Other Reports or Certificates
In addition to their audit reports, the SBAs and SCAs may also be required by their terms of engagement or statutory or regulatory requirements to issue other reports or certificates. For example, presently, the branch auditors are required to issue reports/certificates on the following matters besides their main audit report:
Long Form Audit Report for Branch. (Discussed in Part IV of the Guidance Note)
Report on whether the income recognition, asset classification and provisioning have been made as per the guidelines issued by the RBI from time to time.
Report on audit of DICGC items, wherein auditors have to specifically verify and certify the correctness of the data in various returns and the insurance premiums paid to DICGC.
Report on status of the compliance by the bank with regard to the implementation of recommendations of the Ghosh Committee relating to frauds and malpractices and of the recommendations of the Jilani Committee on internal control and inspection/credit system.
Certificate for Prime Minister Rozgar Yojna for Unemployed Youth.
Certificate of cash and bank balances.
Certificate relating to MOC entries of the previous years being accounted for.
Certificate relating to credit/ deposit ratio.
Certification of technology up gradation fund scheme (TUFS) – non SSI textile centre.
Certification for advances to infrastructure project and income generated thereon.
Statement of accounts Re-structured/ Re-scheduled/ Re-negotiated related to CDR and non-CDR accounts.
Certificate of advances exceeding Rs.10 Crores.
Certificate regarding Special Deposit Scheme, 1975.
Certificate regarding Compulsory Deposit (Income-tax Payers) Scheme, 1974.
Certificate relating to recoveries in claim paid accounts under Small Loans Guarantee Scheme 1971/Small Loans (SSI) Guarantee Scheme, 1981.
Certification of Borrowal Companies by Chartered Accountants/Company Secretaries (as per RBI circular on “Lending under Consortium Arrangements/ Multiple banking Arrangements” dated December 08, 2008.
Certificate on Capital Adequacy
Certificate for Gold Stocks held for Sale of Gold/Metal Gold Loans.
Certificate for Gold Coins Held.
Certificate for Gold Deposit Scheme.
Certificate for IRAC Status of Credit Exposure in respect of Non-Performing Investments.
Certificates for IRAC Status of Credit Exposure in respect of borrowers having exposure with foreign offices.
Certificate for agricultural interest subvention claim @2% for residual period of repayment of the loans disbursed during FY.
Certificate for agricultural interest subvention claim @2% for disbursements made during FY.
Certificate for additional interest subvention (Incentive @3%) for prompt repayment for short term production loans disbursed during FY.Certain other
certificates as may be prescribed by the concerned bank in their respective closing instructions or appointment letters.
Certificate on Unhedged Foreign Currency Exposure in case of Borrowal having exposure of 1 crore or more.
Certificate on exposure to sensitive sectors .i.e. exposure to Capital Market, Infrastructure & Real Estate Sector.
Besides this, SCAs are required to give following certificates/reports:
Certificate on Corporate Governance.
Report on whether the treasury operations of the bank have been conducted in accordance with the instructions issued by the RBI from time to time.
Certificate on reconciliation of securities by the bank. (Both on its own investment account as well as PMS clients’ account).
Certificate on compliance by the bank in key areas of prudential and other guidelines relating to such transactions issued by the RBI.
Certificate in respect of custody of unused BR forms and their utilisation.
(as such banks do not use BR forms any more. Further it is difficult to certify unused forms as they are not available for verification. This certificate should be strictly based on and against the management representation. The auditor is advised to bring out this fact clearly in the certificate.)
Various ratios and statements in the “Notes on Accounts”.
Report on instances of adverse credit- deposit ratio in the rural areas.
Report on compliance with SLR requirements.
Certification in respect of subsidy claimed by the bank under the PMRY Scheme during the financial year.
Certificate on compliance by bank on recommendations of:
Ghosh Committee, regarding frauds and malpractices in banks.
Jilani Committee, regarding internal control system in banks.
Dr. N. L. Mitra Committee, regarding maintenance of legal compliance certificate for credit sanction and other transactions of Rs. 1 crore and above.
In line with the Master Directions on frauds, the SCAs to ensure that all the branches have complied with the reporting as required by the said circular and respective SBA certificates are being received. A separate Report should be given on any matter susceptible to be a fraud or a fraudulent activity or any foul play in any transaction. In cases where the amount of fraud brought to the notice during audit and has remained to be reported, the auditors are advised to report such instances directly to the CGM, Central office of Department of Banking Supervision, RBI, Mumbai.
Certain other certificates as may be prescribed by the concerned bank in their respective closing instructions or appointment letters.
While issuing a special purpose report or certificate, the auditors should bear in mind the recommendations made in the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) issued by the Institute of Chartered Accountants of India (ICAI).