INTERNSHIP COMPLETION REPORT ACKNOWLEDGEMENTS

First of all I am very thankful to my seniors who cooperated with me for completion of my Internship training and also for the Heads of different departments. By this Internship, I hope that I will gain lot of experience and knowledge of FINANCE & ACCOUNTS DIVISION. I hope that it will help in my professional life. Being here in ZTBL it was a pleasant experience. Dear Sir, I Wasim Akram have completed six weeks Internship training from Zarai Taraqiati Bank Head office Islamabad in following departments: 1: Central Accounts Department 2: Budget and Funds Management Department 3: Regulatory Reporting Department 4: Head Office Accounts Department

INTRODUCTION
HISTORY OF ZTBL:
It was introduced in 1961 named as ADBP and its basic function was the development of Agriculturists then afterwards its name was changed with ZTBL in 2002.

AIMS AND OBJECTIVES OF ZTBL

Develop and operate as a financially and operationally sustainable R.F.I of the country. Assist rural community, particularly the small farmers. In raising their productivity and income levels through timely delivery of credit, advisory and ancillary services .To play role as a rural commercial bank to mobilize rural capital formation and to commercialize the agriculture sector by delivering the true value of credit to the client. Providing wide range of risk insurance products to its clients .

I visited following units in HO Accounts Department in ten days. 1. Employees Fund Unit
In EFU there are 10 Trusts are working for employees benefit. These are as under: ZTBL EMPLOYEES BENEFIT FUND TRUST ZTBL BENEVOLENT FUND (OFFICERS) TRUST ZTBL BENEVOLENT FUND (STAFF) TRUST ZTBL PENSION FUND TRUST CONTRIBUTORY PROVIDENT FUND TRUST GRATUITY FUND TRUST ZTBL EMPLOYEES PROVIDENT FUND TRUST ZTBL GRATUITY FUND TRUST under SR-2005

GENERAL PROVIDENT FUND (officers) TRUST GENERAL PROVIDENT FUND (staff) TRUST

C.P FUND TRUST:

It is introduced by SR-2005 and applicable from 01/07/2006. Contributory provident fund held by bank and administrated by trustee.

RATE OF CONTRIBUTION:
All subscribers shall contribute equal to 2% of their monetized salary.

GRATUITY
There are two types of gratuity. Firstly it is introduced in SR-1961 and afterwards it is introduced in SR-2005 (Amended). Gratuity is also contributed by ZTBL for the benefit of the employees. This fund is held by the trustees. Head of accounts department, ZTBL, Head office, Islamabad shall be the chief trustee.

Rate of Contribution:
It is contributed by ZTBL @ 1/12th (8.333%) of monetized salary.

PAYMENT OF GRATUITY:
The amount of gratuity is calculated by the rate of monetized salary and is given at the time of death or mental incapacitation during service or at the time of retirement. 1.

Payroll Unit
ALLOWANCES FUNDS BASIC PAY HOUSE RENT MDICAL ALLIED CHARGES CONVEYANCE ADHOC RELIEF SPECIAL ADHOC RELIEF PENSION BASIC PAY SCALE Clerical Officers 1 to 7 16 & above

ADVANCES:
There are different advances are granted for employees. House Building Advance Other Advances Motor Car Advance Motor Cycle Advance Bicycle Advance Rain Advance (Markup free) fixed by 25000 Rs. Personal Loan to Officers Personal Loan to staff

The maximum limit of advances for optees is up to 35 Monetized salaries.

House Building advance:

Officer 4% markup Staff 0% markup

Recovery Period Officer Staff 20 years 20 years

CONVEYANCE (CAR):
It is only allowed for officers with 4% markup.

CONVEYANCE (BIKE):
It is only allowed for staff with 0% markup. The maximum limit for bike loan is 80,000/= only.

RECOVERY PERIOD:
Recoverable period for car & bike is the same.

PERSONAL LOAN:
It is allowed for Non-Optees at the rate of 3 gross salaries and 3 monetized salaries for Optees. RECOVERY PERIOD: The recoverable period is 2 years.

BONUS FOR MONETIZED and GROSS SALARY

For officers @ 82.5% and for staff @ 110%+gross salary.

INCREMENT PERCENTAGE
Increment is only allowed from 1to 10% for every employee according to their performance par annually.

PENSION SR-2005 & 1961

According to SR-1961 pension is given accordingly. According to ASR-2005 the amount of pension is given in lump sum and not recorded in accounts. 2.

Payment unit
In payment unit there is only maintained the accounts of ZTBL and the payments which are given to the other banks and are recorded by vouchers and the payment is made by Credit Advices.

2. BUDGETS & FUNDS MANAGEMENT DEPARTMENT

BUDGET & FUNDS MANAGEMENT DEPARTMENT

Budget Planning Unit

Budget Analysis Unit

Treasury Unit AIM OF BUDGET Department:

Funds Reconciliation Unit

Preparation of financial plan for Banks credit limits, funds review and their application.

OBJECTIVES:
To arrange adequate resources for maintenance of adequate liquidity for efficient credit disbursement, timely discharge of liabilities and operations of the Bank.

Planning: Looking into the future with a view to Foresee in advance the possible external and internal forces that will affect the strength and performance of the company. Allocate necessary physical and financial resources in advance to retrack the company on the path as envisioned in the company vision and mission statement and as management desires. Integrate the efforts of different functions for directing their efforts towards the companys common Goal. Budgeting: An effective tool of planning and control exercised in the Company to help management get the desired goals of stakeholders value enhancement. What is a budget BUDGET Purpose of budgets Importance of budgets Keys to effective budgets Budget schedule Budget update Variance Analysis Corrective step Encourage / Discourage

WHAT IS BUDGET A budget is a road map; facilitate where one is and where one want to go and how one can go to ones desired goal point. Budgets are used for: Owner (Stakeholder) Oversight Goal Focus Financial Control

IMPORTANCE OF BUDGET The more clear, accurate, and well-thought-out budgets in the beginning, the more likely you will be able to: Adjust plans, activities, and spending as needed Spend money cost-effectively Reach the specific goals you have set Strengthen internal control system

ZTBL BUDGET OBJECTIVES To forecast the expected impact of managerial decisions in quantitative and financial terms To calculate the impact of expected events on Income and Balance sheet To map up the Investment and financing strategy

3. CENTRAL ACCOUNTS DEPARTMENT AIM Formulation Of Accounting Policies And Procedures With A View To Present The True Financial Position Of The Bank In Financial Statements.

OBJECTIVES Formulate and maintain accounting policies and procedures manual in line with applicable accounting standards ensure dissemination and implementation across the bank.

Preparation of financial statements as per requirement of statue. Ensure proper accounting of assets, liabilities, income & expenditure.

FUNCTIONS Issuance of instructions relating to accounting policies and procedures. Allocation of specimen signature numbers to the authorized signatories of the branches and maintenance of signature booklet Notification of schedule of bank charges

Maintenance and updating of chart of accounts (G.L. heads) for recording of financial transactions.

Preparation of periodical financial statements of the bank and to deal with all related matters. Issuance of guidelines regarding periodical closing of accounts Dealing with all corporate tax matters and liaison with tax department/tax advisors/ consultants etc. Issuance of instructions regarding deduction of tax at source. Compilation of fixed assets schedule of the branches/ho departments

Follow up/collection of fixed assets schedule along with supporting documents from branch as well as H.O. Department.

To arrange credit rating of the bank.

Coordination with internal/external auditors /SBP inspection team. Conduct pre payments verifications of sanctions pertaining to ho.

Perform administrative functions for the department such as sanction of leaves, approval of tour programs, approval of travel allowance etc.

Any other accounts related assignments entrusted by the competent authority

POLICY UNIT Devise accounting procedure regarding accounting in the well as at head office. branches as

Revise/circulate revision of mark-up/return rate for compliance by the branches. Deal with management letter & executive summary. To arrange payments to the external auditors bills. Coordinate with external auditors. Arrange compliance of internal/external audit observation relating to field & head office in respect of accounting matters. Coordinate with other departments in the head office on policy matters. Maintain personal files of the employees, deal with their leave cases and other administrative matters. Up-date specimen signatures booklet for use by authorized signatories in branches/head office. deal with policy matters relating to maintenance and operation of accounts.

Prepare bank charges schedule and circulation thereof amongst the branches and submission to SBP on half yearly basis.

Provide guidelines for adjustment of suspense account.

Allocate new G.L. Heads for accounting purposes.

Provide guidance to the branches regarding rectification/ settlement of accounting errors and audit observations. Coordinate with credit rating company for providing information for credit rating of the bank. Issue instructions relevant to books of accounts Perform administrative functions for the department such as sanction of leaves, budget preparation & other miscellaneous matters of the department.

 Perform any other assignment as and when assigned by the competent authority. ACCOUNTS UNIT Coordinate with concerned departments of is division for timely production of statement of affairs. Arrange compilation/merger of statement of affairs on country level.

Compile balances under relevant group of heads from trial balances for preparation of financial statements.

Produce list of abnormal entries/balances for rectification.

Deal with all matters relating to software development and system analysis and maintenance of statement of affairs. Issue guidelines/instructions to the branches regarding closing of accounts on quarterly, half yearly and yearly basis Prepare quarterly, half yearly and yearly financial statements and its agenda for presentation to audit committee & board of directors.

Provide statement of affairs of every branch and country to auditors for auditing purposes. Prepare annual capital adequacy ratio statement for certification by external auditors.

To coordinate with external auditors, commercial auditors & sbp inspection team regarding periodical accounts Perform any other assignment as and when assigned by the competent authority. CORPORATE TAX UNIT. Issue guidelines regarding deduction of tax at source under the income tax ordinance, 2001. Collect tax payment documentary evidences for tax deducted at source from the branches for submission, to tax advisor & tax department. Coordinate with tax consultant, sbp & income tax authorities on tax issues. Pursue the tax refund case with income tax offices, through tax consultant. Prepare statement & payment of advance tax u/s 147 of the income tax ordinance, 2001. Guide branches for settlement of tax issues.

Arrange payments to tax advisor, appeals fee & other mandatory payments required under the income tax ord., 2001.

Attend tax related audit observations and arrange compliance thereof. Perform any other assignment as and when assigned by the competent authority. PRE PAYMENT VERIFICATION UNIT Verify all payments relating to head office. Check availability of sanction of the competent authority. Check competence vis--vis financial power of approving authority. Check budget/ceiling.

Check completeness of documentation and verification of arithmetic accuracy.

Check procedural compliance. Perform any other assignment as and when assigned by the competent authority.