>>Dated: 15.10.2012
>>To,
>>Dr. Arvind Mayaram (IAS),
>>Secretary Department of Econonic Affairs
>>North Block,
>>New Delhi- 110001
>>
>>Sub: Attempt by vested interests to dilute the well established, fully functional audit norms of Indian banking industry which has kept the bogus banking away and saved the country.
>>
>>Respected Sir,
>>
>> 1. That it is of prime importance to have a system of independent auditorfor banks which is presently appointed on the advises of RBI and not by the banks on its own.
>>
>> 1. This presently prevalent system of external audit has given wonderful results to the country and was working very successfully.
>>
>> 1. The present system of audit is not costing government of India a single rupee but still serves a great purpose to the country as is evident that strict implementation of NPA norms by externally appointed CA auditors has saved the country of tremours and failures foreign banks.
>>
>> 1. That banker for long were trying to avoid external auditors as they are independent and were reporting for benefit of banking industry as per RBI guidelines.
>>
>> 1. That even in the present systems bankers from top to bottom (that is from Branch manager to Zonal manager and even in some known cases by DGM finance sitting at HO) pressurize the branch auditors for not giving any MOC ( memorandum of changes) regarding NPA ( extra profits booked or bogus assets shown in the balancesheet).( Complaint to ICAI by one of the CA firm is enclosed herewith .)
>>
>> 1. That banker for long was not in favour of audit and even today they use various type of gimmics – that include not providing sufficient time for audit to branch auditors and pressurize them to sign from the hotel premises itself.
>>
>> 1. That recently the arguement is being forwarded by the banks that all the data is available at head office online hence the audit can be done sitting at head office alone by some big audit firms but I would like to point out that though all the data is available on line but it is not possible for any auditor to physically verify and certify various segments like physical existence of cash verification , physical verification of loan documents and so on and so forth
>>
>> 1. Another argument by the bankers is that mandatory external statutory audit shall be removed and replace with reports from the concurrent CA auditors of the bank but I would caution that as all the CA firms will be directly appointed by banks and will function under their direct control this will mar their independence and will severely affecting the audit quality .
>>
>> 1. Furthermore generally their own annual returns are not ready up to 2nd or 3rd April and by 5th or 6th they start saying the RO is demanding the report as deadlines are given by HO in a bid to avoid proper audit being done by the external audit firms.
>>
>> 1. That number of auditors were giving large scale NPA concealed by banks as profit and losse assets of loan as standard assets in their balance sheet – for example Ishwaran Agarwal and associates Ballia Classified Rs. 4.43 crores in merely 15 rural branches of Sarva UP Gramin bank , Merrut in the year 2010.11 and made a provision for interest for Rs. 47.97 lacs out of a meagre profit of few crores for the whole of 200 or so branches of SUP GB.
>>
>> 1. Similarly the same firm Classified Rs. 1.64 crores in merely 14 rural branches of Sarva UP Gramin bank , Merrut in the year 2011.12
>>
>> 1. Similarly in the year DGM Finance of CBI called one of the audit firms to cancel his audit assignments and instructed him to complete the audit from the his office itself for which a written complaint was made to the RBI and ICAI ( photocopy of letter attached herewith.)
>>
>>
>> 1. The chartered accountants of this country shall be given due credit for their role as watch dog who had kept due vigil on the bankers so that they do not book bogus profits in their books or create bogus assets through NPA mechanism prevalent today.
>>
>> 1. That this function is not possible without auditors being independent and can never be done by concurrent auditor appointed by Bank management itself.
>>
>>It is imperative that external audit by CA firms are beneficial for financial health of this country , more so over as the scheduled banks are handling large social banking obligations also.
>>
>>Thanking you.
>>Yours sincerely
>>
>>CA Ishwaran Shree
>>President
>>CA ASSOCIATION BALLIA
>>CC: Governor RBI
>>CC: Chairman of various banks ( who value the country’s financial strength)
>>
>>
>> Chartered Accountants
>>HEAD OFFICE: - CA Ishwaran Shree
>>Raj Kamal Bhawan Gandhi Nagar, Ballia-277001 (UP) PH: 05498-221042,220348, Mob:9336563797,9935157510 E-mail: ishwaran1@rediffmail.Com; ishwaran_ca @rediffmail.com
>>BRANCHES:
>>Kanpur (UP) Chapra ( Bihar) Rudrapur ( Uttarakhand) New Delhi
>>CA Gopal Agarwal, CA Vishal Jain, CA Prashant Khndelwal CA Anil Kr. Agarwal
>>
>>Dated: 15.10.2012
>>To,
>>The Finance Minister,
>>Government of India
>>Ministry of Finance,
>>North Block,
>>New Delhi- 110001
>>
>>Sub: Attempt by vested interests to dilute the well established, fully functional audit norms of Indian banking industry which has kept the bogus banking away and saved the country.
>>
>>Respected Sir,
>>
>> 1. That it is of prime importance to have a system of independent auditorfor banks which is presently appointed on the advises of RBI and not by the banks on its own.
>>
>> 1. This presently prevalent system of external audit has given wonderful results to the country and was working very successfully.
>>
>> 1. The present system of audit is not costing government of India a single rupee but still serves a great purpose to the country as is evident that strict implementation of NPA norms by externally appointed CA auditors has saved the country of tremours and failures foreign banks.
>>
>> 1. That banker for long were trying to avoid external auditors as they are independent and were reporting for benefit of banking industry as per RBI guidelines.
>>
>> 1. That even in the present systems bankers from top to bottom (that is from Branch manager to Zonal manager and even in some known cases by DGM finance sitting at HO) pressurize the branch auditors for not giving any MOC ( memorandum of changes) regarding NPA ( extra profits booked or bogus assets shown in the balancesheet).( Complaint to ICAI by one of the CA firm is enclosed herewith .)
>>
>> 1. That banker for long was not in favour of audit and even today they use various type of gimmics – that include not providing sufficient time for audit to branch auditors and pressurize them to sign from the hotel premises itself.
>>
>> 1. That recently the arguement is being forwarded by the banks that all the data is available at head office online hence the audit can be done sitting at head office alone by some big audit firms but I would like to point out that though all the data is available on line but it is not possible for any auditor to physically verify and certify various segments like physical existence of cash verification , physical verification of loan documents and so on and so forth
>>
>> 1. Another argument by the bankers is that mandatory external statutory audit shall be removed and replace with reports from the concurrent CA auditors of the bank but I would caution that as all the CA firms will be directly appointed by banks and will function under their direct control this will mar their independence and will severely affecting the audit quality .
>>
>> 1. Furthermore generally their own annual returns are not ready up to 2nd or 3rd April and by 5th or 6th they start saying the RO is demanding the report as deadlines are given by HO in a bid to avoid proper audit being done by the external audit firms.
>>
>> 1. That number of auditors were giving large scale NPA concealed by banks as profit and losse assets of loan as standard assets in their balance sheet – for example Ishwaran Agarwal and associates Ballia Classified Rs. 4.43 crores in merely 15 rural branches of Sarva UP Gramin bank , Merrut in the year 2010.11 and made a provision for interest for Rs. 47.97 lacs out of a meagre profit of few crores for the whole of 200 or so branches of SUP GB.
>>
>> 1. Similarly the same firm Classified Rs. 1.64 crores in merely 14 rural branches of Sarva UP Gramin bank , Merrut in the year 2011.12
>>
>> 1. Similarly in the year DGM Finance of CBI called one of the audit firms to cancel his audit assignments and instructed him to complete the audit from the his office itself for which a written complaint was made to the RBI and ICAI ( photocopy of letter attached herewith.)
>>
>> 1. The chartered accountants of this country shall be given due credit for their role as watch dog who had kept due vigil on the bankers so that they do not book bogus profits in their books or create bogus assets through NPA mechanism prevalent today.
>>
>> 1. That this function is not possible without auditors being independent and can never be done by concurrent auditor appointed by Bank management itself.
>>
>>It is imperative that external audit by CA firms are beneficial for financial health of this country , more so over as the scheduled banks are handling large social banking obligations also.
>>
>>Thanking you.
>>Yours sincerely
>>
>>CA Ishwaran Shree
>>President
>>CA ASSOCIATION BALLIA
>>CC: The Prime minister of India
>>CC: Smt. Shushma Swaraj ( leader of opposition)
>> CC: Chairman of various banks ( who value the country’s financial strength)
>>
>>
>>
>>COPY OF COMPLAINT SENT TO ICAI AGAINST DGM (f) CBI FOR PRESSURIZING CA
>>
>>Ref: ishwaran/bank audit 07/1
>>To,
>>The President,
>>The Institute of Chartered Accountants of India,
>>PB 7100,
>>Indraprastha Marg,
>>New Delhi.
>>Sub: 1.Pressure by top bank management on the auditors to put up their signatures on the audit reports without even going to the branches.
>>2. Impractical time schedules for performing the statutory bank audits
>>3. Threatening to cancel the audits if two branches (90 kms apart ) not completed in a day
>>Dear sir,
>>FACTS:
>>1. Last year I was allotted three branches of Central Bank of India in Ballia district namely Ballia, chitbaragaon and Belthra Road. Intial visit in the first week of April revealed that various documents and certificates were under preparation.
>>2. Meanwhile when Ballia branch was under audit and about complete on 9th or 10th April I received a call from the then DGM Mr. Natrajan stating that I must complete the audit today itself or he will cancel my allotment.
>>3. He also suggested that the managers can bring the documents to my office itself and I can do the job there it self.
>>4. He also emphasised that as I have given my acceptance to their offer letter which stated the last date of audit as 10th April I am duty bound to complete the audit with in that time it self.
>>5. I refused to his suggestions politely and insisted on visiting the branches.
>>6. Meanwhile during the audit period RM and other people tried to pressurize me but considering my stance the higher authorities started calling the branch manager every ten minutes asking “ audit khatam hua” , as if the audit can be completed in a minute or so. It looked like the branch manager will have a heart attack.
>>7. This year I am given three branches and the last date is “before 6th April”.
>>8. I presume the younger member of the institute can not sustain such kind of pressures
>>SUGGESTIONS AND REQUEST:
>>1. That considering the branch managers are human beings ( though in service) it can not be expected that all 30 or so certificates will be ready on the 1st April itself.
>>Hence at least branches shall be give at least three four days to get ready and the auditors shall be given at least three days to audit one branch.
>>2. Further more under no circumstances any one shall be allowed to coerce or coax the auditors to under perform or else the whole purpose of statutory audit by an outside agency as laid down by the law will be defeated.
>>I hope you will look in to the matter and do the needful in the larger interest of the institution as the whole.
>>I await an early reply.
>>Thanking you.
>>Yours truly,
>>CA. Ishwaran shree
>>RAJ KAMAL BHAWAN,
>>GANDHI NAGAR, BALLIA-277001 UP
>>(O)9935157510, 09336563797,09935150174
>>CC: Vice president, ICAI, New Delhi
>>CC: Secretary PD Committee, New Delhi
>>CC: Mr. Anuj Goel,
>>CC: Mr. Akshay Gupta
>>CC: Mr. M B Gabawal, Varansi
>>CC: Mr. Abhijit Upadhaya
>>To,
>>Dr. Arvind Mayaram (IAS),
>>Secretary Department of Econonic Affairs
>>North Block,
>>New Delhi- 110001
>>
>>Sub: Attempt by vested interests to dilute the well established, fully functional audit norms of Indian banking industry which has kept the bogus banking away and saved the country.
>>
>>Respected Sir,
>>
>> 1. That it is of prime importance to have a system of independent auditorfor banks which is presently appointed on the advises of RBI and not by the banks on its own.
>>
>> 1. This presently prevalent system of external audit has given wonderful results to the country and was working very successfully.
>>
>> 1. The present system of audit is not costing government of India a single rupee but still serves a great purpose to the country as is evident that strict implementation of NPA norms by externally appointed CA auditors has saved the country of tremours and failures foreign banks.
>>
>> 1. That banker for long were trying to avoid external auditors as they are independent and were reporting for benefit of banking industry as per RBI guidelines.
>>
>> 1. That even in the present systems bankers from top to bottom (that is from Branch manager to Zonal manager and even in some known cases by DGM finance sitting at HO) pressurize the branch auditors for not giving any MOC ( memorandum of changes) regarding NPA ( extra profits booked or bogus assets shown in the balancesheet).( Complaint to ICAI by one of the CA firm is enclosed herewith .)
>>
>> 1. That banker for long was not in favour of audit and even today they use various type of gimmics – that include not providing sufficient time for audit to branch auditors and pressurize them to sign from the hotel premises itself.
>>
>> 1. That recently the arguement is being forwarded by the banks that all the data is available at head office online hence the audit can be done sitting at head office alone by some big audit firms but I would like to point out that though all the data is available on line but it is not possible for any auditor to physically verify and certify various segments like physical existence of cash verification , physical verification of loan documents and so on and so forth
>>
>> 1. Another argument by the bankers is that mandatory external statutory audit shall be removed and replace with reports from the concurrent CA auditors of the bank but I would caution that as all the CA firms will be directly appointed by banks and will function under their direct control this will mar their independence and will severely affecting the audit quality .
>>
>> 1. Furthermore generally their own annual returns are not ready up to 2nd or 3rd April and by 5th or 6th they start saying the RO is demanding the report as deadlines are given by HO in a bid to avoid proper audit being done by the external audit firms.
>>
>> 1. That number of auditors were giving large scale NPA concealed by banks as profit and losse assets of loan as standard assets in their balance sheet – for example Ishwaran Agarwal and associates Ballia Classified Rs. 4.43 crores in merely 15 rural branches of Sarva UP Gramin bank , Merrut in the year 2010.11 and made a provision for interest for Rs. 47.97 lacs out of a meagre profit of few crores for the whole of 200 or so branches of SUP GB.
>>
>> 1. Similarly the same firm Classified Rs. 1.64 crores in merely 14 rural branches of Sarva UP Gramin bank , Merrut in the year 2011.12
>>
>> 1. Similarly in the year DGM Finance of CBI called one of the audit firms to cancel his audit assignments and instructed him to complete the audit from the his office itself for which a written complaint was made to the RBI and ICAI ( photocopy of letter attached herewith.)
>>
>>
>> 1. The chartered accountants of this country shall be given due credit for their role as watch dog who had kept due vigil on the bankers so that they do not book bogus profits in their books or create bogus assets through NPA mechanism prevalent today.
>>
>> 1. That this function is not possible without auditors being independent and can never be done by concurrent auditor appointed by Bank management itself.
>>
>>It is imperative that external audit by CA firms are beneficial for financial health of this country , more so over as the scheduled banks are handling large social banking obligations also.
>>
>>Thanking you.
>>Yours sincerely
>>
>>CA Ishwaran Shree
>>President
>>CA ASSOCIATION BALLIA
>>CC: Governor RBI
>>CC: Chairman of various banks ( who value the country’s financial strength)
>>
>>
>> Chartered Accountants
>>HEAD OFFICE: - CA Ishwaran Shree
>>Raj Kamal Bhawan Gandhi Nagar, Ballia-277001 (UP) PH: 05498-221042,220348, Mob:9336563797,9935157510 E-mail: ishwaran1@rediffmail.Com; ishwaran_ca @rediffmail.com
>>BRANCHES:
>>Kanpur (UP) Chapra ( Bihar) Rudrapur ( Uttarakhand) New Delhi
>>CA Gopal Agarwal, CA Vishal Jain, CA Prashant Khndelwal CA Anil Kr. Agarwal
>>
>>Dated: 15.10.2012
>>To,
>>The Finance Minister,
>>Government of India
>>Ministry of Finance,
>>North Block,
>>New Delhi- 110001
>>
>>Sub: Attempt by vested interests to dilute the well established, fully functional audit norms of Indian banking industry which has kept the bogus banking away and saved the country.
>>
>>Respected Sir,
>>
>> 1. That it is of prime importance to have a system of independent auditorfor banks which is presently appointed on the advises of RBI and not by the banks on its own.
>>
>> 1. This presently prevalent system of external audit has given wonderful results to the country and was working very successfully.
>>
>> 1. The present system of audit is not costing government of India a single rupee but still serves a great purpose to the country as is evident that strict implementation of NPA norms by externally appointed CA auditors has saved the country of tremours and failures foreign banks.
>>
>> 1. That banker for long were trying to avoid external auditors as they are independent and were reporting for benefit of banking industry as per RBI guidelines.
>>
>> 1. That even in the present systems bankers from top to bottom (that is from Branch manager to Zonal manager and even in some known cases by DGM finance sitting at HO) pressurize the branch auditors for not giving any MOC ( memorandum of changes) regarding NPA ( extra profits booked or bogus assets shown in the balancesheet).( Complaint to ICAI by one of the CA firm is enclosed herewith .)
>>
>> 1. That banker for long was not in favour of audit and even today they use various type of gimmics – that include not providing sufficient time for audit to branch auditors and pressurize them to sign from the hotel premises itself.
>>
>> 1. That recently the arguement is being forwarded by the banks that all the data is available at head office online hence the audit can be done sitting at head office alone by some big audit firms but I would like to point out that though all the data is available on line but it is not possible for any auditor to physically verify and certify various segments like physical existence of cash verification , physical verification of loan documents and so on and so forth
>>
>> 1. Another argument by the bankers is that mandatory external statutory audit shall be removed and replace with reports from the concurrent CA auditors of the bank but I would caution that as all the CA firms will be directly appointed by banks and will function under their direct control this will mar their independence and will severely affecting the audit quality .
>>
>> 1. Furthermore generally their own annual returns are not ready up to 2nd or 3rd April and by 5th or 6th they start saying the RO is demanding the report as deadlines are given by HO in a bid to avoid proper audit being done by the external audit firms.
>>
>> 1. That number of auditors were giving large scale NPA concealed by banks as profit and losse assets of loan as standard assets in their balance sheet – for example Ishwaran Agarwal and associates Ballia Classified Rs. 4.43 crores in merely 15 rural branches of Sarva UP Gramin bank , Merrut in the year 2010.11 and made a provision for interest for Rs. 47.97 lacs out of a meagre profit of few crores for the whole of 200 or so branches of SUP GB.
>>
>> 1. Similarly the same firm Classified Rs. 1.64 crores in merely 14 rural branches of Sarva UP Gramin bank , Merrut in the year 2011.12
>>
>> 1. Similarly in the year DGM Finance of CBI called one of the audit firms to cancel his audit assignments and instructed him to complete the audit from the his office itself for which a written complaint was made to the RBI and ICAI ( photocopy of letter attached herewith.)
>>
>> 1. The chartered accountants of this country shall be given due credit for their role as watch dog who had kept due vigil on the bankers so that they do not book bogus profits in their books or create bogus assets through NPA mechanism prevalent today.
>>
>> 1. That this function is not possible without auditors being independent and can never be done by concurrent auditor appointed by Bank management itself.
>>
>>It is imperative that external audit by CA firms are beneficial for financial health of this country , more so over as the scheduled banks are handling large social banking obligations also.
>>
>>Thanking you.
>>Yours sincerely
>>
>>CA Ishwaran Shree
>>President
>>CA ASSOCIATION BALLIA
>>CC: The Prime minister of India
>>CC: Smt. Shushma Swaraj ( leader of opposition)
>> CC: Chairman of various banks ( who value the country’s financial strength)
>>
>>
>>
>>COPY OF COMPLAINT SENT TO ICAI AGAINST DGM (f) CBI FOR PRESSURIZING CA
>>
>>Ref: ishwaran/bank audit 07/1
>>To,
>>The President,
>>The Institute of Chartered Accountants of India,
>>PB 7100,
>>Indraprastha Marg,
>>New Delhi.
>>Sub: 1.Pressure by top bank management on the auditors to put up their signatures on the audit reports without even going to the branches.
>>2. Impractical time schedules for performing the statutory bank audits
>>3. Threatening to cancel the audits if two branches (90 kms apart ) not completed in a day
>>Dear sir,
>>FACTS:
>>1. Last year I was allotted three branches of Central Bank of India in Ballia district namely Ballia, chitbaragaon and Belthra Road. Intial visit in the first week of April revealed that various documents and certificates were under preparation.
>>2. Meanwhile when Ballia branch was under audit and about complete on 9th or 10th April I received a call from the then DGM Mr. Natrajan stating that I must complete the audit today itself or he will cancel my allotment.
>>3. He also suggested that the managers can bring the documents to my office itself and I can do the job there it self.
>>4. He also emphasised that as I have given my acceptance to their offer letter which stated the last date of audit as 10th April I am duty bound to complete the audit with in that time it self.
>>5. I refused to his suggestions politely and insisted on visiting the branches.
>>6. Meanwhile during the audit period RM and other people tried to pressurize me but considering my stance the higher authorities started calling the branch manager every ten minutes asking “ audit khatam hua” , as if the audit can be completed in a minute or so. It looked like the branch manager will have a heart attack.
>>7. This year I am given three branches and the last date is “before 6th April”.
>>8. I presume the younger member of the institute can not sustain such kind of pressures
>>SUGGESTIONS AND REQUEST:
>>1. That considering the branch managers are human beings ( though in service) it can not be expected that all 30 or so certificates will be ready on the 1st April itself.
>>Hence at least branches shall be give at least three four days to get ready and the auditors shall be given at least three days to audit one branch.
>>2. Further more under no circumstances any one shall be allowed to coerce or coax the auditors to under perform or else the whole purpose of statutory audit by an outside agency as laid down by the law will be defeated.
>>I hope you will look in to the matter and do the needful in the larger interest of the institution as the whole.
>>I await an early reply.
>>Thanking you.
>>Yours truly,
>>CA. Ishwaran shree
>>RAJ KAMAL BHAWAN,
>>GANDHI NAGAR, BALLIA-277001 UP
>>(O)9935157510, 09336563797,09935150174
>>CC: Vice president, ICAI, New Delhi
>>CC: Secretary PD Committee, New Delhi
>>CC: Mr. Anuj Goel,
>>CC: Mr. Akshay Gupta
>>CC: Mr. M B Gabawal, Varansi
>>CC: Mr. Abhijit Upadhaya
No comments:
Post a Comment