AUDITING

FINAL PROJECTFIRST DRAFT

TO:MR. IRFAN MEHMOOD

FROM: M. MOBASHAR ALI 08117032

ASIF MEHMOOD 08117033IMRAN KHAN 08117043SALMAN-UL-MUSTAFA 08117044

GIFT University MBA (Banking & Finance)Section A

OVERVIEW OF NBP

•NBP has authorized capital 1,000,000,000 shares of Rs. 10 each.•The Federal Government and SBP held about 75.60% shares of the bank as at 31.12.2008.•NBP maintain its position as Pakistan’s premier bank.•It specially emphasis on fostering Pakistan’s economic growth through

• Aggressive• Balanced lending policies

•NBP also handles treasury transactions for the Government of Pakistan as an agent of the SBP.•Currently, NBP has 1250 branches with 29 regional offices.

COMPLIANCE OF STAEMENTS

•International Financial Reporting Standards (IFRS)•Islamic Financial Accounting Standards (IFAS)•Requirement of Companies Ordinance 1984•Banking Companies Ordinance 1962•As per the notice of SECP IFRS- 7 “Financial instruments Disclosure” has been made applicable.•And according to the circulars of the SBP.

Excellence in Direction

To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibilities.

Excellence in Value

NBP will aspire to the values that make NBP truly the Nation’s Bank, by:Institutionalizing a merit and performance culture.•Creating a distinctive brand identity by providing the highest standards of services•Adopting the best international management practices

•Maximizing stakeholder’s value•Discharging our responsibility as a good corporate citizen of Pakistan and in countries where we operate

Excellence in Ambition

•Highest standards of integrity•Institutionalizing a team network and performance culture•Excellence in service•Advancements of skills for tomorrow’s challenges•Awareness of social and community responsibility•Value creation for all stakeholders

Excellence in Growth

To enhance profitability and maximization of NBP share through increasing leverage of existing customer base and diversified range of products

Sixty Years of Excellence

NBP was awarded in 2008:•Bank of the Year (2008)•World’s best Foreign Exchange Bank (2008)

COMPETITORS OF NBP

Public Sector• First Women Bank Limited FWB

• The bank of Khyber KB

• The Bank of Punjab BOP

COMPETITORS OF NBP (Cont.)Private Sector

• My Bank Limited • Allied Bank Limited

• Bank Al-Falah Limited • Atlas Bank

• Bank Al Habib Limited • Habib Bank Limited

• Askari Bank • Saudi Pak Bank Limited

• Faysal Bank Limited

• Metropolitan Bank Limited• Muslim Commercial Bank Limited

ORGANIZATIONAL HIERARCHY CHART

StructurePRESIDENT

BOARD OF DIRECTOR

MEMBER EXECUTIVE BOARD

REGIONAL CHIEF

ZONAL CHIEF

BRANCH MANAGER

ORGANIZTIONAL HIRARCHY CHART

HEAD OFFICECEO

DEPARTMENTS

Corporate Banking De

Foreign Trade

Accounts

Finance

IT

Audit & Inspection

Agriculture

Credit Sanction

Credit Administration

Human Resource

Operations

Investment & Treasury

Internal Div & FTPC

Administration

SERVICES OFFERED OF NBP

Monthly Income Scheme•Amount of investment required from Rs. 20,000/- to Rs. 5,000,000 •Investment period is 5 years •Free Demand Draft, Pay Order and NBP Online Aasan Banking• Free Cheque Book / NBP Cash Card (ATM + Debit) •Profit paid every month as follows:

•Financing facility available up to 90% of the deposit value•Premature encashment will attract penalties•Zakat and withholding tax will be deducted as per rules

PERIOD PROFIT RATES

1ST year 7.50 %

2nd year 8.50 %

3rd year 9.50 %

4th year 10.50 %

5th year 11 %

SERVICES OFFERED OF NBP

PLS Saving Account•Minimum saving balance of Rs. 20,001 and a maximum balance of Rs. 300,000 •Free NBP Cash Card (ATM + Debit) •Two debit withdrawals allowed in a month and no limit on number of deposit transactions •Profit calculated monthly and paid on half yearly basis

SERVICES OFFERED OF NBPAnother step towards your prosperity

President's Rozgar Scheme,

if you are aged between 18 and 45years, you could be eligible for easy

financing for self employment in the categories below:

NBP Karobar Utility Store NBP Karobar Mobile Utility Store

NBP Karobar Mobile General Store NBP Karobar Transport

NBP Karobar PCO NBP Karobar Tele-Centre

SERVICES OFFERED OF NBP

Product Items Home Purchase Home Construction Home Renovation Purchase of Land + Construction Balance Transfer Facility (BTF) Home Purchase (House or Apartment) * Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (Maximum) Home Construction * Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (Maximum) Home Construction * - Product Detail Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 85:15 (Maximum) Home Renovation * Financing Amount Upto 15 Million Financing Period 3 to 15 Years Debt to Equity 80:20 (Maximum) Purchase of Land and for Construction thereon * Financing Amount Upto 35 Million Financing Period 3 to 20 Years Debt to Equity 80:20 (Maximum) Re-Financing (Balance Transfer Facility (BTF)) * If you have a Home Finance Facility outstanding with another bank you can have it transferred to NBP through a hassle-free process.

SERVICES OFFERED OF NBP

Take upto 20 advance salaries(currently for NBP account holders of govt. or related organization

employees).

National Bank of Pakistan (NBP)NBP Advance Salary , the leading personal loan product of the country, is maintaining its inimitability ever since it was launched. This was only possible due to its swift growth and remarkable loan disbursement of over 138 billion. You can avail up to 20 net take home salaries with easy repayment installments. Its hassle free acquisition with no prior formalities and easy availability in a short turn around time are attributed as the most distinguishing features of the product. The product is offered countrywide

SERVICES OFFERED OF NBPShop to your heart's desire!

NBP CashCard is an 24-hour direct access ATM/Debit card to your bank account, which lets you pay directly from your account as an alternative payment method to cash. The transaction is authorized and processed by entering PIN. The NBP CashCard holders are able to transact at any of the 4000 + Merchants where Orix logo is displayed and can withdraw cash from NBP, 1-Link & M-NET ATM’s across the country.

Advantages• You won't need to carry a lot of cash with you every time you

go out.• Secure and Safe transaction.• Account Information on tips (like: Mini Statement, Balance

Inquiry, Utility Bill Payment etc.)• Enable To Withdraw Cash From 1-Link ATMs / MNET ATMs. • Enable To Make Purchases From Around 4000 POS

(Merchants) Countrywide including 2500+ POS in Karachi.• No Card Issuance Fee for first 12 Months

SERVICES OFFERED OF NBP

• Product Information Financing Amount: Rs.50,000/ - To Rs.10,000,000/- Equity Requirement: In the Form of Cash or Shares or Both (Currently Minimum Rs. 215,000/- @ 30%) Shares: As per NBP Approved List Available. Shares In Physical Form Not Acceptable. Trading: Allowed Only Through Trading Centers Created by NBP and Operated by Taurus Securities Limited (A Subsidiary of NBP)

Pricing Fixed Price At The Time of Facility Sanction, Currently 6 Month Kibor + 3% (Per Annum)

Other Charges On Time Application Processing Fee of 0.5% of the loan amount or Rs.5,000/- (Whichever is lower)• Brokerage Charges/ Fees/ Taxes/ etc. Charged At Actual On Brokerage Invoices• Documentation Fee Would Be Charged On Actual

Requirements Photograph of Applicant • NBP Account - Current or PLS • Marginal Financing Application Form • Copy of CNIC• Copy of CNIC of Two (2) References• Borrower Basic Fact Sheet• Duly Filled In Statement of Assets & Liabilities• List of Shares, Given as Margin (Optional)

Financing Facility for Retail Investors

SERVICES OFFERED OF NBPGet extra benefit from your gold

• With NBP's Cash n Gold, you can meet your need for ready cash against your idle gold jewelry.

• Rate of mark-up 13% p.a. Facility of Rs. 10,000 against each 10 gms of net contents of gold No maximum limits of cash Repayment after one year Roll over facility Only gold ornaments acceptable Weight and quality of gold to be determined by NBP's appointed schroffs No penalty for early repayment

Meet your need for ready cash against your idle gold jewelry with no

minimum limits

SERVICES OFFERED OF NBP

SERVICES OFFERED OF NBPNBP KISAN DOST

SERVICES OFFERED OF NBP

Pakremit is an internet based Home Remittance Service. This service is available to U.S. residents for sending money to their family and friends in Pakistan. One must have a valid US Dollar account with a U.S. bank or a US Dollar credit or debit card in order to remit funds through this channel.Remitters in USA can log on to our user friendly website, www.pakremit.com and easily remit funds to Pakistan from the comfort of their homes, in a matter of minutes.The service is fully secure with advance encryption application and is available for use 24 hours a day, 7 days a week. Fees and exchange rate have been set at competitive levels and the remitters have the ability to track delivery of funds as well.

SERVICES OFFERED OF NBP

Insurance Coverage In case of Accidental Death (Including death due to *Riots, *Strikes, *Civil commotion, *Acts of Terrorism and Natural Calamities like Flood, Earth Quake, Cyclones etc).

Coverage of Rs. 200,000/- for Rs. 20/- per month

Definitions: *provided the insured is not directly involved in these activities "Accident” means unintentional, unfortunate or a harmful event by chance or apparent cause.“Accidental Death” means death due to accidental injuries, but not illness.“Insured Person” means a National Bank of Pakistan PLS account holder, aged between 18 years and above, and whose premium is deducted & details are reported to the selected insurance company by NBP.“Policy” means Group Personal Accident Policy dated 26/09/05 executed between NBP and Insurer.“Principal Sum” means the amount stated in the Policy’s Schedule of Benefits as respects each Insured Person.