Bank legal audit
Guest
(Querist) 04 August 2014
This query is : Resolved
Hi Experts,
My cousin is engaged in an legal auditing of a Bank, while in the course of their engagement they found that some of the documents presented by the Companies for procuring huge amounts of loan were not complied with the banks rules and regulations, such as all the Directors haven't signed the documents, No resolution date, some clauses were missing in the agreement.
So please let me know what is the remedy for the bank to be on safer side, and how should they assist the bank to make it correct.
Thanks & Regards in Advance
Rajendra K Goyal
(Expert) 04 August 2014
The documents should be again executed after proper resolution by company, confirming previous documentation, transactions and mentioning reasons for execution.
Sudhir Kumar, Advocate
(Expert) 05 August 2014
bank can afford legal services.
further you have not even indicated if it is private or govt bank and in which capacity you are auditing.
ajay sethi
(Expert) 05 August 2014
your job is to inform the lacuna in the documents . it is for the bank to take corrective steps .
Guest
(Querist) 05 August 2014
Thankyou for all your response.
Guest
(Expert) 05 August 2014
Mr. Mahesh S Pillay,
Probably, you are trying to be over smart! Can you make me aware of any particulzar section of a particular Act under which the legal audit is prescribed for the companies/ banks to be done by some group of practising advocates and also if the job of audit stands included in the profession of advocates?
The problem does not seem to be yours, as you are only an article (as per your profile), not an auditor or advocate. So, your claim that "we are into Legal Auditing of transaction of a Nationalized bank in the capacity of practicing Advocates," cannot be correct. as articled clerks are not attached with the advocates. Moreover, advocates profession does not relate to auditing of firms or companies.
However, if the problem relates to the audit company with which you are attached as articles, you should have asked the solution from your Principal CA, with whom you are attached.
Still further, if you are auditing in the capacity of practicing Advocates, you should have got cleared your doubts from your feloow advocates, who would not have been lacking knowledge, as you seem to be.
Moreover, you have not stated whether you are auditing on behalf of the company concerned, on whose directors' part you have noticed the irregularities, or on behalf of the bank.
So, in all, your problem seems to be totally a fabricated academic problem and also that you are misrepresenting your self as the part of practising advocates just to get your classroom academic query solved through experts of this site.
K.K.Ganguly
(Expert) 05 August 2014
1. You detail the discrepencies you found in the loan documents,
2. Your job is to conduct legal audit by scrutinising the loan documents. Bank did not ask for any advice from you in this regard. If Bank has asked you advice them regarding loan, give them your advice seperately but detail your findings clearly in your instant legal audit.
Sudhir Kumar, Advocate
(Expert) 05 August 2014
I am to fully support every word expressed by Mrt Dhingra as expressed above.
Sudhir Kumar, Advocate
(Expert) 05 August 2014
irrespective of above. whatever be your capacity to audit and whatever you may be presenting it as. If you have noticed any irregularity in nay Govt institution in whatever capacity you are free to report it to CVC. Either by open complaint or by whistle blower procedure.
Guest
(Expert) 06 August 2014
Mr. Mahesh S. Pillay,
You really proved to be very smart by amending your original query to alter its shape by editing your particulars by replacing with "my cousin," and deleting the whole of your subsequent query of yesterday that contained your introduction, "we are into Legal Auditing of transaction of a Nationalized bank in the capacity of practicing Advocates," as a part of that text and replaced by the words, "Thankyou for all your response."
If you really want any help from the experts, you must be honest towards them and could well have retained the originals of your posts and made clarification, like you tried to clarify your position through your message in my PM. Cheating can't pay always.
T. Kalaiselvan, Advocate
(Expert) 07 August 2014
I fully support expert Mr. Dhingra's views on the subject query. The author whose account stands deleted should know that this is not a class room to post academic queries in the manner he wishes to.
RAJU O.F.,
(Expert) 10 August 2014
Obtain renewal loan documents rectifying all the defects of previous documentation. Presume you were called for vetting of loan documents after granting of loan.
