C A R M-14

Guidelines for conducting Unit Inspections & reporting

Unit Inspection / Physical verification of assets created out of Banks
funds.
Type of
Loan/Advance

New
loans
sanctio
ned /
disbur
sed
during
the
curren
t
financi
al
year. $

Loans
sanctioned /
disbursed in the
previous financial
years.

1a)
All
Borrowal
Accounts with limits
less than Rs.10.00 lacs
1b)
All
Borrowal
Accounts with limits
above Rs.10.00 lacs
(other
than
those
exempted)
where
assets (Fixed and/or
Floating) are created
out of Banks funds
All Cash Credit Accounts @
2) Limit of Rs. 5.00 lacs
and above
All Credit Facilities other than Cash Credit Rs.
1.00 lakh and above
3a) Housing loans.
3b)
Agricultural/SSI/RT/BE/
P&SE Accounts of more
than Rs. 5 lacs.
3c) All loans against
security of vehicles
(whether under priority
sector or not).
3d) All other Loans &
Advances including,
SOD against Real
Estate, SOD against
Book Debts etc

$ - For all newly disbursed loans Auditors will have to ensure that asset is
created / being created out of the Bank Funds on a continuous basis till
setting up of the Unit /completion of the project.

@ - In respect of accounts under consortium and Multiple Banking, if any

other members of consortium / Multiple Banking has conducted stock audit /
stock & receivable audit for the quarter / financial year, then such accounts
shall be exempted. However, a copy of the report shall be obtained from the
concerned member bank for review. and the report is satisfactory.
Exemptions from the purview of Unit Inspections:
-

All Deposit Loans, Loans against Shares & Securities, Gold Loans, Clean
Loans, Loans against Consumer Goods, Educational Loans and Crop
Loans
All suit filed Accounts.
All doubtful and loss advances.
All loans and advances sanctioned to Staff members.

Unit Inspection Report

Date of Inspection

: 08.12.2014

Name of the Borrowing Unit: Jai Guru Sai Suguna Engineering Works
Line of Activity
Implements

:Manufacturing of Tractor and Agricultural

Sanctioning Authority

: Zonal Office, Visakhapatnam

Sanction Reference with date:690/16/ZLCC(B)/448/50 Dated:13.09.2014

Date of Documents
Date:12.09.2015

18.093.2014

Asset Classification
Rating:A+

Standard

Due
Credit

(Rs. in
lacs)
Facility
OCC

Limit

Liability as on

Drawing Power

Deficit/Overdue

30

30.12

30

0.12

Total
Details of Collateral Security :

Primary Security
description
Hypothecation of
raw Materials,
stores/spares,
Work in
progress,
Finished goods
and receivables

Whether proper mortgage is created:

Address& Location of Unit/godown inspected:
1
2
3

4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Whether all necessary documents including rent letter /

lease agreement / letter of access have been obtained
Whether legal audit has been conducted
a) Whether sanction terms & conditions are
communicated
to
the
borrower
and
acknowledgement obtained
b) Whether all the sanction terms & conditions are
complied with
c)
If, no, steps taken by the branch to be furnished
d) Whether compliance certificate submitted to ZO
Date of certificate of registration of charges held on record
If not, date of filing of charge and receipt number of
Registrar of Companies
Whether Units Name Board and Banks Name Board
are displayed
Whether proper stock, purchase, sales registers are
maintained and the same have been verified
Whether stocks reported in stock statement are in
agreement with stock register
Whether physical stocks available as per stock register
Whether stocks are valued at purchase /cost/market
price which ever is lower and there is movement of stocks
regularly and any old / obsolete stocks are there
Whether paid stocks are supported by bills/invoices
Random verification of bills / invoices to be done
Value of obsolete/non-moving/unpaid stocks observed, if
any
Comment on level of production / activity in the unit
Whether primary / collateral securities are insured for full
value to avoid average clause and the same is in force
Whether stock statements are obtained regularly,
DP
arrived as per sanction and updated in the system
If yes, whether DP is sufficient to cover the liability
Whether MSOD/QIS are obtained and reviewed and
submitted to Zonal Office
Whether penal interest collected for delayed / non
submission of MSOD / QIS
Statement of monthly Sundry creditors / debtors and
quarterly Statements certified by auditors are obtained
Any other observations of the Auditor

Signature of the Auditor

Date:
Deficiencies observed

Branch compliance

In case unit is closed, please ascertain reasons for closure