ztbl internship report

7/29/2019 ZTBL Internship Report

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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


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.


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


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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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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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.


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.


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.


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.



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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.


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.


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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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.


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


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.


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


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.



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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_Limited


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ANNEXURES


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1. Central Accounts Department


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


3. Corporate Audit Department

(ZTBL


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


5. Information System Audit Department


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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ztbl internship report

Documents