Pre Release Audit_format

7/24/2019 Pre Release Audit_format

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Pre- Release Audit Report

Branch: Circle:

Date of Pre-release Audit: Date of report:

1. Name of Branch Manager

2. Name of Borrower

. Details of e!isting facilities with present "alance #as on date of Audit$ Nil #%s. &n la'hs$

Facility Limit D/L Balance Excess Overdue Since

(und Based

Non (und Based

Date of Fresh Sanction/Renewal/enhancement

Sanction ticket No. Date: Sanctioned by:

Details of facilities Sanctioned

Nature of facility Limit Margin Interest/Commission eriod of sanction

Instructions:

1. Please put a tick mark ( ) in the appropriate columns.

2.Wherever reuired! comments should be "urnished. #" the comments bo$ is insu""icient!

separate numbered comment sheets should be attached.

%.When separate comment sheets are attached! the number o" the comment sheet should be

&ritten in the appropriate comments bo$.

articulars !es No N"

1. Documentation

1. Correctness of Documentation

1.1 Application o"tained 'ept along with the documents

Comments:

1.2 Assets and )ia"ilities and credit reports of the "orrower and guarantorso"tained are in order

Comments:


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1. *here the "orrowers+ ,ignators declared net worth e!ceed %s. /0 )a'hs thefollowing documents are o"tained

1..1 Certificate from chartered Accountant

1..2 Photo cop of title deeds in case of immoa"le properties

1.. A Declaration that an disposal of properties will "e intimated to "an'

1..3 A Declaration that additional lia"ilit assumed will "e intimated to the "an'

Comments#

1.3 Cop of sanction tic'et is signed " the Borrower agreeing to the terms andconditions of sanction

Comments#

1./ Details of legal heirs of Borrower+guarantor #Name.Age.relationship Address

etc.$ are o"tained and noted in records. #%ef: 45:o6M circular Ad. 17/+87-89 dated19.0.89 dated 19.0.89 - M2:,7

Comments#

1.7 Documents o"tained are as prescri"ed +specified in the documentation manual+sanction tic'et and in complete set

Comments#

1.9 Documents selected are appropriate to the legal status of the "orrower tpe of

the credit facilit nature of securit

Comments#

1. ,;%uired alue of adhesie stamps "efore e!ecutionas per local stamp Act and cancelled " the Branch Manager+appropriate authorit

Comments:

2.2 *here non-?udicial stamp paper is used each stamp paper used has a portion ofthe instrument written or tped on it.

Comments#


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. ;!ecution

.1 Documents are signed +e!ecuted " the e!ecutants in the presence of 2officers ofthe "an' to aoid difficult in identification

Comments#

.2 @he fact of haing so e!ecuted is recorded in the document ;!ecution %egisterwith full particulars

. @he documents contain full particulars and addresses of all the e!ecutants

Comments#

.3 All the pages and schedules of the documents are signed in full in the same stle

Comments#

./ All the "lan's and schedules aware filled in "efore e!ecution of documents andthe date and place of e!ecution are recorded in the documents

Comments#

.7;eradditionalteration insertion cutting oerwritting erasing interliningdeletion etc. is authenticated " the e!ecutants under their full signatures

Comments#

.9 @he documents all dul witnessed+attested whereer re>uired

#Note: Documents li'e Cash credit agreements )etters of continuit =uarantee andmemorandum of deposit of title deeds for creation of e>uita"le mortgage should not"e attested+witnessed$

Comments#


. &n case of firms. Association trust compan etc.the signatures are o"tained intheir official capacit

Comments#

3. Constitution of the "orrower

3.1 ,5);-P%5P%&;@A% C5NC;%,

3.1.1 @he Declaration in form (-2 is o"tained

3.1.2 Documents are signed " the proprietor on "ehalf of the concern

Comments#

3.2 PA%@N;%,4&P (&%M,

3.2.1 @rue cop of the partnership deed is dul erified attested and held

3.2.2 Partnership letter D-/ is signed " all the partners in indiidual capacit onl

3.2. Cop of the certificate of registration issued " the %egistrar of firm is o"tained

3.2.3 )etter of Pegging (-9 is signed " the partner+s and countersigned " the firm

3.2./ ,ignature of all partners in their indiidual capacit is o"tained in all documents

3.2.7 *hereer mortgage of the moa"le+immoa"le propert of the firm is madeletter of authorit is signed " all the partners authoriing the e!ecutants to create

such charge is o"tainedComments#

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'%( LIMI)ED COM"NIES

3..1 Certified cop of Memorandum and Articles of Association is o"tained

3..2 Certified cop of the certificate of incorporation and certificate of commencementof "usiness #in respect of pu"lic limited compan$ are o"tained

3.. A dul certified cop of the resolution passed " the shareholders in a generalmeeting specifing the amount up to which the Board of Directors is authoried to"orrow and empowering it to create securit on the whole or su"stantiall the whole ofthe compan is o"tained

3..3 A certified cop of the resolution passed " the compans Board of Directorsdeclared that the compans "orrowings are within the statutor limit or the outindicated in the resolution passed " the shareholders acceptance of terms andconditions against which credit facilities were sanctioned and authoriing the directors" name to e!ecute such documents and deeds as ma "e necessar andappropriate is o"tained

Comments#

3../ Cop of the Board resolution dul erified " the Chairman of the meeting andcountersigned " the secretar of the compan in (orm (-3/ is o"tained authoriing

the3../.1 Borrowings

3../.2 ;!ecution of Personal guarantee " Directors

3../. %enewal of limits

3../.3 Ac'nowledgement of De"ts

Comments#

3..7 Common ,eal is affi!ed on all documents as en?oed and in the mannerprescri"ed in the Articles of Association of the compan dul witnessed " the

authoried officials of the compan is a is the Board resolution of the compan#%efer to Para 13./ page 3.10 of the Documentation Manual$

3..9 All other documents are e!ecuted " a person+persons authoried " the Boardresolution or " a power of attorne e!ecuted " the compan

3.. Attested cop of the document creating charge oer the assets of the Companso filed along with (orm and (orm 1 with the %egistrar of companies within 0das of creation of charge

3..8 @he ac'nowledgement issued " the %egistrar of Companies to the a"oe effectis o"tained and filed with the documents

Comments#

3..10 An e!tract of the search made from the %egistrar of Mortgaged and chargesmaintained at the office of the registrar of companies is held at the "ranch in form (-12 dul signed " the officer who made the search and countersigned " theManager or " Chartered Accountant+ Practicing Compan secretar as per 45=uidelines

3..10.1 Before pre-release audit #mention date of search$

3..10.2 the search reealed that there are no encum"rances which hae not "eendisclosed to the "an' at the time of proposal and which are against the interest of theBan'

Comments#

3..11 *hereer Negatie )ien is to "e e!ercised as per sanction terms cop of theBoard resolution in form (-37 is o"tained

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3..12 )etter of Pegging: (orm (-9 from directors countersigned " the compan iso"tained #in case of priate limited companies$

3..1 Modification of charge if an is filed in (orm along with (orm 1 in 0das

Comments#

'%' *IND+ +NDI,IDED F"MILIES

3.3.1 @he Eoint 4indu (amil letter D-7 dul signed " the Farta adult co-parcenersand guardians of minors on "ehalf of the minors are o"tained

3.3.2 A fresh Eoint 4indu (amil letter wheneer an minor attains ma?orit is o"tained

3.3. All the documents are e!ecuted " the Farta and all ma?or co-parceners

Comments#

'%- CL+BS. "SSOCI")ION. COMMI))EES. E)C%

3./.1 Copies of the "e-laws of the "od with su"se>uent amendments if an areo"tained

3./.2 @he registration certificate is o"tained

3./. Cop of the resolution of the "od authoriing the "orrowing is o"tained

3./.3 Documents for "orrowings are e!ecuted " persons authoried to do so " theresolution of the "od and in conformit with the constitution+ "e laws

Comments#

'% SOCIE)IES 01egistered under t2e societies 1egistration "ct and Co3o&erative "ct

3.7.1 Certified true copies of the rules and Be laws are o"tained #dul certified "authoried persons as true update and correct$

3.7.2 Cop of the resolution (-3 authoriing the Managing Committee+Board ofDirectors to e!ecute documents for "orrowing is o"tained

3.7. D-/9 from respecta"le creditworth person or persons connected with the societ

is o"tained guaranteeing the adance to societ whereer the societ is not aregistered "od

Comments#

'%4 )1+S)S

3.9.1 Certified true cop of the rules and "e laws are o"tained

3.9.2 )egal opinion from approed lawer on deeds documents of the @rust iso"tained

3.9. Prior sanction from 45+Circle 5ffice is o"tained

3.9.3 %esolution in (-3 authoriing the Managing @rustee + Board of @rusted toe!ecute the documents for "orrowing is o"tained

Comments#

-% Ot2er "s&ects

/.1 ;ntr in ;M+C&, Adance +Documents ;!ecution+ ,ecurities+&nsurance register ismade

/.1.1 C&, Adance %egister

/.1.2 Documents ;!ecution %egister

/.1. ,ecurities %egister

/.1.3 &nsurance %egister

Comments#

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/.2 Ade>uate insurance coer with Ban' clause is ta'en and the policies are in force as under

,.No

Detailsof,ecurit

uiries as to the correctnessof the aluation report gien " the approed aluer and made a record of thesame

Comments#

/. Ac'nowledgement of de"t in D-11 is o"tained from "orrower and guarantorin the case of e!isting limits

Comments#

/.3 Declaration regarding

/.3.1 %elaties wor'ing in the "an' is o"tained #(-192$

/.3.2 )ia"ilit with other "an'#s$ is o"tained

/.3. Consent letter in (-173 #from "orrower$ and (-173A #from guarantor$is+are o"tained

Comments#

/./ N5C+No Due certificate from other "an's+(is whereer applica"le iso"tained

Comments#

/.7 &n case of consortium

/.7.1 )etter ceding pari passu charge is o"tained

/.7.2 &nter se agreement is e!ecuted

/.7. Copies of the ?oint documentation if we are a mem"er or original of ?ointdocumentation if we are leader are held

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/.7.3 ,pecific sanction for indiidual documents in case a li'el dela for ?ointdocumentation is o"tained

/.7./ Copies of the title deeds for the immoa"le properties #;M$ are held ifwe are a mem"er

/.7.7 Copies of the legal opinion+ engineers aluation are held if we are amem"er

Comments#

/.9 &ncase of @ie up adances with financial &nstitutions+"an's #&ncludingmultiple "an'ing arrangements$

/.9.1 )etter of consent for creation of parr passu +second charge is o"tained

/.9.2 Parri passu+second charge is created for immoa"le propert #;M$

/.9. Parri passu +,econd charge is created for moa"le propert

/.9.3 Copies of the title deeds for the immoa"le properties #;M$ are held

/.9./ Copies of the legal opinion+;ngineers aluation are held

Comments#

II Security 3 rimary / Collateral

7.1 Appropriate documentation has "een done as per documentation manual

" wa of pledge + hpothecation + mortgage depending upon the nature +tpe of securit offered

Comments#

7.2 &n respect of ;M of propert

7.2.1 ;M is created " appropriate person as per sanctioned terms at anotified place

7.2.2 #a$ Gn>ualified opinion from panel adocate for creation of anenforcea"le ;M is o"tained

#"$ @he adocate has certified that the title deeds relating to the propertconcerned were original and not duplicate or fa'e

7.2. Deposit of original title deeds as per legal opinion is made

7.2.3 *here copies of documents are deposited whether prior permission iso"tained from competent authorit

%$%- Encum5rance Certificate

7.2./.1 Branch Manager+ an other "ranch official applied for and o"tained the;C

7.2./.2 &f not a per 7.2./.1 the "ranch official+ adocate made independenten>uir from the office of the ,u"- registrar concerned to ensure itscorrectness

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7.2.7 Cop of ;M register is filed along with documents

7.2.9 D-2+D-+ D-A+ D-3 + D-3 A+ D3-B as the case ma "econfirming creation of mortgage on a da su"se>uent to creation of mortgageis +are o"tained

7.2. &nspection of the propert " Branch Manager "efore sanctioning of thefacilit and periodical inspection thereafter is carried out and recorded in thePropert &nspection %egister

7.2.8 ,ure num"ers municipal num"er e!tent of land "uilding as stipulatedin the sanction tic'et tallies with that of legal opinion and engineers aluation

7.2.10 Gp to date reenue + corporation + municipal ta! receipts are o"tained

Comments#

7. @he schedule of properties etc. is properl filled in the agreements at theappropriate places.

Comments#

7.3 Notification regarding sanction of facilities is made to ;C=C in (orm 45,30 #in duplicate$ under cop to sanctioning authorit and a cop of thenotification returned with ac'nowledgement is 'ept along with the documents

Comments#

7./ (or adances to e!porters classified as su" standard assets if the @otalamount e!ceeds the discretionar limit of %s.100 la'hs and for all accountsclassified as dou"tful and loss assets "ranch applied to ;C=C in form 45,31 and corporations approal is o"tained

Comments#

7.7 ;C=Cs approal is o"tained for continuation of the adance wheneerthere is slippage in asset classification as per &%AC norms

Comments#

4%Details of Documents

Nature of (acilit)imit,anctioned

Details of documentso"tained Date of documents

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Comments#


. All other documents + underta'ing+ authoriation letters specificallstipulated in the sanction letter are o"tained

Comments#

8. All other loan paper #documents$ are in orderComments#

10. Pre sanction isit made

10.1 &f es date

10.2 Name of the officer who made pre sanction isit:

Comments#

11. &rregularities reported in the last &nspection + Concurrent Audit+ ,tatutorAudit+ %B& &nspection %eport are rectified

Comments#

he ollo&in' terms and conditions have not been complied &ith due to reasons stated there

a'ainst:

S% No Details of Condition 1easons of Non Com&liance

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'ame of the Inspector Si(nature of Inspector

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