Business Audit Report of ---Branch Name--

Review Period From ---- to-----

Scope Covered During Review
Customer Acquisition - Loan Underwriting -
Department - Sales ü Department - Credit ü

Customer Retention and Loan

Closure ü Collection ü

Customer and Vendor

Branch Administration ü Visit ü

Branch Score and Rating

Branch Score for Current Audit 70% Branch Score for Previous Audit
Branch Rating for Current Audit Good Branch Rating for Previous Audit
Branch Portfolio Summery
No of Loan disbursed during review Period PAR(30+ dpd) as on--- (number of loan account)
Amount disbursed during review Period PAR(30+ dpd) as on ---(Amount of loan account)
Total No. Of Loan Outstanding as on ------- Total Amount Of Loan Outstanding as on -------
Key observations and process gaps :-

Function Wise Score in current audit v/s previous audit

100%
80%
60%
40%
20%
0%
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S re ati os cti ati ati Vi S co
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Current Audit Score Previous Audit Score

Report discussed with

Branch remarks provided by
Audited By
Audit Date
Report Reviewed By
s Audit Report of ---Branch Name--
Report Date
uring Review
Disbursal of Loan - Department -
Operation ü

Central Operation ü

Any scope not covered, reason for same to be mention

here.
nd Rating
nch Score for Previous Audit
nch Rating for Previous Audit
o Summery
(30+ dpd) as on--- (number of loan account)
(30+ dpd) as on ---(Amount of loan account)
al Amount Of Loan Outstanding as on -------

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evious Audit Score

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 Dummy entry for checking purpose
BRANCH SCORING
BRANCH RATING MODEL Branch Functi
MODEL

Rating Score Rating Score Function

Customer Acquisition -
EXCELLENT >90 High 3 Department - Sales
>=80% OR Loan Underwriting - Department -
VERY GOOD Medium 2
<=90% Credit
>=70 OR Disbursal of Loan - Department -
GOOD Low 1
<80% Operation
>=60 OR Customer Retention and Loan
SATISFACTORY N.A. 0
<70% Repeat Closure
POOR <60% -1 Collection
Error
Central Operation
Branch Administration
Customer and Vendor Visit
Overall Branch Score
 Branch Function and overall score snapshot
Current Audit Previous Audit Previous Audit
Current Audit Score
Rating Score Rating

80% Good 70%

62% Satisfactory 65%

51% Poor 50%

90% Excellent 92%
81% Very Good 81%
75% Good 71%
54% Good 75%
68% Satisfactory 65%
70% Good 71%
 Function Wise Checklist and Sc
Proces
Control Description
s
Customer sourcing done as per target segment
Geo-Limit as per policy(Maximum radius that can be covered from the branch is 40 KM and
up to 50 KM in NCR/ Mumbai)
Customer Acquisition -
Department - Sales

Mandatory Document Collection - 1. Application form, 2. Financial/ITR as applicable, 3. CF

cheque of 3500, 4. KYC, 5. Bank statement of latest 3 months, 6. Property title document

Documents signed by customer and OSV done by sales officer

Application form Completeness & Correctness
KYC as per policy
Presence of FVR
Data filled in FVR complete and is correct
Age Criteria for Borrower, co-borrower and Guarantor met as per policy
Clubbing of Income as per group definition (Income from Cash salary cannot be clubbed
with business income to arrive at higher eligibility)
Income assessment done by credit manager as per policy
End use of loan as per policy
Accuracy of Maximum Eligibility calculation(Income and obligation as per policy)
INCOME TO OBLIGATION RATIO calculation as per segment
Business stability as per segment (Minimum 3 years)
Residence/Office stability as per segment (Minimum 3 years)
Loan Underwriting - Department - Credit

Minimum Bureau Score as segment and policy

Banking collected and attached in file
Financial Strength as per segment
Social Score as per segment
Psychometric Test done and proof attached
Maximum Loan Amount as per segment and policy
Maximum Tenure as per segment and policy
Repayment track record as per segment requirement
Financial (audited/ITR) of 2 years recorded as per segment requirement
Turnover as per ITR / Audited financials as per policy for segment 3 & 4
Loan Amount eligibility calculated as per policy for segment 3 & 4
Net worth as per policy for tatkal scheme
LOAN TO VALUE as per policy defined greed
Collateral as per policy (Should not fall in negative collateral list)
Risk categorization as per policy
KYC accepted as per policy
Customer profile does not fall in negative list
RCU sampling/screening of all documents and stamp affixed. RCU report as per defined
format for sampled document
All deviation approved as per deviation matrix
Deal approval as per approval matrix

Completeness and correctness of system data entry, application form and KYC documents
 Completeness and correctness of Loan Agreement
Completeness and correctness of DPN
Collection of SPDC and NACH/ECS form as per policy
Completeness and correctness of Sanction condition
Original property paper of collateral as per legal requirement available
Vetting report from legal vendor available for all legal require documents
Disbursal of Loan

Self declaration required as per policy available or not

All affidavit are properly notarised
Sanction letter is issued with all the relevant terms and conditions and customer
acknowledgement is obtained on the same and documented
Disbursal Memo available and Calculation of PF, PEMI, Insurance Charge, disbursal amount,
loan booking GL are correct
No extra or short disbursal to customer
Loan disbursed/cheque prepared as per DRF
All OTC documents collected before disbursal cheque handover
whether PDDs are approved and approval documented
Cheque disbursement register/record maintained and acknowledge of all cheque handed
over to customers are documented
CERSAI Charge created/Modified and charges collected
Customer’s request for Part payment/Preclosure/Foreclosure is obtained in writing.
Customer Retention and Loan Closure

Retention effort done and documented/evidence available

Approval for Part payment/Preclosure/Foreclosure is taken and foreclosure letter issued to
customer as per policy and format
Interest calculation done correctly while issuing foreclosure letter and closing of loan
accounts
Foreclosure charges collected and accounted correctly
Issuance of NOC
Securities are returned to customer and their acknowledgement is taken
Authorization as per policy is present for release of securities
Charges satisfied post closure of loan
Part payment adjusted to customer's account and revised repayment schedule provided to
customer. Loan closed in system for foreclosure
All delinquent cases are allocated to collection officers
Proper follow up trail are maintained for follow-up
Customers are being issued collection receipt in original and operation copy is being
submitted to operation
Daily collection are being deposited to branch

Receipt books are allocated as per approvals and stationary records are properly maintained
Cash is being collected within prescribed limit (not => 2lakhs)
Collection

Outstanding charges i.e. bouncing, legal charges are being followed up and collected
All collections are being updated in customer's statement of account
All cancelled receipt are approved and stored
Legal demand notices sent to customers as per delequency stage/policy and records are
maintained
 All legal notices are being replied within timeline and records are maintained
All recovery legal cases are tracked. i.e. award and execution, SARFAESI
All bounce charges, late payment charges and legal charges debited to customer's statement
of account
Welcome letter for all disbursed cases has been dispatched to customer address
Welcome letter dispatched details are maintained ( MIS comprising - Dispatch date, POD
and delivery status)
All disbursed and rejected files of previous month after completing all documentation are
Central Operation

dispatched to CROWN for storage

Mail confirmation received from CROWN for dispatched files
Proper MIS maintained for file dispatched to storage
Regular recon available for CROWN MIS vs Internal MIS
NACH/ECS registration requirement (form) received for all disbursed cases
NACH registration form send to bank/agency for registration for all disbursed cases

Successful registration confirmation or rejected reason are received from bank/agency and
details maintained
Follow-up being done for rejected cases

Cash deposit register and petty cash register is maintained and all receipts are captured
Cash/cheque deposited to bank/CMS on same day or next working day
Cash vault available in branch and cash is stored in vault only
Receipts are issued for all cash collection and acknowledgement/operation copy stored
properly
Business is being done with empanelled vendors only or prior approval for use of vendor
services is available
Vendors have proper infrastructure and adherence of terms of vendor agreement.
Branch Administration

Vendors were provided proper training and regular policy update

Vendors are providing Report within TAT and as per desired format
Payments to the vendor being done as per approved rate. No excess/short payment to
vendors
Payment to vendor done as per TAT and NOC obtained
Display of NBFC registration certificate
Display of Grievances Redressal Policy containing Nodal officer details
Display of shop and establishment certificate
Display of standard charges
Rent, electricity and other admin expenses of branch are paid as per agreement and as per
TAT
Security person availability, cctv availability and functality at the branch
Visitor register availability and adherence
Courier Inward/outward register availability and adherence
FRFC availability and Key register maintenance
Customer has received disbursal cheque and welcome letter
Check through discussion - Whether customer has signed all loan documents
Check through discussion - Whether customer has paid any money for loan to SHFL
employee
or Visit
 Any insurance, rate and other terms and conditions were explained to customer
Customer profile matching as per FVR, Credit appraisal Memo and FI report
Customer and Vendor Visit
Income source stated in loan file matching with actual
Collateral placed with SFL is available
All business activity is being done through empanelled vendor, if not then pre approval
available

Selection criteria was followed and proper agreement done for vendor empanelment

Vendor has proper infrastructure to carry SFL's business activity

Vendor is aware about the process and policy of SFL. Regular visit/meeting being done with
SFL team
Vendor payment is being done as per agreement's terms and condition
Crown - Regular MIS is being shared by crown to business team for recon
Crown - Files are stored as per agreement's terms and condition at Crown
Crown Infrastructure of storage facility - i.e. FRFC storage, CO2 zone storage
Crown - Physical file verification on sample basis
Overall Branch Score
Function Wise Checklist and Score
Risk Samples Samples Samples % Maximum Score
Classification tested passed failed Passed Marks Obtained
High 0 0 0 0% FALSE -
Low 0 0 0 0% FALSE -

High 0 0 0 0% FALSE -

High 6 2 4 33% 3 1.00

Medium 6 6 0 100% 2 2.00
High 6 6 0 100% 3 3.00
Low 6 6 0 100% 1 1.00
Low 6 6 0 100% 1 1.00
Medium 4 3 1 75% 2 1.50
High 4 2 2 50% 3 1.50
High 4 4 0 100% 3 3.00
High 4 3 1 75% 3 2.25
Medium 4 2 2 50% 2 1.00
High 4 1 3 25% 3 0.75
Medium 4 4 0 100% 2 2.00
Medium 4 2 2 50% 2 1.00
High 4 3 1 75% 3 2.25
High 4 2 2 50% 3 1.50
High 4 3 1 75% 3 2.25
Medium 4 2 2 50% 2 1.00
Low 4 2 2 50% 1 0.50
High 4 3 1 75% 3 2.25
High 4 2 2 50% 3 1.50
Medium 4 3 1 75% 2 1.50
Medium 4 2 2 50% 2 1.00
Medium 4 3 1 75% 2 1.50
Medium 4 2 2 50% 2 1.00
Medium 4 3 1 75% 2 1.50
High 4 2 2 50% 3 1.50
High 4 1 3 25% 3 0.75
Low 4 2 2 50% 1 0.50
High 4 3 1 75% 3 2.25
High 4 2 2 50% 3 1.50
Medium 4 3 1 75% 2 1.50
Medium 4 2 2 50% 2 1.00
High 4 3 1 75% 3 2.25

High 5 5 0 1 3 3.00
 High 5 0 5 0 3 -
High 5 5 0 1 3 3.00
High 5 0 5 0 3 -
Medium 5 5 0 1 2 2.00
High 5 0 5 0% 3 -
Medium 5 5 0 100% 2 2.00
Medium 5 0 5 0% 2 -
High 5 5 0 100% 3 3.00
High 5 0 5 0% 3 -

High 5 5 0 100% 3 3.00

High 5 0 5 0% 3 -
High 5 5 0 100% 3 3.00
High 5 0 5 0% 3 -
Low 5 5 0 100% 1 1.00
Medium 5 0 5 0% 2 -

High 5 5 0 100% 3 3.00

Low 10 10 0 100% 1 1.00
Medium 10 10 0 100% 2 2.00
High 10 9 0 90% 3 2.70

High 10 10 0 100% 3 3.00

High 10 10 0 100% 3 3.00
Medium 10 9 0 90% 2 1.80
High 10 8 0 80% 3 2.40
Medium 10 7 0 70% 2 1.40
High 10 8 0 80% 3 2.40

High 10 9 0 90% 3 2.70

High 10 10 0 100% 3 3.00

Medium 10 9 1 90% 2 1.80

High 10 8 2 80% 3 2.40

High 10 9 1 90% 3 2.70

Medium 10 7 3 70% 2 1.40

High 10 8 2 80% 3 2.40

High 10 7 3 70% 3 2.10

Medium 10 9 1 90% 2 1.80

Low 10 8 2 80% 1 0.80

High 10 7 3 70% 3 2.10

 High 10 8 2 80% 3 2.40
Medium 10 9 1 90% 2 1.80

Medium 10 6 4 60% 2 1.20

Medium 10 9 1 90% 2 1.80

Medium 10 8 2 80% 2 1.60

Medium 10 7 3 70% 2 1.40

Medium 10 6 4 60% 2 1.20
Low 10 8 2 80% 1 0.80
Low 10 9 1 90% 1 0.90
High 10 7 3 70% 3 2.10
High 10 6 4 60% 3 1.80

Medium 10 8 2 80% 2 1.60

Medium 10 9 1 90% 2 1.80

Medium 10 8 2 80% 2 1.60

High 10 9 1 90% 3 2.70

High 10 8 2 80% 3 2.40

Medium 10 7 3 70% 2 1.40

Medium 10 8 2 80% 2 1.60

Low 10 7 3 70% 1 0.70

Medium 10 9 1 90% 2 1.80
Medium 10 7 3 70% 2 1.40

High 10 8 2 80% 3 2.40

Medium 10 9 1 90% 2 1.80

High 1 1 0 0% 3 -
High 1 0 1 0% 3 -
High 1 1 0 0% 3 -
Low 1 1 0 0% 1 -

Medium 3 2 1 67% 2 1.33

Medium 1 1 0 0% 2 -
Low 1 1 0 0% 1 -
Low 10 8 2 80% 1 0.80
High 10 7 3 70% 3 2.10
Medium 5 4 1 80% 2 1.60
High 5 4 1 80% 3 2.40
High 5 3 2 60% 3 1.80
Medium 5 3 2 60% 2 1.20
High 5 3 2 60% 3 1.80
High 5 4 1 80% 3 2.40
High 5 4 1 80% 3 2.40
High 5 4 1 80% 3 2.40

Medium 5 4 1 80% 2 1.60

Low 5 3 2 60% 1 0.60
Medium 5 4 1 80% 2 1.60
High 5 3 2 60% 3 1.80
Low 5 4 1 80% 1 0.80
High 5 2 3 40% 3 1.20
Medium 5 2 3 40% 2 0.80
Medium 5 4 1 80% 2 1.60
Functional
Score
80%

Medium

80% Low

0.6176471

62%

0.5111111
51%

0.896

90%

0.81

81%
 0.75

75%

0.54

54%

0.6842105
68%
 Detailed Observation Sheet
Sr. no Process Name Observation Annexure Root Cause Recommendation

* Column "A" to "F" will be filled by auditor. Column "G" to "J" will be filled by branch spoc
bservation Sheet
Corrective Action Preventive Action Action Date Responsibility
 è

Name of Disbursal Disbursed Sourcing Type

Loan I'D Location
client Date amount (Direct/RCP)
Security person availability, cctv availability and functanality at the branch
MSME Policy Verson 3 (AnnexurMSME Policy Verson 3 Point 6 MSME Policy Verson 3 PoStandard Practice

Mandatory
Document Collection
Geo-Limit as per - 1. Application form,
policy(Maximum radius 2. Financial/ITR as Documents signed
Customer sourcing done as that can be covered from applicable, 3. CF by customer and
per target segment the branch is 40 KM and cheque of 3500, 4. OSV done by sales
up to 50 KM in NCR/ KYC, 5. Bank officer
Mumbai) statement of latest 3
months, 6. Property
title document

No
No
Yes
No
No
Yes
Standard Practice KYC AML Policy Verson 1As per printStandard Practice

Application form
Presence Data filled in FVR complete
Completeness & KYC as per policy
of FVR and is correct
Correctness

Yes Yes Yes Yes

Yes Yes Yes Yes
Yes Yes Yes Yes
Yes Yes Yes Yes
Yes Yes Yes Yes
Yes Yes Yes Yes
 No of
No. Of No of Observat
Branch Observat Observat ion open
Auditor Observation
Remarks ion ion for
Reported Complied Complian
ce
 è MSME Policy Version 3
Policy Reference
Point 9

Age Criteria for Borrower,

Name of Loan Locatio Disbursal Disbursed co-borrower and
client I'D n Date amount Guarantor met as per
policy

Yes
No
Yes
Yes
Security person availability, cctv availability and functanality at the branch
 MSME Policy Version 3 MSME Policy Version 3 MSME Policy Version 3
Point 9 Point 10 Point 10

Clubbing of Income as per

group definition (Income
Income assessment done
from Cash salary cannot End use of loan as per
by credit manager as per
be clubbed with business policy
policy
income to arrive at higher
eligibility)

Yes Yes Yes

No Yes No
No Yes Yes
Yes Yes Yes
 MSME Policy Version 3 MSME Policy Version 3 MSME Policy Version 3
Point 10 Point 10 Point 10.3

Accuracy of Maximum
INCOME TO OBLIGATION Business stability as per
Eligibility
RATIO calculation as per segment (Minimum 3
calculation(Income and
segment years)
obligation as per policy)

Yes Yes Yes

Yes No Yes
no No Yes
no No Yes
 MSME Policy Version 3 MSME Policy Version 3 MSME Policy Version 3
Point 10.3 Point 10.3 & 14 Point 10.3

Residence/Office stability
Minimum Bureau Score as Banking collected and
as per segment (Minimum
segment and policy attached in file
3 years)

Yes Yes Yes

No No No
Yes Yes Yes
No Yes No
 MSME Policy Version 3 MSME Policy Version 3 MSME Policy Version 3
Point 10.3 Point 10.3 Point 10.3

Financial Strength as per Social Score as per Psychometric Test done

segment segment and proof attached

Yes Yes Yes

No No No
Yes Yes Yes
Yes No No
 MSME Policy Version 3 MSME Policy Version 3 MSME Policy Version 3
Point 10.3 Point 10.3 Point 10.3

Repayment track record

Maximum Loan Amount as Maximum Tenure as per
as per segment
per segment and policy segment and policy
requirement

Yes Yes Yes

No No No
Yes Yes Yes
Yes No Yes
 MSME Policy Version 3 MSME Policy Version 3 MSME Policy Version 3
Point 10.3 Point 10.3 Point 10.3

Financial (audited/ITR) of Turnover as per ITR / Loan Amount eligibility

2 years recorded as per Audited financials as per calculated as per policy
segment requirement policy for segment 3 & 4 for segment 3 & 4

Yes Yes Yes

No No No
Yes Yes Yes
No Yes No
 MSME Policy Version 3 MSME Policy Version 3 MSME Policy Version 3
Point 10.3 Point 10.4 Point 10.5

Collateral as per policy

Net worth as per policy for LOAN TO VALUE as per
(Should not fall in
tatkal scheme policy defined greed
negative collateral list)

Yes Yes Yes

No No No
Yes Yes No
Yes No No
 MSME Policy Version 3 MSME Policy Version 3 MSME Policy Version 3
Point 12.1 Point 12 Point 13

Risk categorization as per KYC accepted as per Customer profile does not
policy policy fall in negative list

Yes Yes Yes

No No No
No Yes No
Yes Yes Yes
 MSME Policy Version 3 MSME Policy Version 3 MSME Policy Version 3
Point 15 Point 16 Point 18

RCU sampling/screening of
all documents and stamp
All deviation approved as Deal approval as per
affixed. RCU report as per
per deviation matrix approval matrix
defined format for
sampled document

Yes Yes Yes

No No No
Yes No Yes
Yes Yes Yes
 For Record Purpose For Record Purpose

Type of collateral property Value of property Auditor Observation

 No. Of Observation No of Observation
Branch Remarks
Reported Complied
No of Observation open
for Compliance
 Completeness and
Disburse correctness of system Completeness and
Name of Disbursa
Loan I'D Location d data entry, application correctness of Loan
client l Date
amount form and KYC Agreement
documents

Yes No
Yes No
Yes No
Yes No
Yes No
Security person availability, cctv availability and functanality at the branch
 Collection of SPDC and Completeness and
Completeness and
NACH/ECS form as per correctness of Sanction
correctness of DPN
policy condition

Yes No Yes
Yes No Yes
Yes No Yes
Yes No Yes
Yes No Yes
 Vetting report from
Original property paper Self declaration required
legal vendor available
of collateral as per legal as per policy available
for all legal require
requirement available or not
documents

No Yes No
No Yes No
No Yes No
No Yes No
No Yes No
 Sanction letter is issued with all the
Disbursal Memo available and
relevant terms and conditions and
All affidavit are properly Calculation of PF, PEMI, Insurance
customer acknowledgement is
notarised Charge, disbursal amount, loan
obtained on the same and
booking GL are correct
documented

Yes No Yes
Yes No Yes
Yes No Yes
Yes No Yes
Yes No Yes
 All OTC documents
No extra or short Loan disbursed/cheque collected before
disbursal to customer prepared as per DRF disbursal cheque
handover

No Yes No
No Yes No
No Yes No
No Yes No
No Yes No
 Cheque disbursement
whether PDDs are register/record maintained and CERSAI Charge
Auditor
approved and approval acknowledge of all cheque handed created/Modified and
Observation
documented over to customers are charges collected
documented

Yes No Yes
Yes No Yes
Yes No Yes
Yes No Yes
Yes No Yes
 No. Of No of
Branch No of Observation
Observation Observation
Remarks open for Compliance
Reported Complied
 Observation Samples Samples Samples Root
Sl. No. Control Description
Description tested passed failed Cause

Customer’s request for Part

1 payment/Preclosure/Foreclosure is
obtained in writing. 10 10

Retention effort done and

2
documented/evidence available
10 10
Approval for Part
payment/Preclosure/Foreclosure is
3 taken and foreclosure letter issued
to customer as per policy and
format
10 9

Interest calculation done correctly

4 while issuing foreclosure letter and
closing of loan accounts
10 10
Foreclosure charges collected and
5
accounted correctly 10 10
6 Issuance of NOC 10 9
Securities are returned to customer
7 and their acknowledgement is
taken 10 8
Authorization as per policy is
8
present for release of securities 10 7
Charges satisfied post closure of
9
loan 10 8
Part payment adjusted to
customer's account and revised
10 repayment schedule provided to
customer. Loan closed in system for
foreclosure
10 9

Case wise Details for all Failed Sample

 Proposed Date of IA
ZO Remarks/ Proposed Action
Action/Suggestio Action Review
Response Implementation date
n Closure Remarks
 Sl. No. Process name Sub Process Name

Collections Case allocation

Collections Collection follow-up

Collections Collection follow-up

Collections Collection receipt

Collections Cash Collection

Collections Collection receipt

Collections Cash Collection

Collections Collection follow-up

Collections SOA update

Collections Collection receipt

Collections Legal collection

Collections Legal collection

Collections Legal collection

Collections Legal collection

Case wise Details for all Failed Sample

ity person availability, cctv availability and functanality at the branch
 Samples Samples
Control Description Observation Description
tested passed

All delinquent cases are allocated to collection

officers 10 10
Proper follow up trail are maintained for
follow-up 10 9

Customers are being issued collection receipt

in original and operation copy is being
submitted to operation 10 8

Daily collection are being deposited to branch 10 9

Receipt books are allocated as per approvals

and stationary records are properly
maintained 10 7
Cash is being collected within prescribed limit
(not => 2lakhs) 10 8

Outstanding charges i.e. bouncing, legal

charges are being followed up and collected 10 7
All collections are being updated in customer's
statement of account 10 9

All cancelled receipt are approved and stored 10 8

Legal demand notices sent to customers as per

delequency stage/policy and records are
maintained 10 7
All legal notices are being replied within
timeline and records are maintained 10 8
All recovery legal cases are tracked. i.e. award
and execution, SARFAESI 10 9

All bounce charges, late payment charges and

legal charges debited to customer's statement
of account 10 6
whether all bounce charges and legal charges
debited to customer's statement of account 10 9
 ZO Proposed Action
Samples Score Root Proposed
% Failure Remarks/ Implementation
failed Obtained Cause Action/Suggestion
Response date

1
 IA
Date of Action
Review
Closure
Remarks
Sl. No. Process name Sub Process Name

1 Welcome Letter Letter Dispatch

2 Welcome Letter MIS

3 File Storage
File dispatch
4 File Storage
Confirmation
5 File Storage
MIS
6 File Storage
Recon
7 NACH
Form collection

8 NACH
Registration

9 NACH
MIS
10 NACH Follow up
ity person availability, cctv availability and functanality at the branch
 Samples Samples
Control Description Observation Description
tested passed

Welcome letter for all disbursed cases has

been dispatched to customer address 10 9
Welcome letter dispatched details are
maintained ( MIS comprising - Dispatch date,
POD and delivery status) 10 8
All disbursed and rejected files of previous
month after completing all documentation are
dispatched to CROWN for storage 10 7
Mail confirmation received from CROWN for
dispatched files 10 6
Proper MIS maintained for file dispatched to
storage 10 8
Regular recon available for CROWN MIS vs
Internal MIS 10 9
NACH/ECS registration requirement (form)
received for all disbursed cases 10 7

NACH registration form send to bank/agency

for registration for all disbursed cases
10 6

Successful registration confirmation or

rejected reason are received from
bank/agency and details maintained 10 8
Follow-up being done for rejected cases 10 9
 ZO
Proposed Proposed Action Date of
Samples Root Remarks/
Action/Su Implementation Action IA Review Remarks
failed Cause Respons
ggestion date Closure
e

2
1
Sl. Observation
Process name Control Description
No. Description

1 Cash Management Cash deposit register and petty cash register is

maintained and all receipts are captured
2 Cash Management Cash/cheque deposited to bank/CMS on same
day or next working day
3 Cash Management Cash vault available in branch and cash is
stored in vault only

Receipts are issued for all cash collection and

4 Cash Management acknowledgement/operation copy stored
properly

Business is being done with empanelled

5 Vendor Management vendors only or prior approval for use of
vendor services is available

6 Vendor Management Vendors have proper infrastructure and

adherence of terms of vendor agreement.
7 Vendor Management Vendors were provided proper training and
regular policy update
8 Vendor Management Vendors are providing Report within TAT and
as per desired format

Payments to the vendor being done as per

9 Vendor Management approved rate. No excess/short payment to
vendors
10 Vendor Management Payment to vendor done as per TAT and NOC
obtained
11 Branch Notice Board Display of NBFC registration certificate
12 Branch Notice Board Display of Grievances Redressal Policy
containing Nodal officer details
13 Branch Notice Board Display of shop and establishment certificate
14 Branch Notice Board Display of standard charges
Rent, electricity and other admin expenses of
15 Branch running expenses branch are paid as per agreement and as per
TAT
16 Adminstration Security person availability, cctv availability
and functality at the branch
17 Adminstration Visitor register availability and adherence
18 Adminstration Courier Inward/outward register availability
and adherence
19 Adminstration FRFC availability and Key register maintenance
20 Assets Physical verification of assets as per Finance
team record
 Proposed
Branch
Proposed Action Date of IA
Samples Samples Samples Root Remarks/
Action/Su Impleme Action Review
tested passed failed Cause Respons
ggestion ntation Closure Remarks
e
date

10 8 2

10 9 1

10 8 2

10 7 3

10 8 2

10 7 3

10 9 1

10 7 3

10 8 2

10 9 1
1 1 0

1 0 1
1 1 0
1 1 0

3 2 1

1 1 0
1 1 0

10 8 2
10 7 3

10 8 2
 Customer Visit Details and che

Observation Samples
Sl. No. Control Description
Description tested

1 Customer has received disbursal cheque and welcome letter 5

Check through discussion - Whether customer has signed all loan
2
documents 5
Check through discussion - Whether customer has paid any money for
3
loan to SHFL employee 5
Any insurance, rate and other terms and conditions were explained to
4
customer 5
Customer profile matching as per FVR, Credit appraisal Memo and FI
5
report 5
6 Income source stated in loan file matching with actual 5
7 Collateral placed with SFL is available 5

Details of Customer Visited

1 Loan ID
2 Customer Name
3 Visit Date
4 Visit Location
5 Person Met with
mer Visit Details and check list
ZO
Proposed Action Date of IA
Samples Samples Root Proposed Remarks/
Implementation Action Review
passed failed Cause Action/Suggestion Respons
date Closure Remarks
e
4 1

4 1

3 2

3 2

3 2
4 1
4 1
 Vendor Visit Details and chec

Observation Samples
Sl. No. Control Description
Description tested

All business activity is being done through empanelled vendor, if not then
1
pre approval available 5
Selection criteria was followed and proper agreement done for vendor
2
empanelment 5
3 Vendor has proper infrastructure to carry SFL's business activity 5
Vendor is aware about the process and policy of SFL. Regular
4
visit/meeting being done with SFL team 5
5 Vendor payment is being done as per agreement's terms and condition
5
For CROWN

1 Crown - Regular MIS is being shared by crown to business team for recon
5
2 Crown - Files are stored as per agreement's terms and condition at Crown
5
Crown Infrastructure of storage facility - i.e. FRFC storage, CO2 zone
3
storage 5
4 Crown - Physical file verification on sample basis 5

Details of Customer Visited

1 Loan ID
2 Customer Name
3 Visit Date
4 Visit Location
5 Person Met with
or Visit Details and check list
ZO
Proposed Action Date of IA
Samples Samples Root Proposed Remarks/
Implementation Action Review
passed failed Cause Action/Suggestion Respons
date Closure Remarks
e

4 1

4 1
3 2

4 1

3 2

4 1

2 3

2 3
4 1