Lfar 2 Format of Advances Above 2 Crores

LFAR 2
B. For branches dealing in very large advances such as corporate banking branches and
Industrial Finance Branches or branches with advances in excess of Rs. 100 Crores.
1) In respect of borrowers with outstanding of Rs. 2.00 Crores and above, the
information in the enclosed format should be obtained from the Branch
Management. Comments of the Branch Auditor on advances with significant adverse
features and which might need the attention of the management/Central Statutory
Auditors should be appended to the Long Form Audit Report.
2) What, in your opinion, are the shortcomings in credit appraisal, monitoring, etc.?
3) List the accounts [with outstandings in excess of Rs.1.00 Crore], which have either
been downgraded or upgraded with regard to their classification as Non-Performing
Asset or Standard Asset during the year and the reasons therefore.
Branch: ______________________ Code No. :_________________
ANNEXURE TO THE LONG FORM AUDIT REPORT

[FOR LARGE / IRREGULAR / CRITICAL ADVANCE ACCOUNTS]
[To be obtained from the branch management by the Branch Auditors of branches dealing in
large advances / asset recovery branches]
1 Name of the Borrower

2 Address
3 Constitution
4 Nature of business / activity
5 Other units in the same group
6 Total exposure of the branch to the group.
Fund Based [Rs. In lacs]
Non-Fund Based [Rs. In lacs]
7 Name of Proprietor / Partners / Directors
8 Name of the Chief Executive, if any
9 Asset Classification by the Branch
(a) As on the date of current audit
(b) As on the date of previous Balance
Sheet
10 Assets Classification by the Branch
Auditor
(a) As on the date of current audit
(b) As on the date of previous Balance
Sheet
11 Are there any adverse features pointed
out in relation to asset classification by the
Reserve Bank of India Inspection or any
other audit.
12 Date on which the asset was first
classified as NPA [where applicable]
13 Facilities sanctioned :
Date of Nature of Limit [Rs. Primary Collateral Margin % Balance Outstanding at

Sanction facilities In lacs] Security Security the year-end [Rs. In lacs]
[Rs. In lacs] [Rs. In
lacs]
Current Year Previous
Year
Provision Made : Rs ____________ lacs

14 Whether the advance is a consortium
advance or an advance made on multiple-
bank basis
15 If Consortium,
(a) Names of participating banks with
their respective shares
(b) name of the Lead Bank in Consortium
16 If on multiple banking basis, names of

other banks and evidence thereof
17 Has the Branch classified the advance

under the Credit Rating norms in
accordance with the guidelines of the
controlling authorities of the Bank?
18 (a) Details of verification of primary

security and evidence thereof;
(b) Details of valuation and evidence
thereof
Date verified Nature of Security Value [Rs. In lacs] Valued by
Insured for Rs. ____________ lacs [expiring on ________]
19 (a) Details of verification of collateral

security and evidence thereof
(b) Details of valuation and evidence
thereof
Date verified Nature of Security Value [Rs. In lacs] Valued by
Insured for Rs. ____________ lacs [expiring on ________]
20 Give details of the Guarantee in respect Guaranteed Amount Valid upto

of the advance [Rs. In lacs]
(a) Central Government Guarantee;

(b) State Government Guarantee;
(c) Bank Guarantee or Financial
Institution Guarantee;
(d) Other Guarantee
Provide the date and value of the Guarantee in respect of the above.
21 Compliance with the terms and
conditions of the sanction
Terms and Conditions Compliance

(i) Primary Security
(a) Charge on primary security
(b) Mortgage of fixed assets
(c) Registration of charges with Registrar of
Companies
(d) Insurance with date of validity of policy
(ii) Collateral Security
(a) Charge on collateral security
(b) Mortgage of fixed assets
(c) Registration of charges with Registrar of
Companies
(d) Insurance with date of validity of policy
(iii) Guarantees - Existence and execution of
valid guarantees
(iv) Asset coverage to the branch based upon
the arrangement (I.e. consortium or multiple-
bank basis)
(v) Others :
(a) Submission of Stock Statements/Quarterly
Information Statements and other Information
Statements
(b) Last inspection of the unit by the Branch
Officials : Give the date and detail of
errors/omissions noticed
(c) In case of consortium advances, whether
copies of documents executed by the company
favouring the consortium are available
(d) Any other area of non-compliance with the
terms and conditions of sanction
22. Key financial indicators for the last two years and projections for the current year
[Rs. In lacs]
Indicators Audited Year Audited Year Estimates for

ended 31st ended 31st year ended 31st
March _______ March _____ March _______
Turnover
Increase in turnover % over previous
year
Profit before depreciation,
Interest and tax
Less : Interest
Net Cash Profit before tax
Less : Depreciation
Less : Tax
Net Profit after Depreciation and tax
Net Profit to Turnover Ratio
Capital (Paid-up)
Reserves
Net Worth
Turnover to Capital Employed Ratio
[The term capital employed means
the sum of Net Worth and Long Term
Liabilities]
Current Ratio
Stock Turnover Ratio
Total Outstanding Liabilities /
Total Net Worth Ratio
In case of listed companies,
Market Value of Shares
(a) High
(b) Low; and
(c) Closing
Earnings Per Share
Whether the accounts were audited ?
If yes, up to what date; and are there
any audit qualifications
23. Observations on the operations in the account:
Excess over drawing Excess over limit

power
1. No. of occasions on which the balance
exceeded the drawing power / sanctioned
limit [give details]
Reasons for excess drawings, if any

Whether excess drawings were reported to
the Controlling Authority and approved.
Debit Summation Credit Summation

[Rs. In lacs] [Rs. In lacs]
2. Total summation in the account during the
year
Less : Interest
Balance
24. Adverse observations in other Audit reports / Inspection Reports / Concurrent

Auditor' Report / Internal Audit Report / Stock Audit Report / Special Audit Report or
Reserve Bank of India Inspection with regard to:
(i) Documentations;
(ii) Operations;
(iii) Security / Guarantee; and
(iv) Others
25 Branch Manager's overview of the account and its operation.
26. (a) In case the borrower has been identified / classified as Non-performing Asset
during the year, whether any unrealised income including income accrued in the previous
year has been accounted as income, contrary to the Income Recognition Norms.
(b) Whether any action has been initiated towards recovery in respect of accounts
identified / classified as Non-performing Assets.
27. Branch Auditor's comments.
Date: Signature and Seal

of Branch - in - Charge
STATUTORY AUDIT 2014-2015
COMMENTS ON LARGE ADVANCES
Sr. No. NAME OF THE BORROWER :

BRANCH :
[Rs. in lacs]
Asset Facility Limit DP O/S. Irregularity Auditor’s
Classification Fund based/ Observations
Non-fund
based

Lfar 2 Format of Advances Above 2 Crores

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LFAR 2

ANNEXURE TO THE LONG FORM AUDIT REPORT

1 Name of the Borrower

Date of Nature of Limit [Rs. Primary Collateral Margin % Balance Outstanding at

Provision Made : Rs ____________ lacs

16 If on multiple banking basis, names of

17 Has the Branch classified the advance

18 (a) Details of verification of primary

Date verified Nature of Security Value [Rs. In lacs] Valued by

Insured for Rs. ____________ lacs [expiring on ________]

19 (a) Details of verification of collateral

Date verified Nature of Security Value [Rs. In lacs] Valued by

Insured for Rs. ____________ lacs [expiring on ________]

20 Give details of the Guarantee in respect Guaranteed Amount Valid upto

(a) Central Government Guarantee;

Terms and Conditions Compliance

Indicators Audited Year Audited Year Estimates for

23. Observations on the operations in the account:

Excess over drawing Excess over limit

Reasons for excess drawings, if any

Debit Summation Credit Summation

24. Adverse observations in other Audit reports / Inspection Reports / Concurrent

25 Branch Manager's overview of the account and its operation.

27. Branch Auditor's comments.

Date: Signature and Seal

COMMENTS ON LARGE ADVANCES

Sr. No. NAME OF THE BORROWER :

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