Thank you Hareesh Sir. Your guidance and support have been tremendous for the fellow members. You have been updating us everytime you got any news about SBA.

I hope that RBI and ICAI look into the problem areas of SBA allottment.

Every eligible CAfirm should get atleast one branch and they should be informed about the branch allotted at most by 15th March.

This will ensure equitable distribution of work amd improvement in the quality of audit.

Thanks to CA Hareesh and CA SSG for active participation and thanks to all other members for sharing the information.  Still we have enough time to discuss about how to  conduct the audit effectively till the allotment is communicated. But there is an urgent need for effective conduct of bankaudit to have it in future and equal distributuion is also very important to do justice to all the members.

Regards

Please find attached a presentation on LFAR by CA. Ajay Jain ji discussed recently in a seminar. I hope that it will be useful for the members. 

The cases of frauds have increased this time. So the SBAs have to do the work with more care and diligence. Thats why there is need to bring more no. of branches under the statutory audit.

HAD CONTACTED CORPORATE OFFICE OF A NATIONALISED BANK.I AM INFORMED THAT ALLOTMENT WILL START FROM NEXT WEEK SINCE FINAL LIST NOT RCEIVED FROM RBI

The delay in RBI approval is said to be the reconsideration of Advance limit by RBI.  Due to exposure of fraude to the tune of 11000 crores in the past 9 months, has fixed responsibility on RBI to reconsider the Statutory audit norms.  From a reliable source I came to know that a nationalised bank has been asked to send the list of branches with below 20 crores advances.  If it is correct all the banks should have been asked to send the list.  The RBI Governer is in favour of audit of more branches.  So, those CAs not received any allotment till today may have slim hope.

RBI is very strict on removal of continuing auditors.  No bank can remove the contituing auditor at its will.  

Thanks, Sathianarayanan ji for the updated info.

If RBI is seriously considering to lower the limit of advances for SBA, then its a great news. The no. of frauds cases and NPAs are a concern of worry for the whole economy. On one side, the Govt. is planning to boost the SMEs and the Industrial sector, on the other side, we should also consider that people are not taking mis-advantages of this. The black sheeps should not be saved and the people with right talent and calibre should be supported with bank finance and other facilities. 

Dear Sathianarayanan ji,   is there any hope for considering to reduce the limit of advances for SBA, in current year ? Is RBI thinking the matter this year ?

As I stated in my previous post, one PSB has been asked RBI to give dedails of unaudited branches which means below 20 crores advances and have been told that is the reason for delay in approval.  If number of branches to be audited increases, naturally after alloting maximum 3 branches to each auditor, the bank has to look for new auditor.  So that I have mentioned there is a slim chances of getting audit.  But in casansar, it has been stated that for want of finalisation of the CSA of PSBs the approval is pending.  I don't know which one is correct.

BANK AUDITS HAVE  BEEN TIME BOUND     WITH STRICT DEADLINES 

SO IT WOULD BE UNREASONABLE TO EXPECT  ANY COMPROMISE ON TIME / DEAD LINES    

IN 2011-12  WHEN THE LIMIT WAS INCREASED  TO 20 CRORES   THERE WAS DELAY,  BUT AUDITS COMMENCED  AS USUAL  

Banks are ready with the list of Branches and allocation amongst the  SBAs 

They are waiting for RBI nod  to the provisional panel of SBAs  submitted by them  . Once it is through they will shoot mails  to SBAs . It can happen even  late in the evening  , banks are optimistic 

Banks are making enquiries  with  RBI  on this  often  

RBI  website  will  be up dated  later only . It will not  precede  the allottment  , never  simultaneous with the approval  nod .   

CA Sansar post  is  seemingly   indirect  / reporting whatsup  msgs  received