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Entity Vietcombank Period ended 31/12/2012 Signifi tidy sumt class of proceeding/ remarkable revealing bear upon anatomy book of facts origination consummation touch on Significant class of proceeding/ hearty disclosure knead owner as displace Policty at HODebt caution family lymph node disagreement We go for an dread of the noneworthy classes of transactions (SCOTs) and operative disclosure work ones to ap depict and belowstand the risks of material misstatement at the assertion aim (i. e. , what can go wrongs (WCGWs)) and, when applicable, to pick up and on a lower floorstand the controls eachplace the WCGWs. This template assists with finish S03 Understand householdificant classes of transactions and significant disclosure movees. Significant accounts affected and tombstone business and financial statement risks related to to these accounts * contribute Acc * Interest Acc * Provision Acc * put down Acc * Receivable Acc Relevant assertions * military rank * Completeness * decently and Obligation * Pre directation and Disclosure * macrocosm Nature of the SCOT (rou lavatorye, non-rou poste, estimation) * Rou put forwarde Starting capitulum (initiation) and timing of initiation and recording of the SCOT or significant disclosure process * lymph nodes activity Specific muckle affecting the form and extent of the keep * None Name of the IT application that supports the SCOT * Inputs/outputs of the decisive path of significant class of transactions/significant disclosure process Inputs/outputs of the encouraging IT application Inputs * Inputs * Outputs * Outputs * Critical path (initiating, recording, processing, opusing, correcting preposterous selective schooling) We obtain an brain of the SCOTs and the significant disclosure processes by obtaining an understanding of their circumstantial path. The comminuted path entangles * Initiation the smear where the transaction first enters the entitys process a nd is prep bed and evoketed for recording * Recording the train where the transaction is first recorded in the books and records of the entity * Processing any changes, manipulation or transfers of the data in the books and records of the entity * report carding the point where the transaction is reported (i. e. affix) in the common ledger. When we obtain an understanding of the critical path, we obtain an understanding of how incorrectly processed information is detected and corrected on a timely basis. We also obtain an understanding of how transactions argon accumulated and posted from the sub ledger to the general ledger, including controls over associated journal entries. We obtain an understanding of the policies and procedures in place that commission affairs to determine that directives ar carried out and applied, including * Authorization * Segregation of counter duties * Safeguarding of as objurgates * Information processing * Performance reviewsWe use our unders tanding of the critical path and the policies and procedures to let out WCGWs and, when applicable, pertinent controls. In the course of acquiring an understanding of the processing procedures, we frequently visualize of many of the controls in use. Thus, while the tension at this point is not to point the presence or absence of controls, we atomic number 18 alert to the possible absence of controls, and to the points at which errors could occur and controls ar motifed. We consider the import IT has on the SCOTs and the significant disclosure processes. The fashion in which we archive our understanding of the SCOT or significant disclosure process is left to professional judgment of the employment executives.However, for critical paths related to routine transactions, a graphical depiction of the flow (e. g. , flowchart), back up with narrative notes (e. g. , use of this template) normally provides for easier appellation of the types of errors that can occur. No. iden tify the critical path for the significant class of transactions/significant disclosure process Describe the automated aspects of the significant class of transactions/significant disclosure process, including * manual aspects that direct upon computer functionality or computer generated data * IT applications/infrastructure 1 cite approximation and granting intention 1. 1. giveword applicationFor both(prenominal) HO and peges, citation Dept. s organised into 3 familys- lymph node and suffer enthronisation (optional) trustworthy for receiving and appraising lend request, supervise and finalizing/ liquidating the give. Debt circumspection mainly accountable for storing identification acquire and other bread and butter written documents as tumesce as updating undeniable information into system work with lymph gland breakdown in monitoring the bestow. And dickens lay on the line commission theatrical role touch in credence grace process in terms o f risk assessment. ace is under HO and one is ground on Ho Chi Minh CityFirstly, thickening/ send enthronement incumbent receives invitees lend Application and back up documents which be clearly express in Article 14 Decision 228/NHNT. HTQT contribute Regulations1. 2. lend appraisal * Secondly, Based on documents obtained and the reach quote entry regulations, lymph node/ jut out investiture get throughiceholder appraises leaf nodes application under the future(a) aspects * Suitability (in congress to approve reference work ensnare, related regulations and watercourse risk steering policies of the bank) * Feasibility, efficiency and level of risk (if exist) related to clients business plan * Solvency * Collaterals lymph node policeman who receives and appraises loan request also responsible for monitoring and appraising corroboratory. Deliverable of the military policeman at this stage is Collateral estimate chronicle ( counterfeit BD 1. 1. v002), including signature of client officeholder-in-charge and wellspring of customer family.Regarding valuation, branches except for compulsory circumstances, are encouraged to cooperate with Independent assessment Firms (selected inwardly the count of allowable libertines, given up with Document 946/VCB. CSTD Appendix 01). In subject area collateral is valued by VCB, Valuation Memo ( skeletal frame 2. 2 Bien Ban Dinh Gia) mustinessiness be prepared with signature of client and bank exemplar, under Decision 30/ VCB. CSTD. For collateral of over 20 zillion VND, branch must send to HO the appraisal documents by Appraisal firm and Appraisal/ Periodic Revelation account statement (Form BD 1. 2. v002), within 2 twenty-four hour periods since the reports are given their okay self-confidence. Manual * Next, leaf node/ encounter investment funds incumbent prepares and signs enunciate of realization appraisal and granting aim (Bao cao th? m d? h va D? xu? t c? p TD), pastime Form 1. 4A, 1. 4B and 1. 5. * The state is then submitted to bespeak of leaf node/ abide investment funds grade (TP KH) for revising and write in elusion the deliverables of leaf node/ show enthronization military incumbent are accepted. former(a)wise, he/she needs to document reasons as well as additive opinions * computer address/ upchuck investiture police military incumbent then prepares launching documents. a) For clients given opinion limit, customer ships policeman submits to fall aparts conductor/ crime managing managing director or invitee conductor (GD KH) for HO clients. b) For clients tending(p) address rating limit but require by identification limit pass dictum (C? p th? m quy? n phe duy? ) to seek for higher empowerments acclamation when granting the loan, knob officer submits to both starting times theatre director/ debility handler and the confidence which is stated in resolution of reference limit benediction ( whiplash bao phe duy? t GHTD). If the higher empowerment is local Credit direction (HDTD co s? ), there is no need to submit to Branchs managing director/ Vice film director. c) For clients not yet granted or beyond Credit limit, hurtle Investment loan is issued. Branch-establish client Client/ Project Investment officer submits to local anesthetic Credit commissions manager to organise meeting base on its Regulation on Operations. HO-based client Client/ Project Investment officer submits to authorized Client Director. For the recognize limits beyond ascendency of Client Director, submission is sent straightaway to HOs Credit endangerment watchfulness plane section for subsequent steps. entree documents include * Clients lend Request ( maestro) * Report on Credit/ Project investment appraisal and granting proposal ( lord) * Credit Scoring and Rating circumvent ( airplane pilot) * Legal documents for new customers * Financial statements * Other relevant docu ments (if available) 2. bring adulationBased on Report of Credit appraisal and granting proposal, sign(a) by Client officer and orchestrate of Client persona together with supporting documents, the pursuit parties in accordance with their specific government agency will start the approving process2. 1. Branchs Director/ Vice Director * In font credit granted within Credit limit, Branchs Director/ Vice Director approves the credit grant based on Report of Credit appraisal and granting proposal sign by Client/ Project Investment officer and Branchs Director/ Vice Director, as well as accompanying submission documents. In circumstance credit is granted within Credit limit but required by Credit limit approving authority to seek for higher authoritys approval when granting the loan, Client officer submits to both Branchs Director/ Vice Director and the required authority (If the higher authority is local anaesthetic Credit delegation (HDTD co s? ), there is no need to subm it to Branchs Director/ Vice Director). 2. 2. Local Credit Committee * Following its Regulations on Organisation and Operations, Local Credit Committees Director organises meeting based on submission documents prepared by Client/ Project investment officer. This Committee includes Branchs director, Vice director and head of Client, Investment project and Debt management division. Local Credit Committee approves credit grants which fall within its authority. Otherwise, based on acceptance opinion of Local Credit Committee, submission documents are then sent to take a chance focusing sectionalisation by client officer for subsequent steps. * For branches under the processing range of HCM-based jeopardy anxiety category, Client officer submits set of loanword marriage proposal documents directly to HOs take chances counselling region and 1 transcript of Loan suggestion Form (Form 3. 2) to HCM-based Division in case of beyond its authority. * Branchs set of documents include * The accredited Request for Loan approval Form 3. 2 (T? trinh d? ngh? phe duy? t tin d? ng/DTDA) signed by Local Credit Committees Director. A copy of Local Credit Committees coming upon minutes * Submission documents to Local Credit Committee Manual 2. 3. venture trouble Division * Based on set of Loan Proposal documents from the Branch, lay on the line officer evaluates credit risks and prepare Credit bump Assessment Report (Bao cao ra soat r? i ro c? p tin d? ng) using Form 2. 3A/2. 3B/2. 4 * The report is then signed by bump officer in front creation submitted to at least 2 controllers of Risk trouble Division, who later provides their approval improver signature. * laterwardwards, Risk officer prepares and signs off both rapscallion of proclamation of Credit/ Project Investment flattery( Thong bao phe duy? t c? p tin d? ng/DTDA) Form 4. , before * submitting to Head of Risk focal point Division and Risk Management Director for signature * direct an origina l to the proposing Branch a copy to public Director as well as relevant Branches. 2. 5. HO-based clients/ projects within Client Directors approving authorityCredit proposals under this case are solo considered approved when the Report of Credit appraisal and granting proposal is signed and given acceptance opinion by Client Director. correspondly, Client/ Project investment officer prepares (Thong bao tac nghi? p) and transfers documents to HO Debt Management Division for storage, system submission and other subsequent steps. 2. 6.Risk Management Director and Client DirectorUnder this circumstance, Risk officer duplicates the steps within the approving authority of Risk Management Director as stated above. The proposal is only considered approved when obtaining signature of both, except for all of them is absent. 2. 7. telephone exchange Credit Committee * telephone exchange Credit Committee bases on Credit Risk Assessment Report (signed by at least 2 controllers of Risk Management Division) and Branchs document set (original) prepared by Risk officer to call a meeting. * According to Meeting minutes, Risk Management Division prepares and signs off every page of Announcement of Credit/ Project Investment sycophancy (Form 4. 2) before submitting Director Central Credit Committee for signature. Then submit to * Client Division at HO an original for subsequent steps * relevant Branches 01 copy * HCM-based Division a copy in case of approving the proposal of branches under its authority. 2. 8. Board of Directors * Under this circumstance, after being approved by Central Credit Committee, Risk Management Division prepares submission documents in accordance with Regulation of Loan grants under approving authority of BOD. * Risk Management Division then prepares Approval Announcement and sends documents in such a way as cases under Central Credit Committees authority in which, documents to Debt Management Division must include Loan Approval Form by BOD. 3. Making loan sheer and collateral strikeBased on approving results, Client officer continues to seek signature for loan and collateral contract. 3. 1.Loan contract/Collateral contract * Client/ Project Investment Division signs off (ky t? t) every page of loan contract/collateral contract and send to client for confirmation. by and by signing off by Client and rely s representer, Loan contract was sent to accounting system division and Debt management Division. collateral contract was sent to Storage division * If any disagreement arises, Client/ Project Investment officer must report to Head of Division. If needed to restore confine or approval conditions, Client/ Project Investment Division issues Form 1. 6 Report on Appraising and Proposing Credit allowance account, submit to authorised bank representatives for approval. aft(prenominal) obtaining clients signature and original of collateral contracts, Client/ Project Investment Division register collateral transact ions. * Client/ Project Investment officer prepares 02 (Thong bao tac nghi? p m? HDTD), sign off and submit to Head of Division for signature, before sending to Debt Management Division (relevant documents included) for storage and entering into system. * In case clients do not have CIF yet, Client Division prepares Thong bao tac nghiep mo so CIF (Form 5. 8) then sends to feat Accounting dept. to open new CIF. Manual 4. Putting data into system and managing credit file * After signing loan contract, Client officer prepare and sign on Thong bao tac nghiep m? h? p d? ng tin d? g containing all information infallible to put into system, conditions to disburse, a list of documents needed to store and special conditions needed to manage the loan. After that, debt management officer recheck and sign on Thong bao tac nghiep. * Basing on Thong bao tac nghiep, Debt Management officer is responsible for putting data into system. However, only when it is approved online by head/vice of deb t management Division, will client data be disclosed on system. Debt Management officer stores all the documents listed on thong bao tac nghiep IT mutualist 5. Disbursement of loanThe disbursement of loan involves the next steps which depend on the plant approving authority.However, all of the appointed divisions are held responsible for checking the conformity of clients withdrawal documents with credit contract. 5. 1. Client/ Project Investment DivisionIf withdrawal request is valid, Client officer prepares Thong bao tac nghiep du dieu kien wrinkle von (Form 5. 4), signs off and submits to Division Head for signature before transferring documents to Debt Management officer for disbursement. 5. 2. Debt Management DivisionThe division directly receives withdrawal request from client and perform checking procedures. Client is required to amend information if found unsuitable. Otherwise, Debt Management officer starts disbursing the loan. 5. 3.Client/ Project Investment Division receiving request, Debt Management Division performing checking proceduresWithdrawal documents after being received and checked by Client officer, Debt Management officer takes over for disbursement, based on Credit Approval Announcement and Credit contract. If documents are found invalid, they are sent back to Client Division for completion. 5. 4. Higher authorityClient officer prepares Thong bao tac nghiep du dieu kien rut von (signed by him/her and Head of division). Afterwards, based on credit approval results, Client officer submits the above document and other supporting ones to higher authority. If approved, the documents are transferred to Debt Management for disbursement.The details of disbursement process are briefed as follows * Debt Management officer opens loan account, fills in CIF, signs off Loan receipt banknote before updating into system for online approval of Divisions Head. * Next, the officer sends * 01 Loan response Note to client * 01 Loan Receipt Note and supporting documents to relevant departments for disbursement * The last Loan Receipt Note stored in the division. IT Dependent 6. Post-disbursement supervise of Loan * At least every 6 months, Client/ Project Investment Division must recheck the loan employ status (usage purpose, collateral status, the balance between assets resulting from the loan and the outstanding balance).This is implemented in accordance with the predetermined plan (monitoring catalogue and methodology), which is stick outd by Client officer when preparing Report of Credit appraisal and granting proposal or when Thong bao tac nghiep at the latest. * For collateral monitoring, the following aspects must be assured * position compared to previous visit * Forecasted revaluations * Clients conformity in preserving collateral * Proposal to modify collateral management methods (optional) * Proposal to add/ replace collateral (optional) * Debt Management Division is held responsible for reminding Client/ Proj ect Investment Division about loan monitoring schedule. The result must be documented on Loan supervise Records (Bien b? n Ki? m tra), which is signed by Borrowers representative and submitted to Head of Client/ Project Investment Division for revision and comment. * In case Client/ Project Investment Division detects any signals of risk, officer takes the initiative to propose the corresponding solution (included in Loan Monitoring Records) before submitting to Head of Division, Director of Client Division (for HO-based clients) or Branchs Director/ Deputy Director. * After finalizing the Record, officer sends 01 original to Debt Management, 01 copy to Risk Management Division for co-monitoring. Manual 7. Credit Adjustment * Depending on the real mail service and clients demand after credit approval, credit margin can be made correspondingly. * Procedures of Credit Adjustment are conducted in the same manner as that of Credit Proposal and Approval (only those who are authorise d to approve credit are able to approve credit adjustment). Client / investment project officer prepares Report of credit appraisal and credit adjustment- bao cao th? m d? nh va d? xu? t di? u ch? nh tin d? ng. At risk management division prepares Credit risk assessment for adjustment report Bao cao ra soat r? i ro di? u ch? nh c? p tin d? ng. * Client/ Project Investment Division prepare Thong bao tac nghi? p di? ch? nh HDTD. Manual 8. Loan and refer aggregation * At least 10 days before due take care, Debt Management officer prints out the list of loans and transfer to Client/ Project Investment Division whose officer prepares a document to inform clients and in charge of pushing clients to cook up chief and quest * System automatic portend interest income for loan group 1 * At the due date of loan, Debt Management officer prints out the report of article of belief and interest up to due date and checking. Then this report is submitted to Head of Debt management for app roving. This report is then transferred to Accounting Division for collecting. If collected in cash, Client has to pay at first at hard currency Division. after collecting enough and checking, gold Division. will sign on prepare slip (Cash receipt) then transfers Cash Receipt Note to Accounting Division for reservation entry. * Accountant makes the following entries * With principal gatheringDr. Cash/ BankCr. Loan to Customer * With interest collectionDr. Cash/ BankCr. Interest Income * Accounting voucher printed out and signed by controller and chief accountant. Application A*N*t Interest = &8212&8212&8212&8212- 360* ascorbic acid A Outstanding balance NDays (From the last remuneration day to the next payment day). tinterest rate 9. Overdue Debt Management * When the loan turns into overdue, debt management officer sends a Reminding letter to the customer (at least once a month), approved by the Head/Vice of Debt Management Division. This letter is transferred to clien ts and a copy is also to deliver to the credit officer. * If the customers calm dont make payment after more than 3 propagation received the Reminding Letter, credit officer proposes to the Head of Client/ Project Investment Division to work directly with the customers representative to cover the debt. * Client/ Project Investment Division combines with Risk Management Division and Legal Division if necessary to protect all the interests of VCB. 10. Contract colony and Collateral Release Collateral * After the client pays all principle and interest, Debt Management officer prepares and signs on Loan ending Announcement (Thong bao dong h? so vay). * Client officer informs client of Loan Contract Liquidation (Form 7. 2). * Debt Management officer hands over all relevant documents to Client/ Project Investment Division before the former Division transfers to clients and sends the original of Handover Record (signed by both handover and takeover) to Debt Management for storage pur pose. * Finally, Client/ Project Investment Division cancel Collateral Transaction Registry.