| | | |
Good |
Satisfactory |
Below Par |
| I. | |
Conduct of funded facilities |
| |
* |
Over-drawings (No. of times) |
Upto 4 times |
5 to 6 times |
Above 6 times |
| |
* |
Average period of adjustment |
Within 1 month |
Within 2 months |
Beyond 2 months |
| |
* |
Extent of overdrawings (% of limit) |
Upto 10% |
10 to 20% |
Above 20% |
|
II. | |
Conduct of contingent facilities
(Other than Derivatives) |
| |
* |
No. of Defaults |
Upto 2 times |
3 to 4 times |
Above 4 times |
| |
* |
Average period of adjustment |
Within 1 week |
Within 2 weeks |
Beyond 2 weeks |
| III | |
Conduct of Derivatives Transactions |
| | * |
No. of contracts where the positive
MTM value due to the bank remained overdue for more than 30 days |
<25% of total number of contracts |
25-50% of total number of contracts |
> 50% of total number of contracts |
| | * |
No. of contracts where the positive
MTM value due to the bank remained overdue for more than 90 days and the account
had to be classified as NPA ( but later on regularized and is not NPA as on the
date of exchange of information) Note:
All cases where any of the contracts has been classified as NPA and continues
to be NPA as on the date of the exchange of information should be shown as Below
Par) | <1%
of total number of contracts | 1-5%
of total number of contracts | >
5% of total number of contracts |
| |
* |
No. of contracts restructured during the relevant
period | <25%
of total number of contracts | 25-50%
of total number of contracts | >
50% of total number of contracts |
|
IV. | |
Compliance with financial covenants |
| | * |
Stock statement / Financial data |
Timely |
Delay upto 15 days |
Delay over 15 days |
| | * |
Creation of charge |
Prompt |
Delay upto 2 months |
Delay over 2 months |
| V. | |
Company's internal systems and procedures |
| | * |
Inventory Management |
Adequate systems are in place |
Adequate systems are in place but
not adhered | Adequate
systems are not in place |
| |
* |
Receivables Management |
- do - |
- do - |
- do - |
| |
* |
Resource Allocation |
- do - |
- do - |
- do - |
| |
* |
Control over Information |
- do - |
- do - |
- do - |
|
VI. | |
Quality of management |
| |
* |
Integrity |
Reliable |
Nothing adverse |
Cannot be categorized in previous
columns |
| |
* |
Expertise Competence / Commitments |
Professional & visionary |
Have necessary experience |
-do- |
| |
* |
Tract Record |
Timely |
Executions / |
-do- |
|
V. |
Company's internal systems and procedures |
| * |
Inventory Management |
Adequate systems are in place |
Adequate systems are in place but
not adhered | Adequate
systems are not in place |
|
* |
Receivables Management |
- do - |
- do - |
- do - |
|
* |
Resource Allocation |
- do - |
- do - |
- do - |
|
* |
Control over Information |
- do - |
- do - |
- do - |
|
VI. |
Quality of management |
|
* |
Integrity |
Reliable |
Nothing adverse |
Cannot be categorized in previous
columns |
| * |
Expertise Competence / Commitments |
Professional & visionary |
Have necessary experience |
-do- |
|
* |
Tract Record |
Timely |
Executions / |
-do- |
To,
The
Manager,
_________________________ (Name of the Bank)
I
/ We have examined the registers, records, books and papers of ____________ Limited
(the Company) as required to be maintained under the Companies Act, 1956 (the
Act) and the rules made thereunder, the provisions of various statutes, wherever
applicable, the provisions contained in the Memorandum and Articles of Association
of the Company as well as the provisions contained in the Listing Agreement/s,
if any, entered into by the Company with the recognized stock exchange/s, as may
be applicable for the half year ended on ____________ . In my / our opinion and
to the best of my / our information and according to the examination carried out
by me / us and explanations furnished to me / us by the Company, its officers
and agents. I / We report that in respect of the aforesaid period :
1. (a)
The management of the Company is carried out by the Board of Directors comprising
the following persons :
(b) During the period under review
the following changes took place :
2. (a) The
shareholding pattern of the company is as under :
(b) During
the period under review the following changes took place:
3. The
company has altered the following provisions of
(i) the
Memorandum of Association during the period under review and has complied with
the provisions of the Act.
(ii) the following Articles
of Association during the period under review and has complied with the provisions
of the Act.
4.The company has during the period under review,
entered into the following transactions with business entities in which directors
are interested.
5. The company has during the period
under review, advanced loans, given guarantees and provided securities amounting
to Rs. ____________ to its directors and / or persons or firms or companies in
which directors are interested.
6. The Company has during
the period under review, made loans and investments; or given guarantees or provided
securities to other business entities as under :
7. The
amount borrowed by the Company from directors, members, public, financial institutions,
banks and others during the period under review is / are within the borrowing
limits of the Company. The break-up of the company's borrowings is as under:
8. The
Company has during the period under review, not defaulted in the repayment of
any public deposits or unsecured loans and the Company or its Directors are not
under the Defaulter's list of Reserve Bank of India or in the Specific Approval
List of ECGC.
9. The Company has during the period
under review, created, modified or satisfied charges on the assets of the company
as under :
10. The Forex Exposure and Overseas Borrowings
of the company are as under'
11. The Company has issued,
offered and allotted all the securities to the persons entitled thereto and has
also issued letters, coupons, warrants and certificates thereof to the concerned
persons and also redeemed its preference shares / debentures and bought back its
shares (wherever applicable) in compliance with the specified procedures and within
the stipulated time.
12. The Company has insured all
its assets including the secured assets.
13. The Company
has complied with the terms and conditions, set forth by the lending institution
at the time of availing the facility and also during the currency of the loan
and has utilized the funds for the purposes for which these were borrowed.
14. The
Company has declared and paid dividends to its shareholders as per the provisions
of the Companies Act, 1956.
15. The Company has paid
all its statutory dues and that there are no arrears.
16. The
Company has complied with the provisions stipulated in Section 372 A of the Companies
Act in respect of its Inter Corporate loans and Investments.
17. The
Company has complied with the applicable and mandatory Accounting Standards issued
by the Institute of Chartered Accountants of India.
18. The
Company has credited and paid to the Investor Education and Protection Fund all
the unpaid dividends and other amounts required to be so credited.
19. A
list of prosecutions initiated against or show cause notices received by the Company
for alleged offences under the Act and also the fines and penalties or any other
punishment imposed on the Company in such cases is attached.
20. The
Company has complied with the various clauses of the Listing Agreement, if applicable.
21. The
Company has deposited both Employees' and Employer's contribution to Provident
Fund with the prescribed authorities.
Note : The
qualification, reservation or adverse remarks, if any, may be stated at the relevant
place(s).
i. Terms
of reference for stock audit are to be spelt out clearly by the Banks, so that
the Chartered Accountants can give focused attention to such areas.
ii.
End-use verification of funds lent, if certified by Statutory Auditors, will be
a good comfort to the Banks.
iii. As Banks quite often
deal with unlisted companies, disclosure requirements for such companies above
a specific turnover may be made akin to those for listed companies, viz. consolidated
balance sheet, segmental reporting etc. Information on large shareholding also
will be useful.
iv. Further, the following additional
certification either from Chartered Accountant or Company Secretary may also be
thought of :-
(a) Company Directors not figuring in defaulters
list (RBI / ECGC) / willful defaulters list etc.)
(b) Details
of litigation above a specified cut off limit.
(c) A specific
certificate, probably from the Company Secretary, regarding compliance with Sec.
372 (a) of the Companies Act.
(d) Details of creation /
modification / satisfaction of charges on the assets of the company, position
regarding insurance, show cause notices received, finds and penalties awarded.
v. As
regards rotation of Auditors, for the sake of operational convenience, it is suggested
they may be changed once every 5 years instead of every 3 years.
vi.
In order to avoid concentration, group companies may have different Statutory
/ Internal Auditors in case group turnover exceeds Rs.100 crores.