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CHAPTER # 1 ORGANIZATION INTRODUCTION
1. Organization Introduction
The Zarai Taraqiati Bank Limited (ZTBL) formerly known as Agricultural Development Bank
of Pakistan) is the largest public sector development bank with 31 zonal offices, 9 Audit zones
and 357 branches in Pakistan. (Wikipedia, 2012).Agriculture Development Finance
Cooperation was created in 1952. In 1957 Agriculture Development Bank of Pakistan (ADBP)
was established. In 1961 both these organizations were merged into Agriculture Development
Bank of Pakistan in February 1961. On December 14, 2002 Federal Government of Pakistan
converted (ADBP) into ZTBL (Zarai Taraqiati Bank Limited). The new corporate structure
redefines the banks statue as a public limited company with an independent Board of Directors,
which aims at ensuring good governance, autonomy, delivering high quality, viable and timely
financial services to a greater number of clientele in the agricultural and rural segment of the
country. (ZTBL, 2012)
1.1 Corporate Vision
Dedicated to serve the needs of the farming community, by delivering financial products and
technical services on a competitive and sustainable basis, in a convenient, efficient and
professional manner, leading to success of the Bank and the farmers. (ZTBL, 2012)
1.2Corporate Mission
To play effective role in the promotion of economic growth, by enhancing the availability of
credit to the agriculture sector, through reliable access to sustainable financing, special lending
programs, technical assistance, and other products & services, and to promote career
development opportunities for increasing professionalism and technical proficiencies of
employees. (ZTBL, 2012)
1.3 Nature of ZTBLs Business;
ZTBL provides credit facilities to the farmers e.g. hiring and renting of anything. ZTBL is
basically a specialized non-commercial bank, for agricultural development in Pakistan which
targets small and medium farmers and give loans on subsidize rate. ZTBL does not provide loan
for more than one million PKR. (ZTBL, 2012)
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CHAPTER # 2 ACCOUNTS & FINANCE DIVISION
2. Central Accounts Department
The central account department of ZTBL formulates and maintains accounting policies andprocedures manuals accounting standards to ensure dissemination and implementation across the
bank. It formulates and prepares financial statements keeping in the view of the requirement of
Bank. It also makes sure the proper accounting of Assets, liabilities, and Income and
Expenditure. Following are the functions of central accounts department. For departmental
hierarchy view, see annexure no. 1
Central accounting department issues instructions related to accounting policies and
procedures.
Central Accounts Department of ZTBL consists of five units like Policy Unit, Accounts
Unit, Corporate Tax Unit, Fixed Asset unit, Prepayment Unit. (ZTBL HO A&F Manual,
2012)
2.1 Policy Unit
Policy Unit plans accounting procedures of accounting in both head office and branches and
coordinate with other departments within the head office on the different policy matters. It deals
coordination of external auditors and arrange payment to them. It formulates bank charges
schedules and circulates among the branches and submits to SBP on half yearly basis. It deals
with management letter and executive summary and suggests guidelines for adjustment of
suspense account. It performs administrative functions for the department such as sanction of
leaves and budget preparation. This unit also provides guidelines to the branches regarding
rectification of accounting errors and audit observation. (ZTBL HO A&F Manual, 2012)
2.2 Accounts UnitThe Account unit of the Central Accounts Department coordinates with concerned departments
for the timely production of statement of affairs. It prepares financial statements whiling
compiling balances under relevant group of heads from trial balances. It makes the list of
abnormal entries for rectification. It prepares quarterly, half yearly and yearly financial
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statements for the audit committee. It prepares annual capital adequacy ratio statement for
certification by external auditors. (ZTBL HO A&F Manual, 2012)
2.3 Tax Unit
The Tax unit of the Central Accounts Department of the ZTBL provides guidelines of deduction
of the tax under the ordinance of income tax 2001 and collects tax payment documentary
evidences for tax deducted. It communicates and coordinates with tax consultant, SBP and
income tax authorities and collects related to the tax refund case form consultant. It pays advance
tax and prepares the statement along with tax related audit. It also calculates withholding tax
which is paid by the bank in form of the utility bills.(ZTBL HO A&F Manual, 2012)
2.4 Fixed Assets Unit
It sends out timely formats and procedures for the fixed assets to the Zones, Branches, and Head
Office Department. It deals with collection of fixed assets schedules as well as other required
documents from branches and head office department. It compiles and summarizes the fixed
assets schedules on country level along with data maintenance. This unit on quarterly basis
compiles the addition and deletion of fixed assets. It works to monitor and verify the disposal of
fixed assets and depreciation charged by the departments and head office on quarterly basis. It
calculates and accounts for the deferred tax assets and coordinates and cooperates with external
and internal auditors on the different issues of the fixed assets of the bank. (ZTBL A&F HO
Manual,2012)
2.5 Pre-payment Verification Unit
Pre-payment unit of the ZTBL Bank is designed to verify all payment structures related to the
Head Office. It checks availability and competence of sanction of the competent authority. It
works to check procedural compliance and completeness of documents. Bills are verified by pre-
payment verification unit. (ZTBL HO A&F Manual, 2012)
2.6 HO Account Department
2.6.1AimsExpeditious processing of payments to build proper image of the bank in vendor
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industry/community whilst upholding controls as well as welfare of employees through Trust
fund. (ZTBL HO A&F Manual, 2012)
2.6.2 Objectives
Disbursement relating to Head Office (Supplies/Services)
Pay-out salaries and allowances to Head Office employees.
Maintenance of Subsidiary Ledgers of House Building, Conveyance, Rain & Rent,
Advances, Suspense Accounts, Sundry Deposit Account, and Items in Transit Accounts
&Bank Reconciliation related to head office.
Operations/investment of ten employees trusts funds and maintenance of book of account
including finalization of Financial Statements.
Reconciliation of inter-branch transactions in accordance with SBP Prudential Regulation
No. 03
(ZTBL HO A&F Manual, 2012)
2.7 Payment Unit
Overall supervision of the unit
Daily processing of vouchers of account division
Weekly/Monthly reports, Quarterly /Half yearly/ Yearly closing
Merging of volumes/files
Payments of different expenses e.g. Law charges, Sports expense etc.
Payment of KSSL employees
Maintenance of vouchers
(ZTBL HO A&F Manual, 2012)
2.8 Payroll Unit
Preparation and processing of payrolls of clerical staff posted in Head Office.
Put up salary files
Disbursement of salary according to grades
Vouching and booking of department wise expense
Reconciliation of payroll correction there of
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Responding of credit advices originated by field offices on account of expenses of H.O
Payment of loans e.g. car, motorcycle etc.
Maintenance of Advances balances and mark-up there on
Payment of overtime to employees
Helps in preparation and processing of payroll
Payments of different allowances
Calculation of income tax on monthly salary, arrears of pay/increments etc.
(ZTBL HO A&F Manual, 2012)
2.9 Inter Branch Reconciliation Unit
Plan, manage & supervise daily reconciliation process
Random view of matched items
Persuasion to zonal offices for timely reconciliation of inter branch transaction
Submission of reports to management when required
Producing list of outstanding entries
To assist computer section and other departments
Maintain branch wise record
Coordination with field offices for settlement of outstanding entries
Producing list of outstanding entries
(ZTBL HO A&F Manual, 2012)
2.10 Employees Funds Unit
Investment of surplus funds
Renewal of tax exemption certificates from commissioner Income Tax
Annual audit of all trust accounts
Entry/preparation of all trust accounts
Maintenance of existing software
Reconciliation of accounts with HO Branch and HBL
To prepare Trial balances of all trust funds for audit service
Responding to debit or credit advices of different regions
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(ZTBL HO A&F Manual, 2012)
2.11 Budget and Fund Management Department
2.11.1 Aims and Objective
The main function of Budget and Fund Management Department of ZTBL Bank is prepare the
financial plane for the credit limits, fund review and to arrange additional resources for
maintenance of additional liquidity for efficient distribution, timely discharge of liabilities and
operations of Bank. (ZTBL HO A&F Manual, 2012)
2.11.2 Functions
Budget and fund management department of ZTBL mainly develops the policies, procedures and
standards for the budget planning and analysis. It coordinate and cooperate with administrative
and government in order to resolve budget issues. It automates budget process and preserves the
data and obtains approval from Board of Directors for annual budget. It gather the data of
various departments and analysis that for their performance. Further it consists of four units as
described below. (ZTBL HO A&F Manual, 2012)
1. Budget Planning Unit
2. Budget Analysis Unit
3. Treasury Unit
4. Fund Reconciliation Unit
2.12 Budget Planning Unit
The Budget planning unit of the Budget and fund management department of the ZTBL
develops departmental polices procedures and standards for the financial management
and budget planning processes and parameters.
It communicates with administrative and governance groups in order to resolve the
budget issues.
It compiles and process necessary information for the preparation of annual reports. It
generally evaluates and review expenditures and submits to the audit committee.
Its further role is to provide information and analysis for the purpose of the annual
planning and effective efficient decision making.
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(ZTBL HO A&F Manual, 2012)
2.13 Budget Analysis Unit
It generally analyzes and monitors financial activities of departments which show their
performance. On the basis its analyzed results performs the highly effective steps. It develops
assumptions and strategies for future budget cycle. (ZTBL HO A&F Manual, 2012)
2.14 Treasury Unit
Treasury Unit is engaged in the arrangement of the fund for the different purposes to the
branches and maintains their records. It manages Banks accounts with SBP and commercial
banks such as MCB, HBL, and UBL and so on. It checks out the appropriate balances in the
branches if there are excess balances then its calls for and if there is less balances then it transfer
the funds and also declare the deposit rates for the depositors. It performs the role of coordinator
while performing the role of coordination with SBP, commercial, Internal and External auditors
on the matters of treasury. It deals the matters of investment of surplus funds provided by the
branches. It maintains check on the balances of different branches if any branch have high cash
then relevant bank returns it to HO, Islamabad. They also maintain a record of different branches
liquidity ratio. (ZTBL HO A&F Manual, 2012)
2.15 Funds Reconciliation Unit
It mainly plays the role of reconciliation of Bank accounts with other commercial banks
at Head Office
Advices issued by branches are responded by Funds Reconciliation Department.
It also monitors the reconciliation of bank accounts with other commercial banks.
(ZTBL HO A&F Manual, 2012)
2.16 Regulatory Reporting Department
The regulator gives instructions What to do, when to do and how to do as Government agencies
and SBP, SECP etc. while reporting means perpetrations of the reports and submission of the
reports to the regulators. Thats why this department reports certain information to the regulators
and ensures it that bank has compiled accordingly. (ZTBL HO A&F Manual, 2012)
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2.16.1Aims and objectives
It aims to fulfill the statuary reporting requirements and provides financial reporting to the
management for the specific purposes. Its objective is to provide and ensure the effectiveness in
meeting statutory reporting obligations. It makes prompt and accurate analysis to aid effective
decision making. In last it ensures the implementation of the Basal-II.
(ZTBL HO A&F Manual, 2012)
2.16.2 Functions
It reformulates and redesigns system of data capturing, its consolidation and subsequent
reporting keeping in mind regulatory requirements.
It ensures the implementation of updated reporting requirements, which are update time
by time. It helps external as well as internal auditors
Furthermore it performs the job suggested by the regulatory authority.
(ZTBL HO A&F Manual, 2012)
2.17 Reporting Process
There are mainly five steps in reporting process, which are defined bellow:
2.17.1 Data Capturing
This is the step in which data is gathered from various sources such as field offices, deportments
such as CAD and ISD and from financial reports such as Accounts, D/R Series etc.
2.17.2 ConsolidationData collected from various sources is consolidated here.
2.17.3Data verification
In this step collected data is verified weather the collected data is valid and true or not, because
the collected data is not all ways reliable. It needs very careful examination due to possible errors
and mistakes, which are later rectified for report generation purpose.
2.17.4 Report generation
On the basis of analyzed and verified data, it is injected in the form of reports which is provided
by SBP.
2.17.5 Submission
In this last step the complete formed reports are submitted to the regulatory authorities such as
SBP. The main sources of submission are courier and online.
(ZTBL HO A&F Manual, 2012)
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CHAPTER # 3 AUDIT DIVISION
3.1 Aims
Appraisal of operations and control to determine whether policies and procedures are being
followed carefully and all resources are used efficiently and judicially. For divisions structure
view annexure no. 2 (ZTBL HO Audit Manual, 2012)
3.2 Objectives
Review and appraise the soundness, adequacy, and application of accounting and
financial control and promoting effective control at reasonable cost
Ascertain the extent of compliance with established policies, plans and procedures.
Ascertain to the extent to which the bank assets are accounted for and safeguarded from
losses of all kinds
Ascertain the quality of performance in carrying out assigned responsibilities
Ascertain the reliability of management data developed within the bank
Conduct/Arrange audit of H.O. departments & H.O. units in the field
Recommend operational improvements
(ZTBL HO Audit Manual, 2012)
3.3 Functions
Carry out systematic examination of books of accounts and records maintained by the
Zonal Offices/branches through Audit Zones in order to high-light deviations from
rules and regulations.
Over-see and exercise vigilance over Field operations of the Bank.
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Check that financial powers are exercised judiciously by the competent authority.
Appraise the quality of performance in carrying out assigned responsibilities.
Recommend operational improvements.
Ensure that systematic examination/audit of books of accounts, vouchers and other
operations of the branch are carried out by the audit zones as per audit Manual/standing
instructions and to high-light deviation from rules, regulations and procedures.
Examine the SVP's reports of the branches, Management Audit reports of the
zonal offices, Special Audit Reports and Project Audit reports and to take appropriate
action.
Identify scope of improvement in the operational efficiency of the Bank.
Prepare memo for Audit Committee of DOD and for other meetings based on
reports the Audit Zones.
Issue circulars/circular letters on Audit Policy matters.
Deal with administrative matters of Audit Dept. at HO/Field Audit Zones.
Coordinate with Audit Zones and other departments at H.O.
Prepare periodical Audit Report of the Bank. Conduct/arrange audit of H.O. departments and H.O.units in the Field.
Audit the management, planningand organization of Information Systems Strategy.
(ZTBL HO Audit Manual, 2012)
3.4 Corporate Audit Division
3.4.1Aims
Thorough scrutiny of H.O. financial transactions to ensure efficient and judicious use of
Bank's resources. To view departments structure, see annexure no 3. (ZTBL HO Audit Manual,
2012)
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3.4.2 Objectives
Conduct periodical review of organizational set-up, changes if any introduced in the set
up. Delegation of authority, policies and procedures, business plans and operational
strategies devised by management, keeping in vies, the approved corporate mission.
Conduct/arrange Annual Audit of H.O. Departments and H.0 units in the field
Ensure that the expenditures are sanctioned as per the financial and administrative powers
assigned within the budgetary provisions and banks rules are observed.
Ensure that errors and omissions are promptly rectified.
Ensure that payment is made to genuine payee, properly acknowledged, correctly
classified and recorded.
Arrange periodical verification of stock and depreciation charged thereon with a
view to check its accuracy.
Detect weaknesses in system and recommend remedial measures thereof based on audit
reports in respect of H.O departments and audit units in the field.
Perform administrative functions for the department such as sanctions of leaves, approval
of tour programs, etc.
(ZTBL HO Audit Manual, 2012)
3.4.3 Implementation and Coordination Unit
Pursue the departments at H.O.and audit / H.O. units in the Field to ensure compliance of
audit observations.
Arrange settlement of audit paras.
Keep updating of statistics of audit observations raised/settled and pending audit
paras.
Deal with administrative matters of the Department including preparation of budget,
maintenance of leave record etc. and other miscellaneous administrative matters.
Perform administrative functions for the Department such as sanction of leaves.
Approval of tour programs, approval of travel allowance etc.
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(ZTBL HO Audit Manual, 2012)
3.4.4 Post Audit Section
Check the vouchers and ensure the booking of expenditure against the proper G Head.
Ensure that the expenditures are properly sanctioned within the budgetary provision and to
verify the authenticity of bills/receipts.
Ensure that all pre-requisites of payment have been completed.
Check the genuineness of payee and proper acknowledgement.
Check that all the relevant documents are attached with the vouchers.
Verify arithmetical accuracy and check that all procedural formalities have been
completed.
Ensure that vouchers/advices have been signed by the authorized officers.
(ZTBL HO Audit Manual, 2012)
3.4.5Management Audit Team - I &II
Conduct Annual Audit of the departments at H.O in the light of applicable rules,
regulations, policies and procedures with a view to assess all functionaries are performing
their duties efficiently and judiciously.
Conduct the annual audit zones.
Periodical verification of capital items and depreciation charged at H.O
(ZTBL HO Audit Manual, 2012)
3.5 Field Audit Department
3.5.1 Aims
Appraisal of operations and control to determine whether policies and procedures are being
followed carefully and all resources are used efficiently and economically. To view departments
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structure, see annexure no 4.
3.5.2 Objectives
From the internal audit perspective, document the internal control system designed and
put in effect by the management. Understand and evaluate internal control at the entitylevel and at the process, transaction or application level on an ongoing basis. Keep track
of changes vis--vis internal controls introduced by management from time to time and
update audit working manual.
Establish evaluation system of overall effectiveness of internal control system, identify
areas of improvement and enforce suitable audit methodology.
Prepare annual audit plan, keeping in view credit, operational, compliance and market
risks etc. Coordination with concerned divisions and departments for assessments of risk
profile of the bank and align the audit approach with the risk appetite and mitigation
system implemented by management.
(ZTBL HO Audit Manual, 2012)
3.6 Information System Audit Department
3.6.1 Aim
Determine the adequacy of security and controls in the Information Systems
environment by assessing technology practices, policies, procedures.
Provide reasonable assurance that business objectives are reasonably achieved suggest
measures with the objective that undesired events prevented or detected and correlated
(ZTBL HO Audit Manual, 2012)
3.6.2Objectives
Provide reasonable assurance that ZTBLs IT infrastructure, control and governance process areadequate and functioning in a manner to ascertain quality out-put. Sufficiently evaluate control
environments in computer application development, implementation and maintenance process.
To view departments structure, see annexure no 5.
(ZTBL HO Audit Manual, 2012)
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3.6.3 FunctionsConduct periodical audit of IT infrastructure and operational practices to provide reasonable
assurance for adequate functioning of Bank's IT infrastructure to ascertain:
Risks are appropriately identified and managed.
Important financial, managerial and operating information is framed as per Bank's rules/
regulations and standing instructions.
User actions are compliant to the system and procedures prescribed for the
purpose. IT resources are acquired economically, used efficiently and adequately
protected.
Programs, plans and objectives are achieved.
Quality and continuous improvement are fostered in the control process.
Sufficiently evaluate control environment in computer application development,
implementation and maintenance process and database implementation/ administration
covering areas like:
Software development/acquisitions standards
Database control procedures
Change control procedures
Source code and executable libraries
Documentation
SOPs
Pre and post implementation reviews
Determine whether network and associated components are securely placed into
production, the network re-sources are appropriately monitored and adequate controls are
in place to ensure the security and recoverability of the networks.
3.6.4 Database & Applications Audit Unit
Conduct audit of information systems application development environment and of
database designing & administration. Sufficiently evaluate control environments in
computer application development, implementation and maintenance process and
database administration.
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Review user interface of systems, subsystems and software applications.
Assess information technology control elements to mitigate information technology risks
regarding the confidentiality, integrity and availability of business information by
reviewing areas like:
Software development standards
Database security control
Change control procedures
Source code and executable libraries
Documentation
SOPs
Pre and post implementation reviews
Assess the utilization, integration, maintenance and enhancement of software
applications.
Prepare audit findings regarding theefficiency, accuracy and security of software
programs and databases.
Review the efficiency and effectiveness of basic operational areas e.g.
Access Permission
Security & Confidentiality
Business Continuity
Management
Budget & Procurements
Projects & Feasibilities
Managing the change
Process re-engineering
Trainings
Prepare audit reports in a timely manner.
3.7 Networks Communication Audit Unit
Plan and manage network communication audits to determine whether network s and
associated components are securely placed into production, the network's resources are
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appropriately monitored, and adequate controls are in place to ensure the security and
recoverability of the networks.
Audit activities associated with a LAN/WAN/Internet. Review network design and
installation, monitoring and analysis of existing hardware and software and evaluation of
network security controls.
Plan and manage network and communication audits covering areas like:
LAN/WAN design/ topology
Security architecture
Firewalls
IDS
Routers
Audit the tuning and capacity planning activities associated with the performance of
network resources.
Review operating systems and security software utilized on the network including the
addition of new users to the network and the establishment of rights and privileges.
Review the efficiency and effectiveness of basic operational areas e.g.
Access Permission
Security & Confidentiality
Business Continuity
Management
Budget & Procurements
Projects & Feasibilities
Process re-engineering
Trainings
Managing the change
Prepare audit reports in a timely manner.
3.8Policy, Coordination & Implementation Unit
Deal with all administrative, financial, policy and miscellaneous matters of the
Department.
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Coordinate with other departments at Head Office to dispose of official matters.
Evaluate/analyze audit reports received from Audit Teams.
Pursue for arranging compliance of outstanding audit observations from the concerned
offices.
Prepare plan of audit teams and implementation thereof.
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Chapter # 4 PERSONAL WORKING & LEARNING EXPERIENCE
4. Personal Experience
ZTBL is one of the big name in the financial & banking sector of Pakistan, ZTBL is big
organization with more than 342 branches spread all over Pakistan and the work force of ZTBL
is more than 5000. Working in such a big and diverse organization was a very pleasant
experience.
4.1Joining and Experience at Accounts & Finance Division4.1.2 JoiningWe applied for internship by QASMSs placement office which was in contact with the HR
department of ZTBL. Our letters were sent to our addresses and we were called for interview at
ZTBL Staff College. At Staff College we were interviewed by a VP coordinator. Then after
some time joining letters were issued to us on which they mentioned our period of internship and
requested concerned department for coordination.
ZTBL is lucky to have very good place for training, they have Staff College located near main
Murree Highway of Islamabad, which cover huge area and also purposeful buildings which help
ZTBL to keep their employees up to date with the modern techniques and procedures. This
shows that the ZTBL is having very strong concern for training and development of its
employees. Nowadays big organizations spend millions and billions in training of their
employees ZTBL also working on this reality. ZTBL is totally different from other public sector
organizations and unlike other public sector organization they are working hard bringing change
in the organization because they believe that surviving is not possible without change in this era
of competition.
We took our letters to the concerned departments they warmly welcomed us and provided us a
schedule for internship which served as a reference for us. ZTBL internship program is very well
designed and it seems that the internship program is very carefully designed by HR department
of ZTBL but at the same time the students for internship are facing many problems e.g. there is
no stipend for students who come for internship secondly there is not any specified person who
can guide students during internship and can help students in difficult situations.
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4.2 Accounts & Finance Division
Accounts & Finance division of ZTBL is considered as to one of the busiest division at ZTBL.
Learning experience at A&FD was very interesting and challenging currently ZTBL contains
many ACCA internees which are working in different departments, ZTBL is listed in the prime
organization of ACCA for article ship this is the main reason that the ACCA internees prefer
ZTBL for their article ship.
Accounts and Finance division is smartly divided into four major departments i.e. central
account department, H.O accounts department, Regulatory & Reporting department and Budget
and Funds management department, these departments are further divided into different units
which are classified on the nature of work.
Central Accounts department maintains accounting policies and procedures which ZTBL is
going to imply on its whole structure. Which is very important and difficult task as well
according to me ZTBL is having very good system for following accounting procedures.
Policy unit which works under central accounts department work for developing new policies
regarding to accounting procedures and it also communicates with other departments and also
coordinate with external auditors.
Accounts unit of the central accounts department mainly work of this department is to coordinate
with other departments for the timely production of statement of affair. It makes financial
statements and also makes listing of abnormal entries for rectification purpose. It also prepares
financial statements on quarterly, semi-annually, annually basis for the audit committee.
Tax unit of central accounts department provides general guidelines for deduction of taxes
according to the income tax ordinance 2001. It coordinates with different authorities and tax
consultants for relates issues and it also calculates withholding tax paid by the bank through
utility bills.
Fixed assets units job is to maintain record of fixed assets of the bank which include recording
new fixed assets and deletion of fixed assets. It calculates depreciation on the assets on the
quarterly basis. It also coordinates with internal as well as external auditors for different
problems and quires.
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Pre-payment verification unit verifies all payment structures related to H.O, it checks procedural
compliance and completeness of documents and then it verifies the bills.
H.O accounts department performs different functions related to accounts of H.O, it pay out
salaries and advances for H.O employees, maintain related ledgers, reconciliation of inter branch
transactions.
Payment unit of H.O account department maintain vouchers, files it also works on payments of
KSSL employees and other special charges e.g. law expense. It also prepares closing reports on
weekly, monthly, quarterly and yearly basis. Payroll unit function is to prepare salary according
to grades, maintaining salary files, it also prepares overtime payment for employees, payment of
different allowances and calculation of taxes on the payroll and reconciliation of the payments.
Inter-branch reconciliation unit of the H.O account supervise reconciliation process, maintain
branch wise accounts, coordination with field offices for settlement of outstanding entries,
producing list of outstanding entries and preparation of reports. Employees fund unit duty is to
invest funds, renewal of tax exemption certificate, and preparation of all trust accounts and
maintenance of existing software, maintenance of vouchers.
The budget & fund management department of ZTBL prepares policies, procedures, standards
for budget planning and analysis. It gather the data of various departments and analysis that for
their performance. This department also communicates with government for related budget
issues. Budget planning unit develops departmental polices procedures and standards for the
financial management and budget planning processes. It also provides information and analysis
for further decision making.
Budget analysis unit of analyses the financial activities of departments which show their
performance on the basis of these results it develops assumptions and strategies for future budget
cycle.
Treasury unit is busy in the arrangement of the fund for the different purposes to the branches
and maintain their record it also manage their accounts with other commercial banks such as
HBL, NBP etc. It check out appropriate amount of balances in the branches and provides funds if
any branch lacks and calls back the amount in case of excess of cash. It also maintains record of
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all branches liquidity ratio. Fund reconciliation unit reconcile the accounts of ZTBL with other
commercial banks it also deals with the advices sent by other branches.
Regulatory & Reporting department function is to implement the rules and regulations given by
the government agencies such as SBP, SECP etc. This department also prepares reports which
are given to concerned authorities. These reports are prepared by following five-step procedures.
4.3Audit DivisionFor an organization to compete and grow it requires a very good system of Audit, without a
proper and transparent system of audit no company can run effectively, ZTBL consistent growth
is the evidence that the ZTBL is having good system of both internal and external audit .
During my internship at ZTBL head office audit division I found that there is very effective
system of audit and the employees are very helpful to internal as well as external auditors. The
internal audit division of ZTBL is further divided into three major departments i.e. corporate
audit department, field audit department and Information System Audit Department.
Corporate audit department function is to keep an eye on the use of banks resources to avoid the
excess flow of expenses it also arranges annual audit of HO departments and units in the field. It
ensures proper rectification of errors and omissions some of administrative tasks such as sanction
of leaves and approval of tours is also done by this department. This department also identifies
the weaknesses in the system and suggests remedial steps and it ensures that the payment is
provided to the concerned person.
Implementation and coordination unit peruse HO department in compliance in field in audit to
ensure compliance of audit rules it also arrange settlement of audit paras. Post-audit section
function is to record the expenses in the proper GL head it also ensure that the expenditures are
properly sanctioned and all pre-requisites of payment have been completed and then it checks all
the documents and other formalities. Management Audit Team I&II conduct audit of thedepartments at HO in the light of applicable rules it conducts annual audit zone and other HO
departments in the field, this unit periodically verifies the capital items and depreciation charged
at HO.
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Field audit department aims to determine whether policies and procedures are being followed
carefully and how resources are used this department establishes overall evaluating system of
internal control and identifies areas for improvement. Field audit department also reviews the
changes in the system suggested by the different development units and it prepares annual audit
plan, keeping in view, Credit, Operational, Compliance and Market risks etc.
Information system audit department keeps an eye on the information system of ZTBL by
assessing technology, practices and policies. This department conduct periodical audit of IT
infrastructure and operational practices to provide reasonable assurance for adequate functioning
of Bank's IT infrastructure. This department audits the security and recovery status of banks
networks and review user interface of systems, subsystems and software applications. Database
and applications audit unit conduct audit of data base designing and administration it also works
on maintenance, integration of software applications, it also prepares audit findings regarding the
efficiency, accuracy and security of software programs and databases.
Network and communication audit unit audits to determine whether network s and associated
components are securely placed into production, the network's resources are appropriately
monitored it also reviews the efficiency and effectiveness of basic operational areas and one
other important function is that it review operating systems and security software utilized on the
network and it also decides networks rights and privileges. Policy coordination and
implementation unit deals with all administrative, financial, policy and miscellaneous matters of
the department it also evaluate/analyze audit reports received from audit teams and it coordinates
with other departments at Head Office regarding compliance to audit procedures and this unit
also prepares audit terms and implementations.
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Chapter # 5 ANALYSIS
5. SWOT Analysis
ZTBL Bank is very large bank having 300 plus branches in different areas of Pakistan; its the
only specialized bank for agriculture in Pakistan. ZTBL is having different strengths,
weaknesses, opportunities and threats which are discussed below in SWOT analysis.
5.1 Strengths
It is public bank and govt. supports ZTBL in difficult situations.
Only specialised bank for Agricultural development
Pakistan is having agricultural economy.
Recently govt. announced to restructure the 80.4 billion loan of ZTBL.
ZTBL is having good head office buildings at Zero Point, Islamabad.
TBL has a staff college, which contains good training facilities.
Data is kept & maintained by different computer software which makes data secure and
easy to access.
Audit zone is working very well for findings errors, mistakes & frauds.
ZTBLs board of directors are highly qualified and reputed personalities. See annexure
no.7.
5.2 Weaknesses
Employees are promoted after long period e.g. after 10-13 years
Being public organization its environment is also weakness
ZTBL runs many branches which are in loss.
ZTBL customers are spread in different areas; which makes it difficult to reach their
customers
ZTBL is not allowed to consumer banking
The operational expense of branches is very high
All branches are not interconnected because some branches are in remote areas
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Sometimes ZTBL has to give loans on political basis which increases the bad debt
account of ZTBL
There are many employees who are not highly or relevantly qualified but they are
promoted to seniors positions, which affect performance of the bank.
Long structure of organization employment level. See annexure no 6.
5.3 Opportunities
ZTBL can expand its business to other agricultural economies
ZTBL can increase its earnings by investing in better areas
Bank can reduce expenses by laying-off non-performing employees.
The bank can also start commercial banking to increase its profits.
5.4 Threats
Many farmers are unable to pay their loans due to natural disasters e.g. flood of 2010.
There is politics in the bank between employees which is also strong threat for working
of the bank.
There are many defaulters of bank which are also big threat for bank
In Pakistan agriculture sector is damaged by floods, heavy rains etc., due to which poorfarmers cannot re-pay their loans.
Getting funds from government may be difficult due to poor economic conditions of the
state.
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Chapter # 6 FINDINGS, RECOMMENDATIONS & CONCLUSIONS
During my six-week internship I found my things which are discussed below.
6. Findings
Employees working on the same position are having different degrees e.g. MBA, BBA, IR, MSc
Islamiat which some-times creates conflicts and devalue the professional degree holders.
There is no facility for transportation of ZTBL & KSSL employees.
Lack of training programmes conducted for employees
Many high-qualified employees are not satisfied due to late promotions and routine work
ZTBL have good security system.
The assets and net income of ZTBL is increasing which is a good sign.
6.1 Recommendations
ZTBL should start it business across other countries especially in South Asian region, it have
good potential to became a multinational organization, ZTBL is performing very good job for
Pakistani farmers but if ZTBL becomes multi-national entity it will provide ZTBL a status of
international bank.
The bank should invest in different Agriculture related research institutes e.g. ARID Agriculture
University, for preparing our farmers to compete with modern era. The organization culture at
ZTBL seems to be very friendly and training programmes conducted at Staff College are also
very effective but I think bank should increase the number of training programmes and ZTBL
should conduct communication skills programmes for employees, which will decrease the
conflicts between employees and will create a perception of good organization in the visitors and
customers. Communication skills trainings are now seems to be necessary for ZTBL as some on
the employees does not use appropriate language in the office, which may create a bad image of
bank outside.
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6.2 Conclusion
During my internship at ZTBL, I found that the banks environment is very friendly and it is
equipped with all facilities of modern banking e.g. online data maintenance and online branch
connections. ZTBL is growing at a very good pace as financials depicts, and it is very differentfrom other public sector organizations. The employees of the bank are very positive towards the
change because they believe in change as the necessity of modern businesses. The bank has
good market, good buildings/offices, and highly qualified employees. ZTBL is very positively
contributing to the economy of Pakistan as it pays huge amount of tax and consistently working
for the welfare of poor farmers of Pakistan.
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REFFERENCES
Introduction, data retrieved on October 1, 2012 from
http://en.wikipedia.org/wiki/Zarai_Taraqiati_Bank_Limited
Corporate Vision, data retrieved on October 1, 2012 from
http://www.ztbl.com.pk/briefOnZTBL.htm#ztblbrief
Corporate Mission, data retrieved on October 1, 2012 from
http://www.ztbl.com.pk/briefOnZTBL.htm#ztblbrief
Board of Directors, data retrieved on October 1, 2012 from
http://www.ztbl.com.pk/board_of_directors.html
ZTBL HO A&F Manual, 2012
ZTBL HO Audit Manual, 2012
ZTBL HO HR Manual, 2012
http://en.wikipedia.org/wiki/Zarai_Taraqiati_Bank_Limitedhttp://en.wikipedia.org/wiki/Zarai_Taraqiati_Bank_Limitedhttp://www.ztbl.com.pk/briefOnZTBL.htm#ztblbriefhttp://www.ztbl.com.pk/briefOnZTBL.htm#ztblbriefhttp://www.ztbl.com.pk/briefOnZTBL.htm#ztblbriefhttp://www.ztbl.com.pk/briefOnZTBL.htm#ztblbriefhttp://www.ztbl.com.pk/board_of_directors.htmlhttp://www.ztbl.com.pk/board_of_directors.htmlhttp://www.ztbl.com.pk/briefOnZTBL.htm#ztblbriefhttp://www.ztbl.com.pk/briefOnZTBL.htm#ztblbriefhttp://en.wikipedia.org/wiki/Zarai_Taraqiati_Bank_Limited7/29/2019 ZTBL Internship Report
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ANNEXURES
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1. Central Accounts Department
(ZTBL HO A&F Manual, 2012)
ACCOUNTS & FINANCE
DIVISION
Central Accounts
Department
H.O. Accounts
Department
Budget & Funds
Management
Department
Regulatory &
Reporting
Department
Policy Unit
Accounts unit
Tax unit
Fixed assets unit
Pre-payment
verification unit
Pay Roll Unit
IBR Unit
Employees
Funds Unit
Budget Planning Unit
Budget Analysis Unit
Treasury Unit
Funds Reconciliation
Unit
Regulatory &
internal repor
unit
Financial
Management
Information
system unit
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2. Audit Division
(ZTBL HO Audit Manual, 2012)
3. Corporate Audit Department
(ZTBL
(ZTBL HO Audit Manual, 2012)
Internal Audit Division
Corporate Audit
Department
Field Audit
De artment
Information System
Audit Dept.
Management Audit
Team-II
Implementation
&coordnation Unit
Management AuditTeam -I
Commercial Audit
Unit
Implementation
Unit -II
Implementation Unit-I
Planning &
Coordination Unit
Networks &
Communication Audit
Unit
Databases &
Applications Audit
Systems & Operations
Audit Unit
Policy Coordination &
Im lementation Unit
CORPORATE AUDIT
DEPARTMENT
Implementation & Coordination
UnitManagement Audit Team -I Management Audit Team -I
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4. Field Audit Department
(ZTBL HO Audit Manual, 2012)
5. Information System Audit Department
(ZTBL HO Audit Manual, 2012)
FIELD AUDIT DEPARTMENT
Commercial Audit
Unit
Planning &
Coordination Unit
Implementation Unit-IImplementation Unit
INFORMATION SYSTEMS AUDIT
DEPARTMENT
Policy Coor.&
Implementation Unit
Systems & Operations
Audit Unit
Databases &
Applications Audit
Unit
Networks &
Communication Aud
Unit
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6. Weaknesses (SWOT Analysis)
Non-clerical staff Clerical staff
(ZTBL HO HR Manual, 2012)
Grades of Em lo ees
SEVP
EVP
SVP
VP
AVP
Grade-1
Grade-2
Grade-3
Assistants
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7. Strengths (SWOT Analysis)
President Chairman Board
Ms. RoohiRaees Khan Mr. Sultan Ali Chaudary
Director Director
Mr. Abdul WaheedArien Ch. Muhammad Zaka Ashraf
Director Director
Mr. M. Iftikhar Khan Mohmand Mr. ZafarIqbal
Director Director
Dr. Khalid Ahmed Mr. YaqoobVardaq
Director Director
Dr. AmerMuammad Mr. Mahmood Nawaz Shah
(ZTBL, 2012)
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