Rajesh & Co. has been appointed as the central statutory auditor of Good Worth Bank Ltd., a private sector bank registered with RBI, for F.Y.…

Rajesh & Co. has been appointed as the central statutory auditor of Good Worth Bank Ltd., a private sector bank registered with RBI, for F.Y. 2023–24. Mr. Rajesh, the engagement partner, while examining the computation of DTL (Demand and Time Liabilities), raised his suspicion regarding the inclusion and exclusion of the following items: Sr. No. Particulars of Item Inclusion/ Exclusion 1 Net credit balance of Branch Adjustment Account Exclusion 2 Amount received from court receiver Inclusion 3 Amount received from ECGC by invoking the guarantee Exclusion 4 Unaccounted inward remittances received on behalf of customers Inclusion 5 Net Income tax provision. Inclusion During the course of audit, Rajesh & Co. also observed that one large advance account of the bank had no recovery of principal or interest for the past 15 months. The bank has not applied the NPA norms as well as income recognition norms to this particular account. When queried the bank management replied that this account was guaranteed by the central government and hence these norms were not applicable. The bank has not invoked the guarantee. Additionally, Rajesh & Co. was offered Stock audit of a sister concern of Good Worth Bank Ltd. for F.Y. 2023-24, and Branch audit of its Borivali Branch for F.Y. 2023–24 and Dadar Branch for F.Y. 2024-25, respectively. Based upon above, answer the following questions: