DHANLAXMI BANK LIMITED

QUESTIONNAIRE IN CONNECTION WITH LONG FORM AUDIT REPORT IN CASE OF BRANCHES OF THE BANK FOR THE YEAR ENDED 31.03.2024

Branch Name : THOTTIPPAL Branch Code 46 Region THRISSUR

(where any of the comments made by the auditors in their LFAR is adverse, they should consider whether a qualification in their main report is necessary. It should not, however, be assumed that every adverse comment in the LFAR would

necessarily result in a qualification in the main report. In deciding whether a qualification is necessary, the auditors should use their judgment in the facts and circumstances of each case. Where auditors have any reservation or adverse

remarks with regard to any of the matters to be dealt within their Long Form Audit reports, they may give reasons for the same. Also, where relevant instances of situations giving rise to their reservations or averse remarks may also be given.)
AUDITORS REMARKS
I ASSETS
1 CASH
a Does the system ensure that cash maintained is in effective joint custody of two or more officials, as per the instructions of Yes, the system ensures that cash maintained is in effective joint custody of 2 or more officials ( Branch Manager
the controlling authorities of the bank? & Assistant Braanch Manager) as per instructions of the controlling authorities of the bank.
b Yes. The cash balances held at the branch/ATMs have been checked at periodic intervals as per the procedure
Have the cash balances at the branch/ATMs been checked at periodic intervals as per the procedure prescribed by the prescribed by the controlling authorities of the bank. Physical cash at branch was verified by us on 03.04.2024
controlling authorities of the bank? and the balance was Rs.20,04,300 which was tallied with the system balance.

c The cash balance limit fixed by the controlling authorities of the bank is Rs. 35,00,000. There had been many
i) Does the branch generally maintain / carry cash balances, which vary significantly from the limits fixed by the controlling instances in which cash balance maintained/carried by bank varied from the limits fixed by the controlling
authorities of the bank? authorities of the bank. Such instances are given in Annexure-19.

Yes. The figure of the balance in the branch books in respect of cash with its ATM(s) tally with the amounts of
ii) Does the figure of the balance in the branch books in respect of cash with its ATM(s) tally with the amounts of balances
balances with the respective ATMs. The bank ATM was verified on 03/04/2024 at 11:41 a.m. and balance was
with the respective ATMs, based on the year end scrolls generated by the ATMs? If there is any difference, same should be
Rs.20,500. No difference was noticed.
reported.
d d) Whether the insurance cover available with the branch adequately meets the requirement to cover the cash-in hand and Yes. Insurance cover for cash-in hand and cash-in transit done at the head office.
cash-in transit?

2 BALANCES WITH RESERVE BANK OF INDIA, STATE BANK OF INDIA AND OTHER BANKS
a No balance with RBI, SBI & other banks
Were balance confirmation certificates obtained in respect of outstanding balances as at the year-end and whether the
aforesaid balances have been reconciled? If not, the nature and extent of differences should be reported .
b
Your observations on the reconciliation statements may be reported in the following manner;
i) Cash transactions remaining unresponded (give details) Not Applicable
ii) Revenue items requiring adjustment / write-off (give details) Not Applicable
iii) Other credit and debit entries originated in the statements provided by RBI/other banks, remaining un-responded for Not Applicable
more than 15 days:
Not Applicable
iv) Where the branch maintains an account with RBI, the following additional matter may be reported:
Entries originated prior to, but communicated / recorded after the year end in relation to currency chest operations at the
branch/other link branches, involving deposits into/withdrawals from the currency chest attached to such branches (Give
details)

c Not Applicable
In case, any matter deserves special attention of the management, the same may be reported.
3 MONEY AT CALL AND SHORT NOTICE
a Has the branch kept money-at-call and short notice during the year? Not Applicable
b Has the year-end balance been duly confirmed and reconciled? Not Applicable
c Has interest accrued up to the year-end been properly recorded? Not Applicable
 d Not Applicable
Whether instructions/guidelines, if any, laid down by the controlling authorities of the bank have been complied with?
4 INVESTMENTS ( For branches outside India) Bank is not having any branch outside India
5 ADVANCES
General Instructions
(i) The answers to the following questions may be based on the auditor’s examination of all large advances. For this purpose, large advances are those in respect of which the outstanding amount is in excess of 10% of outstanding aggregate
balance of fund based and non-fund based advances of the branch or Rs.10 crores, whichever is less.
Care- For all accounts above the threshold, the transaction audit/account specific details to be seen and commented, whereas below the threshold, the process needs to be checked and commented upon. Comments of the branch auditor on
advances with significant adverse features, which might need the attention of the management / Statutory Central Auditors, should be appended to the LFAR). (ii) The critical comments based on the review of the above and other test check
should be given in respective paragraphs as in LFAR given below.
a List of accounts examined for audit
Balance as at year end Balance as at year end – Non-
Account Name Total
Account Number – Funded funded (Rs. In lakhs)
(Rs. In lakhs) (Rs. In lakhs)

Total 408.27 0 408.27

Total Outstanding of the branch 1414.2777 0 1414.28

Percentage Examined 28.87 0 28.87

b Credit Appraisal
(i) In our opinion, the branch has generally complied with the procedures/instructions of the controlling authorities
In your opinion, has the branch generally complied with the procedures / instructions of the controlling authorities of the
of the bank regarding loan applications, preparation of proposals for grant/ renewal of advances, enhancement of
bank regarding loan applications, preparation of proposals for grant/ renewal of advances, enhancement of limits, etc.,
limits, etc., including adequate appraisal documentation in respect thereof.
including adequate appraisal documentation in respect thereof. What, in your opinion, are the major shortcomings in credit
In the test check conducted by us, no major shortcomings have been noticed in credit appraisal
appraisal, etc.
(ii) No. We have not come across any cases of quick mortality in accounts, where the facility became non-performing
Have you come across cases of quick mortality in accounts, where the facility became non-performing within a period of 12
within a period of 12 months from the date of first sanction during the audit.
months from the date of first sanction? Details of such accounts may be provided in following manner:-
• Account Name
• Account Number
• Balance as at year end
(iii) Yes. In borrowal accounts examined by us during the review period, the applicable interest rates are correctly fed
Whether in borrowal accounts the applicable interest rate is correctly fed into the system?
into the system.
(iv) Whether the interest rate is reviewed periodically as per the guidelines applicable to floating rate loans linked to MCLR / Yes. The interest rate is reviewed periodically as per the guidelines applicable to floating rate loans linked to
EBLR (External Benchmark Lending Rate)? MCLR/EBLR (External Benchmark Lending Rate).
(v) No such cases were found in our test check of loan accounts.
Have you come across cases of frequent renewal / rollover of short-term loans? If yes, give the details of such accounts.
(vi) [Link] and valid credit rating of the credit facilities of bank's borrowers from RBI accredited Credit Rating
Whether correct and valid credit rating, if available, of the credit facilities of bank's borrowers from RBI accredited Credit
Agencies has been fed into the system in the samples checked by us.
Rating Agencies has been fed into the system?
c Sanctioning / Disbursement
(i) In the cases examined by you, Out of the 59 sanctioned advances that we have checked during our audit of the branch, there had been no such
instances of credit facilities sanctioned beyond the delegated authority or limit fixed for the branch.
(a) have you come across instances of credit facilities having been sanctioned beyond the delegated authority or limit fixed
for the branch? Are such cases promptly reported to higher authorities?
(b) Are such cases promptly reported to higher authorities? No such cases were found in our test check.
(ii) Whether advances have been disbursed without complying with the terms and conditions of the sanction? If so, give details No advances that we have examined during the audit period have been disbursed without complying with the
of such cases. terms and conditions of the sanction.
(iii) [Link] bank does not provide any loans to companies for buy-back of shares/securities.
Did the bank provide loans to companies for buy-back of shares/securities?
d Documentation
(i) In the cases examined by you, have you come across :
In the case of 59 advances verified during the audit, all the credit facilities have been released by the branch with
Credit facilities released by the branch without execution of all the necessary documents? If so, give details of such cases.
proper execution of all the necessary documents.
(ii) Deficiencies in documentation, including non-registration of charges, non-obtaining of guarantees, etc.? If so, give details of No such deficiencies in documentation have been noticed in the case of 59 advances examined during our audit.
such cases.
(iii) In the examination of advances granted against lien of deposits, all of them have been granted by marking a lien
Advances against lien of deposits have been granted without marking a lien on the bank’s deposit receipts and the related on the bank's deposit receipts and the related accounts in accordance with the guidelines of the controlling
accounts in accordance with the guidelines of the controlling authorities of the bank. authorities of the bank.
e Review/Monitoring/Supervision
(i)
Is the procedure laid down by the controlling authorities of the bank, for periodic review of advances including periodic Yes. The procedure laid down by the controlling authorities of the bank, for periodic review of advances
balance confirmation/ acknowledgement of debts, followed by the Branch? Provide analysis of the accounts overdue for including periodic balance confirmation/ acknowledgement of debts are followed by the Branch. We did not
review/renewal. What, in your opinion, are major shortcomings in monitoring, etc. observe any major shortcomings in monitoring/review/supervision in the test check conducted during the audit.

a) between 3 to 6 months Nil

b) over 6 months Nil
(ii)
In the samples examined by us, it is observed that the stock/book debts statements and other periodic operational
(a) Are the stock/book debts statements and other periodic operational data and financial statements, etc., received regularly
data and financial statements, etc., have been received regularly from the borrowers and duly
from the borrowers and duly scrutinized? Is suitable action taken on the basis of such scrutiny in appropriate cases?
scrutinized by the branch.

(b) Is the DP properly computed? Yes. The DP has been properly computed in the samples checked by us.

© Whether the latest audited financial statements are obtained for accounts reviewed / renewed during the year? Yes. Latest audited financial statements have been obtained for accounts reviewed /renewed during the year.

(iii)
(a) Whether there exists a system of obtaining reports on stock audits periodically? During our audit we have not come across any such applicable cases.

(b) If so, whether the branch has complied with such system? Not applicable
© Details of
>cases where stock audit was required but was not conducted Not applicable
> where stock audit was conducted but no action was taken on adverse features Not applicable
(iv)
Indicate the cases of advances to non-corporate entities with limits beyond that is set by the bank where the branch has not
No such cases found
obtained the duly audited accounts of borrowers.

(v)
Does the branch have on its record, a due diligence report in the form and manner required by the Reserve Bank of India in
respect of advances under consortium and multiple banking arrangements. Give the list of accounts where such
No such cases were found during our period of audit.
certificate/report is not obtained or not available on record.
(In case, the branch is not the lead bank, copy of certificate/report should be obtained from lead bank for review and record)
(vi) Has the inspection or physical verification of securities charged to the Bank been carried out by the branch as per the
Yes. In the cases examined by us, the inspection or physical verification of securities charged to the Bank has
procedure laid down by the controlling authorities of the bank? been carried out by the branch as per the procedure laid down by the controlling authorities of the bank. There is
Whether there is a substantial deterioration in value of security during financial year as per latest valuation report in no such substantial deterioration in value of security during financial year as per latest valuation report in
comparison with earlier valuation report on record in the cases checked by us.
comparison with earlier valuation report on record?
(vii) In respect of advances examined by you, have you come across cases of deficiencies including in value of securities and
No. In the test check conducted by us, we have not come across any such cases of deficiencies including in value
inspection thereof or any other adverse features such as frequent/unauthorized overdrawing beyond limits, inadequate of securities and inspection thereof or any other adverse features such as frequent/unauthorized overdrawing
beyond limits, inadequate insurance coverage, etc. in respect of the advances examined by us.
insurance coverage, etc. ?
(viii) Whether the branch has any red-flagged account? If yes, whether any deviations were observed related to compliance of
There are no no red-flagged accounts as informed by the branch.
bank's policy related with Red Flag Accounts?
(ix) Comment on adverse features considered significant in top 5 standard large advances and which need management's
No such adverse features were found in top 5 standard large advances examined during the review period.
attention.
(x) vii) In respect of leasing finance activities, has the Branch complied with the guidelines issued by the controlling authorities

of the bank relating to security creation, asset inspection, insurance, etc? Has the Branch complied with the accounting Not Applicable.

norms prescribed by the controlling authorities of the bank relating to such leasing activities?
f Asset Classification, Provisioning of Advances and Resolution of Stressed Assets

(i) (a). Has the branch identified and classified advances into standard / substandard / doubtful / loss assets through the Yes. The branch had identified and classified advances into standard/substandard/doubtful/loss assets through the
computer system, without manual intervention? computer system, without manual intervention.
Yes. The identification & classification of advances are in line with the norms prescribed by the Reserve Bank of
(b). Is this identification & classification in line with the norms prescribed by the Reserve Bank of India
India.

(c). Whether the branch is following the system of classifying the account into SMA-0, SMA-1, and SMA-2. Whether the Yes. The branch is following the system of classifying the accounts into SMA-0, SMA-1 and SMA-2.
auditor disagrees with the branch classification of advances into standard (Including SMA-0, SMA-1, SMA-2) / sub-
standard / doubtful / loss assets, the details of such advances with reasons should be given. No disagreement with the branch classification of advances into standard (Including SMA-0, SMA-1, SMA-
2)/sub- standard/doubtful/loss assets.

(d). Also indicate whether required changes have been incorporated/ suggested in the Memorandum of Changes. No such chages have been incorporated/ suggested during the review period.

(e). List the accounts (with outstanding in excess of Rs. 10.00 crore) which have either been downgraded or upgraded with
regard to their classification as Non-Performing: Not Applicable as there were no such accounts in excess of 10 Crores..
Asset or Standard Asset during the year and the reason thereof.
Yes. The RBI guidelines on income recognition and provisioning have been followed by the branch.
(f). Whether RBI guidelines on income recognition and provisioning have been followed.
(ii)
(a). Whether the branch has reported accounts restructured or rephased during the year to Controlling Authority of the bank? There were no such cases during the year.

(b). Whether the RBI Guidelines for restructuring on all such cases have been followed. Not applicable

©. Whether the branch complies with the regulatory stance for resolution of stressed assets, including the compliance with
Not applicable
board approved policies in this regard, tracking/reporting of defaults for resolution purposes among others?

(iii)
(a). Whether the upgradations in non-performing advances is in line with the norms of Reserve Bank of India Yes, upgradations in non-performing advances is in line with the norms of Reserve Bank of India

(b). Where the auditor disagrees with upgradation of accounts? If yes, give reasons thereof. No
(iv) Have you come across cases where the relevant controlling Authority of the bank has authorised legal action for recovery of
No. We have not come across any such cases during our audit.

advances or recalling of advances but no such action was taken by the branch? If so, give details of such cases.
(v) Whether there are any accounts wherein process under IBC is mandated but not initiated by the branch?
No. There are no such accounts wherein process under IBC is mandated but not initiated by the branch.
Whether there are any borrowers at the branch against whom the process of IBC is initiated by any of the creditors including No. There are no borrowers at the branch against whom the process of IBC is initiated by any of the creditors
including bank.
bank? If yes, provide the list of such accounts and comment on the adequacy of provision made thereto?
(vi) (a) Have appropriate claims for credit guarantee (ECGC and others), if any, been duly lodged and settled?
Nil
(b) Give details of claims rejected? (As per the given table) Nil
© Whether the rejection is appropriately considered while determining the provisioning requirements
Nil

PARTICULARS NUMBER AMOUNT (Rs. In lakhs )

Claim as at the beginning of the year
Further claims lodged during the year
Total A
Amounts representing Nil
(a) Claims accepted/settled
(b) Claims rejected
Total B
Balance as at the year end (Give year wise details) (A-B)
(vii) In respect of non-performing assets, has the branch obtained valuation reports from approved valuers for the immovable Yes. We have found that in respect of non-performing assets, branch has obtained valuation reports from
approved valuers for the immovable assets charged to the bank, once in three years, unless the circumstances
assets charged to the bank, once in three years, unless the circumstances warrant a shorter duration? warrant a shorter duration.
(viii)
In the cases examined by you has the branch complied with the Recovery Policy prescribed by the controlling authorities of
the bank with respect to compromise/settlement and write-off cases? (Details of the cases of compromise / settlement and Not Applicable. No such cases above Rs. 50 Lakhs.
write off cases involving write offs / waivers in excess of Rs. 50.00 lakhs may be given)

(ix)
Is the branch prompt in ensuring execution of decrees obtained for recovery from the defaulting borrowers? Give Age-wise
No such cases during the review period.
analysis of decrees obtained and pending execution.
(x) Whether in the cases concluded the recoveries have been properly appropriated against the principal / interest as per the
Not Applicable
policy of the bank?
(xi)
In cases where documents are held at centralized processing centres / office, whether the auditor has received the relevant
documents as asked by them on test check basis and satisfied themselves. Report the exceptions, if any Not Applicable. The documents are held at branch only.
(xii) In the test check conducted by us, no such major deficiencies have been noticed in credit review, monitoring and
List the major deficiencies in credit review, monitoring and supervision.
supervision during our audit.
g Non-Fund Based facilities
(i) List of borrowers with details of LCs devolved or guarantees invoked during the year.
Sl. Amount Date of
Name of the Party and Guarantee no Date of Invocation Name of Beneficiary Remarks
No (Rs. In lakhs) Recovery

NIL
(ii) List of borrowers where the LCs have been devolved or guarantees have been invoked but not paid with amount thereof.
Sl.
No Reason for
Name of the Party and guarantee no Date of Invocation Name of Beneficiary Amount Non Remarks
(Rs. In lakhs)
Payment

NIL

(iii) List of instances where interchangeability between fund based and non-fund-based facilities was allowed subsequent to Not Applicable
devolvement of LC / invocation of BG.

6 OTHER ASSETS
a Suspense Accounts/Sundry Assets
(i)
Does the system of the bank ensure expeditious clearance of items debited to Suspense Account? Details of outstanding
entries in excess of 90 days may be obtained from the branch and the reasons for delay in adjusting the entries may be
Nil
ascertained. Does your scrutiny of the accounts under various sub-heads reveal balances, which in your opinion are not
recoverable and would require a provision/write-off? If so, give details.

(ii) We have not come across any such unusual items in theses accounts in the test check conducted by us. There are
Does your test check indicate any unusual items in these accounts? If so, report their nature and the amounts involved. Are
no intangible items under this head.
there any intangible items under this head e.g. losses not provided / pending investigation?

II LIABILITIES
1 Deposits
a
Does the bank have a system of identification of dormant/ inoperative accounts and internal controls with regard to Yes. The bank have a system of identification of dormant/ inoperative accounts and internal controls with regard
operations in such accounts? In the cases examined by you, have you come across instances where the guidelines laid down to operations in such accounts. The branch has followed all the guidelines laid down in this regard in all the
in this regard have not been followed? If yes, give details thereof. cases examined by us.

b
After the balance sheet date and till the date of audit, where there have been any unusual large movements (whether No. There had been no such unusual large movements in the aggregate deposit held at the year-end, after the
increase or decrease) in the aggregate deposit held at the year-end? If so, obtain the clarifications from the management and balance sheet date and till the date of audit.
give your comments thereon.

Whether the scheme of automatic renewal of deposits applies to FCNR(B) deposits? Where such deposits have been
yes, such system is followed by the branch as per the applicable regulatory guidelines. NRI status of the depositor
renewed, report whether the branch has satisfied itself as to the 'non-resident status' of the depositor and whether the
confirmed by only Passport(front &back pages) and Visa but not as per entry and exit dates of passport
renewal is made as per the applicable regulatory guidelines and the original receipts / soft copy have been dispatched.

d
Is the branch complying with the regulations on minimum balance requirement and levy of charges on non-maintenance of Yes. The branch is complying with the regulations on minimum balance requirement and levy of charges on non-
minimum balance in individual savings accounts? maintenance of minimum balance in individual savings accounts.
2 Other Liabilities
Year No. of items Amount Remarks
Bills payable, sundry Deposits, etc.
(Rs. In lakhs)
a
The number of items and the aggregate amount of old outstanding items pending for one year or more may be obtained
from the Branch and reported under appropriate heads. Does this scrutiny of the accounts under various subheads reveal old Nil
balances? If so, give details in the format shown along side:

b Does your test check indicate any unusual items or material withdrawals or debits in these accounts? If so, give details No
thereof.
3 Contingent Liabilities
List of major items of the contingent liabilities (other than constituent's liabilities such as guarantees, letters of credit, Nil

acceptances, endorsement, etc.) not acknowledged by the Branch?

III PROFIT AND LOSS ACCOUNT
a Has the test checking of interest/discount/ commission/ fees etc. revealed excess/short credit of a material amount? If so, No material deviations were found in the test checking of interest/fees, etc, conducted by us,
give details thereof.
b Has the branch complied with the Income Recognition norms prescribed by RBI? (The auditor may refer to the Instructions Yes. The branch has complied with the Income Recognition norms prescribed by RBI.

of the Controlling Authorities of the bank regarding charging of interest on Non Performing Assets)
c Has the test check of interest on deposits revealed any excess/short debit of material amount? If so, give details thereof. No such cases were noticed during our test check of interest on deposits.

d Does the bank have a system of estimating and providing interest accrued on overdue/matured/ unpaid/ unclaimed term Yes, such system is followed by the branch. They are matured Term Deposit of total amount of Rs. 538999.77 as
on 31-03-2024. So interest is not calculated on these matured Term Deposit. It is calculated only when the claim
deposits including in respect of deceased depositors? araises.
e No such divergent trends were found.
Are there any divergent trends in major items of income and expenditure, in comparison with corresponding previous year,
which are not satisfactorily explained by the branch? If so, the same may be reported.
IV GENERAL
1 GOLD/ BULLION / SECURITY ITEMS
a Not applicable
Does the system ensure that gold/bullion is in effective joint custody of two or more officials, as per the instructions of the
controlling authorities of the bank?
b Not applicable
Does the branch maintain adequate records for receipt, issues and balances of gold/bullion and updated regularly? Does the
periodic verification reveal any excess/shortage of stocks as compared to book records and if any discrepancies observed
have been promptly reported to controlling authorities of the bank?

c Yes. The system of the Bank ensures adequate internal control over issue and custody of security items and that
Does the system of the Bank ensure adequate internal control over issue and custody of security items (Term Deposit system is followed by the branch. We have not come across any such cases of missing/lost items during our audit
Receipts, Drafts, Pay Orders, Cheque Books, Traveller's Cheques, Gift Cheques, etc.)? Whether the system is being period.
followed by the branch? Have you come across cases of missing/lost items?

2 Books and records

a Whether there are any software / systems (manual or otherwise) used at the branch which are not integrated with the CBS?
If yes, give details thereof. All the software/systems (manual or otherwise) used at the branch have been integrated with the CBS
b The branch was not subjected to IS Audit during the year.
(i) In case the branch has been subjected to IS Audit whether there are any adverse features reported and have a direct or
indirect bearing on the branch accounts and are pending compliance? If yes give details.

Yes. The branch is generating, and verifying exception reports at the periodicity as prescribed by the bank
(ii) Whether branch is generating, and verifying exception reports at the periodicity as prescribed by the bank
 Yes. The system of bank warrants expeditious compliance of daily exception reports and no major observations
(iii) Whether the system of bank warrants expeditious compliance of daily exception reports and whether there are any
were pending for such compliance at the year end.
major observations pending such compliance at the year end.
(iv) Whether the bank has laid down procedures for manual intervention to system generated data and proper authentication
Manual intervention to system generated data is not allowed and it is not possible as informed by the branch and
of the related transactions arising there from along with proper audit trail of manual intervention has been obtained. to the best of our knowledge.
(v) Furnish your comments on data integrity (including data entry, checking correctness/integrity of data, no back ended The data entry is made by the cashier and front office tellers and correctness or integrity of data will be checked
and verified by the Branch Manager/Assistant Branch [Link] withdrawals/deposits upto Rs. 10,000 will
be processed by the Cashier without any authorisation. Internal transactions are updated only with dual
strategies etc.) which is used for MIS at HO / CO level. authorisation of Branch Manager/Assistant Branch Manager. Thus data integrity is adequately ensured.
3 Inter-Branch Accounts
Yes. The branch had expeditiously complied with/responded to the communications from the designated
Does the branch expeditiously comply with/respond to the communications from the designated cell/Head Office as regards cell/Head Office as regards unmatched transactions. There are no un-responded/un-complied queries or
unmatched transactions? As at the year-end are there any un-responded/un-complied queries or communications beyond 7 communications beyond 7 days as at the year end.
days? If so, give details?

4 Frauds
Furnish Particulars of :
(i) Frauds detected/classified but confirmation of reporting to RBI not available on record at branch. No such instances

(ii) No such instances

Whether any suspected or likely fraud cases are reported by branch to higher office during the year? If yes, provide the
details thereof related to status of investigation.

(iii) Nil

In respect of fraud, based on your overall observation, please provide your comments on the potential risk areas which
might lead to perpetuation of fraud (e.g. falsification of accounts/false representation by the borrower; misappropriation of
funds especially through related party/ shell company transactions; forgery and fabrication of financial documents like
invoices, debtor lists, stock statements, trade credit documents, shipping bills, work orders and encumbrance certificates
and avail credit; Use of current accounts outside consortium where Trust and Retention Account (TRA) is maintained, to
divert funds; List of Debtors/ Creditors were being fabricated and receivables were not followed up/ write off of debt of
related parties; Fake export/shipping bill, etc.; Over statement of invoice amounts, stock statements, shipping bills,
turnover; fly by night operations -including the cases where vendors, related/ associate parties, manufacturing units etc.
aren’t available on the registered addresses; Round Tripping of funds, etc.)

(iv) Whether the system of Early Warning Framework is working effectively and, as required, the early warning signals form the Yes. such system is followed by the branch.
basis for classifying an account as RFA.
5 Implementation of KYCAML guidelines
Whether the branch has adequate systems and processes, as required, to ensure adherence to KYC/AML guidelines towards Yes. The branch has adequate systems and processes, as required, to ensure adherence to KYC/AML guidelines
towards prevention of money laundering and terrorist financing.
prevention of money laundering and terrorist financing
Whether the branch followed the KYC/AML guidelines based on the test check carried out by the branch auditors Yes. The branch has followed the KYC/AML guidelines based on the test check carried out by the branch
auditors.

6 Management Information System

a
Whether the branch has the proper systems and procedures to ensure data integrity relating to all data inputs which are to be
Yes. During our audit we have not come across any such instances where data integrity was compromised.
used for MIS at corporate office level and for supervisory reporting purposes. Have you come across any instances where
data integrity was compromised?
7 Miscellaneous
 a In framing your audit report/LFAR, have you considered the major adverse comments arising out of the latest reports such Yes
as: [Link] years branch audit report/ LFAR dated 10/04/2023
i) Previous year’s Branch Audit Report / LFAR; [Link] Inspection Report dated 26/03/2024 [Link]
ii) Internal audit/ Snap Audit/ concurrent audit report(s); Inspection Report dated 23/11/2023 have also been checked framing audit report. All the adverse comments given
iii) Credit Audit Report; in the report were considered, 22 pending irregularites found as on 23/11/2023 and still 2 irregularities were
iv) Stock audit Report; pending as on 04/04/2024
v) RBI Inspection Report, if such inspection took place;
vi) Income and Expenditure (Revenue) Audit;
vii) IS/IT/Computer/Systems Audit; and
viii) Any special inspection / investigation report?
b 1. Auditor login not available with branch, however we checked the transactions from the branch staffs Login
along with them.
Are there any other matters, which you, as branch auditor, would like to bring to the notice of the management or the
2. Separate audit working space not available.
Statutory Central Auditors?
3. No confirmation obtained from branch officials for cash holding limit of branch. Only oral confirmation
received

Appendix
ADDITIONAL QUESTIONNAIRE APPLICABLE TO SPECIALISED BRANCHES
A. For Branches dealing in Foreign Exchange Transactions
1 Are there any material adverse features pointed out in the reports of concurrent auditors, internal auditors and / or the

Reserve Bank of India's inspection report which continue to persist in relation to NRE / NRO / NRNR / FCNR-

B/EEFC/RFC and other similar deposit accounts. If so, furnish the particulars of such adverse features.
2 Whether the Branch has followed the instructions and guidelines of the controlling authorities of the bank with regard to the
Not applicable
following in relation to the foreign exchange. If not, state the irregularities:
a) deposits
b) advances
c) export bills
d) bills for collection
e) dealing room operations (where a branch has one)
f) any other area
3 NOSTRO Accounts
Obtain a list of all Nostro Accounts maintained / operated by the Branch from the branch management
a
Whether the bank has a system of periodic confirmation/ reconciliation of the balances in NOSTRO accounts maintained
with each overseas bank/ correspondent? Has such confirmation been received and account reconciled at year end in each
case. If not, give details.
b
Whether the system of the bank ensures that all entries originated by overseas banks/correspondents, have been duly
responded promptly in the respective NOSTRO accounts maintained by the bank?
c Are there any dormant/closed NOSTRO accounts in respect of which balances continue to exist in the books of the branch, Not applicable
at year end?
d
Have the NOSTRO balances been converted at year end at the rates of exchange as prescribed by controlling
authorities?d)Whether the branch is following HO guidelines for reporting under Foreign Account Tax Compliance Act
(FATCA) and Common Reporting Standards (CRS).

e
In case, any matter deserves special attention of the management, the same may be reported
4
Does the Branch follow the prescribed procedures in relation to maintenance of Vostro Accounts?
B. For branches dealing in Clearing House Operations, normally referred to as Service Branches
1
Does the branch have a system of periodic review of the outstanding entries in clearing adjustments accounts? In your view
has the system generally been complied with?
2
Whether review of the clearing adjustments accounts (inwards/ outwards) reveals any old/ large/ unusual outstanding
Not applicable
entries, which remain unexplained? Give year-wise break-up of outstanding in number and value.
3
Has the branch strictly followed the guidelines of the controlling authority of the bank with respect to operations related to
clearing transactions? Comment on the systems and procedures followed by the branch in this regard.
C. For branches dealing in recovery of Non-Performing Assets such as Asset Recovery Branches
1
In respect of every advance account in excess of Rs. 2.00 crore, the information in the enclosed format should be obtained
from the Branch Management, Comments of the Branch Auditor on advances with significant adverse features and which
might need the attention of the management/Central Statutory Auditors should be appended to the Long Form Audit report.
Not applicable
2
List the accounts (with outstanding in excess of Rs. 2.00 crore) which have been upgraded from Non Performing to
Standard Assets during the year and the reasons there for.

Sl.
IRAC Status as on IRAC Status as on
No. Outstanding
Name of the Unit / Account 31st March 31st March Reason/s
(Rs. in crores)
[Last Year] [Current Year]

NIL

3 Whether the Branch has a system of updating periodically, the information relating to the valuation of security charged to
Not Applicable
the bank?
4 Age-wise analysis of the recovery suits filed and pending may be furnished.
Years No. of Accounts Amount. Rs. in crores

Upto March 2019

2019-20 NIL
2020-21
2021-22
2022-23
2023-24
5
Is the branch prompt in ensuring execution of decrees obtained for recovery from the defaulting borrowers? Also list the
time barred decrees, if any, and reasons thereof. Give age-wise analysis of decrees obtained and not executed.
6
List the recoveries and their appropriation against the interest and the principal and the accounts settled / written off / closed
during the year as per the bank’s policy. Give particulars of recoveries which are pending for appropriation as on year-end
with reasons thereof. Not Applicable
7
List the new borrower accounts transferred to the branch during the year. Have all the relevant documents and records
relating to these borrower accounts been transferred to the branch? Has the branch obtained confirmation that all the
accounts of the borrower [including non-fund-based exposures and deposits pending adjustment / margin deposits] been
transferred to the branch?

Place: Thottippal Name and Signature of Branch Auditor (with seal)

Date : 06/04/2024
 Annexure 21
List of Accounts examined for Audit
Balance as at year Remarks/
Balance as at year end- end- Non-Funded Total (Rs. In Comment
Sl. No. Account Number Account Name Funded (Rs. in lakhs) (Rs. in lakhs) Lakhs) s
1 4610100000149 BAIJU 9,95,030.75 0 9,95,030.75 Regular Standard Account
2 4610100000163 JOMEJE P G 4,89,175.23 0 4,89,175.23 Regular Standard Account
3 4619500000093 SUNIL P M 52,811.00 0 52,811.00 Regular Standard Account
4 4619700000057 PRAMEELA SASIDHARAN 3,10,525.00 0 3,10,525.00 Regular Standard Account
5 4655500000112 ABDUL GAFOOR 5,44,276.00 0 5,44,276.00 Regular Standard Account
6 4655500000121 MOHANAN P K 4,50,756.00 0 4,50,756.00 Regular Standard Account
7 4655500000137 MANOJ KUMAR T 9,87,935.00 0 9,87,935.00 Regular Standard Account
8 4657300000031 ALEX LOUIS 1,03,794.00 0 1,03,794.00 Regular Standard Account
9 4652900000559 OMANA 60,000.00 0 60,000.00 Regular Standard Account
10 4653600000798 SREELAKSHMI SSS 1,95,795.00 0 1,95,795.00 Regular Standard Account
11 4653600000830 PONMANI KUDUMBHASREE 5,11,365.00 0 5,11,365.00 Regular Standard Account
12 4653600000999 NIVEDYAM KUDUMBHASREE 6,98,828.00 0 6,98,828.00 Regular Standard Account
13 4653600001200 PONPULARI AKSHAYASREE VANITHA SWAYAM 13,76,638.00
SAHAKARANA SANGHAM 0 13,76,638.00 Regular Standard Account
14 4653100000043 S KUMARS PAPER BAG PRODUCT 6,80,522.00 0 6,80,522.00 Regular Standard Account
15 4655700000206 VISWAMBHARAN K G 14,03,516.00 0 14,03,516.00 Regular Standard Account
16 4655700000237 SREEJESH VALLAPADY M 4,77,634.00 0 4,77,634.00 Regular Standard Account
17 4658800000015 LALCY VIMAL 7,38,178.60 0 7,38,178.60 Regular Standard Account
18 4657200000224 RESHMA RAVI C 1,46,238.00 0 1,46,238.00 Regular Standard Account
19 4657200000414 LIYA C P 2,03,536.00 0 2,03,536.00 Regular Standard Account
20 4657200000486 DONA FRANCIS 2,41,091.00 0 2,41,091.00 Regular Standard Account
21 4657200000506 SHILPA RAMSINGH 18,12,296.00 0 18,12,296.00 Regular Standard Account
22 4652200000086 MANOJ KUMAR T 4,95,110.00 0 4,95,110.00 Regular Standard Account
23 4652600000343 P M B JANAUSHADI KENDRA ALENGAD 4,12,452.00 0 4,12,452.00 Regular Standard Account
24 4652600000352 BAKE N TAKE 4,00,698.00 0 4,00,698.00 Regular Standard Account
25 4619000008480 RAMARAJ 14,93,710.00 0 14,93,710.00 Regular Standard Account
26 4619000008572 RAMARAJ 13,96,762.00 0 13,96,762.00 Regular Standard Account
27 4619000008610 BINESH K K 13,21,073.00 0 13,21,073.00 Regular Standard Account
28 4656200002554 AYANA P S 4,50,390.00 0 4,50,390.00 Regular Standard Account
29 4656200002636 INDIRABAI ACHUTHAN 15,80,000.00 0 15,80,000.00 Regular Standard Account
30 4656200002724 MOHANAN K C 48,000.00 0 48,000.00 Regular Standard Account
31 4656200002749 VILASINI P K 15,35,000.00 0 15,35,000.00 Regular Standard Account
32 4656200002806 GEETHA P RAVEENDRAN 7,14,000.00 0 7,14,000.00 Regular Standard Account
33 4656200002812 GEETHA P RAVEENDRAN 7,86,000.00 0 7,86,000.00 Regular Standard Account
34 4656200002837 LAILAJA 7,20,000.00 0 7,20,000.00 Regular Standard Account
35 4656200002868 AMBIKA K A 18,66,000.00 0 18,66,000.00 Regular Standard Account
36 4656100143424 CHACKOCHAN 2,90,596.00 0 2,90,596.00 Regular Standard Account
37 4656100150300 VIJEESH P V 5,01,000.00 0 5,01,000.00 Regular Standard Account
38 4656100150404 C E SUBHADRA 7,45,000.00 0 7,45,000.00 Regular Standard Account
39 4656100150517 AJITH KUMAR 3,00,000.00 0 3,00,000.00 Regular Standard Account
40 4655100150579 SHEELA RAJAN 2,43,000.00 0 2,43,000.00 Regular Standard Account
41 4656100151297 REMYA P R 3,53,800.00 0 3,53,800.00 Regular Standard Account
42 4656100151680 SANTHA 3,02,000.00 0 3,02,000.00 Regular Standard Account
43 4656100152437 MEGHA C M 3,94,000.00 0 3,94,000.00 Regular Standard Account
44 4656100152480 REMYA R 10,000.00 0 10,000.00 Regular Standard Account
45 4656100152964 ASWATHI SHAJU 4,95,000.00 0 4,95,000.00 Regular Standard Account
46 4656100153170 SREEJITH P S 4,84,000.00 0 4,84,000.00 Regular Standard Account
47 4656100153221 GIRIJA K C 10,00,000.00 0 10,00,000.00 Regular Standard Account
48 4656100153237 GIRIJA K C 9,83,000.00 0 9,83,000.00 Regular Standard Account
49 4656100153450 ABHIL U KRISHNA 10,33,000.00 0 10,33,000.00 Regular Standard Account
50 4656100153526 GIRIJA 9,90,000.00 0 9,90,000.00 Regular Standard Account
51 4656100153620 AARCHA SIVADAS 5,00,000.00 0 5,00,000.00 Regular Standard Account
52 4656100154734 LATHA MOHAN 15,00,000.00 0 15,00,000.00 Regular Standard Account
53 4656100155302 SAJEEVKUMAR A D 5,05,000.00 0 5,05,000.00 Regular Standard Account
54 4656100156529 RATNAM JAYADEVAN 9,90,000.00 0 9,90,000.00 Regular Standard Account
55 4656100158150 RAJI K R 8,40,000.00 0 8,40,000.00 Regular Standard Account
56 4656100158217 PINKY SHAJI 5,01,000.00 0 5,01,000.00 Regular Standard Account
57 4656100158506 PRIYANKA RAJ K 5,40,000.00 0 5,40,000.00 Regular Standard Account
58 4656100159672 K K PADMINI 5,37,000.00 0 5,37,000.00 Regular Standard Account
59 4656100160461 VIJEESH P V 10,90,000.00 0 10,90,000.00 Regular Standard Account
Total 4,08,26,531.58 - 4,08,26,531.58