10 April 2011
NO. MOC is to be used only for making changes in the profit and loss account or the balance sheet of the Bank. These changes would arise either to arithmetic or conceptual error by the branch. If the branch auditor wants to draw the attention of the central statutory auditor to the fact that the most of accounts are NPA, he/she may mention in the LFAR. Also nowadays, the banks have specialised recovery branch which will have almost all the NPA accounts. This fact should be borne in mind before making the comment
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