MAINTENANCE OF RECORDS

Pricing And Distribution of Export Forms: FBL maintains a complete record of all export forms printed by the Bank and of their distribution to their branches and customers. For this purpose, it maintains a Stock Register which shows branch-wise distribution of the export forms.

MAINTENANCE OF PARTY WISE RECORD OF CERTIFIED EXPORTS FORMS

Bank maintains another for recording therein the particulars of export firms issued and certified by it in respect of each exporter. In this register it records against each form, the date of submission the export documents when shipments have been made.

ACCOUNTS DEPARTMENT
Mr. Nadeem deals with this department. Accounting department is the running blood of the Faysal Bank. It handles almost all the problems occurring in the bank. The important activities preformed by accounts department are as follows:

TREASURY
A special officer in FBL performs a portion of this operation.

CLEARING
Mr. Liaqat Ali deals with clearing. Before discussing it is necessary to what is clearing? The process by which cheques exchanged between the collecting and paying bank and the ensuring financial settlement is called clearing This is facility is provided by the state bank of Pakistan for offsetting of cross obligations between the different banks. Clearing is of two types.

Inward Clearing
When cheques drafts, etc, of our branch presented to us for clearing by the SBP. Cheques to be honored be bank.

Outward Clearing
The cheques of other banks which the account holder deposits in their accounts are send for collection. Clearing process (inward/outward). Here the local cheques are received that are drawn on FBL. All the cheques are received on one counter along with the paying slips duly filled in properly containing particulars of cheques and account holder. Counter folio of paying slip is handed over to the customer by putting stamp for cheque received for collection for Faysal bank limited on it duly signed by officer. These cheques are scrutinized and cheques for local clearing are separated from OBCs. These are then entered in clearing register and cheques for collecting are entered in OBC register and handed over the Bills Department of Collection. Clearing officer checks and verifies titles of all the cheques deposited by the customer to confirm the good title of the cheques. Cheques are scrutinized proper and paying slips are separated from cheques. Special crossing, endorsement and clearing stamps are affixed on the cheques. Cheques of each bank are sorted and arranged branch wise. All the cheques are then entered into the clearing system of bank. Print out of the clearing is taken and details are attached. With the cheques of each bank. Details of these banks are then entered into the clearing schedule containing number of cheques presented and their total amount against the name of each bank. Then total number of cheques presented to all banks and their total amount is written on the foot of the schedule, which is tallied with the clearing register. Next morning these cheques are delivered to the respective banks in clearing house of the SBP between 9:00 to 9:30 AM. In the same manner, other banks present their clearing drawn on Faysal Bank. Total number of cheques and their amount delivered to other banks are received

from them are written on the clearing House schedule and handed over to the Officer Clearing House SBP. Cheques/DD received in clearing are given to the Officer Cash Department of the branch for their payment. After proper scrutiny of cheques, verification of signatures and confirmation of balance in the account Officer Cash Department pays these cheque by canceling and posting them in the system.

ADVANTAGES TO FBL
Foreign currency is purchased at a certain rate. During the period if rate increases to a higher rate, the difference between the two rates is the source of income for Bank. In case of any mis-happening, Banks risk is minimum because foreign deposits are backed up by SBP. Receipt of Foreign Currency By law, the branch of any bank cannot keep foreign currency. It has to sell this currency at spot rates to its Head Office. Therefore, whenever the Bank receives Foreign Currency through cheques, it sells this amount on the same day to Karachi branch.

BUDGETING
Accounts department in the bank is responsible for making all the plans for the bank. plans range from yearly to daily plans. These

Five Yearly Budget

Bank first of all makes a plan for five years. This plan include the budgetary figure for five years, new avenues to search, new customers to find, etc. Such a plan gives only the broad guide to mark the direction in which the bank wants to move in the near future.

Yearly Budget
Next step is that the account head makes a very accurate yearly budget incorporating all factors like increase in tariff rates, rules and regulations of SBP, dollar fee, charges in profit rates, etc. The annual budget is made for the year on quarterly basis. The budget, this shows the targets for the bank, e.g. target deposits to be achieved, targets expenditures, target profit, etc. After the approval of the budget by the top management, it is communicated to all levels.

Comparison
Bank employees, management, etc. try their best to achieve the targets. After each quarter to access the performance of the bank in terms of established objective, the actual figure for income, expenditure and profits are compared with budgeted figures. The quarter-wise analysis is done for control purpose. It helps in finding out whether the expense have increased beyond the targets and whether the objectives set by the management have been achieved. The answer to these questions help in finding out the areas wherever the performance was not up to the desired level.

Revised Budget
Revised budget is sometimes necessary in order to incorporate the new policies introduced by SBP or to show the effect of new changes in rates, etc. Budgets made by the accounts department are flexible budget to readily incorporate the rates of uncontrollable factors.

Monthly Review

Officers in accounts department makes profit and loss accounts both at the end of the each quarter and at the end of each month. The advantages of monthly review is that the management comes to know about any deficiencies which are hindering the way of achieving the targets and then can try to overcome these in the subsequent months. For example, if the income earned from the investments made by the bank falls below the budgeted figure, the bank management can start looking for new avenues so that the gap between the budgeted and actual figures can be minimized during the subsequent months. The advantages of these budgets is that at the end of the year, management has the annual, quarter-wise as well as monthly figures for review purpose.

Variances
Any variances resent in the actual amount and budgeted amount is probed into all the factors; internal, cultural, social economical and political are taken into consideration. If for example, the expenditure increases as compared to budgeted figure as it happened last year when the printing expenditures had increased because of increase in the cost of paper, the true causes of the increases are found out. If the causes are out of control as in the above mentioned case and are expected to prolong, appropriate adjustments are made in the budgets. If , however, the causes are in the control, then the appropriate policies are made to encourage the employees and the concerned persons to curtail the expenditures