Managment Audit

8/7/2019 Managment Audit

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Allama Iqbal Open University Islamabad(Department of Business Administration)

ACKNOWLEDGEMENT

All acclamation to Allah who has empowered and enabled

me to accomplish the task

Successfully first of all I would like to thank our Allah

Almighty who really helps me in every problem during the

project. I would like to express my sincere and humble

gratitude to Almighty who’s Blessings, help and guidance

has been a real source of all my achievements in my life.

I would like to admit that I completed this project due to

parents who pray for my success.

I also wish to express my appreciation to my supervisor

Mr. Younis who helps me a lot and introduce me to new

dimension of knowledge.

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DEDICATION

My project is dedicated to my beloved Parents,teachers,

brothers, sister and all of my well wishers.

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T ABLE OF C ONTENTS Page. No

• Introduction 05

• Definition of Management Audit

06

• Objectives of Management Audit

07

• Practical Study on Muslim Commercial Bank of Pakistan

08

• Background & History of Bank

09

• Vision And Mission 10

• Date Bases used in MCB

11-15

• Software uses by MCB

16-17

• Information System of MCB

18-27

• Remittance System

28-29

4




• Communication Medium uses by MCB

30-36

• Recommendation

37

• Conclusion

38

5




MANAGEMENT AUDIT

Introduction

So far we have confined ourselves chiefly to the rights and duties of the auditor arising either out of the written agreements between himand his clients or under statute and case laws. But the latest developments which are visible in the field of auditing have made allthe more conscious to prepare the auditor to adopt the techniques and procedures so as to enable him to probe more deeply and intelligently into the internal organization of business concern that heretofore. Heis confined to examine whether the balance sheet and the profit and loss account have been properly drawn up as per the provisions of thecompanies’ ordinance and that they exhibit a true and fair view of the

state of affairs of the company. He can do all this as his duty of conventional routine and nothing more.

But the statutory auditor is not expected to go into thequestion whether the policies, which have been laid down by the Management, are being carried out in their proper perspective and in the right direction. He has not to adviseand suggest the management the ways and means throughwhich the profits of the concern can be maximized and wastesavoided. Thus, he is not required to point out the changes and improvements on the system of running the business, which

may produce better results in future. He has no legal right todo all this.

It is every often argued that the internal auditor is bestowed with thetask stated above. But in practice he is confined only to the financialaspect for the prevention and detection of errors and fraud or misappropriations and manipulations. Undoubtedly, all the activitiesand operations major or minor in nature, of the business have financialimplications. For this, the financial auditing cannot serve the purpose.It cannot cover the management auditing as the management audit can prevent financial loss before it occurs, while the financial audit can

only establish the fact that a loss has been made.

Today, the business has become so large and complicated that most of the unhealthy situations are attributable to the basic defects of theorganizational structure and ineffective type of the organization. Thefirms of professional accountants are being called upon to render management consultancy services. The object of management consultancy services is to improve the operations of an organization.

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The presence of management service amounts to a practicalguarantee that the work will be satisfactory. It has to offer recommendations and its job is over.

Thus, Management audit is a new concept and goes beyond the

conventional audit. It is actually a comprehensive and a critical reviewof all aspects of management. It is concerned with the appraisal of theefficiency of management. It can be said to be an expansion of internalaudit and the idea has developed recently.

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Definition of Management Audit

T.G.Tokhe

“The Management Audit has been defined as a comprehensivecritical review of all aspects of process of Management”.

William P.Lenoard

“A comprehensive and constructive examination of anorganizational structure of a company, institution or branch of Government, or of any component thereof, such as a divisionor debarment and its plans and objectives, its means of operations and its use of human and physical facilities”.

These definitions have pointed out that the management audit dealswith the management process as a whole. It facilities the most effective relationship with the outside world and the internal efficiency of the business.

A long but a comprehensive definition has been given by L.R Howard as given below:

(3) Leslie R. Howard.

“Management audit is an investigation of a business from thehighest level downwards in order to ascertain whether sound management prevails throughout, thus facilitating the most effective relationship with the outside world and the most efficient organization and smooth running internally.

(4) Taylor and Perry

“Management audit is a method to evaluate the efficiency of management at all levels throughout the organization, or morespecifically, it comprises the investigation of a business by anindependent body from the highest executive level to downward,in order to ascertain whether sound management prevailsthroughout and to report as to its efficiency or otherwise withrecommendations to ensure its effectiveness where such is not the case”.

From the above definitions it would be evident that the management audit is an examination, scrutiny and appraisal of the plans, policies,

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objectives, and means of operations and the use of physical facilities.This reviews the policies and actions of the management in turn. It willnormally be so revealing as to encourage action of a perspectivenature that will put into effect the objects for which it was originally demanded.

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Objectives of Management Audit

1. To reveal defects or weakness in any of the elementsexamined by the management auditor and to suggest

improvements to obtain the best possible results of theoperations of concern.

2. To ensure that most efficient administration of theoperations essential for smooth running of a business.

3. To obtain the efficiency and effectiveness of themanagement.

4. To suggest ways and means for the achievement of objectives and targets set forth by the management.

5. To assist at all levels of management in the effectivedischarge of their duties and responsibilities

6. To facilitate the most effective relationships with theoutside world and the most efficient organization and smooth running internally.

7. To evaluate performance by relating inputs (human and physical both) with outputs.

8. To assist the management to establish good relationshipwith the staff to enable it to elaborate the duties, rightsand liabilities of the entire personnel.

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INTRODUCTION TO THE BANK

MCB formally known as Muslim Commercial Bank Limited was

incorporated by the Adamjee Group on July 9, 1947. The bank wasestablished with a view to provide banking facilities to the businesscommunity of the sub-continent. The bank was nationalized in 1974during the government of Zulfikar Ali Bhutto.This was the first bank toprivatized in 1991 and the bank was purchased by a consortium of distinguished Pakistani corporate groups led by Nishat Group. As of June 2008, the Nishat Group owns a majority stake in the bank. Duringthe last fifteen years, the Bank has concentrated on growth throughimproving service quality, investment in technology and people.

In 2005, the management of the bank changed its name from

Muslim Commercial Bank Limited to MCB Bank Limited (MCB). Thereason was to explore international markets for the bank as it wasfacing resistance, especially from Western Countries to avail a license,which partly had something to do with the banks name. Later, MCBbecame the fourth Pakistani company to be listed on the London StockExchange.

MCB is one of the leading banks of Pakistan with a deposit baseof about Rs. 280 billion and total assets of around Rs.300 billion.Incorporated in 1947, MCB soon earned the reputation of a solid andconservative financial institution managed by expatriate executives. In

1974, MCB was nationalized along with all other private sector banks.

The Bank has a customer base of approximately 4 million and anationwide distribution network of 1,026 branches, including 8 Islamicbanking branches, and over 300 ATMs, in a market with a population of 60 million.

During the last fifteen years, the Bank has concentrated ongrowth through improving service quality, investment in technologyand people, utilizing its extensive branch network, developing a largeand stable deposit base.

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http://en.wikipedia.org/wiki/Incorporated

http://en.wikipedia.org/wiki/Adamjee_Group

http://en.wikipedia.org/wiki/Nationalized

http://en.wikipedia.org/wiki/Majority

http://en.wikipedia.org/wiki/Investment

http://en.wikipedia.org/wiki/Adamjee_Group

http://en.wikipedia.org/wiki/Nationalized

http://en.wikipedia.org/wiki/Majority

http://en.wikipedia.org/wiki/Investment

http://en.wikipedia.org/wiki/Incorporated




THE VISION AND MISSION STATEMENT

Vision statement:

Challenging and changing the way You bank

Mission statement:MCB bank’s team, of committed professionals is dedicated tomaintaining long-term customer relationships through outstanding

service and conveniance

TrustWe are the trustees of public funds and serve with integrity &commitment. Ethical behavior is of critical importance to us. We adoptfull compliance with internal and external policies and procedures,operating within the legal framework

Customer Focus

We continuously seek to exceed our customer’s expectations, forging andmaintaining long term relationships

Innovation

We strive to be the market leaders in innovative products and servicesoffering customized financial solutions with flawless execution

Teamwork

The diversity of our people is our strength. We inspire and challenge eachother – working together to achieve synergy

Achievement

Our people are our most valuable asset. We are committed to a resultoriented culture. Our goals are clear and merit is the only criterion forreward

VALUES OF MCB

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Social Responsibility

As responsible citizens we contribute to the social welfare of thecommunity we live in

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DATABASES USED IN MCB

FOLLOWING Databases used in banks1 Visual basic

2 Crystal report 3 Access 4 Sq server 5 Dot—net

Butt MCB bank used following databases

M/s ACCESS

Access Database Design & Programming takes you behind the detailsof the Access interface, focusing on the general knowledge necessary

for Access power users or developers to create effective databaseapplications. When using software products with graphical interfaces,we frequently focus so much on the interface that we forget about thegeneral concepts that allow us to understand and use the softwareeffectively. In particular, this book focuses on three areas: Databasedesign. The book provides an enjoyable, informative overview of database design that carefully shows you how to normalize tables toeliminate redundancy without losing data, Queries. The book examinesmulti-table queries (i.e., various types of joins) and shows how toimplement them indirectly by using the Access interface or directly byusing Access SQL. Programming. The book examines the VBAintegrated development environment (IDE). It then goes on to providean excellent introduction to Data Access Objects (DAO), ActiveX DataObjects (ADO), and ADO Extensions for Data Definition and Security(ADOX). These sections serve as a handy introduction and primer forbasic database operations, such as modifying a table under programcontrol, dynamically adding and deleting a record, and repositioning arecord pointer. The concluding chapter focuses on commonprogramming problems, such as computing running sums andcomparing two sets. Unlike other Access books that take the long,detailed approach to every topic of concern to Access programmers,Access Database Design &Programming instead focuses on the coreconcepts, enabling programmers to develop solid, effective databaseapplications. This book also serves as a 'second course' in Access thatprovides a relatively experienced Access user who is new toprogramming with the frequently overlooked techniques necessary todevelop successfully in the Microsoft Access environment. Anyoneinterested in learning Access in depth, rather than just scraping thesurface, will enjoy and benefit immensely from reading this book.

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The Banking System provides access to eight basic functions of banking. These include:Bank Accounts

Printing MICR InformationChecks

Deposits

Adjustments

Check Register

Check Reconciliation

Recurring Payments

Batch Posting

The Check Writer tabbed dialog form provides access to the first five

banking functions.

Bank Accounts

The Bank Accounts form is used to enter bank account information. You can enter multiple accounts per bank, or enter accounts for anynumber of banks. You can also set your starting check number, if theaccount is a checking account, as well as view the current bankbalance and other account information.

Printing MICR Information

If you purchase the optional MICR Font (included for free with theDeveloper version), you can enter and print MICR information on yourchecks. This is really only used if you will be printing to blank check

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http://www.officeprogramming.com/banking_system.htm#Bank%20Accounts%23Bank%20Accounts

http://www.officeprogramming.com/banking_system.htm#Printing%20MICR%20Information%23Printing%20MICR%20Information

http://www.officeprogramming.com/banking_system.htm#Checks%23Checks

http://www.officeprogramming.com/banking_system.htm#Deposits%23Deposits

http://www.officeprogramming.com/banking_system.htm#Adjustments%23Adjustments

http://www.officeprogramming.com/banking_system.htm#Check%20Register%23Check%20Register

http://www.officeprogramming.com/banking_system.htm#Check%20Reconciliation%23Check%20Reconciliation

http://www.officeprogramming.com/banking_system.htm#Recurring%20Payments%23Recurring%20Payments

http://www.officeprogramming.com/banking_system.htm#Batch%20Posting%23Batch%20Posting

http://secure.necaweb.com/caryp/hazel-doc/software/yes4pi28.gif

http://www.officeprogramming.com/banking_system.htm#Bank%20Accounts%23Bank%20Accounts

http://www.officeprogramming.com/banking_system.htm#Printing%20MICR%20Information%23Printing%20MICR%20Information

http://www.officeprogramming.com/banking_system.htm#Checks%23Checks

http://www.officeprogramming.com/banking_system.htm#Deposits%23Deposits

http://www.officeprogramming.com/banking_system.htm#Adjustments%23Adjustments

http://www.officeprogramming.com/banking_system.htm#Check%20Register%23Check%20Register

http://www.officeprogramming.com/banking_system.htm#Check%20Reconciliation%23Check%20Reconciliation

http://www.officeprogramming.com/banking_system.htm#Recurring%20Payments%23Recurring%20Payments

http://www.officeprogramming.com/banking_system.htm#Batch%20Posting%23Batch%20Posting




stock. MICR stands for Magnetic Ink Character Recognition. Banks usethis to automatically process checks. If you will be printing your ownchecks with MICR information, you will also need to use magnetictoner. This produces a MICR font that is readable by your bank. If youare interested in printing MICR information, we can provide you with

companies that sell Magnetic toner.

Once the font is installed and registered in Windows, Yes! I Can Run MyBusiness can locate the font and display MICR information on the MICRLine in the Bank Accounts form. This information is then displayed onthe Deposits, Checks and Adjustments forms. When your print any of these items, you have the option to print the MICR information.

Checks

The Checks form allows you to create and print checks. Choose the

bank account you want to work with and enter check information.

Create Check Stubs for Check Printing and Mailing

Handle VOID/Spoiled Checks

Enter Multiple GL Account Splits include Negative Amounts

Search by Check Number, Date, Payee, or Memo Field Data

Control Passwords for Reprinting or Unvoiding Checks

Automatically Display Bills Used to Create Bill Pay Checks

Duplicate Any Check

Several options are available for printing checks. You can print checks

in several positions, as shown in the figure below. You can also selectfrom different check types, such as Window, Standard, Pre-Printed orPlain Paper checks.

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If you purchased the optional MICR Font and have magnetic toner, you

can print the checks on blank paper. Otherwise, you can use virtuallyany type of check stock to print the check data to pre-printed checks. Just customize the check report to print the data on your pre-printedcheck. You can also purchase pre-printed checks through DatabaseCreations, Inc. that can be used with Yes! I Can Run My Business.

Deposits

The Deposits form allows you to enter deposits for any bank accountthat you have. You can also create detailed deposit slips describing thecontents of a deposit. Deposit slips can automatically be created from

checks received through the Invoice system.

Adjustments

The Adjustments form is used to create a number of different typesof adjusting transactions. You can setup your own transaction types

that are specific to your business needs. These can include withdrawaltype transactions such as bank charges or fees, or deposit typetransactions, such as interest earned or wire transfers.

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Check Register

The Check Register allows you to view or print all the transactions

that affect a particular bank account. This register is similar to thecheck register you would keep for your own personal checkingaccount. It is easy to read and move through. The register will alsodisplay voided checks and a cumulative balance.

Check Reconciliation

The Check Reconciliation form is used to reconcile each bank account. You can view

Outstanding, Cleared or All Transactions as well as the current checkbook balance andcurrent Bank Balance. The form calculates the statement difference and outstanding

balance. It will also list the number and sum of outstanding checks, payments, deposits

and credits.You can easily view the check for any item by pressing the check button.

Features of this form include:

Visual Check Register with Declining BalancesAutomatically Excludes Void ChecksDisplays All Transactions in Order of EntryView/Print Running BalancesEasy to Use Check Reconciliation SystemWorks by Checking Off Reconciled TransactionsEnter Adjustments While You Reconcile

Recurring Payments

The Recurring Payments option allows you to enter standardpayments that occur on a regular basis on a specific account. You canenter the payment frequency (Monthly, Daily, Weekly, and Quarterly,Annually), GL and payment information for each recurring payment.

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A separate form allows you to view all recurring payments and givesyou the option to create checks for all or only selected checks.

DATA BACK

All branches of MCB are inter connected with each other and data of one branch is available at another branch butt there is some personaldata of each branch and after 15 days each branch save their data inCDs and these CDs are kept by branch Manager which is responsible of whole branch and after one year one copy of CDs send to head officeand One copy of date in sent to warehouse and also one copy is keptby branch Manager

SOFTWARE USES BY MCB

Mostly Pakistani Banks used the following Software which Arethe following

1 Finnone2 Pibus3 Tcl4 Kapettee5 Sql6 Vb –Net

MCB used the Following software.

1 Finnone2 Sql3 Vb-NET.

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FINNONE

BANKING MANAGEMENT SOFTWAREFINNONE TM SUITE

Specific This complete BankingManagement suite, FinnOneTM, hasbeen specifically designed to cater tothe technology needs of the bankingand financial services industry. This

Banking Management suite consistingof applications provides operationaland decision-making support to thefast changing financial servicesindustry. The suite covers applicationsspanning fund and fee based services,including the FinnOneTM GeneralLedger module, with which all other

modules are integrated. Each module of FinnOneTM is an independent unit initself. Thus, companies with limited services can also opt for select modulesfrom this complete Banking Management suite.

The various modules of FinnOneTM Suite are as follows:

LOS - Loan Origination SystemLending - Installment, Auto, Housing, Consumer, MortgagesFAS - Finance Against SecuritiesCollections - Web-based Collections & Recovery ManagementPDCMS - Post-Dated Cheque Management SystemGL - General LedgerLiquiDeposits - Term/ Recurring/variable deposits, Cash certificatesCCAPS - Credit Card Application Processing System

To know more about our expertise and how we can help you for your softwarerequirements, please feel free to

INFORMATION SYSTEMS OF MCB.

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http://www.nucleussoftware.us/products/complete-banking/los.html

http://www.nucleussoftware.us/products/complete-banking/lending.html

http://www.nucleussoftware.us/products/complete-banking/fas.html

http://www.nucleussoftware.us/products/complete-banking/collections.html

http://www.nucleussoftware.us/products/complete-banking/pdcms.html

http://www.nucleussoftware.us/products/complete-banking/gl.html

http://www.nucleussoftware.us/products/complete-banking/liquideposits.html

http://www.nucleussoftware.us/products/complete-banking/credit-card.html

http://www.nucleussoftware.us/products/complete-banking/los.html

http://www.nucleussoftware.us/products/complete-banking/lending.html

http://www.nucleussoftware.us/products/complete-banking/fas.html

http://www.nucleussoftware.us/products/complete-banking/collections.html

http://www.nucleussoftware.us/products/complete-banking/pdcms.html

http://www.nucleussoftware.us/products/complete-banking/gl.html

http://www.nucleussoftware.us/products/complete-banking/liquideposits.html

http://www.nucleussoftware.us/products/complete-banking/credit-card.html




Information is the most important element of Banking. Hence MCB hasmade all out efforts to create such a flow of Information so that itsstakeholders are provided with the required information only. Secrecyof Information is also very crucial for the effective working of Bank.MCB has made the following systems which can be called Integral

Systems of Core Banking Functions which run its day to day bankingFunctions:

Multi-currency Interbranch Banking System.

General Ledger Banking System.

Remittances system.

RTC System.

ATM & Online Systems.

IT RELATED PRODUCTS OFFERED BY MCB.

ATMs

DEBIT CARDS

SMART CARDS

MOBILE BANKING

CALL CENTRE

Multi-currency Inter Branch Banking System.

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Multi-currency Inter branch Banking Systems (MIBS) is softwaredesigned in COBOL Computer language which has been speciallydesigned by the Information Resource Management Systems in orderto keep MCB abreast with the modern banking facilities which shouldbe provided to its customers as a modern and progressive Bank.

SYSTEM’S FUNCTIONAL OVERVIEW :

This system is password protected, each user has its own identificationand password, which can be changed at will. Each user has differentauthority levels for different functions and according to the Bank’sPassing & Signing Schedule.

If anyone tries to break the security, the software will cease to operateand will not allow the trespasser to enter into the system.

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The MIBS Main system shell consists of a DEPOSIT SHELL MENU whichis the first interface after the software has been loaded. It consists of many options consisting of Daily working options, back up options,

salary options & Mail Systems.

DAILY WORKING:

Daily branch working for Retail Banking included Account opening,Closing, Cheques Processing, transaction posting, various inquiries,Branch balancing and finally File Clearance for the next day. ProductCalculations and Markup, Daily Reports that are printed and afterverification from Manager are filed for the purpose of Audit reviews forlater reference.

DAILY PROCEDURE:

1. Daily transactions2. Summary & Balancing (ATM & Cross Branch Reports)3. Internal Back up4. Back up before Product (BBP)5. Product Calculation6. Day’s Journal listing

7. Backup after product (BAP)8. Backup cheque files9. Release all printing reports10. Daily

file Clearance11. Jotting

of accounts

PERIODIC CLOSING:

WEEKLY:

Jotting Report is produced for all accounts. Running Finance is reportedfrom Master Summary.

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MONTHLY:

Jotting Report is produced for all accounts

Running Finance Report contains the Running Finance position of theBranch after deducting Central Excise Duty.

QUARTERLY:

Same as monthly

Running Finance Report contains the Running Finance position of theBranch.

AUDITOR’S VIEW:

Sufficient security levels are provided in the system for access tosystem and within the system. Also security is built-in for cross branchtransaction processing.

Proper verifications and authentication of reports signed by responsible

staff is required.

Proper filing of these reports is required for successful operation.

The disaster recovery, back up and fall-back procedures are ensured inthe System, this will certainly depend upon the procedures andlogistics of the back up tapes to the vaults arranged for this purpose.

CROSS BRANCH TRANSACTIONS:

When the Cross branch is offline, CBT will not be allowed. When it isonline, the conditions are first checked the cross branch signatures canbe viewed on the screen and then the transaction is passed. CrossBranch Reconciliation reports are available.

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ADHOC REPORTS:

Additional reports are provided within the system, which can beprinted by the branch for day-to-day business requirements. It is

important for the branch managers and senior staff to know what andwhen to utilize these reports for the ease of their work and safety of their precious time.

ONLINE REQUIREMENTS:

Since the system is On-Line Real time, it requires that the balances atthe Host must be exactly the same as in the Branch.

If the Branch’s telephone line is down for some reason, the branch willbe working in Offline mode but its transaction will be stored in a file inthe branch server and as soon the branch’s line becomes active, thepending transactions from the branch will be immediately fired to theHOST to update the balances there.

In the Evening Closing the Branch balances must be matching with theCentral Host machine at IRMD. The branches are allowed to set ATMinactive temporarily during the evening closing so that during this time

no transactions can be made on branch accounts. Once the branch isbalanced, immediately the ATM services must be restarted.

HELP-DESK PROCEDURES:

For all problems relating to MIBS, help desks are established, also ATMHelp desk is Operational. The staff at these Centres is specially trainedfor resolving day-to-day problems.

These IT Help Centers are located in Karachi, Lahore and Islamabad

and there is local UAN number of all three i.e. 111-000-777

Rests of the branches are controlled by specially trained staff posted atREGIONAL OFFICES.

MANAGERIAL CONTROLS:

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Managers and supervising staff have to review the critical reports onthe daily basis to make sure that the branch is balanced itself and withother branches. ATM cash is sufficient and CASH IN ATM is balanced

with GENERAL LEDGER.

Above is Menu of MIBS Shell Selection Menu when the Branch is offlinewhich can be due to any reason i.e Branch line failure, hardware

problem or error in central Host in Karachi

GENERAL LEDGER BANKING SYSTEM

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DAILY WORKING:

All GL vouchers generated are posted during the day. These are mainlyof following types:

• Originated by Branch

• Originated By Head Office

• Responded By Branch

• Responded by Head Office

All the advices of GL have specific TRANSACTION CODES which have tobe punched in the system so that the relevant description can be

recorded. This GLBS program is also Password protected

At day end after all transactions have been posted, Internal Back uphas to be taken. Then branch closing and Daily Closing has to be done.

After CASH IN HAND has been balanced and confirmed by the Managerthe rest of the system options are operated. Cash In Hand Summary istaken and all reports like CLEAN CASH, HEAD OFFICE ACCOUNT

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STATEMENT, DAILY GENERAL LEDGER STATEMEMNT, is printed andFILE CLEARANCE is done.

All reports should be duly checked and signed by Manager/Authorised

Officers before leaving the branch.

MONTHLY CLOSING:

After daily working has completed and all provisions of accounts havebeen applied by the Manager, there is MONTHLY CLOSING MENU in theMAIN MENU of GLBS SHELL which must be operated.

YEARLY CLOSING:

At year-end, there is double clearance of Cheques on the part of SBPwhich means that the last day’s balances of MCB and SBP have to becleared the same day. After clearance of cheques from SBP the YEARLYCLOSING MENU is operated. This Menu must be operated AFTER theDAILY CLOSING MENU AND MONTHLU CLOSING MENU has beenoperated.

REMITTANCE SYSTEM.

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This system is specially designed and installed in those brancheswhere Remittances i.e Demand Draft, Pay Order, Mail Transfer andCheques for Collections is very heavy in transaction number and workload in not manageable by even two staff.

This system is also Password protected and requires ID and Passwordof the employee who wishes to LOG IN to the system. This is helpful todetermine the User ID of specific remittance instruments made inorder for future check.

1. DAILY WORKING:

It consists of four options:

DAILY POSTING

SUMMARY

LISTING CREATE GL DATA

FILE CLEARANCE

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AMENDMENT MENU:

This is special menu which can only be accessed within the RSBS menuby the password of MANAGER.

DUPLICATE PRINT:

Duplicate Instrument can also be issued by same procedure by thepassword of Manager only.

REVERSAL ENTRY:

Reversal entry is only allowed in the PAYABLE Module but not allowedin ISSUANCES Module, it consists of following options:

Delete

Change Branch Code

Change Serial Code

DAILY PROCEDURE TO RUN:

1) DAILY WORKING2) SUMMARY3) LISTING4) INTERNAL BACKUP5) CREATE GLDATE6) BACK UP BEFORE CLEARANCE

7) FILE CLEARANCE8) BACK UP AFTER CLEARANCE9) EXIT.

COMMUNICATION MEDIUM USED BY MCB MCB ON THEINTERNET.

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The Internet is a worldwide computer network that connect hundredsand thousand of network . These link connect the MCB with theirCustomers and now in this modern period of banking the customers of MCB now checked there account through internet and also check therebalance through internet and also opened there account through

internet. Banking sector got lot of advantage from this Internet facilityand the customer of MCB are also applying for the Debit and Atm cardafter applying though Internet. MCB was one of the first Pakistani Banks which made its presence onthe Internet by creating a website www.mcb.com.pk. This site is wasmade and is maintained by a MNET Services Pvt Ltd, which is a fullyowned subsidiary of MCB.

Before this year the site was very normal one which gave onlyInformation regarding MCB ATM locations and Branch Networks,

Foreign Exchange rates and Press releases.

MCB USING EXTRANET

Many organization have there own networking system through whichvery person in office can access to the access person date oncomputer like these organization MCB have there own system of networking in branch and they have there own software to that everyemployee of organization can access to data :for example if we go tobank and want to know about our balance we get can this informationfrom any employee which have computer this has all happenedthrough extranet facility

MCB VIRTUAL BANKING.

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MCB Virtual banking is a Major Initiative undertaken by MCB which is aSpecial portal on the Internet which allows the following services onthe Internet:

FUND MANAGEMENT

FUNDS TRANSFER

BILL PAYMENT

CHEQUE BOOK REQUESTS

BANK ACCOUNT STATEMENT

STANDING ORDERS.

It works by first of all registering customers in the site by allottingthem ID and PASSWORDS so that customer secrecy is maintained. There are two types of users, INDIVIDUAL and CORPORATE.

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The MCB VIRTUAL INTERNETBANKING software is providedby Singapore based SYSTEMS

ACCESS called SYMBOLS VER8.0.

Detail of MCB SYMBOLSsoftware is given in pages tofollow.

MCB MOBILE BANKING.

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This is also a unique feature of MCB Banking that they allow therecustomers which have Mobile phones to register with the Bank andhave access to following services which is totally FREE:

Account Balance

Cheque book Request

Mini Account statement.

Initially this service was available only to MOBILINK customers but nowall MOBILE SERVICE PROVIDERS have made alliance with MCB andcustomer of any mobile company who is also MCB account holder canalso access these great services absolutely free.

MCB ATM CARD GOES GLOBAL.

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This is one of the most exciting feature of MCB ATM CARD that first itcould only be operated within PAKISTAN but since MCB has ventured

with MAESTRO & CIRRUS the MCB ATM CARD is operational at any ATMhaving one of the above two logos any where in the world. There areabout 464000 thousands such ATMs around the world.

A nominal fee is charged which is the service fee of foreign ATM used. This system is linked with MCB ATM System which is maintained MCBIT Department in Karachi which is linked to MAESTRO & CIRRUSthrough IBM AS-400 computer.

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MCB CALL CENTRE

MCB Call Centre is recently launched which gives phone services to itsvaluable customers if they are facing some problems. They getconnected to MCB CALL CENTER which is located at MCB Head OfficeKarachi.Its UAN number is 111-000-622.

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MCB SMART CARD.

MCB SMART CARD is the name of MCB’s DEBIT Card which is a chargecard.Customers having this card can use card at various outlets instead of carrying cash. This system works by MCB having alliance with al thesePOS by supplying them Machines through which the card is run andAmount is charged to the relevant account through MCB ITD Karachireal time processing software.

Another feature of this card is that it can also be used as an ATM CARDat all machines where MCB ATM is accepted.

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RECOMMENDATIONS AND FUTURE PLANS ABOUT THE IS

• Although Oracle has provided MCB with a highly customizedInformation System to suit its business needs, the FinancialControl Division feels that Oracle GL has not been customizedenough to suit their needs according to their specific needs.

• Therefore one recommendation that is notable and must bepointed out is that if the company purchases a new version of Oracle GL, it should be further customized in a better waywith the specific needs of the Financial Control Division inmind.

• System enhancements over time might also need to becarried out that could involve upgrading the server, storageand database systems.

• As for the future plans of the Company regarding theinformation system, it seems that the company is satisfiedwith the system and willing to retain it. It will purchase newversions of the Oracle E-Business Suite as soon as they arereleased.

•

In the future, MCB also has expansion plans and is expectedto open branches and start operations in some foreigncountries also. When that happens, a great deal more willneed to be invested in the company’s information system andit would remain to be seen whether the company wouldcontinue using the current information system or switch tosome other information system.

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CONCLUSION

• The Oracle E-Business Suite is a top of the line application

software used by businesses around the world.

• Oracle is a software company renowned for providing itscustomers with excellent software’s that provide fast, easy andefficient business information and support systems which play avital part in operational running of a business and coming upwith improved business solutions.

• MCB aims to keep its business in line with the top banks andcorporations of the country and therefore, it has chosen Oracle E-Business Suite as the application software that manages and

supports its business applications.

• The Oracle GL has the important task of maintaining GeneralLedger Balances of the bank from around the country andgenerating reports and financial statements on a daily basis.

Date post:	08-Apr-2018
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