CA Mahaveer, a partner at ANJ & Co., is conducting the statutory audit of a branch of Fair Bank for the year 2024-25. During the course of the…

CA Mahaveer, a partner at ANJ & Co., is conducting the statutory audit of a branch of Fair Bank for the year 2024-25. During the course of the audit, he made the following observations: (i) A loan of 12 lakhs was sanctioned to a farmer for cultivation of sugarcane, a crop that typically has a harvesting cycle of 10–12 months under the Kisan Credit Card (KCC) scheme. The account had no transactions since last 120 days, however, the branch continued to classify the loan as a Standard Asset as on 31st March 2025. (ii) The branch had taken over a term loan of 60 lakhs from another bank. However, the branch manager approved the proposal, even though such limits require sanction by the Zonal Credit Committee, as per the “Manual of Delegation of Powers” of Bank. (iii) It is noticed that head office of bank has flagged a saving account maintained in branch in which interest was wrongly paid at higher rate due to wrong data feeding entry. Now, situation has been rectified by debiting excess interest paid in the account. Since there was little balance in saving account, a debit balance of 1.35 lac was created in the said saving account due to above reversal. The matter was immediately informed to account holder. However, he has not turned up for payment since matter was informed to him about six months ago. (iv) Due to time constraints, CA Mahaveer is under pressure to issue an unmodified audit report in the limited time frame. He has insufficient time to properly perform or complete the relevant duties and issue appropriate audit report. Based on the above facts, answer the following: