutory Branch Audit Report:

b. Long Form Audit Report (LFAR):

Branch Audit Guidelines 2018-19 Page 11 of 43

c. Other Audit Observations:

2. Prior Period Income/Expenses:

Branch Audit Guidelines 2018-19 Page 12 of 43

BS 17 statement is statistical information for reporting purpose only, hence no MOC is to

Branch Audit Guidelines 2018-19 Page 13 of 43

Memorandum of Changes (MOCs) is to be done for reporting and accounting of changes

Entries may be required to be passed for rectification of errors/discrepancies as well as for

There are two sets of MOCs viz.

Following aspects be noted while submitting the MOCs –

Branch Audit Guidelines 2018-19 Page 14 of 43

Guidelines to the branches on completion of Zonal audit:-

 The impact on account of reversal / application of interest, including down-gradation (NPA) /

Branch Audit Guidelines 2018-19 Page 15 of 43

8. Nearest Dist. Place______Distance_K.M.s from the Branch