Draft Audit Report

AUDIT REPORT
(FOR THE PERIOD ENDED 30.06.18)
ZARAI TARAQIATI BANK LIMITED

MANDI AHMED ABAD BRANCH
( 20273)
DATE OF AUDIT FROM 18-10-2018 TO 26-10-2018
DATE OF DISCUSSION: 26-10-2018.
Audit Report on the Account of ZTBL MANDI AHMAD ABAD 20273 Branch For the period ended 30.06.18
Para AUDIT OBSERVATION REPLY OF Para COMMENTS REMARKS
No. MEMO.NO.36 VOL-1 BRANCH No OFAUDIT
PASS BOOK MISSING IN LOAN CASE FILE Being arrange Compliance
awaited.
Instruction Para No.10.11.1 of credit Manual Vol-1.
During audit it is observe that in following Loan case PASS BOOK

is missing of audit review.
Branch is advice to arrange compliance.
Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

MANAGER(AVP), Muhammad Atif Saeed P.P.No.(115581)OICA ( OG-1II)
LCNO AMOUNT PAID ON

171393 500000 29.06.18
2
Para REPLY OF Para COMMENTS OF REMARKS
No. MEMO.NO.25 VOL-1I BRANCH No AUDIT
THE AREA OF THE BORROWERS IS LESS IN MUTATION The difference is Refer to
AS COMPARE TO PASS BOOK/CCC due to computer SVP(Audit).
LC NO.171153 OF INPUTS/DAIRY &WORKING CAPITAL AMOUNTING
correction/
RS.477000/- PAID ON 27.06.18 Conversion.
Please settle the
INSTRUCTION. Para No.5.16 of credit Manual Vol-1. para.
During audit it is observed that branch has paid loan to the borrowers in
LCNo.171153 Dated.27.06.18 in the shape of inputs/dairy & working
capital.The pass book and CCC shows the total area of the borrowers in Khewat
No.12 is 32K-14M but the computerize mutation shows the Khewat total area is
32K-13M..
Therefore, branch is advised to recope the deficency..

Ali Irfan P.P.No.(129413)MCO ( OG-1II)
3
No. MEMO.NO.26 VOL-1I BRANCH No AUDIT
THE AREA OF THE BORROWERS DIFFER IN The difference is Refer to
MUTATION COLUM NO.18,CCC/PASS BOOK AS due to computer SVP(Audit).
correction/
COMPARE TO DESCION OF ADLR. Conversion.
LC NO.170387 OF INPUTS ,WORKING CAPITAL AND DAIRY LOAN Please settle the
AMOUNTING RS.840000/- PAID ON 06.06.18
para.
INSTRUCTION. Para No.5.16 of credit Manual Vol-1.
LCNo.170387 Dated.06.06.18 in the shape of inputs/dairy & working
capital.The pass book/CCC & colum No.17 of mutation shows the total area of
the borrowers in Khewat No.273 is 42K-0M but the descion of ADLR in
computerize mutation shows the Khewat total area is 42K-02M..

4
No. MEMO.NO.55 VOL-11 BRANCH No AUDIT
IN COMPUTERIZE REVENUE RECORD OF SAM LOAN Being arrange Compliance
CASES THE MORGADGE MUTATION OF LAND IS NOT awaited.
AVAILABLE IN KHANA KHEWAT.
LC NO.099457 OF INPUTS AMOUNTING RS. 80000/- PAID ON 28.03.14
During verification of revenue record in computer center by tne audit it is

observed that mortgage mutation No.1945 DATED 10.04.03 sanctioned in favor
of bank amounting Rs.81280/- is not available in khana khewat computerized
revenue record. Therefore, branch is advised to arrange compliance
immediately or effect recovery.

LCNO AMOUNT DATE MUTATION NO DATE AMOUNT SANCTION IN

FAVOUR OF BANK
106160 150000 21.06.14 2542 16.11.05 1148100
062808 136000 20.06.12 393 26.05.06 136150
5
No. MEMOO NO.08 VOL-11 BRANCH No OF AUDIT
10 PERFORMANCE OF OFFICER INCHARGE CREDIT ADMINISTRATION Being Compliance
arrange awaited.
i. It is obligatory on the part of OICA, in the light of instructions contained in H.O.
Circular No. CAD/I(AS)/1(1)/2009 dated 09.06.09, to arrange the placement of
acknowledgements of receipt by the borrower for demand/legal notices issued by the
branch for each installment in loan case files. Furthermore he is also responsible to
confirm that recovery schedules have been issued to the borrowers timely and their
acknowledgements have been placed in the respective loan case files, and to refer the
cases to branch manager where un-delivered envelopes containing demand /legal
notices are received back for correct mailing address in the system. He failed to observe
the instructions.
ii. Scrutiny of loan case paid during the under period under review reveals that OICA is
not performing his duties as he did not scrutinized even a single loan case file and did
not point out discrepancies in many loan cases as noted by the audit during conduct of
the audit.
iii. He did not furnish loan sanction and disbursement authorization certificate
iv. Check list in Loan appraisals neither filled in properly nor signed during the period
under review.
v. He failed to maintain Loan Utilization & Mutation Register.
vi. He also did not maintain Village wise Index Register.
vii. There is no entry of joint safe custody of loan case safe files in Key Register.
viii. Inventory of the loan cases neither prepared nor sent to ZM (CAD)
ix. Shadow copies have not been dispatched to ZMCAD.
Contd…Next page..
6
No. MEMOO NO.08 BRANCH No OF AUDIT
x)ORR Performa not duly filled of fresh / new borrowers.

Xii)Safe File Movement Register has also not been maintained.
Xii)Index sheet on Document-1 at page No.9 of loan case files not filled in .
OICA is to arrange filing of duplicate copies of Demand/Legal notices and recovery

schedule in respective loan case files as early as possible. He is also directed to provide proof
of delivery of demand/ legal notices and make it sure that these notices are dispatched to the
borrowers timely through MCOs / mail under “acknowledgement due”. OICA is also
responsible to ensure filling of the ORR Performa duly filled and signed by the concerned
officers (MCO & Manager) in all loan cases pertaining to fresh/new borrowers and to furnish
monthly compliance report to CA&RM Division Head Office Islamabad. Arrange pending
compliances as pointed out above in the light of job description as approved by the bank.
Persons Responsible .Muhammad Atif Saeed P.P.No.(115581)OICA ( OG-1II)
7
No. MEMO.NO.35 VOL-1I BRANCH No OFAUDIT
CCC MISSING IN LOAN CASE FILE Being arrange Compliance
awaited.
Instruction Para No.10.11.1 of credit Manual Vol-1.
During audit it is observe that in following Loan case CCC is missing

of audit review.
Branch is advice to arrange compliance.

LCNO AMOUNT PAID ON

171393 500000 29.06.18
8
Audit Report on the Account of ZTBL MANDI AHMAD ABAD 20273 Branch For the period ended 30,06,18
VERIFICATION OF e-CIB REPORT FROM STATE BANK OF PAKISTAN e-CIB obtained Compliance
During Audit period it is observed in under noted Loan cases that Branch has not arranged Ecib REPORT FROM in all the loan awaited.
STATE BANK OF PAKISTAN It is negligence at the part of Branch It is a violation of Para 1.13.1(v), 1.13.3,
2.5.3 read with Cir. CD/04/2013 Dated 14-06-2013Credit Manual Vol-I, Detail has narrated as the bank
cases and print
endeavors to enhance prudence in its lending operations to minimize its exposure to risk with the will be place in
objectives to bring overall procedural efficiency and improvement in assets side client base of ZTBL the respective
through quality lending and in modification to instructions contained in Credit Manual It has been files with in
decided that W.e .f, 1ST July 2013 Credit Worthiness Report (CWR) from Ecib of State Bank of Pakistan days.Pleasr settle
shall be obtained in respect of all the intending borrowers irrespective of loan amount .It is observed that the para.
branch failed to obtain the CIB report from SBP. Branch Manager is advised to justify and arrange
compliance to safe guard the bank interest.
Persons Responsible .Rana Muhammad Abbas P.PNO.(019486) MANAGER(AVP),
Muhammad Atif Saeed P.P.No.(115581)OICA ( OG-1II)
LC.No Amt Head Date MCO Designation PP.NO
Paid
170251 120000 9018 02.06.18 Ali Irfan OG-11I 129413
170859 217000 9018,9160 19.06.18 do do do
170767 141000 9018 14.06.18 do do do
170608 450000 9018 11.06.18 do do do
170826 280000 9018,9160 19.06.18 do do do
170756 495000 9018,9303,9160 14.06.18 do do do
171050 300000 9018 28.06.18 do do do
170192 160000 9018,9307,9417 01.06.18 do do do
168184 159000 9023 17.01.18 Talha Nasir OG-11I 129324
9
No. MEMO.NO.31 BRANCH No AUDIT
THE STAMP OF ADLR IS NOT AVAILABLE ON PASS Being arrange Compliance
BOOK PAGE NO.19 AND ON COMPUTERIZATION awaited.
MUTATION
LC NO.168564 OF INPUTS AMOUNTING RS.325000/- PAID ON 16.02.18
LCNo.168564 Dated.16.02.18 in the shape of inputs.The stamp of ADLR is not
available on page No.10 of pass book and on computerize mutation.

Malik Ajmal P.P.No.(121704)MCO ( OG-1II)
10
No. MEMO.NO.32 BRANCH No AUDIT
THE AREA OF THE BORROWERS DIFFER IN In the pointed cases Refer to
COMPUTERIZE MUTATION/PASS BOOK AND CCC computerize SVP(Audit)
LC NO.170790 OF INPUTS & DAIRY LOAN AMOUNTING RS.650000/-
mutation shows
PAID ON 13.06.18 excess area of the
borrower.It is
INSTRUCTION. Para No.5.16 of credit Manual Vol-1. therefore bank
interest is
safe.Kindly settle
the para.
LCNo.170790 Dated.13.06.18 in the shape of inputs & peter engine.The CCC
shows that borrower is owner of 62K-14M but computerize mutation sanction in
favour of bank shows area as 49K-19M .
Branch is advised to arrange correction in CCC under proper authentican of
ADLR concern.

LCNO AMOUNT PAYED ON ON COMPUTERIZE ON CCC MCO DESIGNATION PPNO
MUTATION
170882 750000 14.06.18 62K-14M 49K-19M Safder Jhujh OG-11 113283
11
Audit Report on the Account ofZTBL MANDI AHMAD ABAD 20273 Branch For the period ended 30.06.18
No. MEMO.NO.40 BRANCH No OFAUDIT
SANCTION POWERS EXCEEDED IN PRODUCTION LOAN Now excess amount of May kindly be
Rs.4000 has been settle.
During the audit of branch It is observed in the following loan case that
recovered from the
borrower has availed credit facility in production loan and the branch has borrower vide voucher
exceeded sanction powers. Over all loan Sanctioning power of the chief No.9672066 dated
Managers/ Managers would be restricted to RS=0.700 Million per 24.10.18.Para may kindly
Borrower/party in one OR loan but Branch has advanced loan more than be settle.
percribed limit in production loan and in the shape of working capital
(production loan) contrary to the instructions contained in circular
No.CD/15/2014 dated 09.12.14.Branch is advised to effect recovery of excess
amount immediately.
LC.No Amt Head Date Add Head Date OBL Total Amt EXCESS MCO Designation PP.NO
Paid LC.No Sanction/disbursed AMOUNT
169167 600000 9018 24.03.18 - - - - 704000 4000 Talha Nasir OG-11I 129324
104000 9160
12
Para AUDIT OBSERVATION REPLY OF Para COMMENTS OF REMARKS
No. MEMO.NO. 53 BRANCH No AUDIT
LOAN SANCTIONED & DISBURSED ON DEVELOPMENT AREA WITHOUT Being arrange. Compliance
DOCUMENTARY EVIDENCE awaited.
While scrutinizing the loan safe file it has been observed that the branch has disbursed loan beyond
the credit ceiling fixed against the development area owned and possessed and crop wise ceiling per
acre under AZS /SBS/KDS by excluding 10% equity and also without obtaining documentary
evidence regarding additional development area in shape of certified true copy of Khasra girdowari
for consecutively 3 crops which is found beyond the admissibility of the borrower thus contrary to
the instructions contained in Para No. 7.5.2( ii, iv) .Therefore branch is advised to recover the over
financed loan and report compliance.
Add. Amt HEAD DATE Area Amt Excess MCO Designation PPNO
LC.NO. Paid Admissible AmT Paid
167905 498000 9023 08.01.18 46K-0M 300000 198000 Talha Nasir OG-11I 129324
13
Audit Report on the Account of ZTBL MANDI AHMAD ABAD 20273 Branch for the period ended 30.06.18
Para AUDIT OBSERVATION REPLYOF Para COMMENTS REMARKS
NON IMPLIMENTATION OF CREDIT ADMINISTRATION SYSTEM. It is due to rush of May kindly
work and to achive be settle.
Instructions. letter No. Audit/P&C/4(20)/2010/3564 dated 16.07.2010 the recovery
Cir NoCAD/MONT/1(5)/2009 dated 12.11.2009.
targets.Now the
Cir.CAD/IMP/MON/1(5)/2009 dated 05.11.2009
Cir No.H.O Cir No.CAD/ICAS/1(1)/2009 dated 09.06.2009 OICA has signed all
During audit it is observed that branch have made payments without the signature of OICA. documents,where as
Some instance is as under. in his logen he
LCNO AMOUNT DATE OF PAYMENT already pass the
167743 1000000 02.01.18 case.
168276 120000 23.01.18
168542 276250 23.01.18
168900 681000 13.03.18
168830 45000 09.03.18
168966 341000 14.03.18
168955 600000 14.03.18
Persons Responsible . Muhammad Atif Saeed P.P.No.(115581)OICA ( OG-1II)

14
AUDIT OBSERVATION REPLY OF Para COMMENTS REMARKS
Para MEMOO NO.38 BRANCH No OF AUDIT
No.
LOAN AGREMENT NOT EXECUTED ON STAMP PAPER Being Compliance
arrange awaited.
LC NO.169499 OF INPUTS AMOUNTING RS.550000/- PAID ON 08.08.18
During scrutiny of undernoted Loan case File It is observed that Branch has paid loan to the borrower but the
loan agreement not executed on stamp paper.Branch is advise to please justify.

15
No. MEMO.NO. 30 BRANCH No OFAUDIT
DUPLICATE PASSBOOK WITHOUT PROPER DOCUMENTATION. Title of land is Compliance
intact.Branch intrest is awaited.
In the above loan case it has been observed that the branch has sanctioned/disbursed an safe.Para may kindly be
amount of Rs.480000/ to the borrower for inputs in LCNO.170365 dated 05.06.18..During settle.
scrutiny of the loan case file it has been observed that borrower has got prepared duplicate
pass book No.614798.Audit has observed that following documents are
missing.1.Application of the borrower.2..Order of the revenue officer missing for issuance
of duplicate passbook.3.FIR of missing Pass Book. It is violation of Para No.10.11.1.Branch
is advice to arrange compliance to avoid chance of getting loan from any other bank.Similar
condition in the above loan case.

LCNO AMOUNT PAID ON MCO DESIGNATION PPNO

170365 480000 05.06.18 Ali Irfan OG-11I 129413
168900 681000 13.03.18 do do do
168564 325000 16.02.18 Malik Ajmal OG-111 121704
16
ADJUSTMENT, ACCOMMODATIVE, ENHANCED LOAN TO PREVIOUS HABITUAL The loan has Compliance
DEFAULTER TOWARDS RECOVERY.
During current audit period of branch, in scrutiny of under noted loan cases. It is observed branch has
been granted awaited.
advanced loan to borrower The borrower availed credit facility previously under different schemes and is on the
chronic & habitual defaulter but branch adjust the recovery amount repeatedly by disbursing unjustified a genuine
fresh loan just to boast up the fictitious, bogus recovery and disbursement which is detrimental to the
demand of
borrower as well as to the .It should be ensured that no additional/fresh loan is sanctioned for adjustment of
recoveries in respect of previous loan of borrower before or after their due dates. Additional/fresh loan
borrower.Para
should be sanctioned very judiciously and for genuine needs of borrower(s) after thorough and correct may kindly be
appraisal of loan case(s).. It is a violation of instructions contained in Para No.2.5.7, and 7.6.3 Of settle.
Credit Manual, read with BOD/07/2011 / Dated 26-01-2011 and CD/10/2010 Dated 13-04-
2010.Branch is advised to effect recovery of accommodative amount with update return.
Add AMT. HEAD Date OLD. Amt Head EXCESS Due Date Recovery Coments MCO Designation PP.No
LCNO. Paid L.C.NO. paid Date
170941 340000 9018 20.06.18 162830 291000 9024 49000 07.01.18 19.06.18 LATE Ali Irfan OG-11I 129413
170871 215000 9018 19.06.18 149495 170000 9024 45000 07.01.18 18.06.18 LATE do do do
170893 375000 9018 19.06.18 148870 320000 9024 55000 07.01.18 18.06.18 LATE do do do
170309 550000 9018 05.06.18 159034 530000 9023 20000 07.01.18 04.06.18 LATE do do do
170435 266000 9018 07.06.18 158936 219000 9024 47000 07.01.18 06.06.18 LATE Talha Nasir OG-11I 129324
170697 200000 9018 13.06.18 148744 165000 9024 35000 07.01.18 12.06.18 LATE do do do
170561 700000 9018 08.06.18 159676 686000 9024 14000 07.01.18 07.06.18 LATE Safder Jhujh OG-11 113283
171267 660000 9018 29.06.18 157528 500000 9024 160000 07.01.18 28.06.18 LATE do do do
170550 117000 9018 08.06.18 162254 108000 9024 9000 07.01.18 08.06.18 LATE do do do
17
INSTANCES WHERE AGRI PASS BOOK IS IN MISERABLE We have telled all entries Compliance
CONDITION. at computer center of this awaited.
pass book which is
During audit it has been observed that in the following loan case genuine.Para may kindly
agri pass book is in miserable condition countrary to the be settle.
instruction as per Para No.5.7.5, 5.8.2.of credit manual.
Branch is advised to arrange compliance properly.

Add LC.No Amt Paid Date MCO DESIGNATION PPNO
168081 178750 15.01.18 Malik Ajmal OG-111 121704
18
Being arrange. Compliance
SINGLE THUMB IMPRESSION OF LADY BORROWER awaited.
Instructions :- Para No.3.3.4 of the Credit Manual Vol-I
In the under noted loan cases the branch has not obtained RTI and LTI of lady borrowers.
RTI and LTI may be obtained on each page of L.A. Form along with signatures of literate
applicants.
LC No. Amount Date
167857 700000 04.01.18
19
PENDING REGISTRATION OF TRACTOR. ETO has Compliance
During the scrutiny of loan case file paid Registration of tractor not arranged. After provided awaited.
receipt of delivery documents the concerned MCO will arrange joint registration along number plates
with affixation of rubber stamp “ NON TRANSFERABLE “on the book and after retaining of all the
the attested Photo copy of Registration for bank record and placed in the loan case file , pointed cases
which is not available in file. Instructions contained in Para No.7.19.19 (ii), 7.47.3 (viii), 9.11 and the
& read with Circular No. CD/08/2010 Dated 23-03 2010.not adhered to by the branch.
registeration
Persons Responsible .Rana Muhammad Abbas P.PNO.(019486) copies are in
MANAGER(AVP), Muhammad Atif Saeed P.P.No.(115581)OICA ( OG-1II) progress.Para
may kindly be
settle.
LCNO. LOAN HEAD DATE Prev. -OBL- Total MCO Designation PP.NO
PAID LCNO. Amt
167743 1000000 9404 02.01.18 - - 1000000 Safder Jhujh OG-11 113283
168494 1000000 9404 09.02.18 - - 1000000 do do do
169307 640000 9404 07.04.18 - - 640000 do do do
169961 996000 9404 28.05.18 - - 996000 Talha Nasir OG-11I 129324
20
TUBEWELL LOAN Being arrange. Compliance
During audit it is observed that in the following tubewell cases branch has disbersed loan for peter engine but awaited.
instructions are not observed mentioned in Para No.7.21 of credit manual vol-1.Following discipences are
observed
(A) -Qutation for peter engine duly accepted by the borrower is not arrange.
(B) –Karra number not mentioned in which tubwell install.
(C) –The amount/price of peter engine disbursed not accourding to banks rate.
(D) –Tubewell performa is not available.
(E) –Subsoil water is not tested by water testing laboratory.
(F) –Tubwell scheme was not discussed.
(G) –Map of processed/owened area is not obtained.
Some instance are as under.Branch is advise to arrange compliance in 100% cases.

.

LCNO AMOUNT PAID ON

168243 55000 19.01.18
168036 70000 12.01.18
168380 45000 02.02.18
170310 48000 05.06.18
171027 65000 25.06.18
171267 45000 29.06.18
171315 70000 29.06.18
170664 60000 11.06.18
170804 60000 19.06.18
170790 50000 13.06.18
171175 50000 26.06.18
168162 65000 17.01.18
21
DISCREPANCIES IN GODOWN LOANS. Being arrange Compliance
Persons Responsible .Rana Muhammad Abbas P.PNO.(019486) awaited.
During scrutiny of under noted loan cases paid for Godown loans. It has been observed
that in the light of instructions contained in H.O. circular No CD/13/2015 dated 08-04-15
and Para No. 7.23 of Credit Manual wherein it has been mentioned that Godown loans are
allowed to be sanctioned and disbursed subject to fulfillment of following conditions:-
i) Repaying capacity in new borrowers, and good credit worthiness in old borrowers.
ii) Clear CWR.
Iii) ORR rating upto 4.
iv) An under-taking that Godown constructed for storage of Agricultural produced and
inputs are not used for residential purpose.
v) Expenditure vouchers if not constructed through Contractor.
vi) After execution of proper documentation loan for Godown shall be disbursed in 3 equal
installments after verification of proper utilization of each installment by concerned
MCO.
Contd….Next page.
22
The branch has made disbursement in Godown cases without fulfilling the above
conditions. The branch is advised to arrange compliance in all the Godown loans paid under
the audit period. Some instances are given hereunder :-
L.C.NO AMOUNT DATE

168036 50000 11.01.18
170192 30000 01.06.18
170413 90000 06.06.18
170273 95000 02.06.18
171290 100000 29.06.18
171131 73000 27.06.18
171267 90000 29.06.18
170527 200000 06.06.18
171360 90000 29.06.18
169662 300000 14.05.18
169189 60000 24.03.18
23
SANCTION LETTER NOT SENT THROUGH REGISTERED POST Sanction letters Compliance
During the scrutiny of under noted loan case files paid during the audit period, branch has not sent sanction
letter to the borrower through registered post and the postal envelopes not filed in the loan case files as the
now send awaited.
instructions contained in Para No.5.14.2 that” intimation of sanction of loan and its terms and conditions through
should be communicated in duplicates as per Annexure 25 (IBS-147/R) and its acknowledgement be obtained MCOs.Please
from the borrower(s) on the Duplicate copy of the sanction letter and in Para No.10.2.1 that “ before Ist
disbursement of loan the envelope through which sanction letter has been dispatched may be received back
settle the para.
from the borrower with copy of sanction letter containing acknowledgement/acceptance of terms & condition
of sanction letter for placing in safe file of the concerned borrower” Branch is advised to arrange compliance
in 100% loan case files paid during audit period.
Paid
168036 620000 9018 11.01.18 Malik Ajmal OG-111 121704
9415
169433 135000 9303 03.06.18 do do do
170088 150000 9303 26.05.18 Safder Jhujh OG-11 113283
170262 225000 9018 29.05.18 Talha Nasir OG-11I 129324
170240 225000 9018 29.05.18 do do do
24
Being arrange Compliance
DISCREPENCIES IN DAIRY LOANS. awaited.
Instructions :- HO Circular NoCD/14/2014 dated 04.12.2014
Loan disbursed for Dairy/Tadi goats farming but following documents have not been
arranged
1) Economics of dairy/Tadi goats farming is not arranged.
2) Copy of Khasra Girdawri showing self owned possession on the specific Khasra
Number where the Dairy/Tadi goats shed is constructed.
3) Map /AqsShajra of Khasra Number where Dairy Tadi goats shed is constructed.
4) Ear tagging of the animal is not being arranged byUnited Insurance Company as no
claim will be payable without t
agging as per banks instructions.
Few examples are given below. Branch is advised to arrange compliance in 100% loan
cases and report.

LCNO AMOUNT GL.HEAD DATE
170756 200000 9303 14.06.18
170996 115000 9303 23.06.18
171153 177000 9303 27.06.18
170572 200000 9303 09.06.18
170387 200000 9303 06.06.18
170413 200000 9303 06.06.18
170273 200000 9303 02.06.18
171061 200000 9303 25.06.18
170653 100000 9303 13.06.18
25
PARA AUDIT OBSERVATION PARA
REPLY OF THE BRANCH
COMMENTS OF REMARKS/
NO Memo No.23 NO AUDIT STATUS
These mutations have Compliance
SECURITY AREA ACCEPTED WITHOUT TRUE COPIES OF already been awaited.
MUTATION. incarporate/implemented
In the following loan cases the borrowers have acquired security aras through in the next
jamabandi.Para may
different types of mutations but branch has not obtained true copies of the title
kindly be settle.
mutations for verification and bank recrd. Meterial compliance is required.
LC No: AMOUNT DATE TITLE MUTATION No.
168128 500000 15.01.18 982
170952 240000 20.06.18 754

26
It is certified that there is May kindly be
no litigation involved in settle.
AFFIDAVIT NOT OBTAINED IN CASE OF SECURITY AREA
the pointed cases.Para may
ACCEPTED THROUGH INHERITANCE MUTATION. kindly be settle.
Instructions:- Para No.4.20.7 of Credit ManualVol-I.
landed properties acquired through inheritance Mutation, same has

mortgaged in favour of ZTBL but branch has not obtained an
affidavit from the other legal heirs to the effect that no any legal
heirs has been deprived off in the following loan cases. Procedural
Meterial compliance is required.
L.C.No. Amount Mutation Date

No.
168128 500000 982 15.01.18
169640 480000 348 14.05.18
169880 410000 984 23.05.18
171234 358000 1459 26.06.18
170778 960000 777 13.06.18
170000 210000 817 26.05.18
27
LOAN ADVANCED AGAINST TOO OLD BANK CHARGE / MORTGAGE It is certified that title of Compliance
MUTATION OF DEFUNCT ADBP. land is intact with the awaited.
Instructions:- Para No.5.15 read with Para No. 5.20 of Cr. Manual Vol-1 & Sub Rule (2-A) bank.Bank intrest is
in Rule 6 after Sub-Rule(2) and revised Schedule-II as per Rule 6(3) have been safe.Kindly settle the para.
added/substituted in LACIP Rules, 1973 by the Government
During audit of the branch it is observed that loan advance against too old bank
charge/mortgaged mutation of defunct ADBP.Some examples are given below.Branch is
advise to arrange bank charge in the name of ZTBL instead of ADBP.
LCNO AMOUNT DATE Mutation
No
170974 34000 20.06.18 1048
169444 65000 03.05.18 620
169640 480000 14.05.18 348
169891 80000 24.05.18 1438

28
POST DATED CHEQUES OBTAINED BLANK FOR RECOVERY OF DEVELOPMENT LOANS. Being arrange. Compliance
During scrutiny of loan cases ,it is observed that branch has obtained blank, Incomplete cheques from the
borrower and handling ofcheque are not according to the guidelines issued in Para 9.24( 9.24.1, 9.24.2,
awaited.
9.24.3, 9.24.4 ),15.26 (v) in all development loans post dated cheques will be obtained from the borrowers
at the time of allowing disbursement/issuance of demand draft. This would be in addition to the existing
measures being taken by the branches the following guidelines should be kept in view:
30 Post dated cheques equal to number of loan installments fixed in the case will be obtained.
2- The dates and amounts of cheques will be according to the recovery schedule/Installments fixed in the
development loan cases the cheques would be drawn in favor concerned ZTBL branch with loan case
number
3- The cheques would be duly prepared and Signed /LTI/RTI affixed, such as the case may be, by the
Borrowers/depositors himself. The cheques should not be left blank in any case.
4- Most of the cheque books of development loans are found in the Loan Case Files instead of Teller during
the period covered by audit.
5- Branch has not maintained Branch Safe Document Register for entry of all cheques of Development loan.
6- The cheques would be received from borrower through pay in slip. The stamp containing narration “L.C
will be credit on realization” would be affixed on the pay in slip. This is not only violation of standing
instructions rather may be result into embezzlement/ fraud in the branch., A few
Instances are quoted here under. Branch is advised to give justification for the same, stopped the practice of
obtaining blank cheques from the borrower immediately ,instructions be kept in view in letter & spirit and
arrange compliance properly in 100% loan paid cases during the current audit period .
170756 200000 9303 14.06.18
170996 115000 9303 23.06.18
171153 177000 9303 27.06.18
170572 200000 9303 09.06.18
170387 200000 9303 06.06.18
170413 200000 9303 06.06.18
170273 200000 9303 02.06.18
171061 200000 9303 25.06.18
170653 100000 9303 13.06.18
29
NON CHECKING OF UTILIZATIONS BY MANAGER AND MCOS. Being Compliance
During Audit of Branch it is observed that manager and mcos has not checked and Report the Utilizations in arrange and awaited.
respective of their Responsibility at Branch Level.
completed
I-Manager has not checked utilizations @ 5% and 1% of Production/Development
by the end
Loans respectively contrary to the instructions Para .12.3.1 of Credit Manual )
of the
II-MCO will check utilization of loan sanctioned by them over and above the fixed ratio . Para 3.2.2 but all the field year.Para
Concerned Officials is advised to arrange100% compliance
Functionaries not adhere to the Bank instructions. may kindly
according to the criteria fix by the Head Office. be settle.
III-Zonal manager has also not check utilizations as per quta.
Persons Responsible: MANAGER & MCOS.
30
\ Audit Report on the Account of ZTBL MANDI AHMAD ABAD 20273 Branch For the period ended 30.06.18
No.
RENEWAL OF TRACTOR / LIVE STOCK INSURANCE :- Live stock Refer to
insurance has SVP(Audit)
been
It has been observed that the Branch has not arranged Insurance in Tractor / Dairy loans for the completed
and for tractor
subsequent year, wherein on renewal, the Principal outstanding loan amount will become the sum insurance we
insured in violation of instructions contained in H.O Circular no. SD/02/2014 dt. 03.09.14 and have approach
the borrower.
SD/03/2014 dt. 03.09.14 respectively. Please arrange compliance. Please settle
Persons Responsible .Rana Muhammad Abbas P.PNO.(019486) MANAGER(AVP), the para.
31
It is not practice in the Refer to
UNAUTHORIZED ACCESS AND SHARING OF PASSWARD. branch.However it is again SVP(Audit)
noted for future strict
While conducted the audit of ZTBL , branch for the period ended 30.06.18, it is observed compliance.Please settle
that the branch is violating the instructions of IT Security policy and related information
the para.
security control issued by the Head Office regarding non sharing of password among office
staff and unauthorized physical access to the computer. So, branch users are not complying
with the instructions issued vide Cir. No. IT-S&CPD/04/2009 dated 04.03.2009 in
continuation of Circulars dated 19.01.09, 06.02.09 &12.03.09. This act of the branch is
against bank’s policy and unpleasant situation can be occurred which leads to any financial
mishap. Please justify and comply with the instructions in letter and spirit.

32
No.
INVALID / EXPIRED CNICS HAS ACCEPTED/NOT OBTAINED. It is certified May kindly
During scrutiny of undernoted Loan case Files It is observed that Branch has accepted expired CNIC/ not that branch be settle.
obtained .It is the responsibility of MCO and Manager to prevent the chance of impersonation no loan has now
application under any scheme /system should be entertained without obtaining CNIC dully attested by MCO. In arrange
the following loan cases, loans has been advanced / renewed to the borrowers by obtaining valied
expired/invalid CNICS in violation of instructions contained in Para No. 1.13.1 ( I ), 3.8.4 , 4.4.1( iii ) CNIC.Para
,7.7.2 ( iii ) of Credit Manual vol-1. Please justify & recoup deficiency now in order to avoid imposition may kindly
of penalties by SBP. be settle.
LCNO AMOUNT Head DATE CNIC EXPIRY DATE MCO Designation PP.NO
170859 217000 9018 19.06.18 30.06.13 Ali Irfan OG-11I 129413
171153 477000 9018,9160,9303 27.06.18 31.05.18 do do do
170941 340000 9018 20.06.18 31.08.15 do do do
170893 407000 9018,9160 19.06.18 30.06.15 do do do
170837 699000 9018,9160 19.06.18 31.05.14 do do do
168184 159000 9023 17.01.18 31.01.17 Talha Nasir OG-11I 129324
170446 82000 9018 07.06.18 29.09.10 do do do
170310 228000 9018,9415 05.06.18 31.12.15 do do do
170424 968000 9018,9303,9417 06.06.18 31.03.18 do do do
170929 681000 9018 20.06.18 Not available do do do
170734 197000 9018,9307 14.06.18 30.04.18 do do do
169396 63000 9018 27.04.18 Not available do do do
169330 240000 9018,9160 11.04.18 31.12.15 Ajmal Malik AVP 121704
168287 500000 9024,9303 23.01.18 30.06.17 do do do
169053 582000 9018,9303 17.03.18 Not available Safder Jhujh OG-11 113283
170239 325000 9018 01.06.18 31.08.17 do do do
33
PHOTOS OF THE BORROWERS DULY ATTESTED BY THE MCO NOT Being arrange. Compliance
OBTAINED/PASTED/ awaited.
INSTRUCTION. Para 3.8.4 of the Credit Manual-I.
In the all most all cases , loans have been sanctioned / advanced without obtaining/pasting attested
photographs of the borrowers in violation of instructions referred above. Please account for the
omission and arrange 100% meterial compliance. A few examples are qouted hereunder please.
LC NO. AMOUNT DATE
171212 406000 28.06.18
171267 795000 29.06.18
169396 63000 27.04.18
170262 225000 29.05.18
170240 225000 29.05.18
167961 600000 11.01.18
168210 200000 18.01.18
167709 25000 01.01.18
168184 159000 17.01.18
168195 325000 18.01.18
168520 194000 14.02.18
167721 195000 03.02.18

34
REVALIDATION OF OLD ENTRIES OF PASS BOOKS NOTARRANGED. Being arrange Compliance
During audit it has been observed that in too old pass books revalidation has not been arranged to awaited.
safe Guard the bank funds in terms of Para No.4.22.5(iv), 5.18.3 Of Credit Manual At the time of
entertainment of fresh/additional loan cases all old Pass Books issued on the basis of previous
record of right should be got updated/revalidated from the issuing authority, along with entries in
column 15 of Agri. Pass Book if such updating/ revalidation is required and noted by the MCO after
comparing entries in the Pass Book with original revenue record Instances are quoted as under, this
practice has spread over the current audit period. Branch is advised to recoup the deficiency in
100% loan paid cases during the current Audit period with proper authentication of Revenue
official.
LCNO. LOAN HEAD DATE Jamanbundi MCO Designation PP.NO
PAID Year
171186 200000 9018 26.06.18 2010-2011 Safder Jhujh OG-11 113283
170859 217000 9018,9160 19.06.18 2001-2002 Ali Irfan OG-11I 129413
170767 141000 9018 14.06.18 1997-1998 do do do
170608 450000 9018 11.06.18 2001-2002 do do do
170826 280000 9018,9160 19.06.18 2001-2002 do do do
170756 495000 9018,9303,9160 14.06.18 2009-2010 do do do
170996 225000 9018,9303 23.06.18 2004-2005 do do do
171083 210000 9018 26.06.18 2010-2011 do do do
170413 990000 9018,9303,9417 06.06.18 2010-2011 do do do
167857 700000 9023 04.01.18 2010-2011 Ajmal Malik AVP 121704
168380 395000 9023,9415 02.02.18 2009-2010 do do do
168184 159000 9023 17.01.18 2002-2003 Talha Nasir OG-11I 129324
170745 187000 9018 14.06.18 2010-2011 do do do
170963 298000 9018 20.06.18 2000-2001 do do do
171223 350000 9018 28.06.18 2000-2001 do do do
35
170594 254000 9018,9160 09.06.18 2007-2008 do do do
NON VERIFICATION OF CNIC FROM NADRA. In all the cases Compliance
During audit it is observed that Branch has not got verified the CNIC of the bio-matric has awaited.
been made.Print
borrower in almost all the cases paid during the audit period from NADRA
will be arrange
through the prescribed system in ZTBL Website which is against the standing
very soon.It is
instructions contained in circular No.CD/22/2009Dated 12.05.2009.Please due to printer
arrange compliance in all such cases. A few examples are as under. Branch problem.Para
is advised to arrange 100% compliance may kindly be
Persons Responsible .Rana Muhammad Abbas P.PNO.(019486) settle.
Paid
171186 200000 9018 26.06.18 Safder Jhujh OG-11 113283
170859 217000 9018,9160 19.06.18 Ali Irfan OG-11I 129413
170767 141000 9018 14.06.18 do do do

170608 450000 9018 11.06.18 do do do
170826 280000 9018,9160 19.06.18 do do do
171083 210000 9018 26.06.18 do do do
170941 340000 9018 20.06.18 do do do

167857 700000 9023 04.01.18 Ajmal Malik AVP 121704
170974 34000 9018 20.06.18 Talha Nasir OG-11I 129324
170745 187000 9018 14.06.18 do do do
36
DISCREPANCIES IN WORKING CAPITAL LOANS FOR DAIRY: Being arrange Compliance
Para No 7.7 of Credit Manual-Vol-1 Circular No.CD/14/2014 dated 17.11.2014 awaited.
Para No.2.5.7, 5.14.1 of Credit Manual-1
Branch has sanctioned/ advanced loans of “Working Capital for Dairy” and violated following
instructions contained in above referred instructions
i. There is no any documentary evidence of circle MCOs of establishing Credit Worthiness of
the borrowers, carried out detail appraisal by conducting local enquiry and processed the
loan cases as per Para No.7.7.3 (ii) of Credit Manual-Vol-1.
ii. The loan documents lacks number of milch animals purchased.
iii. Economics as per ground reality and plan of dairy farm and documentary proof from where it could
be seen that the branch has advanced Working Capital for Dairy Project to experienced farmers who
are practically engaged and successfully running Non Farm Credit Activities as required in Para
No.7.7.2 of Credit Manual-Vol-1 and other standing instructions of Bank.
Loans have been sanctioned for adjustment of recoveries in respect of previous loans of borrowers before or
after their due dates in almost all cases.Some instance are as under.
Add AMT. HEAD Date
LCNO. Paid
170859 17000 9160 19.06.18
170826 30000 9160 19.06.18
170756 120000 9160 14.06.18
171153 100000 9160 27.06.18
170572 50000 9160 09.06.18
170413 100000 9160 06.06.18
170594 50000 9160 09.06.18
170893 32000 9160 19.06.18
171337 24000 9160 30.06.18
171131 100000 9160 27.06.18
170837 99000 9160 19.06.18
170309 80000 9160 05.06.18
170365 90000 9160 05.06.18
37
No.
REPAYMENT BEHAVIOUR IS NOT COMPLETED NDC is Compliance
During scrutiny of undernoted Loan case Files It is observed that Branch has paid loan to the borrower but the available in awaited.
repayment behavior has not been completed and for this reason audit can not be calculated the credit the system
wortheness.Some instance are as under and without
NDC
Persons Responsible .Rana Muhammad Abbas P.PNO.(019486) MANAGER(AVP), disbursement
Muhammad Atif Saeed P.P.No.(115581)OICA ( OG-1II) is not
made.Branch
is now
compling.
Para may
kindly be
settle.
LCNO AMOUNT PAID ON
170859 217000 19.06.18
170767 141000 14.06.18
170826 280000 19.06.18
170941 340000 20.06.18
170963 298000 20.06.18
171119 200000 27.06.18
171061 450000 25.06.18
171142 100000 27.06.18
38
No.
LOAN APPLICATION FARM NOT FILLED PROPERLY Being Compliance
During scrutiny of undernoted Loan case Files It is observed that Branch has paid loan to the borrower but the arrange. awaited.
loan application farm colum (B) not filled properly.Branch is advise to recoupe the deficency.Some instance
are as under.

170756 200000 9303 14.06.18
170996 115000 9303 23.06.18
171153 177000 9303 27.06.18
170572 200000 9303 09.06.18
170387 200000 9303 06.06.18
170413 200000 9303 06.06.18
170273 200000 9303 02.06.18
171061 200000 9303 25.06.18
170653 100000 9303 13.06.18
39
No. MEMO NO.39 BRANCH No OFAUDIT
ADDITIONAL LOAN HAS ADVANCED BUT EXCLUSIVE SURVEY NoS/KHASRA It is certified that in the Compliance
NOS/KILLA NOS NOT MORTGAGED/MISSING IN MORTGAGE MUTATION pointed cases the awaited.
REGISTRER. borrower is owner of
The attested photo copies of Mortgaged Mutations found in loan case files shows that In the following loan cases exclusive khasras and
certain survey numbers, which are owned by the borrower exclusively as per entries made in Form-2 of the
agricultural pass book and offered into security was not been mentioned in charge creation certificates, Agri Pass
all the khasras are
books and also not begot mortgaged by Revenue official in Mutation register Branch is advised to please begot mortgaged.Para may
Mortgaged these survey/khasra numbers in the pass book as well as in C.C.C and Mutation Register under proper kindly be settle.
authentication of Mukhtiarkar/Revenue officer as required vide instructions contained in Para 5.20.1 of Credit Manual.

LCNO. LOAN HEAD DATE MCO Designation PPNO

PAID
169765 83000 9018 21.05.18 Talha Nasir OG-11I 129324
169651 930000 9018,9303 15.05.18 do do do
,9415
40
Para REPLY OF Para COMMENTS REMARKS
RECOVERY SCHEDULE NOT COMMUNICATED TO THE The recovery Compliance
BORROWER. schedule is awaited.
During scrutiny of the loan cases for the period under report, it has been observed already despach
that branch has not communicated the recovery schedule (issued by Zonal to the borrowers
Computer Centre) to the borrowers as per instructions contained in Para 7.5.3(xi) however copies
of the Credit Manual:-The Information System Division will develop software to
will be place in
generate revised recovery schedule in all existing cases and the Zonal Chief
/Branch Manager concerned will ensure their delivery to respective borrower . the respective
Recovery Schedule duly signed/acknowledged by the borrower in the relevant loan files.with in
case file.Para 3.5(ii) Branch is advised to arrange compliance in 100% loan cases days.Para may
paid during current audit period. kindly be settle.

170756 200000 9303 14.06.18
170996 115000 9303 23.06.18
171153 177000 9303 27.06.18
170572 200000 9303 09.06.18
170387 200000 9303 06.06.18
170413 200000 9303 06.06.18
170273 200000 9303 02.06.18
171061 200000 9303 25.06.18
170653 100000 9303 13.06.18
41
Being arrange. Compliance
awaited.
NON AFFIXING OF REVENUE STAMPS ON IBS-144(A).
Branch is not in practice to affix revenue stamps of Rs.4/- on each IBS-

144(A). The Branch is advised to immediately seek out the record and affix
revenue stamps on each safe file in order to avert chances of legal
complications .A few examples are appende below.
170756 200000 9303 14.06.18
170996 115000 9303 23.06.18
171153 177000 9303 27.06.18
170572 200000 9303 09.06.18
170387 200000 9303 06.06.18
170413 200000 9303 06.06.18
170273 200000 9303 02.06.18
171061 200000 9303 25.06.18
170653 100000 9303 13.06.18
42
REVISED FORMAT OF LIST OF LEGAL HEIRS Being arrange. Compliance
awaited.
Instructions. Circular Letter No.CD/31/2013 dated 22.10.2013,
Para No.5.8.7 of credit Manual V-1.
In all the loan cases paid during the period under audit revised format
of list of legal heirs is not available. Branch is advised to arrange compliance
in all the loan cases of the said period.Some examples are given below.

170756 200000 9303 14.06.18
170996 115000 9303 23.06.18
171153 177000 9303 27.06.18
170572 200000 9303 09.06.18
170387 200000 9303 06.06.18
170413 200000 9303 06.06.18
170273 200000 9303 02.06.18
171061 200000 9303 25.06.18
170653 100000 9303 13.06.18
43
BRANCH HAS NOT MAINTAINED UTILIZATION AND MUTATION REGISTERS. The Compliance
. registers are awaited.
INSTRUCTION. Para 12.4.1, 12.4.2., 12.4.3.12.4.4. Credit Manual Volume -1. available in
the branch
and will be
Branch has not Maintained the UTILIZATION AND MUTATION REGISTERS. Branch is advise to arrange compliance. completed
soon.Para
BRANCH HAS NOT MAINTAINED SAFE FILE MOVEMENT REGISTER.. may kindly
.
be settle.
INSTRUCTION. Para 12.4.1,12.4.2.,12.4.3.12.4.4. Credit Manual Volume -1.
Branch has not Maintained the SAFE FILE MOVEMENT REGISTER. Branch is advise to arrange compliance

44
The register is available in Compliance
NON MAINTENANCE OF VILLAGE WISE INDEX REGISTER the branch and will be awaited.
completed soon.Para may
kindly be settle.
Instructions. Para No. 2.32.4 of Credit Manual-1.
Branch has not maintaining village-wise index register. Branch is
advised to arrange compliance immediately.

170756 200000 9303 14.06.18
170996 115000 9303 23.06.18
171153 177000 9303 27.06.18
170572 200000 9303 09.06.18
170387 200000 9303 06.06.18
170413 200000 9303 06.06.18
170273 200000 9303 02.06.18
171061 200000 9303 25.06.18
170653 100000 9303 13.06.18
45
SELF CULTIVATION POSSESSION NOTE NOT RECORDED. It is certified that in Compliance
Instructions contained in Para No. 5.9 & 5.10 of Credit Manaul, Volume-I. the pointed cases awaited.
the land is in the
Area under the self cultivation possession of the borrower (Khasra wise detail) is cultivated
not recorded in the column No. 10 on page 10 of Agri. Pass Book contrary with the possession of the
instructions. Some examples are given below. Branch is advised to arrange borrower.Kindly
settle the para.
compliance in 100% cases.
170756 200000 9303 14.06.18
170996 115000 9303 23.06.18
171153 177000 9303 27.06.18
170572 200000 9303 09.06.18
170387 200000 9303 06.06.18
170413 200000 9303 06.06.18
170273 200000 9303 02.06.18
171061 200000 9303 25.06.18
170653 100000 9303 13.06.18
46
LOAN APPLICATION REGISTER The Compliance
During the conduct of audit it is observed that the branch is not in Practice to maintain The loan application registers are awaited.
register ,Register in form ACF-203 maintained in alphabetical order by the branch should always be available in
consulted at the time of receipt of fresh case, to ensure that no loan is outstanding against the borrower .The the branch
loan application register should periodically be checked by the Branch Manager to ensure that applications are and will be
completed
properly and timely dealt with. Para 2.32.5, 2.32.5.. It is a violation of Para 2.33 of Credit Manual Volume-I.
soon.Para
LOAN APPLICATION RETURNED REGISTER may kindly
During the conduct of audit it is observed that the branch is not in Practice to maintain the LOAN be settle.
APPLICATION RETURNED REGISTER. In cases where the loan application submitted to the branch is
incomplete, the applicant should be assisted in completing it then and there and where the rectification is not
possible, objections should clearly be written on the loan application or a self contained "objection memo" be
attached with it. While returning such incomplete loan applications, with other relevant papers, entry should be
made in the Loan Application Returned Register, giving particulars of the applicant(s), date of receipt/return
and the deficiencies. . It is a violation of Para 2.33 of Credit Manual Volume-I. Branch is advised to arrange
Compliance Properly and report to Audit.
47
SCANNING OF LOAN DOCUMENTS. It is certified Compliance
that 50% awaited.
In order to safeguard Banks funds in any unforeseen and unpredicted events such
scanninig of
as riots ,natural disaster ,infidelity and theft when original documents are lost or loan documents
damaged and it becomes difficult for the bank to file recovery suits in the court of is
law against the borrowers ,the Branch was required to arrange scanning of loan completed.Para
Documents as desired vide HO Circular letter No.CD/21/2009 dated 30.04.2009 may kindly be
and Field Audit Deptt .letter No. Audit/P&C/4(20)/2009 dated 04.05.2009 but settle.
the Branch failed to arrange scanning of the same so far. The Branch is advised in
their own and Banks interest to arrange scanning of loan documents without
further loss of time under intimation to audit

48
ORR is fed in the Compliance
NON IMPLEMENTATION OF OBLIGATORY RISK RATING “ORR” computer and awaited.
print will be
As per instructions contained in Circular No: RMD/1(3)/280-309 dated 22/4/2010 an
place in the
ORR FORM (data of the borrowers) needs to be filled out along with the L.A. Form
for all cases processed by the MCOs and data of the ORR Form shall be entered to respective files
the computer on line connected with Internal Credit Risk Management at Head Office, soon.Para may
Islamabad by the In charge Officer Credit Administration in order to calculate the kindly be settle.
Risk rating of the proposed borrower / loanee, vide instructions contained in Circular
No. CAD/ICAS/1(1)/2009 dated 09.06.09. During the scrutiny of loan case file, audit
observed that neither ORR Form of the loanee are prepared / filled in by the MCOs
for approval of ORR nor fed to Computer in almost all the loan cases processed
during reviewed period. Moreover, approved hard copy has also not been obtained
and placed in relevant loan case files. Due to this negligence the audit is unable to
ascertain that the ORR of the borrowers / loanee are correct or not and accepted to
ICRMD of the Bank. It is regulatory requirement of the State Bank of Pakistan which
may warrant penalties from the SBP in case of non compliance. Justification is
required besides recouping the deficiencies now.

49
GENERAL IRREGULARITES/ WEAK AREAS. Being arrange. Compliance
The following general irregularities have been observed during the conduct of awaited.
branch for the period 01.01.2017 To 30.06.2017. Manager is advised to arrange
meaning full and material compliance immediately.
1-Instructions regarding dispatch of sanction letter as laid down in Para No.8.72
of Credit Manual are not being adhered to.
2-Payment of loan has been made with single signatory.
3-Paging/Indexing in terms of Para No.3.2 of Credit Manual not arranged.
4 -Introductory certificate as required in Para No.3.9 of Credit Manual not arranged.
5-Birth mark / mark of identification not recorded on LA Form by setting aside
the instructions laid down in Para No.3.10 of Credit Manual.
6-Check list duly signed by Authorized Officer / OICAD not been placed / ticked in
loan file as required in Circular letter No.CD/04/2006 dated 21.3.2006.
7-Option for valuation of land on PIUS / ASM has not been obtained / ticked by
the borrowers concerned.
8-Incomplete and incomprehensive NDC have been recorded in the loan case files.
9-Details of additional loan case / cases are not being mentioned in relevant colum
of Pass Book
10-Revenue stamps are not affixed on IBS-144(A).
11-Post datedcheques dully filled not maintained by the branch but mostly placed in
loan case files.
12Assessment circle not mentioned in the APB.
13-Cheque Book No. Not entered / entered in the deposit / Accounts ledger
50
51

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AUDIT REPORT

(FOR THE PERIOD ENDED 30.06.18)

ZARAI TARAQIATI BANK LIMITED

During audit it is observe that in following Loan case PASS BOOK

Branch is advice to arrange compliance.

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

LCNO AMOUNT PAID ON

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

INSTRUCTION. Para No.5.16 of credit Manual Vol-1.

During verification of revenue record in computer center by tne audit it is

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

LCNO AMOUNT DATE MUTATION NO DATE AMOUNT SANCTION IN

x)ORR Performa not duly filled of fresh / new borrowers.

OICA is to arrange filing of duplicate copies of Demand/Legal notices and recovery

Persons Responsible .Muhammad Atif Saeed P.P.No.(115581)OICA ( OG-1II)

During audit it is observe that in following Loan case CCC is missing

Branch is advice to arrange compliance.

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

LCNO AMOUNT PAID ON

INSTRUCTION. Para No.5.16 of credit Manual Vol-1.

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

Persons Responsible . Muhammad Atif Saeed P.P.No.(115581)OICA ( OG-1II)

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486) MANAGER(AVP),

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

LCNO AMOUNT PAID ON MCO DESIGNATION PPNO

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

Add LC.No Amt Paid Date MCO DESIGNATION PPNO

168081 178750 15.01.18 Malik Ajmal OG-111 121704

Instructions :- Para No.3.3.4 of the Credit Manual Vol-I

LC No. Amount Date

167857 700000 04.01.18

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

MANAGER(AVP), Muhammad Atif Saeed P.P.No.(115581)OICA ( OG-1II)

168494 1000000 9404 09.02.18 - - 1000000 do do do

169307 640000 9404 07.04.18 - - 640000 do do do

169961 996000 9404 28.05.18 - - 996000 Talha Nasir OG-11I 129324

Some instance are as under.Branch is advise to arrange compliance in 100% cases.

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

LCNO AMOUNT PAID ON

ii) Clear CWR.

Iii) ORR rating upto 4.

v) Expenditure vouchers if not constructed through Contractor.

L.C.NO AMOUNT DATE

170088 150000 9303 26.05.18 Safder Jhujh OG-11 113283

170262 225000 9018 29.05.18 Talha Nasir OG-11I 129324

170240 225000 9018 29.05.18 do do do

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486) MANAGER(AVP),

landed properties acquired through inheritance Mutation, same has

L.C.No. Amount Mutation Date

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

INSTRUCTION. Para 3.8.4 of the Credit Manual-I.

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486) MANAGER(AVP),

170767 141000 9018 14.06.18 do do do

170941 340000 9018 20.06.18 do do do

LCNO AMOUNT GL.HEAD DATE

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

LCNO. LOAN HEAD DATE MCO Designation PPNO

Persons Responsible .Rana Muhammad Abbas P.PNO.(019486)

Branch is not in practice to affix revenue stamps of Rs.4/- on each IBS-