UBL Report

By: M.
Noman Iqbal
1011111
BBA-II-A
Acknowledgement
Firstly I would like to thank Sir Darryl Pereira for great support which helped me
to complete this report successfully. Would really thank you for providing us the
best knowledge during the lectures up till now and for answering all the queries
related to the report
Secondly I would like to thank the MACHS UBL branch manager Miss samina
saleem khan for giving out the useful information related to UBL which helped to
complete the report
2|Page w h e r e y o u c o m e fi r s t
Introduction ………………………………………………………………………5
History…………………………………………………………………………….5
Key people………………………………………………………………………...7
Organizational hierarchy or management flow chart……………………………..9
Branch hierarchy…………………………………………………………………10
Accounting flow chart……………………………………………………………11
Services
 UBL WIZ………………………………………………………………….12
 UBL Netbanking…………………………………………………………..17
 UBL e-statement…………………………………………………………..20
 UBL Hamrah………………………………………………………………21
 UBL wallet………………………………………………………………...22
 Remittances………………………………………………………………..25
Types of deposit account
 UBL Business Partner (Current Account)………………………………….26
 Rupee Transactional Account (RTA)……………………………………....28
 UBL Basic Banking Account (BBA)……………………………………....30
 UBL UniFlex Account……………………………………………………..31
 UBL UniSaver Account……………………………………………………33
 Foreign Currency Savings………………………………………………….34
Accounting policies and standards………………………………………………..35
Departments
 Account opening department………………………………………………40
 Clearing department………………………………………………………..40
 Accounts department……………………………………………………….41
 Cash department……………………………………………………………45
 Credit department…………………………………………………………..48
 Home finance department………………………………………………….48
 Car finance department…………………………………………………….48
Accounting procedures
 fixed assets…………………………………………………………………49
 current assets……………………………………………………………….51
 contra assets………………………………………………………………...52
 current liabilities……………………………………………………………54
 long-term liabilities………………………………………………………...55
 share capital………………………………………………………………...56
 Reserves……………………………………………………………………56
Internal auditing…………………………………………………………………...57
Verification of accounts…………………………………………………………...60
Balance sheet
Income statement
Cash flow statement
Introduction:
United Bank Limited is the 2nd largest Commercial Bank of Pakistan. Its main
Industry is Finance. It has total assets of more than Rs. 550 bn. It has 1079
branches in Pakistan.
It has 700 online branches in 400 cities almost in every city of Pakistan. It has 383
ATM machines of its own. It is the member of 1 link due to which its cards (Debit
& Credit) are acceptable on more than ATM’s. Also it Has joined hands with Visa
Network due to which its cards are Acceptable at 900,000 ATM’s worldwide.
It has 17 branches overseas which are located in different countries Of the world.
I.e. United States of America, Canada, China, Iran and so On. Its representative
offices are in Tehran, Kazakhstan, and China. It Has joint venture with National
Bank of Pakistan in United States of America by the name of United National
Bank Limited.
History
The decision to establish UBL was taken in June 1959 and the company was
registered on July 24, 1959. United Bank Limited started the operations on
November 7, 1959. On 9th November 1959 the Gazette of Pakistan notified and
included UBL in its list of scheduled banks operating in Pakistan. The bank
continued its operations as private banking company until 31st December 1973
when it was nationalized by the government of Pakistan. (Regime of Bhutto) The
bank was working as nationalized bank when the government decided to privatize
some banks. So the privatization program started in 1991.
· 51% of the smaller Muslim Commercial Bank successfully sold.
· Thereafter, via an employee buyout, the smallest Allied Bank sold.
· Privatization of the larger but more problematic United Bank successfully
attempted 3 times between 1991 & 1996. Meanwhile its condition continued to
deteriorate and the market share fell from 27% to 7%. At the end of the year 1996
the bank had:
· Negative Equity
· Heavy and continuing operating losses due to:
 Overstaffing, 21,500 employees
 Over branching, 1,701 branches
 NPLs (Non performing loans), 60% of total loans
· A lack of systems and controls across the board.
· Demoralized staff, declining deposits and market share. Now the management
decides to take some preventive steps to make the performance better and to put
united bank on a progressive track once again. So they made a strategy consisting
of three phases:
· Phase one: (Jul – Dec 97)
 Stem the Bleeding
· Phase Two: (Jan – Jun 98)
 Create Key Building Blocks
· Phase Three: (Jul 98 Onwards)
 Consolidate and position for growth
So according to the strategy they first focus on key people. They made strong
board of directors by hiring people from Private sectors and also took CEO’s from
major local and foreign companies. They change 33 key positions and identify
internal seniors to retain and drive change. They downsize the staff from 21,500 to
8,525 in order to cut the costs. They reduce the number of branches from 1,701 to
1,112 and focus on rationalization of branches and zones. They arrest the NPL’s
and block 80,000 deposits in default. They start rebuilding overseas network. They
facilitate the recovery of bad debts by setting up specialized remedial management
units. They implement technology plan by making the zones or regions PC based.
They then build overseas franchises, develop strategies, staff up, clean out NPL’s
and improve the services. They deepen corporate banking efforts and implement
SME strategy to protect top consumer relationships. Due to all these steps the
market share quickly increased from 7% to 10% and the performance improved.
The overall purpose was to reposition it for privatization. In 2002 the government
of Pakistan sold it in an open auction, main sponsors include Abu Dhabi group and
Best Way group having 25.50% of its shares each. While the balance is held with
the government of Pakistan and the general pUBLic. In 2002 it merged its
operations in the UK with those belonging to National Bank of Pakistan to form
United National Bank Limited, of which it owns 55%, with National Bank of
Pakistan owning the remainder. Since its privatization the bank has been
successfully turned around and remains a robust and strong performer in all major
segments of its operations.
Key People:
Key People of United Bank Limited Bank includes:
· His Highness Sheikh Nahyan Mabarak Al Nahyan – Chairman
· Sir Muhammad Anwar Pervez – Deputy Chairman
· Agha Hasan Abidi – Founder
Board of Directors:
· His Highness Sheikh Nahyan Mabarak Al Nahyan – Chairman
· Sir Muhammad Anwar Parvez OBE – Deputy Chairman
· Atif R.Bukhari – President & CEO
· Mr. Omain Zaid Jafar Al Askari – Director
· Mr. Zameer Muhammad Chaudrey – Director
· Mr. Ahmed Waqar – Director
· Dr. Asfhaque Hasan Khan – Director
· Mr. Aqeel Ahmed Nasir – Company secertary & Chief Legal
· Mr. Abdul Rauf Malik – Director
· Mr. Ameer Karachiwala – SEVP/Group Chief Financial Officer
· Mr. Ejazuddin – Group Executive/Audit & Inspection Group
· Mr. Salahuddin Khan – AVP
Executive Committee:
·atif R.Bokhari– President & CEO
· Mr. M.A. Manan – Group Executive Consumer/Commercial
Banking
· Mr. Numan Hussain – Group Operations & Technology Head
· Miss. Risha Mohyeddin – Group Executive Treasury & Capital
Markets
· Mr. Ameer Karachiwala - Group CFO
Organizational hierarchy
Chairman
board of directors
cheif executive officer
executive commitee
executive incharges
Branch hierarchy
Cheif manager
manager
manager Internal audit marketing
international manager credits
operations department department
banking
accounts imports leasing

department department department
exports home finance

cash department
department department
foreign exchange car finance

account opening department department
department
remittences credit card

department department
clearing
department
10 | P a g e w h e r e y o u c o m e fi r s t
Accounting flow chart
Accounts receivable
Pay roll
Inventory control Fixed assets accounting
General ledger
Order entry
Accounts payable
Cost accounting
Services:
UBL has taken progressive steps and has introduced innovative products and
services to provide you a variety of banking and financing services. As an
individual or a group you can get much through UBL Services. You can Utilize the
following services:
 UBL WIZ
 UBL Netbanking
 UBL e-statement
 UBL Hamrah
 UBL wallet
 Remittances
 UBL Online (for corporate customers only
UBL Wiz:
UBL Wiz is Pakistan’s first ever Prepaid VISA Debit Card that provides the
convenience, security and benefits of an ATM and Debit Card, locally and
internationally. More than just an ATM card, you can use your UBL Wiz
everywhere VISA cards are accepted. Whether you are using it online, paying for
petrol, shopping or dining, you are accessing money directly from your prepaid
card, without having to visit the bank. It is available is three types. i.e UBL Wiz
Travelers, UBL Wiz Ladies, & UBL Wiz Teen.
Features & Benefits:
UBL Wiz is the 1st Prepaid VISA Debit Card in Pakistan. It is instantly available
at selected UBL branches with the facility of re-load, allows you to spend online
and at shopping outlets and withdraw cash at ATMs. It is also accepted at all VISA
locations internationally. It offers the following amazing features:
Available to All CNIC Holders:

All valid CNIC holders in Pakistan can own a UBL Wiz Prepaid VISA Debit Card.
There is no need of an account mean that no matter if you do not have account in
UBL, still you can have UBL Wiz. An individual can purchase up to three cards at
a time on his/her CNIC - one of each category, i.e. a person can have a single UBL
Wiz Ladies, UBL Wiz Teen and UBL Wiz Travelers card at any given point in
time.
24x7 Toll Free Contact Centre:

If you have any queries or need assistance with your UBL Wiz card, you can talk
to an agent at our 24 hour Contact Centre at 0800-11-825. You can also use the
telephone next to all UBL ATMs and be instantly connected to our customer
service representative via a hotline facility.
UBL Wiz - Your ATM Card:

UBL has its own network of 336 ATMs in 85 cities, which continues to expand by
the day. Moreover, UBL is also part of the 1 Link, MNET and VISA networks.
These allow you to use your UBL Wiz across Pakistan at more than 3,000 ATMs
displaying the 1 Link and MNET logo and at more than 2 million ATMs in 150
countries. The UBL Wiz card is also accepted on all VISA certified machines
displaying the VISA Plus sign.
Online Shopping:
UBL Wiz provides you convenience and security to shop online. In order to
activate your card for online transactions, you will need to sign up for the facility
and enable your card.
UBL e-statement Facility:

UBL e-statement give you the flexibility to choose how frequently you want to
receive your e-statements i.e. daily, weekly, monthly, quarterly or semi-annually.
This facility is available absolutely free of cost for Wiz card holders!
Balance Enquiry:
You can check the available balance in your account at any UBL, 1 Link or MNET
ATM and get a slip of your account balance.
Card Limit:
UBL gives certain limit in three types of UBL Wiz cards that best fits you financial
needs. The catagerization is as follows
UBL Wiz Travelers VISA:
· Max balance per card Rs.200,000/-
· Loading / Reloading per instance Rs.100,000/-
· ATM withdrawal per day Rs.40,000/-
· POS usage per day Rs. 100,000/-
· Internet usage per day Rs. 100,000/-
UBL Wiz Ladies VISA:

· Loading / Reloading per instance Rs.25,000/-
· ATM withdrawal per day Rs.20,000/-
UBL Wiz Teen VISA:
· Loading/Reloading per instance Rs.10,000/-
· ATM withdrawal per day Rs. 20,000/-
Fee Structure:
·Card Issuance Rs. 100/-
+ 10% FED
·Re-load fee 0.1%, Min Rs.
50/- + 10% FED
· Switch Transaction Fee
Withdrawals on 1 Link ATM other than UBL Rs.15/-
 Withdrawals on other switches Rs. 15/-
·International VISA Usage Charges
 ATM Withdrawals 2%, Min
Rs.200/-
 POS Purchase 2%, Min
Rs.200/-
·Internet Usage
 Activation Charges 0 (zero)
 Per session Charges Rs. 100/-
·Cancellation Charges Rs. 100/-
+ 10% FED
UBL Net banking:
UBL net banking is an Internet Banking portal offering a simple, convenient and
secure method of accessing bank accounts on the Internet. It's never been so easy
to access and manage your finances in a secure, real-time, online environment;
Anywhere, Anytime. Using UBL netbanking , the customers have access to their
bank accounts 24 hours a day, 7 days a week and can keep a close eye on their
account balances, print account statements, pay bills, transfer funds, track
purchases and schedule
their recurring payments at the touch of a button and much more.
Features & Benefits:

Using UBL Netbanking, you can avail different facilities and can benefit yourself
in many ways. Some of the features are discussed as follows:
Manage your Account:
Simple and intuitive 24/7 access to your accounts. You can keep an eye on cash
flows, transactions and check real-time account balances.
Send Money to Anyone using the new PC-to-Person facility:
UBL Netbanking is the first netbanking service in Pakistan to give you the power
to send money to anyone in Pakistan; even if they do not have a bank account at
UBL. You can either send money to another UBL customer through Account-To-
Account transfer, or get a TezRaftaar cheque delivered at payee’s doorstep just
within 48 hours anywhere in Pakistan.
Real-Time Account Balance & Summary:

UBL Netbanking offers easy, 24-hour access to the account information. The
customers can see an overview of the listed accounts in a summarize form with the
available account balance. Using netbanking, the customer can also keep an eye on
their cash flows, transactions and check their balances before paying their bills or
scheduling a transfer.
Manage Multiple Accounts:

Using netbanking, the customers can manage more than one account. All accounts
are linked, which enables them to perform fund transfers and set auto transfers
between these accounts.
vPay your Bills online:

Pay Bills online to a growing list of billers. netbanking offer the convenience to
pay PTCL, Mobilink Indigo, Paktel & Instaphone Bills online. Customers can
make instant payments or schedule their recurring payments on monthly or weekly
basis. The payment can be made from any of the listed
Customer account.
Transfer Funds between your accounts:

Customers can make instant transfers within their portfolio accounts. Having
details of Debit & Credit accounts with amount to be transferred, the customer can
instruct payments as per his own convenience. All transactions that are either
rejected or are still in processing are displayed in the Pending/Rejected
transactions.
Schedule your Recurring or one-off Payments:
Customers can schedule monthly, weekly, annual and time-factor based payments
through netbanking . The customer is only required to select the debit and credit
accounts, specify funds and define the fund transfer frequency. The Auto Transfer
Instructions can be deleted and modified by the customer as per his convenience.
View Account Statements:
Customers have the option of specifying a date range to view the account
statements. The Customers can also print, email and analyze the statement in a
graphical chart.
Receive Customized Alerts:
Customers can set alerts to track movements in the listed accounts. The customer
can assign a target for alerts.
Alerts can be of the following types.
· Balance Alert
· Statement Alert
· Transaction Alert
· Cheque Tracking Alert
· Low/High Balance Alert
Customers can perform all the above transactions and more, from the comfort and
convenience of your home or office internet connected computer, at any time of
the day or night.
Advanced Security Features:
· End-to-end encryption: Verisign-Certified 128-bit SSL Encryption
· Partial Token Authentication: Never reveal your entire password
· Choose your transaction limits: Fund-transfer limits are set to ‘zero’ by default.
You can request a change in your limit online (choose from Rs. 0.0 to a max of Rs.
100,000 per transaction.
· Human –assisted verification: When you request an increase in your transaction-
limit for the first time, we call you at your “registered” phone/mobile number and
confirm your request.
UBL e-statement
Are you fed up of filing your Statement of Accounts? Do you want fast
delivery of your Account Statements? Do you want to be in constant touch
with your account?
UBL brings a simple solution to all your problems by introducing the UBL e-
statements facility. UBL is pleased to announce the launch of the UBL e-statement
facility which makes it easier for you to get your statement of accounts and
automated transactional debit/ credit alerts right into your inbox. Available for all
Rupee and Foreign Currency Account holders, you now do not have to wait for six
months to receive a paper based statement of your account any more. All you need
to do is tell UBL the frequency of statements you require and UBL will ensure that
it reaches your inbox.
Absolutely free of cost:
You don’t need to pay any additional cost in order to get benefit from this facility.
UBL believes in providing value added service to customers and all you need to
get started is your email address!
Accessible when you need it:
UBL e-statement provides you a highly convenient facility to receive your
statement anytime and anywhere in the world!
Security:
As an alternative to printed statements, UBL e-statements eradicate the hassle of
paperwork, box filling and the chance of having your unattended documentation
read by others.!
Receive bill statements according to your needs:
Your UBL e-statement can be delivered to you in the following frequencies
· Daily
· Weekly
· Monthly
· Quarterly
· Semi – annually
Automated transactional debit/ credit alerts:
Whenever there is an activity in your account, an email shall be sent to you with
the complete transaction details.
Easy to read format:
You UBL e-statement shall be sent to you in an easy to read Adobe Acrobat
format.
Note: Once you subscribe for the facility, you will receive your statements as per
your selected frequency.
UBL Hamrah:
UBL has always been at the forefront in identifying and meeting the financial
needs of its valued customers. UBL was the pioneer in introducing Rupee
Travelers Cheque facility in Pakistan, as early as 1971. In continuation of the same
tradition, UBL in the shape of "Hamrah" Rupee Travelers Cheque enhances this
facility for the convenience of its valued customers by offering denominations up
to Rs. 10,000.
UBL "Hamrah" has been designed keeping in mind, both convenience and
security - be it business, property, trade or personal needs. "Hamrah" Rupee
Traveller Cheques are the ideal and safest way of carrying cash when travelling
anywhere in Pakistan.
Hamrah RTC's are now accepted at more than 2000 places such as hotels, shops,
real estate agents, jewelers, car dealers, etc and of course at all our UBL branches.
UBL has a 24-Hours customer helpline, providing its customers with round the
clock tele-verification of "HAMRAH" traveler’s cheques.
Salient Features:
· Absolutely FREE - No Bank Commission, No Excise Duty:
Whatever the value of "Hamrah" purchased, no Bank Commission or Excise Duty
will be charged.
· Denominations:
Avai lable in denominations of Rs. 10,000 and Rs. 5,000.
· Available to all:
Holding an account with UBL not mandatory for availing this facility.
· Easily transferable and encashable:
Indicate choice of designated UBL Branch for refund which will be within days
only. Most convenient while in transit anywhere in Pakistan.
· Valid until encashed:
Use them for a week, month or even years depending on when there's a need for
encashment
· Exclusive security:
Secured with specially "Coded" printing and "RAIN BOW Effect" for added
security.
UBL Wallet:
Introducing the new UBL Wallet Card, now with the International power of VISA.
UBL Wallet, now with the power and international acceptance of VISA! Your
Wallet VISA ATM & Debit Card has all the convenience and security you desire
and the quality you deserve. This Wallet holds all the cash in your bank account.
Available to All UBL Account Holders:
UBL offers ATM and Debit Card facility to all account holders at all UBL
branches anywhere in Pakistan, regardless of whether their branch is online or
offline.
Nine Supplementary Cards:
UBL Wallet VISA also gives you the facility of having up to 9 supplementary
cards issued against one primary card. All supplementary cardholders will be able
to conduct
ATM/Debit transactions within the limits of the primary card account.
24 x 7 Toll-Free Contact Center:
UBL's dedicated staff is at your service 24 hours a day, 7 days a week. You can
call at UBL’s contact center at 0800-11-825 (Toll Free), or you can simply pick up
the telephone placed next to all UBL ATMs and be instantly connected to our
customer service representative via a hotline facility.
UBL Wallet Your ATM Card:
UBL already has its own network of 336 ATMs in 83 cities, which continues to
expand by the day. Moreover, UBL Wallet is now part of the 1 Link and VISA
networks. These allow you to use your UBL Wallet VISA across Pakistan at more
than 925
ATMs displaying the 1 Link logo and at more than 1 Million ATMs in 150
countries. It is also acceptable on the MNET network of ATMs in Pakistan.Your
Wallet VISA Card will also be acceptable on all local VISA certified machines
displaying the VISA Plus sign.
UBL Wallet Your Debit Card:
With UBL Wallet VISA as your debit card, you can shop all you want, eat all you
can or fill up your car tank without carrying any cash. Simply use your UBL
Wallet VISA for
direct debit from your bank account, along with the convenience of using signature
based verification instead of a PIN (Personal Identification Number). The debit
card facility is being offered in association with the Orix andVISA networks,
which means that you can use your UBL Wallet VISA to conduct a debit
transaction at any
outlet in Pakistan that displays the ORIX or VISA logos. The Orix network offers
connectivity at more than 5,000 outlets across the country, whereas your UBL
Wallet VISA card is also acceptable at 22 million VISA merchant locations, local
and international.
Funds Transfer:
UBL Wallet VISA allows three kinds of instant funds transfer through UBL ATMs
from your UBL account:
1. Into any of your UBL account.
2. Into any other UBL account.
3. Into any other participating 1 Link bank (through the new UBL Inter Bank
Funds Transfer facility). On confirmation, the amount from the cardholder account
is instantly transferred to the beneficiary account.
Balance Enquiry:
Enquire about the availability of funds or simply get a printout of your account
balance.
Mini Statement:
Get a printed statement of your account that shows all recent transactions.
Fast Cash:
Swiftly withdraw your desired amount by selecting from one of the options of
listed denominations.
Annual Fee (Rs.):
Card type primary Supplementary
Gold 500 250
Silver 300 150
Remittances (UBL Tez Raftaar):

Free Doorstep Remittances With-in the country or from abroad, UBL offers the
most efficient and price competitive service. With our large network of branches,
we are
poised to offer you service almost at your door step. UBL's new remittance service,
TezRaftaar offers all overseas Pakistanis the fastest and the most convenient
delivery of their money to their beneficiaries in Pakistan. Best of all, TezRaftaar is
completely cost free and is available at all UBL branches along the Bank's
Network in
the Middle East, UK and US.
Check out it's great benefits:
Free of charge transfer service.
Open to all including those who are not UBL account holders.
Types of accounts maintained in UBL:

UBL Business Partner (Current Account)
Rupee Transactional Account (RTA)
UBL Basic Banking Account (BBA)
UBL UniFlex Account
UBL UniSaver Account
Foreign Currency Savings
UBL Business Partner (Current Account):

It’s a current Account offered by UBL. UBL has 700 online branches in 400 cities,
so your account moves with you wherever you go. Access your account from over
700 online branches in over 400 cities all across Pakistan for unlimited online
transactions. Enjoy total convenience at any online branch with:
· Instant Cash Deposits & Withdrawals.
· Country Wide Instant Funds Transfer.
· Issuance of Pay Order, Demand Draft & Telegraphic Transfer.
· Instant Cheque Clearance for all UBL Cheques.
· Speedy clearing and collection of any non UBL cheque in any Online UBL
branch.
· Statement of Account Issuance / Balance Inquiry / Stop Payment of Cheques.
Convenience of 9-5 Non-Stop Full Service Banking:
Be it morning, afternoon or evening. UBL Business Partner is your banking
companion at all UBL branches across Pakistan. Walk-in anytime at any UBL
branch and have the
convenience of 9 to 5 non-stop banking:
· Rupee Deposits & Withdrawals (both cheque & cash)
· Issuance of Pay Order, Demand Draft & Telegraphic Transfer
· Locker Access
· Foreign Currency Cash Deposits & Withdrawals
· Utility Bills Payment
· Consumer Loans / Credit Card Payment
· Foreign Currency Traveler’s Cheque/Demand Draft
· Statement of Account Issuance & Balance Inquiry
· Issuance of Hamrah Rupee Traveler’s Cheques
The Current Account that offers FREEdom:
UBL Business Partner comes with unmatched free offers. We truly value your
partnership and believe in offering you the preference you deserve. Now
individuals and sole proprietorships can become our preferred Business Partner by
maintaining Rs. 250,000/- or above in their current account and get the following
services absolutely free!
· Unlimited Real Time Online Transactions
· Issuance of Pay Order, Demand Draft & Telegraphic Transfer
· UBL Wallet ATM/Debit Card
· Cheque Book
· Collection / Clearing of Cheques
· Lockers, small, medium and large (subject to availability)
· No Cheque Return Charges
· 50% discount on UBL Credit Card Annual Fee
If you have the amount and want to search a safe place for that to deposit, the UBL
is the best place for you. Be UBL business partner and enjoy all the benefits it is
offering.
Rupee Transactional Account (PLS Savings Account)

If you choose to keep a deposit in a secured savings account which also gives an
attractive rate of return, then UBL’s PLS Savings Account will serve all your
financial needs. By keeping your deposits in UBL’s PLS Savings Account you can
also avail the following services:
Special features are:
· No limitation on withdrawals
· Share of profit is credited on half-yearly basis
· Profit is calculated on monthly balance
· UBL offers free accidental and permanent disability insurance to individual and
joint account holders
683 branches 400 cities. Your Account in every one of them:
Access your account from more than 683 online branches in 400 cities and towns
across Pakistan. Our network is growing at an amazing pace and now you can avail
services like:
· Issuance of Pay Order, Demand Draft, Money Transfer & Telegraphic Transfer
· Country Wide Instant Funds Transfer
· Country Wide Instant Deposit / Withdrawal (both Cash & Cheque)
· Issuance of Statement of Account/ Balance Inquiry
· Stop Payment of Cheque
· Speedy OBC process for cheques of other banks within & inter city
Now customers can deposit all UBL and non UBL cheques in any online UBL
branch for clearing or collection.
9-5 Non-Stop Banking:
Banking at your own convenience has been made possible. UBL now offers 9-5
Non-Stop Full-Service Banking at all of branches (above 1000) across Pakistan.
You can avail the following
Services:
· Cheques / cash (FCY & PKR) deposit & withdrawals
· PO / DD / RTC issuance (all local currency remittance transaction) against cash
· Utility bill payment
· Statement of Account issuance
· Locker operation
· Foreign currency TC / DD issuance against cash
Note: No FC trade or TT transactions are allowed in the second half of the day.
Countrywide Instant Cheque Clearance:
Submit a cheque in Karachi and get it cleared in Peshawar within minutes. With
online banking services, you can get your cheque cleared instantly, without any
hassle.
Instant funds transfer:
Funds transfer was never this easy. Make payments or receive payments within
minutes using our online facility. With the introduction of Internet Banking now
funds transfer is even made easier and is just a click away.
Note: Zakat & WHT will be applicable as per Government rules.
UBL Basic Banking Account (BBA)
To accommodate the banking needs of low income groups, United Bank Limited is
pleased to launch the UBL Basic Banking Account Scheme (UBL BBA) from
February 25, 2006 across its branch network all over Pakistan. This is primarily
aimed toward helping the low income group to benefit from the banking services
without having the pressure to maintain specific balance amount with the banks.
Find below basic product features of the Product:
Special features are:
· The minimum initial deposit at the time of account opening is to be Rs. 1000/-
· There is no minimum balance penalty on UBL BBA accounts,
however all accounts having nil balance for a continuous six month period shall be
closed.
· Maximum of two deposit and two withdrawals (cash or clearing) per month are
allowed free of charge. However, any transaction (cash or clearing) after those
mentioned above will be charged a flat fee of Rs. 50/-, in addition to the regular
charges of services as per SOC. This charge will be system generated end of day,
once the customer exhausts his free transaction limits.
· BBA customers will be allowed unlimited free ATM withdrawals from UBL’s
own ATMs. However, withdrawals from other banks’ ATMs will be charged as
per the existing SOC (currently Rs. 15/- per transaction). Annual fees including
issuance and renewal of ATM card will be charged as per existing Schedule of
Charges (SOC).
· The statement of account will be issued once a year for UBL
BBA customers in June. Issuance of duplicate statement will entail a charge of
Rs.50/as per SOC.
· Like the regular Current accounts, UBL BBA will also be Zakat Exempt
accounts. Any existing customer wanting to convert his/her checking account into
Basic Banking Account can do so by giving a written application to the Branch
Manager upon which existing account will be closed and a new UBL BBA account
will be opened and a new account number will be provided to the customer after
due account opening procedures, including submission of CNIC, if not provided
earlier. The deposit in the previous account will be transferred to the newly opened
UBL BBA. Charges for closing any existing account shall be recovered as per
SOC.
UBL UniFlex Account

UBL has introduced a new checking account ideal for small investors, traders,
businessmen and customers from middle income group. They can now afford an
amazing rate of return plus value added benefits only available from the UBL
UniFlex PLS Savings Account. By having a UBL UniFlex Account, you can avail
the following:
· Amazing rate of return.
· Convenience of a cheque book.
· Power of Wallet VISA ATM / Debit Card.
· Online Banking Facility.
Terms & Conditions:

· All individual and joint account holders and sole proprietorships are eligible for
the UBL UniFlex Account (scheme); Corporations and partnerships are ineligible
for the scheme.
· Only one UBL UniFlex account per Computerized National Identity Card (CNIC)
shall be allowed to be opened in UBL, regardless of the branch; no doUBLing shall
be allowed even as joint account or sole proprietor.
· The Bank shall determine from time to time the rate of interest/return/profit
payable on the account/deposit in accordance with the prevailing profit and loss
sharing rules
and regulations of the State Bank of Pakistan and the policies of the Bank which
are subject to change from time to time and the account holder/depositor agrees to
accept such rate of interests/return/profit at the time such change was made.
· If the minimum balance touched during any calendar month exceeds
Rs.200,000/-, interest/return/profit shall only be paid on Rs.200,000/- and no
interest/return/profit will be paid on the amount exceeding this limit.
· Interest/return/profit shall be accrued monthly, based on minimum balance
touched during the month, and disbursed six monthly directly into the UniFlex
account.
· The UBL UniFlex account cannot be overdrawn.
· Accounts that are closed in the middle of a month will not be eligible for any
interest/return/profit for the broken period of that month.
· Wallet VISA card is optional; charges as per Schedule of Bank Charges (SOC).
· Regular checkbooks shall be provided as per Schedule of Bank Charges (SOC).
· Customer can only conduct a maximum of two withdrawal transactions in a
calendar month (inclusive of all instruments). These withdrawals include but not
limited to Net banking, cash withdrawal by ATM, cash withdrawal over the
counter, Inter Bank Funds Transfer (IBFT), clearing, collection, Online banking,
Tez Raftaar, Tez Ibex, MT/DD/TT/PO/Online (UniRemote), RTC, etc. Any
withdrawals more than prescribed limit of two transactions shall attract 0%
interest/return/profit on the entire balance amount in the said month.
· All single debit incidents to an account will be considered as separate transactions
except deductions by the bank for charging service fee, Withholding Tax and Zakat
deductions.
· The UniFlex Account Holder shall be required to maintain the minimum balance
requirement of Rs. 10,000/- during each calendar month. Service charges where
the average balance during the month is less than Rs.10,000/- shall be applied as
per the Schedule of Bank Charges (SOC).
UBL UniSaver Account:

UBL UniSaver Account is an innovative way of serving your banking needs. Be it
trade, business or personal finance, the UBL UniSaver allows you maximum
flexibility, yet gives you optimum returns.
Special Features are:
· Innovative and flexible checking account.
· Attractive rates of return.
· Profit is calculated on monthly average balance.
· Profit payment is on six monthly basis.
· Higher returns on higher balances.
· Backed by the bank awarded AAA Credit Rating.
Please Note the Following:
· All rates are indicative and subject to change without any prior notice.
· The method of calculating return/profit under the profit/loss sharing scheme is
governed by the Bank Rules under prevailing regulations/directives of the State
Bank of Pakistan.
· Zakat & WHT will be applicable as per Government rules.
Foreign Currency Savings Account:

If you wish to maintain a secured foreign currency savings account then UBL is
the safest and most secure investment. By opening a UBL foreign currency savings
account you can have the following benefits:
Special Features are:
· Choose from different range of currencies i.e. US Dollars, British Pounds, and
Euros etc.
· There are no cash handling (Cash Deposit & Cash Withdrawals) charges from the
customers.
· Avail different attractive rates depending on the currency you choose.
· Get the pleasure of availing the best rates of return in the market.
· Unlimited withdrawals and deposits, making it easier for you to fulfill your
routine business needs.
· Avail the services and facility of 9 - 5 non stop full service banking in all foreign
currency handling branches such as foreign currency traveler cheque and demand
draft issuance against cash and foreign currency cash deposits and
withdrawals.
· You can withdraw funds in either foreign currency or in Pakistan Rupees,
whatever your requirement may be.
· You get to take your profit home every six months.
· Zakat exempted
UBL offers the widest reach across the country with an increasing number of more
than 228 foreign currency dealing branches. It also offers free accidental and
permanent disability insurance to individual and joint account holders. So do not
waste time any more be UBL customer and avail numerous benefits and financial
services.
Please Notice:
· All rates are indicative and subject to change without any prior notice.
· The method of calculating return/profit under the profit/loss sharing scheme is
governed by the Bank Rules under prevailing regulations/directives of the State
Bank of Pakistan.
· WHT will be applicable as per Government rules.
Accounting policies and standards maintained in UBL

Legal status and nature of business:
the group consists of:
holding company
 united bank limited (the bank)
Subsidiary companies:
 united national bank limited(UNBL), united kingdom

 united bank AG(Zurich), Switzerland
 united executers and trustees company limited(under liquidation)
 UBL fund managers limited
The group is engaged in commercial banking, asset management, investment
advisory services and trustee services. The banks registered office and principal
office are situated at UBL building, Jinnah Avenue, Blue Area, Islamabad and at
state life building No. 1, 1. 1. Chundrigar road, Karachi respectively. The bank,
operates 1,121 (December 31,2009:1,120) branches inside Pakistan as at
September 30,2010. The domestic branch network includes 5(December
31,2009:5) Islamic banking branches.
The banks ordinary shares are listed on all three stock exchanges in Pakistan
whereas its global depository receipts (GDRs) are on the list of the uk listing
authority and the London stock exchange professional securities market. These
GDRs are also eligible for trading on the international order book system of the
London stock exchange. Further, the GDRs constitute an offering in the united
states only to qualified institutional buyers in reliance on rule 144A under the US
securities act of 1993 and an offering outside the united states In reliance on
regulation S.
The minority states represents state bank of pakistan’s 45% share in the net asset
value of UNBL.
Basis of representation:
In accordance with the directives of the federal government regarding the shifting
of the banking system to Islamic modes, the state bank of Pakistan has issued
various circulars from time to time. Permissible forms of trade-related modes of
financing include purchase of goods by bank from their customers and immediate
resale to them at appropriate mark-up in price in deferred payment basis. The
purchases and sales arising under these arrangements are not reflected in these
financial statements as such but are restricted to the amount of facility actually
utilized and the appropriate portion of mark-up thereon. However, the Islamic
banking branches of the bank have complied with the requirements set out under
the Islamic financial accounting standards issued by the institute of chartered
accountants of Pakistan and notified under the provisions of the companies
ordinance, 1984.
The financial results of the Islamic banking charges of the bank have been included
in these consolidated condensed interim financial statements for reporting
purposes, after eliminating intra branch transactions/balances. Key financial
figures of the Islamic banking branches are disclosed in note 20 to these
consolidated condensed interim financial statements
Statement of compliance:
These consolidated condensed interim financial statements of the groups for the
nine months ended September 30,2010 have been prepaid in accordance with the
requirements of the international accounting standard 34 – interim financial
reporting, provisions of the company’s ordinance, 1984, banking companies
ordinance, 1962 and directives issued by the securities and exchange commission
of Pakistan and the state bank of Pakistan. in case requirements differ, the
provisions of the companies ordinance, 1984, the banking companies ordinance,
1962 and the said directives have been followed .
The SBP wide BST circular No. 10, dated august 26, 2002 has deferred the
applicability of international accounting standards 39, financial instruments:
recognition and measurement (IAS 39) and international accounting standard 40,
investment property –(IAS 40) for banking companies for further instructions.
Further according to the notification of the SECP dated april 28,2008, IFRS – 7
“financial instruments: - disclosures” has not been made applicable to banks.
Accordingly, the requirements of the standards have not been considered in the
preparation of these financial statements. However, investments have been
classified and valued in accordance with the requirements of various circulars
issued by the SBP.
The disclosures made In these consolidated condensed interim financial statements
have, however, been limited based on a format prescribed by the state bank of
Pakistan wide BSD circular No. 2 dated may 12, 2004 and international accounting
standard 34, interim financial reporting. They do not include all the disclosures
required for annual financial statements and these consolidated condensed interim
financial statements should be read in conjunction with the annual consolidated
financial statements of the banks for the year ended December 31, 2009.
During the period following new/revised standards, amendments and interpretation
became effective:
 IAS 37 – consolidated and separate financial statements(amendments)

 IFRS 2 – share based payments: amendments related to group cash-settled
share-based payment transaction
 IFRS 3 – business combinations(revised)
 IFRIC 17 – distributions of non-cash assets to owners
Adoption of the above standards, amendments and interpretations did not affect the
accounting policies of the bank as disclosed in the consolidated annual financial
statements for the year ended December 31, 2009. The implications of the
amendments to IFRS – 2 relating to the government of Pakistan share option
scheme for employees of state owned enterprises are under consideration of the
institute of chartered accountants of Pakistan.
Basis of measurement
these consolidated condensed interim financial statements have been prepared
under the historical cost conventional except that certain fixed assets are stated at
revalued amounts and, certain investments, commitments in respect of certain
forward foreign exchange contracts and derivative financial instruments have been
mark to market and are carried at fair value.
The preparation of consolidated condensed interim financial statements requires
managements to make judgments’, estimates and assumptions that affect the
application of accounting policies and the reported amount of assets and liabilities,
income and expenses. Actual results may differ from these estimates.
Estimates
The significant judgements made by the management in applying the accounting
policies and the key sources of estimation uncertainty were the same as those
applied to the annual financial statements for the year ended December 31, 2009.
Significant accounting policies and financial risk management
The accounting policies and the methods of computation adopted in the preparation
of these consolidated condensed interim financial statements are the same as those
applied in the preparation of the consolidated annual financial statements for the
year ended December 31,2009.
The financial risk management objectives and policies are consistent with those
disclosed in the consolidated annual financial statements of the bank for the year
ended December 31,2009.
Types of department in UBL:
Account opening department:
An account opening department in UBL consists of:
· Account Opening Procedure
· The persons who are eligible to open an account
· Kinds of Accounts offered by Bank Alfalah Limited
· Information about Royal Profit Account
· Documents required by different categories of persons
· Issuance of Cheque Book
· Preparation of Debit and Credit Vouchers
· Procedure of closing an account
· Information about Zakat Exemption
An account opening is an initial step of building contractual relationship with
customer. Customers wish to open their accounts with their different requirements.
Some people want an account in foreign currency. Some customers want Pak
rupees account but with different type of account.
CLEARING DEPARTMENT:
Clearing department consists of:
· Procedure of clearing a cheque
· Checking of cheques
· Inward and outward clearing
· Within bank transfer
· Different reason of returning a cheque
· Types of clearing stamps
The basic function of the clearing department is to facilitate the customer; it
provides them the services in collection of their cheque in other banks. Clearing
actually means the transfer of funds from one branch of bank to the other branch of
the same bank or the other bank on which the instrument is drawn, without
involving cash through State banks clearing house.
ACCOUNTS DEPARTMENT:
Accounting opening department consists of or these are the following activities
carried out in this department
Budgets
Income & expenditures
Reports
Budget review form
Reconciliation
Foreign Exchange; Forward Contracts
Activity checking
Funds management
Depreciation & Maintenance of fixed assets provision
Minutes of the branch review committee
Test Keys
BUDGETS:
Annual budgets are prepared three months earlier before the start of New Year.
One-year budget are further splits in semi-annually, and monthly basis. During
three
months, budgets are reviewed by head office. At times changes are
asked to make in accordance with changing rates, excess funds and due to other
reasons.
Budgets are revised after amendments.
Major heads include in budgets are:
Deposits
Advances
Car finance
Exports
Imports
Guarantees
Sales of rupee travelers cheque
Income/ expenditure
The revenue target is fixed keeping in view the past performance. The cost of
generating these revenues is also estimated. Then budget of each branch is
submitted to head office for modifications and for approval. After the modification
and approval the budget for a specific branch is being set by the head office.
Monthly budget meeting is held to analyze the monthly performance by all the
branch managers with head office. The actual performance is compared with the
estimated and variance is calculated. Variance can be negative as well as positive.
If there is a negative variance, this shows management’s inefficiency in controlling
its expenses or incompetence in achieving the desired revenue target. Proper
Adjustments are made in the next month’s target according to the previous month’s
performance because sometimes the goals that are set by the head office are
unrealistic and unachievable.
Income & expenditures of bank:
Income
Mark up on advances
Mark up on h/o balances/ demand a/c
Mark up on placements
Mark up on investments
Expenditures:
Total interest expenditures
Total administrative expenditures
Personal cost
Training & subscription
Rent, taxes, instrument
Reports:
Each and every activity with their particular are reported daily by MIS. Besides
daily reports, these are weekly, monthly, semiannual, and annual reports. These are
generated from the main frame and are used or proper analysis. MIS compiles
every activity of each department. Account and Audit departments further
authenticate these activities on daily basis.
Statement of Affairs
It includes information about assets, liabilities and their balance. Daily position of
deposit and advances are also calculated in this report.
Subsidiary Statement:
This is a detailed report that includes all the information regarding the statement of
affairs.
Income & Expenditure Report:
It includes all the details regarding to both the heads of income and expenditure in
detail.
Royal Profit Report:
It includes the details of the deposit of royal profit account.
Currency Wise Report:
It provides the details of all the deposits currency wise.
New FCY Report:
This report includes the information regarding only the new foreign currency
accounts. The old foreign currency accounts are those that were at the time of
nuclear explosion in Pakistan and were being freezed by Nawaz Sharif
Government.
Sub 66 Report:
It contains income, expenditure, general ledger accounts and their balances.
Daily Position of Advances & Deposits:
This report is being sent to the Head Office daily in which the detail is given
regarding the new accounts of deposits and advances.
RECONCILIATION
United bank limited prepares its reconciliation statements with
Head Office
State Bank of Pakistan
Head Office Reconciliation:
All the debit and credit entries of the main office account are recorded in the
statement. Then it is checked with physical vouchers and if there is any problem,
they reconcile it. Head Office check the outstanding entries, if there is any entry
posted by branch but not by head office they will send their query to the branch
and then branch will respond to that query by sending the required document. Head
office reconciliation is carried out in the head office; accounts department handles
inquiries.
State Bank of Pakistan Reconciliation:
State Bank of Pakistan maintains the account of every scheduled bank including
United bank limited. The statement of account reconciliation shows the entries that
are passed during the month in both banks. United bank limited compares the
statement with the ledger card of State Bank of Pakistan in which all entries are
recorded done with SBP. If any amount debited by SBP and united bank limited
doesn’t credit that amount, it is added in the balance of the reconcile statement
provided by the State Bank of Pakistan to united Bank limited.
BUDGET REVIEW FORMS:
These forms are designed to review the actual budgets and performances with
expected performances at the end of every month.
ACTIVITY CHECKING
Activity checking is the process of the entire banking, which is taken place on
daily basis. The report specifies every vouchering, which has taken place. Sorting
is made according to the mainframe-generated report. All the Vouchers are
checked that whether they are properly posted or is there any transaction is left to
be posted. This checking makes the working of the bank more efficient and avoids
any loopholes.
Cash department
The department is responsible for the handling of cash deposits and encashment of
cheques issued by the depositors.
Receipt of Cash:
In receipt section deposits are received in form of cash. The depositor use pay-
inslip for depositing the amount. There are two different types of slips for both
saving and current account. The client gives all the detail regarding date, account
number, title of account, amounts in words and figure. The pay-in-slip is stamped,
cash is received and counter foil is given to the depositor. The adjacent credit
voucher is used for recording and posting purposes. In case the client is depositing
money in his/her account through a cheque of another bank, and then the cheque is
lodged in clearing.
Cheque Encashment Section:
The process of cheque encashment is done with the help of the following
procedure.
Receiving Cheques
Verification of signatures
Computer terminal process
Payment of cash
1.Receiving of Cheques:
The cash is paid against the cheque of the client. The following things have to be
checked by the cashier before the encashment of the cheque.
The cheque that is presented should be drawn on united bank Limited.
Cheque is not post dated or the date should exist, for example it can’t be of
30th February etc.
It should be a bearer cheque
Amount in words and figures should be same.
Alterations in date / figures / words require drawers’ full signature
The receiver of cash should make one signature on the back of cheque.
2.Verification of Signatures:
After receiving the cheque, the officer verifies signatures of the account holder and
the signature on the cheque. The signatures are feeded in the computer so they are
checked from the computer. The CD personnel scan the Signature Specimen Card
and add the mentioned account number with the SS Card. It is then load in the
main Server. In this way the officers can use the SS Card for the verification of the
signatures. If signature is not same than it is returned back, otherwise forwarded to
the computer terminal.
3.Computer Terminal Process:
The cheque is received in computer terminal, where the computer operator checks
the balance of the account holder that whether there is enough balance in the
account or not. After considering these points the computer operator posts the
cheque in account holder ledger and after cancellation of the cheque returned it
back to the cashier.
4.Payment of Cash:
After the cancellation of the cheque the cashier enters the cheque in the “Cash Paid
Register” and pay against the second signature of the receiver on the back of the
cheque.
CREDITS DEPARTMENT:
Consists of:
· Credit facilities for customers
· Long term & short term loans
· Employees loan
· Securities for credit etc
Home finance department
· Home finance is term loan facility repayable in monthly installments and secured
by equitable or registered mortgage over real estate property
· Purpose of facility is to finance purchase, construction, improvements, extension

and restoration of private residential or commercial real estate property
· It shall be extended for all types of real estate properties i.e. houses, apartments,
bungalows, town houses, office premises etc
Car finance department

Car finance department in UBL is responsible for providing cars to both
individuals and corporates and hence there are two types of products in this
department
· Car Finance
· Auto Lease
The procedure for loan disbursement for leasing, home finance and car finance is
same as discussed above.
There are other departments as well in UBL such as foreign trade department,
exports and imports department
Accounting Procedures to record:

 Fixed assets
 Contra assets
 Current assets
 Current liabilities
 Long term liabilities
 Shared capital
 reserves
Fixed assets:
These are stated at cost less accumulated depreciation, except for freehold land and
capital work-in-progress, which are stated at cost
In respect of additions depreciation is charged from the month in which asset is put
to use and on disposal up to the month the asset is in use. Additional depreciation
at the rate of fifty percent of the normal rate is charged on such machinery which is
operated on double shift during the year.
The assets residual values, useful lives and methods are reviewed and adjusted if
appropriate, at each financial year endnb
Tagging and recording of fixed assets
An interface extract program ran by Fixed Asset staff identifies potential

capitalized assets that enter Banner Finance through purchasing and accounts
payable, and create corresponding pending asset records. This extract program
gathers cost and other asset data from purchase orders, invoice, voucher and other
records. Extract processing is controlled by UBL defined capitalization rules,
based on the purchase cost and the account codes charged for the purchase.
Acquisitions (office desk, land, buildings, lockers) not recorded in purchasing or
accounts payable may be entered into Fixed Assets on-line or in batch.
Disposal of fixed assets
UBL equipment cannot be thrown away. To dispose of an asset, the responsible

department must complete Form FA-13, Equipment Disposal Form. This form
must be completed whenever the custody of the fixed asset changes due to the item
being surplused, returned to vendor, junked or traded. The department fills in their
department name and number, telephone number, contact person, date, tag
number(s), description of item being disposed, and location of item being disposed.
Current assets:
Cash and cash equivalents:
Cash and cash equivalents are carried in the balance sheet at cost. For the purpose
of cash flow statement, cash and cash equivalents comprise cash in hand, balances
with banks on current and deposit account and outstanding balance of running
finance facilities availed by the company.
Cash transactions
Cash transactions can be the most difficult to account for and record, and the most
necessary. Maintaining control and accountability of cash transactions is a huge
responsibility for companies like UBL, and the company’s accounting department.
Of all the transactions that take place, cash transactions are the hardest to record
and track, simply because the paper trail generated by a purely cash transaction is
virtually non-existent. A voucher system is most often used in UBL to record cash
payments. This is a set of procedures for authorizing and recording liabilities and
cash payments. The voucher system covers all types of payments that must be
made, and provides for the accurate recording of transactions, as well as accurate
recording keeping for reference back to those transactions. The voucher system
usually includes vouchers, matching receipts that verify the amount of the voucher,
and a filing system for paid and unpaid vouchers.
UBL also have in place preventive and defective control procedures that are
designed to protect cash from misuse and theft. Cash payments can be controlled
internally, and for the most part, are successfully monitored and accurately
recorded
Advances:
Advances are monitored to accurately record costs or capitalize other assets as
work is completed or services are received. Based on the work completed or
services received, the advance account is credited, and the appropriate expense or
asset account is debited. If adequate information is not available, UBL estimates
the work completed. Based on the estimate, the appropriate expense or asset
account is debited and accounts payable is credited. When the cost information is
received, accounts payable for the estimated amount previously recorded is debited
and the advance account for actual work completed is credited. Any differences
between the estimate and the actual work completed are adjusted to the appropriate
expense or asset account. Each advance is limited to the minimum amount
necessary for immediate disbursement needs and is timed to be in accordance with
the actual immediate cash requirements of the recipient in carrying out an
approved program or project. The timing and amount of cash advances are as close
as is administratively feasible to the actual disbursements by the recipient for direct
program costs and the proportionate share of any allowable indirect
costs.
Contra assets
Accumulated depreciation
 Overview
Posting depreciation means to account for depreciation using the proper journal
entries. UBL depreciates its assets annually. Depreciating assets will match the
cost to purchase the asset and only record the expense as the company uses the
asset. The two main accounts involved are "Accumulated Depreciation," which is a
contra-account to the asset and "Depreciation Expense." "Accumulated
Deprecation" will decrease the value of an asset on the balance sheet, this is why it
is a contra-account. "Depreciation Expense" will record the expense from using the
asset on the income statement.
Step 1
Determine the amount of depreciation to account for. For example, Firm A uses
straight-line depreciation. The firm wants to depreciate an asset that costs $15,000
with an estimated $3,000 residual value. The asset has an estimated three-year
useful life. So $15,000 minus $3,000 equals $12,000. Then $12,000 divided by 3
years equals $4,000 of depreciation a year.
o Step 2
Debit "Depreciation Expense" by the yearly depreciation and credit "Accumulated

Depreciation" by the yearly depreciation. Do this each year of the assets useful life.
In the example, debit "Depreciation Expense" by $4,000 and credit "Accumulated
Depreciation" by $4,000.
o Step 3
Account for any changes in the depreciation estimates prospectively. This means
do not adjust previously accounted for sums. For example, after year 2, Firm A
decides the asset still has two more years of useful life with $1,000 of residual
value. Re-calculate the depreciation using the current. Since two years passed,
$8,000 of depreciation is accounted for already, so the asset is worth $7,000. Then
$7,000 minus $1,000 equals $6,000. Finally, $6,000 divided by two years equals
$3,000.
o Step 4
Record the depreciation in the same manner as in Step 2, but use the new
depreciation value. In the example, debit "Depreciation Expense" by $3,000 and
credit "Accumulated Depreciation" by $3,000.
Current liabilities
Policies
There shall be no carried forward of sick time past of the current year a
common management problem is for employees to build up massive reserves of
unused sick time, for which they must be paid when they eventually leave the
company the policy is designed to eliminate all unused sick time at the end of each
calendar year, thereby keeping accrued sick time expense to a minimum.
Procedures
Include a standard review of customer advances in the closing procedure. If a
company regularly deal with the large number of customer deposits, there is a
significant risk that the deposits will not be recognized as revenue in conjunction
with completion of any related services or product sales. This problem can be
avoided by requiring a periodic review of the status of each deposit as part of the
period-end closing procedures.
Include an accrual review in the closing procedure for income tax payable. A
common practice is to only accrue for income taxes on a quarterly basis, when
estimated taxes are due. The trouble is that this is a substantial expense being
excluded from all monthly financial statements not falling at the end of each
reporting quarter, so it tends to skew the reported results of those months. By
including in the closing procedures a line item requiring the accrual of an income
tax liability, the accounting staff is forced to address this issue every time financial
statements are issued.
Long term liabilities:

Long term loans and deposits are stated at cost.
Long-term debt consists of probable future sacrifices. It has various covenants or

restrictions for the protection of both lenders and borrowers. The indenture
agreement incorporates the terms of the issue and restrictions.
Bond issues, parties to the contract
3. Payment of Face Value (maturity)
Share capital
The Meaning of Share Capital
A corporation must include its "paid-up capital stock" in PUC, in accordance with
clause 61(1)(a). Paid-up capital stock, which is termed "share capital" in this
bulletin, is the dollar amount of the issued share capital of the corporation, as
shown on its balance sheet prepared in accordance with generally accepted
accounting principles (GAAP).
Items Included in Share Capital
 Share capital includes the value given to all types of issued shares,
including:
o common shares
o preferred shares, and
o special category shares.
 The following amounts must be included:
o the value of shares issued for intangibles such as trademarks and

patents, and
o premiums received from shareholders on the issue of shares and

recorded as share capital.
 Items Excluded from Share Capital
The following amounts are excluded from share capital:
o subscriptions receivable from shareholders on shares issued to them
but not fully paid for, and
o discounts allowed to shareholders on the issue of shares.
Internal auditing
Internal auditing is an independent, objective assurance and consulting activity
designed to add value and improve an organization's operations. It helps an
organization accomplish its objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of risk management, control,
and governance processes. Internal auditing is a catalyst for improving an
organization’s effectiveness and efficiency by providing insight and
recommendations based on analyses and assessments of data and business
processes. With commitment to integrity and accountability, internal auditing
provides value to governing bodies and senior management as an objective source
of independent advice. Professionals called internal auditors are employed by
organizations to perform the internal auditing activity. UBL uses internal audit for
several benefits, such as : Review of the accounting and internal control system
(including computer-based controls and data security procedures) and the
monitoring of the operation of these systems and recommending improvements,
Ensuring proper safeguarding of assets to prevent or detect fraud, Examination of
financial and operating information, review of the means used to identify, measure,
classify and report such information and specific inquiry into individual items
including detailed testing of transactions, balances and procedures, Review of the
application and effectiveness of risk management procedures and risk assessment
methodologies.
International Standards on Auditing (ISA) requires that the regulatory status of the
internal department should ensure that does not affect its ability to be objective,
and their ability to Communicate freely with the external auditors and their ability
to fulfill their responsibilities.
Thus, based on the regulatory status of the bank, and Lev grief Executive Audit
and Inspection Division must report to the Audit Committee of the Council which
is composed of 2-3 non-executive Management. Committee decides on the strength
of overall staff in the Division as well as on the strength of the General Staff of the
Division of the Audit Committee of the Council on the basis of Network and the
requirements of the business. It Identifies the structure of the Division. The
geographical spread of our network which may necessitate creation / placement
audit Staff in different locations. The various units have therefore developed a fiber
to the grief of the Executive Division who will be responsible for overall growth
and professional development.
Supervision
Audit & Inspection Division should provide assurance that the audit work is
properly supervised. The Executive Incharge of Audit & Inspection Division is
responsible for providing appropriate supervision, which is a continuous process,
beginning with the planning and ending with the proper supervision and conclusion
of the audit assignment. Appropriate evidence of supervision should be
documented and retained. The extent of supervision will depend upon the
proficiency of the internal auditors and the nature of the audit assignment.
Supervision includes:
i. Ensuring that the auditors chosen for a particular audit are independent of the
activity being audited; providing necessary instructions to the staff at the outset of
the audit work and approving the audit programs;
iii. ensuring that the approved audit programs are implemented unless deviations
are justified as well as authorized;
iv. determining that working papers adequately support the audit findings,
conclusions and reports;
v. ensuring that reports are accurate, clear, concise, constructive and timely; and
vi. determining that audit objectives are being achieved.
Verification of balance sheet accounts:
Cash:
All the cash on hand should be brought at one table and physically counted as on
the closing date and agreed with cash book and balance sheet. The last numbers of
the receipt books, cash memo books, cheque payment vouchers, cash payment
vouchers, cheque books and cheque receipts should be noted
See that the collections are segregated and kept separately from imprest. At the
time of counting the cash, examine the pay-in-slips for the last 7 days prior to cash
count and link up the lodgment dates with cash receipts. Scrutinize bank statements
subsequent to cash count for any dishonored cheque. Vouch all cheques drawn for
cash during 14 days prior to cash count.
Bank balances
Obtain direct bank confirmations in support of the bank balances. Obtain a bank
reconciliation and agree the balance of cash book as at the date of the balance sheet
with the balance shown in the bank statement. Scrutinize all outstanding items and
note their subsequent adjustments. See that the above bank certificate indicates the
name of the clients in whose account the money is lying in the books of the bank.
Examine the fixed deposit receipt for amounts lying the fixed depostis(apart from a
direct bank certificate). See that accrued interest to the date of the balance sheet
has been accounted for in the books, show the balances with the bankers on deposit
or on current account separately. Verify conversion rates in the case of foreign
exchange balances and disclose to exchange rate of conversion as a footnote on the
balance sheet. Any loss or gain arising due to devaluation must be reflected in the
accounts.
Prepaid accounts
Obtain a schedule and check it with demand notes, bills, vouchers etc, noting
carefully the period for which the prepayments are involved. Scrutinize their
subsequent adjustments. Examine necessary correspondence is this respect.
Compare amounts with the previous year and note any major fluctuations. Enquire
into usual financing by the clients.
Loans
Confirm the borrowing powers with reference to the memorandum and articles of
association. See board resolution for the approval of exercising the borrowing
powers. Study the contract for loan noting the maximum limit sanction, rate of
interest, plan of repayment, installment payable, the nature and extend of scrutiny
and type of charge. Scrutinize that account to find out instance where limits have
exceeded and report such instances to directors. All interest on outstanding balance
should either be paid or provided in the accounts. Check the value of the security
and see that the loan is fully secured. See confirmation for the loan. In case of
difference, obtain a reconciliation statement. Examine that the charge on assets has
been noted on the register of charges and confirm that it has also been registered by
the registrar. Prepare a movement account during the year and tie up the opening
and closing balances of the loan.
Bills payable
Obtain a schedule of bills payable. Check it with bills payable book. Check control
account. Check cast of the schedule. Examine the unpaid bills.
Share capital
The steps are taken for verifying the share capitals of the company covering
several phases are enumerated as under:
 Check the authorized share capital with the relevant clause of the
memorandum of association. Scrutinize the minute book of the shareholders
to ensure that no alteration was made during the year. If it was so done, the
minutes should be seen and altered amount may be shown in the accounts.
 Obtain a list of shareholders, check with the register of members, and verify
the control account
 Obtain a schedule showing the movement during the year in the above
account. Verify entries in respect of the additions on account of issue of new
shares.
Reserves
Obtain a movement schedule of each type of reserve and agree the closing balance
of the schedule with the balance sheet
 The opening balance of each of the reserves should be checked with the
audit working papers of the previous year or audited balance sheet
 Scrutinize any addition to or deletion from the reserves carefully and ensure
that they are properly authorized by the articles of the company and the
directors or shareholders resolution
 The auditor should study the case law and comply with the guidelines laid
down in the judicial pronouncements
 Note undisclosed secret reserves

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By: M.

cheif executive officer

accounts imports leasing

exports home finance

foreign exchange car finance

remittences credit card

Available to All CNIC Holders:

24x7 Toll Free Contact Centre:

UBL Wiz - Your ATM Card:

UBL e-statement Facility:

UBL Wiz Ladies VISA:

· Max balance per card Rs.50,000/-

UBL Wiz Teen VISA:

Features & Benefits:

Real-Time Account Balance & Summary:

Manage Multiple Accounts:

vPay your Bills online:

Transfer Funds between your accounts:

Annual Fee (Rs.):

Card type primary Supplementary

Gold 500 250

Silver 300 150

Remittances (UBL Tez Raftaar):

Types of accounts maintained in UBL:

UBL Business Partner (Current Account):

Rupee Transactional Account (PLS Savings Account)

UBL UniFlex Account

Terms & Conditions:

UBL UniSaver Account:

Foreign Currency Savings Account:

Accounting policies and standards maintained in UBL

 united bank limited (the bank)

 united national bank limited(UNBL), united kingdom

 IAS 37 – consolidated and separate financial statements(amendments)

Types of department in UBL:

Home finance department

· Purpose of facility is to finance purchase, construction, improvements, extension

Car finance department

same as discussed above.

Accounting Procedures to record:

Tagging and recording of fixed assets

An interface extract program ran by Fixed Asset staff identifies potential

Disposal of fixed assets

UBL equipment cannot be thrown away. To dispose of an asset, the responsible

Debit "Depreciation Expense" by the yearly depreciation and credit "Accumulated

statements are issued.

Long term liabilities:

Long-term debt consists of probable future sacrifices. It has various covenants or

Bond issues, parties to the contract

Items Included in Share Capital

o preferred shares, and

o special category shares.

 The following amounts must be included:

o the value of shares issued for intangibles such as trademarks and

o premiums received from shareholders on the issue of shares and

 Items Excluded from Share Capital

The following amounts are excluded from share capital:

o subscriptions receivable from shareholders on shares issued to them

but not fully paid for, and

o discounts allowed to shareholders on the issue of shares.

vi. determining that audit objectives are being achieved.

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