J. Gupta & Co.

12, Waterloo Street

Chartered Accountants 2nd floor, Room no.10,
Kolkata- 700 069
Ph: 2248-5923
Telefax : 2248-4665
E-mail: ecotech@cal2.vsnl.net .in

Date : 30/10/2010

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Jigeesha Gupta (Reg. No. ERO 0134707), D/o Mr. Sanjay Gupta, is
continuing her practical training (articleship) of three and a half years required by The Institute
of Chartered Accountants of India from 23rd October, 2008, in our firm, J Gupta & Co.,
Chartered Accountants. Within the abovementioned period, the period from 1st September,
2010 to 30th September, 2010 may be regarded as her Internship period.During the period she
had worked in Karur Vysya Bank, Burra Bazar Branch as an Assistant to Concurrent Auditor,
the details of which is annexed herewith, as required by St. Xavier’s College, Kolkata for
completing her B.Com. (Hons.) Course. I am fully satisfied with her work in this regard.

Thanking you,

Yours faithfully,
For J. Gupta & Co.
Chartered Accountants

J.N.Gupta
(Partner)
 ANNEXURE

DETAILS OF WORK DONE FROM 1st SEPTEMBER, 2010 TO 30th SEPTEMBER, 2010
KARUR VYSYA BANK

DATE FIELD PARTICULARS

1st Sept 10 Audit KYC Checking of Current A/c ,Stock Report Checking
2nd Sept 10 Audit KYC Checking of Term deposit A/c ,Stock Report Checking
3rd Sept 10 Audit Pay Order, GL, Cash movement, Voucher verification.
4th Sept 10 Audit KYC of SB a/c, GL, Cash, Stock statement.
5th Sept 10 - SUNDAY
6th Sept 10 Audit Transfer entry, Demand Draft, Pay Order, GL,
7th Sept 10 Audit Stock Statement checking, GL, Pay Order.
8th Sept 10 Audit Voucher verification, Loan movement, Demand Draft, GL.
9th Sept 10 Audit Loan movement Pay Order, GL, Transfer Entry.
10th Sept 10 Audit GL, Loan movement, Insurance Policy Checking.
11th Sept10 Audit Loan movement, Insurance Policy Checking
12th Sept 10 - SUNDAY
13th Sept 10 Audit GL, Cash, Transfer Entry, Voucher verification.
14th Sept 10 Audit Interest Calculation Of Borrowal Accts, GL.
15th Sept 10 Audit Interest Calculation Of Borrowal Accts, Pay Order.
16th Sept 10 Audit Interest Calculation Of Borrowal Accts, DD, GL.
17th Sept 10 Audit GL, Cash, Transfer Entry, Voucher verification.
18th Sept 10 Audit Godown visit of CC Party, GL.
19th Sept 10 - SUNDAY
20th Sept 10 Audit Transfer entry, Demand Draft, Pay Order, GL,
21st Sept 10 Audit Loan Movement of CC Accts(21/11-20/12),GL, Cash
22nd Sept10 Audit Calculation Of Bills Purchased, GL, Cash.
23rd Sept10 Audit Calculation Of Bills Purchased, GL, Voucher verification.
24th Sept 10 Audit Transfer entry, Demand Draft, Pay Order, GL,
25th Sept 10 Audit Sanction Expired, limit Expired, Extension of BG
26th Sept 10 - SUNDAY
27th Sept 10 Audit Preparation of Draft report, Security Items verification, Gl,
fallback-bills returned, checking of foreign bills.
28th Sept 10 Audit Security Verification, GL, cash, Voucher Verification.
29th Sept10 Audit GL, Cash, Cash Credit A/C, Cash Verification.
30th Sept 10 - Preparation Of Final report
 Audit Programme
1st thing which we have to check
i. Trial Balance – Before and after closing.
ii. General Ledger.
iii. Statement of NPA accounts
iv. Account closing circulars issued by Head office.
v. Branch Audit report of last year, Concurrent Audit Reports, Internal/ Inspection Audit
Report and RBI inspection Reports.
Cash and Bank Balances
1. Verify the Cash Balance as on last Day of each month. (If due to some reason the
verification is done on any later date, reconcile the cash balance from the date of
verification to the last date of each month.)
Advances
1. Review the appraisal system and the internal controls in place and the adequacy
thereof. Check all files of large as well as critical borrowers, sanctions, disbursement,
renewals, documentation, systems, securities, etc.
2. In the case of other advances check at random the sanctions, disbursement, renewals,
documentation, systems, securities, etc.
3. Check whether penal interest is charged in case of default in submission of such
documents.
4. Whether the branch has classified the advances in accordance with prudential norms
prescribed by RBI. Check whether classification and reporting is made properly such as
secured loans, unsecured loans, etc.
5. Check the is there any account is turning to EAS (Early Alert System).
6. Check whether unrealized interest on NPA accounts are reversed and not charged to
such non performing Advance Accounts.
Fixed Assets
1. To verify whether the Fixed Asset Register is maintained and also ascertain whether
physical verification has been done around the Balance Sheet date.
2. Verify the bills in case of additions and also confirm whether proper authorization is
available for such additions.
3. Verify the depreciation charged— rates and calculations thereof. If the branch premises
are owned, verify the title deeds.
Deposits
1. The transactions during the year shall be verified in respect of –– New Accounts opened
and large sums of deposits placed (compliance with KYC norms-Concurrent audit
reports generally contain these details). In-operative accounts Random checking of
provisioning for accrued interest. Compliance with RBI directive on maintenance of NRI
accounts.
Profit & Loss Items
1. Check of charging of interest and levy of processing fee on advances accounts. Random
check of Interest paid on deposit.
2. Whether adequate provisioning for expenses has been made for interest accrued and
not due, Rent, Electricity, Annual maintenance etc.
3. Whether the branch has followed strictly the norms prescribed by the reserve bank of
India regarding income recognition on Non Performing Advances.
Contingent Liabilities
1. Verify the Register maintained with the copies of the Letter of Credit (LC) and the
margin held. Check Bills drawn by the customers and accepted by the bank.
2. Whether the branch has reversed expired guarantees
Salient Points
1. Check for entries made in Suspense account and Sundry deposit account.
Maturity Profile of Loans & Advances and Deposits
1. As the branch is under full computerization/ Core Banking Solution, the software may
automatically generate the maturity profile of the loans and advances and the Term
deposits. We have to verify on selective basis the report generated by the system.
Movement in NPA accounts
1. Movements in NPA accounts such as recoveries, upgradation, write-offs, additions to
NPA, closing balances could be readily verified from branch records.
My own observation in the Bank

I tried my level best to gain as much knowledge as I can and to do my job efficiently. I
tried to cover almost all the areas within my scope. I had checked General Ledger of
all the days of the month December, 2009 and didn’t found any thing unusual, NPA
recovery has been also treated satisfactorily.
I also checked all the files of large as well as critical borrowers, sanctions,
disbursement, renewals, documentation, systems, securities, etc.
Then I looked whether penal interest is charged in case of default in submission of
such documents and found that they were already charged to the respective parties. I
found that Fixed Asset Register is also properly maintained but stock statement
register was not updated but on my request they fully cooperated with me and
updated the register within two days. Seven new Deposit Loan were Dispersed during
ther month.
I have also gone through the bank guarantees portion and those which were expired
during the month were renewed and reversed properly. I also looked for foreign
exchange and forward contract.
I used to verify the vouchers twice in a week and didn’t found any major
discrepancies. Beside these I used to see the daily works like Pay Order, Demand
Draft, Cash Movement and Transfer Entries on regular basis.
I had also verified the Cash Balance on 31st December, 2009 the balance of Cash on
that day was 98.22 Lacs. Cash retention limit of the said bank is 40 lacs but most of
the days limit was exceeded an annexure in support ther is enclosed herewith. Stamp
Papers on 31st December, 2009 in Bank were of Rs.7200. I also verified the security
items and annexure to that is attached herewith.