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Auditor Report of Bank of Maharashtra

Mar 31, 2019

To

The Members of Bank of Maharashtra

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the standalone financial statements of Bank of Maharashtra (“the Bank”), which comprise the Balance Sheet as at March 31, 2019, and the Statement of Profit and Loss and Statement of Cash Flows for the year then ended, and notes to the standalone financial statements including a summary of significant accounting policies and other explanatory information in which are included returns for the year ended on that date of 20 branches and Treasury and International Banking Division audited by us, 1283 branches audited by statutory branch auditors of the Bank. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also included in the Balance Sheet, the Statement of Profit and Loss and Statement of Cash Flows are the returns from 573 branches which have not been subjected to audit. These unaudited branches account for 8.85% of advances.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Banking Regulation Act, 1949 (“the Act”),the requirements of the Reserve Bank of India, in the manner so required for Bank and give a true and fair view in conformity with the accounting principles generally accepted in India including accounting standards issued by The Institute of Chartered Accountants of India, of the state of affairs of the Bank as at March 31, 2019, and its loss and its cash flow for the year ended on that date.

Basis for opinion

3. We conducted our audit in accordance with the Standards on Auditing (SA’s) issued by The Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The Key Audit Matters in relation to audit of the Bank and description of auditor’s response are as follows:-

Key Audit Matter

Audit Procedure followed to address the Key Audit Matter

1. Compliance of guidelines of Reserve Bank of India on Income Recognition, Assets classification and Provisioning Norms on advances. Refer Note No. 4 of Schedule 17 Significant Accounting Policies.

The Income from Advances constitutes 52.97% of total income.

The provision in respect of NonPerforming asset is Rs.7,227

crores which constitutes 42.06% of the expenditure.

The Loans and Advances to borrowers constitutes 50.24% of total assets of the bank. These

advances are governed by Income Recognition and Asset Classification and Provisioning Framework (IRAC) issued by Reserve Bank of India.

Reserve Bank of India has issued these prudential guidelines from time to time by way of master circulars and subsequent notifications. Under the guidelines, income recognition, and provisioning in respect of a credit facility are based on its status of classification as performing or nonperforming. A credit facility becomes non-performing “when it ceases to generate income for a bank”. Detailed guidelines have been laid down for determining the status of different kinds of credit facilities (term loans, cash credits and overdrafts, bills purchased and discounted, and other credit facilities) which are mandatory for bank for the purpose of recognition of income, classification of advances and provisioning thereof. The Bank classifies its advances on these norms which are also explained in the Note No. 4 of Schedule 17 Significant Accounting Policies.

Considering the nature of transactions, its magnitude, as well as regulatory requirements which include estimation, judgment and valuation of securities on materiality basis, audit of Income on Advances and Provisions thereof required significant efforts. The profit/ Loss for the year and the net advances position will be materially misstated if the prudential guidelines are not followed by the bank. Hence we have considered this as Key Audit Matter.

We have performed following substantive audit

procedures:-

- We have Understood and Tested design and operative effectiveness of the system for identification of NonPerforming Assets and its further classification. This involved understanding of the prudential guidelines and incorporating the same in the overall organisational and IT framework of the bank and its communication through various internal circulars and reports.

- We have evaluated Internal Controls over sanctioning and monitoring of advances, delegation of powers. Critically evaluated monitoring/ supervisory framework such as credit audit, concurrent audit and systems audit as well as internal check and balances and effectiveness of such framework for the purpose of compliance of prudential guidelines.

- We have done sample testing of financial as well as non-financial factors for identification of non-performing assets by observing conduct of the accounts, using standardised reports as well as running structured queries on the data sample especially to the branches allotted to us.

- Performed Sample verification of interest reversals and unrecovered Charges on identification of Non-Performing Asset.

- Communicated and made aware to Branch auditors, about IRAC related norms, process and verification guidelines while conducting the audit at branches.

- Ensured completeness and verification of Memorandum of Changes passed by Branch Auditors.

- Deliberated and critically assessed the security valuation, probability of recovery for the purpose of provisioning in sample cases.

- Understood and tested correctness on sample advances for Classification of Non-Performing Assets by the system in to Substandard, Doubtful, Loss as per extant prudential guidelines.

- Verified provisions on the non-performing assets based on IRAC classification at the rates adopted as per accounting policy.

2. Compliance of Investments of the Bank as per the guidelines issued by Reserve Bank of India. Investment form major share of the business of the bank we have considered this aspect as Key Audit Matter

We have performed following substantive audit procedures:-

- Obtained list of investments as at reporting period from Bank and ascertained the completeness of the same by reconciling with the holding status in the SGL/ RBI holding statement, Demat statement etc. as applicable.

Valuation methodology adopted by the Bank.

- Checked the carrying amount of investments and ensured that the same is calculated on a consistent basis as per RBI guidelines. This is normally calculated by the Bank’s E-treasury system; hence on test basis we checked the calculation for ensuring accuracy.

- In case wherever quotes were available, checked the source of capturing market price/ fair value as at reporting date. In case quotes are not available, checked the calculation for fair value as at the reporting date to ensure compliance with RBI guidelines.

Non-Performing Investments and provisions made thereon.

- Identified Non Performing Investments (NPI) based on RBI guidelines and reviewed the calculation of provision for depreciation thereon by the Bank.

- Reviewed that the depreciation on NPI has not been set-off against the appreciation in respect of other performing securities.

- Obtained a separate list of investments as a result of conversion of interest/ principal and checking whether these investments have been classified as NPI, if the loan’s classification is NPA on implementation of the restructuring scheme.

Computation of Gain or Loss on sale of investments.

- Examined whether the profit or loss on sale of investments has been computed properly and consistently on similar basis.

- In case of Held to Maturity (HTM) investments, we test checked whether the Net Profit on sale of investments in this category was first taken to the Profit & Loss Account, and thereafter appropriated to the ‘Capital Reserve Account’ net of taxes and proportionate transferred to Statutory Reserve, whereas Net Loss was recognized in the Profit & Loss Account.

- In case of Available for Sale (AFS) and Held for Trading (HFT) investments, on a test check basis, reconciled the method of computation of such gain or loss on sale of investments and checked whether the same was appropriately debited/ credited in the profit and loss statements.

3. Evaluation of uncertain tax Liabilities (Contingent). Refer Schedule 12 forming part of financial statement.

Considering it’s probable impact on Profitability / Loss, we have considered this as Key Audit Matters.

We have performed following substantive

audit procedures:-

- Obtained details of completed tax assessments and demands up to the year ended March 31, 2019 from management.

- We performed our internal procedures to analyse the management’s underlying assumptions in estimating the tax provision and the possible outcome of the disputes.

- We also considered legal precedence, referred to various case laws and other rulings in evaluating management’s position on these uncertain tax litigations.

- Additionally, we considered the impact of latest information in respect of uncertain tax positions as on March 31, 2019 to evaluate whether any change was required to management’s position on these uncertainties.

4. Evaluation of Information Technology (IT) Department.

Monitoring IT Controls and procedures with regard to its policies and governance to reduce frauds and to increase credit worthiness and compliance with RBI Guidelines.

We have considered evaluation of IT department as a key audit matter since operational and financial processes of the bank are largely dependent on its IT systems. Lapses, failures/ incorrect output, if any, of such systems may result in material misstatement in the Financial Statements.

We have performed following substantive

audit procedures:-

- We have carried out our audit procedures in accordance with standards on auditing, guidelines towards implementation of IT policies and procedures followed by the bank in order to have effective monitoring, control and evaluate the IT applications and controls to ensure effective implementation of IT policies and procedures.

- We have reviewed the framework which ensure Strict monitoring and implementation of controls to ensure overall organisational objective is achieved.

- We have manually verified select cases and satisfied about the accuracy of the reports with the manual calculations for validating the output generated by the system.

Information other than the Financial Statements and Auditor’s Report Thereon

5. The Bank’s Board of Directors is responsible for the other information. The other information comprises the information included in the Management report and Chairman’s Statement but does not include the financial statements and auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based on the work we performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regards.

Responsibilities of Management and Those Charged with Governance for the standalone Financial statements

6. The Bank’s Board of Directors is responsible with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards issued by The Institute of Chartered Accountants of India, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (RBI) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors are also responsible for overseeing the Bank’s financial reporting process.

Auditor’s responsibilities for the Audit of the Financial statements

7. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieve fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters.

We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Emphasis of Matter

8. Without qualifying our opinion, we draw attention to Note No.18 of Schedule 18 Notes on Accounts regarding MSME borrowers, Note No.4 of Schedule 18 Notes to Accounts regarding provisioning on NPA as well as Standard Assets, Note No. 19 of Schedule 18 Notes on Accounts regarding provisioning of ILFS group accounts and Note No.10.11 of Schedule 18 Notes on Accounts regarding recognition of Deferred Tax Assets.

other Matter

9. We did not audit the financial statements of 1283 branches included in the standalone financial statements of the Bank whose financial statements reflect total assets of Rs.1,28,438.71 crores as at 31st March 2019 and total revenue of Rs.6,589.28 crores for the year ended on that date, as considered in the standalone financial statements have been audited by the statutory branch auditors whose reports have been furnished to us, and our opinion in so far it relates to the amounts and disclosures included in respect of branhes, is based solely on the report of such statutory branch auditors. Further we did not audit the financial statements of 573 branches inculded in the standalone financial statement if the Bank whose financial statements reflect total assets of Rs.31,000.83 crores as at 31st March, 2019 and total revenue of Rs.1,776.73 cores for the year ended on that date, as considered in the Standalone financial statements have been drawn by the management.

Our opinion is not modified in respect of this matter.

Report on other Legal and Regulatory Requirements

10. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;

11. Subject to the limitations of the audit indicated in paragraphs 6, 7 and 9 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein, we report that:

a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory;

b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and

c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

12. We further report that:

a) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us.

b) the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows dealt with by this report are in agreement with the books of accounts.

c) the reports on the accounts of the branch offices audited by branch auditors of the Bank under section 29 of the Banking Regulation Act, 1949 have been sent to us and have been properly dealt with by us in preparing this report; and

d) in our opinion, the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows comply with the applicable accounting standards issued by Institute of Chartered Accountants of India, to the extent they are not inconsistent with the accounting policies prescribed by RBI.

for p parikh & Associates for M D Gujrati & Co For p G Bhagwat For K Gopal rao & Co.

FRN: 107564W FRN: 005301N FRN: 101118W FRN: 000956S

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

CA Jitesh Jain CA Manohar das Gujrati CA Nachiket deo CA K Gopal rao

Parther Parther Parther Parther

Membership No: 114920 Membership No. 081552 Membership No. 117695 Membership No. 018230

Place : Pune

Date : 29th April, 2019


Mar 31, 2018

1. Report on Financial Statements:

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2018 which comprise the Balance Sheet as at 31st March 2018 Profit and Loss Account and the cash Flow Statement for the year ended and a summary of significant accounting policies and Notes on Accounts. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Division, audited by us and 956 branches audited by branch auditors & 38 branches by concurrent auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and Profit & Loss account and the return from 875 branches which have not been subjected to audit. These unaudited branches account for 3.10 % per cent of the advances, 23.91 % per cent of deposits, 13.05 % per cent of interest income and 22.93 % per cent of interest expenses.

2. Management’s responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. This responsibility includes the design implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

3. Auditors’ Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors’ judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that:

a. The Balance Sheet read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars is properly drawn up so as to exhibit a true and fair view of the state of the affairs of the Bank as at 31st March 2018 in conformity with accounting principles generally accepted in India.

b. Profit and loss Account, read with the notes thereon shows a true balance of loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

7. Emphasis of Matter:

Note number 10.11 in Schedule 18 of Notes to Accounts to the Financial Statements regarding recognition of Deferred Tax Assets on account of accumulated losses amounting to Rs. 1152.96 crore.

8. Report on Other Legal and Regulatory Requirements:

The Balance Sheet and the Profit and Loss Account have been drawn up in forms “A” and “B” respectively of the third Schedule to the Banking Regulation Act 1949.

9. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act 1970, and also subject to the limitations of disclosure required therein we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b) The transactions of the bank which have come to our notice have been within the powers of the Bank.

c) The returns received from the offices and branches of the Bank have been found adequate for the purpose of our audit.

10. We further report that;

a) The Balance Sheet and Profit and Loss account dealt with by this report are in agreement with the books of account and returns;

b) The reports on the accounts of the branch offices audited by branch auditors of the Bank under section 29 of the Banking Regulation Act,1949 have been sent to us and have been properly dealt with by us in preparing this report;

c) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.

for KOTHARI & Co for P Parikh & Associates for M. D. Gujrati & Co

FRN - 301178E for CMRS & Associates,LLP FRN - 107564W FRN: 005301N

Chartered Accountants FRN: 101678 W/W100068 Chartered Accountants Chartered Accountants

Chartered Accountants

CA Amitav Kothari CA Maheshwar M. Marathe CA Ashok B. Rajagiri CA Manohar Das Gujrati

Parther Parther Parther Parther

Membership No: 016639 Membership No. 212175 Membership No. 046070 Membership No. 081552

Place : Pune

Date : 04th May, 2018


Mar 31, 2017

To,

Members of Bank of Maharashtra

1. Report on Financial Statements:

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 3151 March 2017 which comprise the Balance Sheet as at 31st March 2017 Profit and Loss Account and the Cash Flow Statement for the year ended and a summary of significant accounting policies and Notes on Accounts. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Division, audited by us and 962 branches audited by branch auditors & 19 branches by concurrent auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and Profit & Loss account and the return from 938 branches which have not been subjected to audit. These unaudited branches account for 6.03% per cent of the advances, 23.83 % per cent of deposits, 8.51% per cent of interest income and 22.12 % per cent of interest expenses.

2. Management’s responsibility for the Financial Statements: Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. This responsibility includes the design implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

3. Auditors’ Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors'' judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that:

a. The Balance Sheet read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars is properly drawn up so as to exhibit a true and fair view of the state of the affairs of the Bank as at 31st March 2017 in conformity with accounting principles generally accepted in India.

b. Profit and loss Account, read with the notes thereon shows a true balance of loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

7. Emphasis of Matter:

(a) Note number 4.13.1 in schedule 18 in respect of classification of restructured advances under CDR/non CDR mechanism.

(b) Note number 10.10 in Schedule 18 of Notes to Accounts to the Financial Statements regarding recognition of Deferred Tax Assets on account of provisions for Bad and Doubtful Debts (NPA) amounting to Rs. 761.25 crores.

8. Report on Other Legal and Regulatory Requirements:

The Balance Sheet and the Profit and Loss Account have been drawn up in forms “A” and “B” respectively of the third Schedule to the Banking Regulation Act 1949.

9. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act 1970/1980, and also subject to the limitations of disclosure required therein we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b. The transactions of the bank which have come to our notice have been within the powers of the Bank.

c. The returns received from the offices and branches of the Bank have been found adequate for the purpose of our audit.

10. We further report that;

a. The Balance Sheet and Profit and Loss account dealt with by this report are in agreement with the books of account and returns;

b. The reports on the accounts of the branch offices audited by branch auditors of the Bank under section 29 of the Banking Regulation Act,1949 have been sent to us and have been properly dealt with by us in preparing this report;

c. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.

for KOTHARI & C

FRN - 301178E for CMRS & Associates,LLP

Chartered Accountants FRN: 101678 W/ W100068

Chartered Accountants

64601 212175

CA Manaswy Kothari CA Maheshwar M Marathe

Parther Parther

Membership No. 64601 Membership No. 212175


Mar 31, 2016

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2016 which comprise the Balance Sheet as at 31st March 2016 profit and Loss Account and the cash Flow Statement for the year ended and a summary of signifcant accounting policies and Notes on Accounts. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Division, audited by us and 903 branches audited by branch auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and profit & Loss account and the return from 962 branches which have not been subjected to audit. These unaudited branches account for 8.55 % of the advances, 25% of deposits, 7.43% of interest income and 22.99% of interest expenses.

2. Management''s responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. This responsibility includes the design implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

3. Auditors''Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors''judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that:

a. The Balance Sheet read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars is properly drawn up so as to exhibit a true and fair view of the state of the affairs of the Bank as at 31st March 2016 in conformity with accounting principles generally accepted in India.

b. profit and loss Account, read with the notes thereon shows a true balance of profit/loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c. The Cash Flow Statement gives a true and fair view of the cash fows for the year ended on that date.

7. Report on Other Legal and Regulatory Requirements:

The Balance Sheet and the profit and Loss Account have been drawn up in forms "A" and "B" respectively of the third Schedule to the Banking Regulation Act 1949.

8. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act 1970/1980, and also subject to the limitations of disclosure required therein we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b. The transactions of the bank which have come to our notice have been within the powers of the Bank.

c. The returns received from the offces and branches of the Bank have been found adequate for the purpose of our audit.

9. We further report that;

a. The Balance Sheet and profit and Loss account dealt with by this report are in agreement with the books of account and returns;

b. The reports on the accounts of the branch offces audited by branch auditors of the Bank under section 29 of the Banking Regulation Act,1949 have been sent to us and have been properly dealt with by us in preparing this report;

c. In our opinion, the Balance Sheet, profit and Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.

For Parakh & Co. For A R Sulakhe & Co. For Kothari & Co. For C M R S & Associates, LLP

FRN: 001475C FRN:110540W FRN - 301178E FRN:101678W/ W100068

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants



CA Thalendra Sharma CA J V Dhongde CA Amitav Kothari C A Maheshwar M Marathe

Partner Partner Partner Partner

Membership No:079236 Membership No:37290 Membership No:016639 Membership No:212175

Place : Pune

Date : 12th May, 2016


Mar 31, 2016

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2016 which comprise the Balance Sheet as at 31st March 2016 profit and Loss Account and the cash Flow Statement for the year ended and a summary of signifcant accounting policies and Notes on Accounts. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Division, audited by us and 903 branches audited by branch auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and profit & Loss account and the return from 962 branches which have not been subjected to audit. These unaudited branches account for 8.55 % of the advances, 25% of deposits, 7.43% of interest income and 22.99% of interest expenses.

2. Management''s responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. This responsibility includes the design implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

3. Auditors''Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors''judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that:

a. The Balance Sheet read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars is properly drawn up so as to exhibit a true and fair view of the state of the affairs of the Bank as at 31st March 2016 in conformity with accounting principles generally accepted in India.

b. profit and loss Account, read with the notes thereon shows a true balance of profit/loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c. The Cash Flow Statement gives a true and fair view of the cash fows for the year ended on that date.

7. Report on Other Legal and Regulatory Requirements:

The Balance Sheet and the profit and Loss Account have been drawn up in forms "A" and "B" respectively of the third Schedule to the Banking Regulation Act 1949.

8. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act 1970/1980, and also subject to the limitations of disclosure required therein we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b. The transactions of the bank which have come to our notice have been within the powers of the Bank.

c. The returns received from the offces and branches of the Bank have been found adequate for the purpose of our audit.

9. We further report that;

a. The Balance Sheet and profit and Loss account dealt with by this report are in agreement with the books of account and returns;

b. The reports on the accounts of the branch offces audited by branch auditors of the Bank under section 29 of the Banking Regulation Act,1949 have been sent to us and have been properly dealt with by us in preparing this report;

c. In our opinion, the Balance Sheet, profit and Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.

For Parakh & Co. For A R Sulakhe & Co. For Kothari & Co. For C M R S & Associates, LLP

FRN: 001475C FRN:110540W FRN - 301178E FRN:101678W/ W100068

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants



CA Thalendra Sharma CA J V Dhongde CA Amitav Kothari C A Maheshwar M Marathe

Partner Partner Partner Partner

Membership No:079236 Membership No:37290 Membership No:016639 Membership No:212175

Place : Pune

Date : 12th May, 2016


Mar 31, 2016

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2016 which comprise the Balance Sheet as at 31st March 2016 profit and Loss Account and the cash Flow Statement for the year ended and a summary of signifcant accounting policies and Notes on Accounts. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Division, audited by us and 903 branches audited by branch auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and profit & Loss account and the return from 962 branches which have not been subjected to audit. These unaudited branches account for 8.55 % of the advances, 25% of deposits, 7.43% of interest income and 22.99% of interest expenses.

2. Management''s responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. This responsibility includes the design implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

3. Auditors''Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors''judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that:

a. The Balance Sheet read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars is properly drawn up so as to exhibit a true and fair view of the state of the affairs of the Bank as at 31st March 2016 in conformity with accounting principles generally accepted in India.

b. profit and loss Account, read with the notes thereon shows a true balance of profit/loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c. The Cash Flow Statement gives a true and fair view of the cash fows for the year ended on that date.

7. Report on Other Legal and Regulatory Requirements:

The Balance Sheet and the profit and Loss Account have been drawn up in forms "A" and "B" respectively of the third Schedule to the Banking Regulation Act 1949.

8. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act 1970/1980, and also subject to the limitations of disclosure required therein we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b. The transactions of the bank which have come to our notice have been within the powers of the Bank.

c. The returns received from the offces and branches of the Bank have been found adequate for the purpose of our audit.

9. We further report that;

a. The Balance Sheet and profit and Loss account dealt with by this report are in agreement with the books of account and returns;

b. The reports on the accounts of the branch offces audited by branch auditors of the Bank under section 29 of the Banking Regulation Act,1949 have been sent to us and have been properly dealt with by us in preparing this report;

c. In our opinion, the Balance Sheet, profit and Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.

For Parakh & Co. For A R Sulakhe & Co. For Kothari & Co. For C M R S & Associates, LLP

FRN: 001475C FRN:110540W FRN - 301178E FRN:101678W/ W100068

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants



CA Thalendra Sharma CA J V Dhongde CA Amitav Kothari C A Maheshwar M Marathe

Partner Partner Partner Partner

Membership No:079236 Membership No:37290 Membership No:016639 Membership No:212175

Place : Pune

Date : 12th May, 2016


Mar 31, 2016

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2016 which comprise the Balance Sheet as at 31st March 2016 profit and Loss Account and the cash Flow Statement for the year ended and a summary of signifcant accounting policies and Notes on Accounts. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Division, audited by us and 903 branches audited by branch auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and profit & Loss account and the return from 962 branches which have not been subjected to audit. These unaudited branches account for 8.55 % of the advances, 25% of deposits, 7.43% of interest income and 22.99% of interest expenses.

2. Management''s responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. This responsibility includes the design implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

3. Auditors''Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors''judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that:

a. The Balance Sheet read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars is properly drawn up so as to exhibit a true and fair view of the state of the affairs of the Bank as at 31st March 2016 in conformity with accounting principles generally accepted in India.

b. profit and loss Account, read with the notes thereon shows a true balance of profit/loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c. The Cash Flow Statement gives a true and fair view of the cash fows for the year ended on that date.

7. Report on Other Legal and Regulatory Requirements:

The Balance Sheet and the profit and Loss Account have been drawn up in forms "A" and "B" respectively of the third Schedule to the Banking Regulation Act 1949.

8. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act 1970/1980, and also subject to the limitations of disclosure required therein we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b. The transactions of the bank which have come to our notice have been within the powers of the Bank.

c. The returns received from the offces and branches of the Bank have been found adequate for the purpose of our audit.

9. We further report that;

a. The Balance Sheet and profit and Loss account dealt with by this report are in agreement with the books of account and returns;

b. The reports on the accounts of the branch offces audited by branch auditors of the Bank under section 29 of the Banking Regulation Act,1949 have been sent to us and have been properly dealt with by us in preparing this report;

c. In our opinion, the Balance Sheet, profit and Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.

For Parakh & Co. For A R Sulakhe & Co. For Kothari & Co. For C M R S & Associates, LLP

FRN: 001475C FRN:110540W FRN - 301178E FRN:101678W/ W100068

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants



CA Thalendra Sharma CA J V Dhongde CA Amitav Kothari C A Maheshwar M Marathe

Partner Partner Partner Partner

Membership No:079236 Membership No:37290 Membership No:016639 Membership No:212175

Place : Pune

Date : 12th May, 2016


Mar 31, 2016

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2016 which comprise the Balance Sheet as at 31st March 2016 profit and Loss Account and the cash Flow Statement for the year ended and a summary of signifcant accounting policies and Notes on Accounts. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Division, audited by us and 903 branches audited by branch auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and profit & Loss account and the return from 962 branches which have not been subjected to audit. These unaudited branches account for 8.55 % of the advances, 25% of deposits, 7.43% of interest income and 22.99% of interest expenses.

2. Management''s responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. This responsibility includes the design implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

3. Auditors''Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors''judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that:

a. The Balance Sheet read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars is properly drawn up so as to exhibit a true and fair view of the state of the affairs of the Bank as at 31st March 2016 in conformity with accounting principles generally accepted in India.

b. profit and loss Account, read with the notes thereon shows a true balance of profit/loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c. The Cash Flow Statement gives a true and fair view of the cash fows for the year ended on that date.

7. Report on Other Legal and Regulatory Requirements:

The Balance Sheet and the profit and Loss Account have been drawn up in forms "A" and "B" respectively of the third Schedule to the Banking Regulation Act 1949.

8. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act 1970/1980, and also subject to the limitations of disclosure required therein we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b. The transactions of the bank which have come to our notice have been within the powers of the Bank.

c. The returns received from the offces and branches of the Bank have been found adequate for the purpose of our audit.

9. We further report that;

a. The Balance Sheet and profit and Loss account dealt with by this report are in agreement with the books of account and returns;

b. The reports on the accounts of the branch offces audited by branch auditors of the Bank under section 29 of the Banking Regulation Act,1949 have been sent to us and have been properly dealt with by us in preparing this report;

c. In our opinion, the Balance Sheet, profit and Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.

For Parakh & Co. For A R Sulakhe & Co. For Kothari & Co. For C M R S & Associates, LLP

FRN: 001475C FRN:110540W FRN - 301178E FRN:101678W/ W100068

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants



CA Thalendra Sharma CA J V Dhongde CA Amitav Kothari C A Maheshwar M Marathe

Partner Partner Partner Partner

Membership No:079236 Membership No:37290 Membership No:016639 Membership No:212175

Place : Pune

Date : 12th May, 2016


Mar 31, 2015

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2015 which comprise the Balance Sheet as at 31st March 2015 Profit and Loss Account and the cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Branch, audited by us and 916 branches audited by branch auditors and 70 branches under concurrent audit for reporting under Long Form Audit Report (LFAR).

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the return from 980 branches which have not been subjected to audit. These unaudited branches account for 8.45 per cent of the advances, 24.69 per cent of deposits, 6.53 per cent of interest income and 21.14 per cent of interest expenses.

2. Management''s responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. This respons bility includes the design implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

3. Auditors'' Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors'' judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that :

a) The Balance Sheet read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars is properly drawn up so as to exhibit a true and fair view of the state of the affairs of the Bank as at 31st March 2015 in conformity with accounting principles generally accepted in India.

b) Profit and loss Account, read with the notes thereon shows a true balance of profit/loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c) The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

7. Emphasis of Matter:

Without qualifying, we draw attention to note 11 in Schedule 18 to the Balance Sheet where in respect of loans & advances detected and classified as fraud during the quarter ended March 31, 2015, provision is claimed to have been made in terms of circular of RBI No.BP.BC.83/21.04.048/2014-15 dated April 1, 2015.

8. Report on Other Legal and Regulatory Requirements:

The Balance Sheet and the Profit and Loss Account have been drawn up in forms "A" and "B" respectively of the third Schedule to the Banking Regulation Act 1949.

9. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer Of Undertaking) Act 1970/1980, and also subject to the limitations of disclosure required therein we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b) The transaction of the bank which have come to our notice have been within the powers of the Bank except for the matter referred to in note no 9.6 of schedule 18.

c) The returns received from the offices and branches of the Bank have been found adequate for the purpose of our audit.

10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable accounting standards.

For G Basu & Co. For Singh Ray Mishra & Co. For Parakh & Co. For A R Sulakhe & Co,

FRN: 301174E FRN: 318121E FRN: 001475C FRN:110540W

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

CA S Lahiri CA K K Singh CA Thalendra Sharma CA J V Dhongde

Partner Partner Partner Partner

Membership No:51717 Membership No:052939 Membership No. 079236 Membership No:37290

Place : Pune

Date : 14th May, 2015


Mar 31, 2014

1. We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2014 which comprise the Balance Sheet as at 31st March 2014, Profit and Loss Account and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of 21 branches, including Treasury ACY- International Banking Branch, audited by us and 823 branches audited by branch auditors and 51 branches under concurrent audit for reporting under Long Form Audit Report (LFAR). The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 994 branches which have not been subjected to audit. These unaudited branches account for 8.67 per cent of advances, 19.73 per cent of deposits, 5.67 per cent of interest income and 15.38 per cent of interest expenses.

Management''s Responsibility for the Financial Statements:

2. Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility:

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'' judgement, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion in the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence, we have obtained is sufficient and appropriate to provide a basis for our Audit opinion.

Opinion:

6. In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us,

(a) the Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March 2014 in conformity with accounting principles generally accepted in India ADs-

(b) Profit and Loss Account, read with the notes thereon shows a true balance of profit/loss, in conformity with accounting principles generally accepted in India, for the year covered by the account ADs- and

(c) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Emphasis of Matter:

7. We draw attention to the note 10.4D in Schedule 18 which describes deferment of pension and gratuity liability of the bank to the extent of Rs. 102.48 Crore pursuant to the exemption granted by the Reserve Bank of India to the Public Sector Banks from application of the Accounting Standard 15 (Revised) - Employees Benefit vide its circular DBOD.BPBC/80/21.04.018/2010-11 of February 2011 on reopening of pension option to employees of Public Sector Banks and Enhancement in Gratuity limits - Prudential Regulatory Treatment.

Had the said circular not been issued, the ACI- Profit before Tax ACI- of the bank would have been lower by Rs. 102.48 Crore pursuant to the application of the requirements of AS 15 (Revised), the consequential effect of which has not been ascertained on the other related components of the financial statements.

Report on Other Legal and Regulatory Requirements:

8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms ACI-A ACI- and ACI-B ACI- respectively of the Third Schedule to the Banking Regulation Act, 1949.

9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b. The transactions of the bank which have come to our notice have been within the powers of the Bank.

c. The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable accounting standards.



For G Basu ACY- Co. For Singh Ray Mishra ACY- Co.

FRN301174E FRN 318121E

Chartered Accountants Chartered Accountants



CA S. Lahiri CA Jiten K. Mishra

Partner Partner

Membership No. : 051717 Membership No. : 052796


Mar 31, 2013

1. We have audited the accompanying Financial Statements of BANK OF MAHARASHTRA as at 31st March, 2013 which comprise the Balance Sheet as at March 31, 2013, Profit and Loss Account and the Cash Flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of 20 branches & audited by us and 711 branches audited by branch auditors. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 997 branches which have not been subjected to audit. These unaudited branches account for 10.51 per cent of advances, 25.06 per cent of dposits, 14.19 per cent of interest income and 12.54 per cent of interest expenses.

Management''s Responsibility for the Financial Statements -

2. Management is responsible for the preparation of these Financial Statements in accordance with Banking Regulation Act, complying with Reserve Bank of India Guidelines from time to time. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.

Auditors Responsibility -

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgement, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that our audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion -

6. In our opinion, as shown by books of bank, and to the best of our information and accordeing to the explanation given to us,

(a) the Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March 2013 conformity with accounting principles generally accepted in India;

(b) Profit and Loss Account, read with the notes thereon shows a true balance of profit/loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

(c) The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Emphasis of Matters -

7. We draw attention to the note 10.4D in Schedule 18 which describes deferment of pension and gratuity liability of the bank to the extent of Rs. 204.94 crore pursuant to the exemption granted by the Reserve Bank of India to the Public Sector Banks from application of the Accounting Standard 15 (Revised) - Employees Benefit vide its circular DBOD.BP.BC/80/21.04.018/2010-11 of February 2011 on reporting of pension option to employees of Public Sector Banks and Enhancement in Gratuity limits - '' Prudential Regulatory Treatment.

Had the said circular not been issued, the "Profit before Tax" of the bank would have been lower by Rs. 204.94 crore pursuant to the application of the requirements of AS 15 (Revised), the consequential effect of which has not been ascertained on the other related components of the financial statements.

Report on Other Legal & Regulatory Requirements

8. The Balance Sheet and Profit & Loss Account have been drawn up in Forms A'' and B'' respectively of the Third Schedule to the Banking Regulation Act, 1949.

9. Subject to the limitations of audit indicated in paragraph 1 to 5 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the purposes of the audit and have found them to be satisfactory.

b. The transactions of the Bank, which have come to my/our notice have been within the powers of the Bank.

c. The returns received from the offices and branches of the Bank have been found adequate for the purpose of our audit.

10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable accounting standards.

For N. Kumar Chhabra & Co For DSP & Associates For Kirtane & Pandit

Chartered Accountants Chartered Accountants Chartered Accountants

FRN 000837N FRN 006791N FRN 105215W

CA Ashish Chhabra CA Arvind Singhal CA Sandeep D.Welling

Partner Partner Partner

Membership No. 507083 Membership No. 084939 Membership No 044576

For J.C. Bhalla & Co For G. Basu & Co For Singh Ray Mishra & Co

Chartered Accountants Chartered Accountants Chartered Accountants

FRN 001111N FRN 301174E FRN 318121E

CA Rajesh Sethi CA Manoj Kumar Das CA Saunak Ray

Partner Partner Partner

Membership No. 085669 Membership No. 013783 Membership No. 053815

Place : Pune

Dated : 29th April 2013


Mar 31, 2012

1. We have audited the accompanying financial statements of BANK OF MAHARASHTRA as at 31st March, 2012 which comprise the Balance Sheet as at March 31, 2012, and the Profit and Loss Account and the Cash Flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of 20 branches & The Treasury & International Banking Branch (TIBB) audited by us and 1203 branches audited by Branch Auditors.

The branches audited by us and those audited by other auditors, as informed to us, have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Statement of Profit & Loss are the returns from 22.97% branches which have not been subjected to audit but certified by the management. These unaudited branches account for 1.67% of advances, 5.95% of deposits, and 1.12% of interest income and 5.21% of interest expenses.

Management's Responsibility for the Financial Statements -

2. Management is responsible for the preparation of these financial statements in accordance with Banking Regulation Act, 1949. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.

Auditors Responsibility -

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with standards on auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on auditor's judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to Banking Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that our audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matters -

6. Without qualifying our opinion, we draw attention to -

Note No. 10.4D in Schedule 18 which describes deferment of pension and gratuity liability of the bank to the extent of Rs 307.42 crores, pursuant to the exemption granted by the Reserve Bank of India to the public sector banks from application of the provisions of Accounting Standard 15 (Revised) - Employees Benefit vide its Circular DBOD. BP.BC/80/21.04.018/2010-11 of 9th February, 2011 on Reopening of pension Option to Employees of Public Sector Bank and Enhancement in Gratuity limits - Prudential Regulatory Treatment.

Had the said Circular not been issued, the profit before tax of the Bank would have been lower by Rs 307.42 crores pursuant to application of the requirements of AS 15 (Revised), the consequential effect of which has not been ascertained on other related components of the financial statements.

Opinion -

7. We have observed that -

a) the effect of adjustments that may arise from the ongoing reconciliation of certain assets/liabilities, clearing differences, inter branch accounts/inter branch transfer of fixed assets and charge of depreciation on fixed assets, (as stated in Note No. 9.3 of Schedule 18 annexed to the Balance Sheet), the consequential impact thereof on the accounts is not ascertainable; and

b) the Bank is following the policy of recognizing the income from commission, locker rent etc. on cash basis during the year, instead of accrual basis as stated in Para no. 6.1 Schedule 17 Significant Accounting Policies which are not in conformity with the Accounting Standard 9 Revenue Recognition, issued by The Institute of Chartered Accountants of India. The impact thereof on the accounts is not ascertainable.

Subject to our observations above, in our opinion as shown by the books of the bank, and to the best of our information and according to the explanations given to us:

i. The balance sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of the state of affairs of the Bank as at 31st March, 2012 in conformity with accounting principles generally accepted in India;

ii. The Profit and Loss Account, read with the notes thereon shows a true balance of profit, in conformity with the accounting principles generally accepted in India, for the year covered by the account; and

iii. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Report on Other Legal & Regulatory Requirements

8. The Balance Sheet and Profit & Loss Account have been drawn up in Forms 'A' and 'B' respectively of the Third Schedule to the Banking Regulation Act, 1949.

9. Subject to the limitations of audit indicated in paragraph 1 to 5 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

c. The returns received from the offices and branches of the Bank have been found adequate for the purpose of our audit.

10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable accounting standards.

For Ray & Co. For Jodh Joshi And Co For JCR & Co. For N.Kumar Chhabra & Co. FRN : 313124E FRN : 104317W FRN : 105270W FRN : 000837N Chartered Chartered Chartered Chartered Accountants Accountants Accountants Accountants



For DSP & Associates For Kirtane & Pandit FRN:006791 FRN: 105215 Charactor Charactor Accounts Accounts



Sumit Sikdar Aparna P. S. Sankaran Jashvant Raval Navtej Kumar Partner Partner Partner Partner Membership Membership Membership Membership No.120622 No.:113982 No.:012926 No.:080426



Atul Jain Shared Bhagwat Partner Partner Membership Membership No.:080496 No.:008072


Mar 31, 2011

1. We have audited the accompanying financial statements of BANK OF MAHARASHTRA as at 31st March 2011 which comprise the Balance Sheet as at March 31, 2011, and the Profit and Loss Account and the Cash Flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of 20 branches & The Treasury & International Banking Branch (TIBB) audited by us and 1298 branches audited by Branch Auditors.

The branches audited by us and those audited by other auditors, as informed to us, have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the statements of Profit & Loss are the returns from 14.13% branches which have not been subjected to audit but certified by the management. These unaudited branches account for 1.49% of advances, 2.17% of deposits, and 0.67% of interest income and 2.16% of interest expenses.

Managements Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements in accordance with Banking Regulation Act. 1949. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.

Auditors Responsibility -

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with standards on auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on auditor’s judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that our audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matters

6. Without qualifying our opinion, we draw attention to

a) Note No. 4.2 in Schedule 18 regarding change in accounting policy of provisioning in respect of secured sub-standard assets, due to which net profit (net of tax) for the year is lower by Rs. 18.86 crore with a consequential effect on assets and liabilities of the bank.

b) Note No. 10.3 in Schedule 18 which describes deferment of pension and gratuity liability of the bank to the extent of Rs. 409.90 crores, pursuant to the exemption granted by the Reserve Bank of India to the public sector banks from application of the provisions of Accounting Standard 15 - Employees Benefit vide its Circular DBOD.BP.BC/80/21.04.018/2010-11 of 9th February, 2011 on Reopening of pension Option to Employees of Public Sector Bank and Enhancement in Gratuity limits — Prudential Regulatory Treatment.

Had the said Circular not been issued, the ‘profit before tax’ of the Bank would have been lower by Rs. 409.90 crores pursuant to application of the requirements of AS 15, the consequential effect of which has not been ascertained on other related components of the financial statements.

Opinion

7. We have observed that-

a) Note No. 9.5.4 in Schedule 18 regarding excess charging of depreciation in earlier years on Electrical Equipments, the impact of which is not yet ascertained.

b) The effect of adjustments that may arise from the on going reconciliation of certain assets/liabilities. clearing differences, inter branch accounts/inter branch transfer of fixed assets and charge of depreciation on fixed assets, (as stated in Note No. 9.3 of Schedule 18 annexed to the Balance Sheet), the consequential impact thereof on the accounts is not ascertainable;

c) The Bank is following the policy of recognizing the income from commission, locket rent etc. on cash basis during the year, instead of accrual basis as stated in para no. 6.1 Schedule 17 Significant Accounting Policies which are not in conformity with the ‘Accounting Standard 9 Revenue Recognition, issued by The Institute of Chartered Accountants of India’; and

Subject to our observations above, in our opinion as shown by the books of the bank, and to the best of our information and according to the explanations given to us:

i. The balance sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of the state of affairs of the Bank as at 31st March, 2011 in conformity with accounting principles generally accepted in India;

ii. The Profit and Loss Account, read with the notes thereon shows a true balance of profit, in conformity with the accounting principles generally accepted in India, for the year covered by the account; and

iii. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Report on Other Legal & Regulatory Requirements

8. The Balance Sheet and Profit & Loss Account have been drawn up in Forms ‘A’ and ‘B’ respectively of the Third Schedule to the Banking Regulation Act, 1949.

9 Subject to the limitation of audit indicated in paragraph 1 to 5 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein, we report that:

a. We have obtained all the information and explanation which to the the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

b. The transaction of the Bank, which have come to our notice, have been within the powers of the Bank.

c. The returns received from the officers and branches of the Bank have been found adequate for the purpose of our audit.

10. In out opinion, the Balance Sheet - Profit and Loss Account and Cash Flow Statement comply with the applicable accounting standards.



For B. Chhawchharia & Co. For Ray & Co. FRN: 305123E FRN: 313124E Chartered Accountants Chartered Accountants

For Jodh Joshi For JCR & Co. FRN: 104317W FRN :105270W Chartered Accountants Chartered Accountants

For N.Kumar Chhabra For DSP & Associates And Co & Co. FRN : 000837N FRN: 006791N Chartered Accountants Chartered Accountants

(S. K. Chhawchharia) (Subrata Roy) (Partner) (Partner) Membership No.: 008482 Membership No.:051205

(Makarand Joshi) (Amit Tanpure) (Partner) (Partner) Membership No : 047196 Membership No : 129055

(Navtej Kumar) (Sanjay Jain) (Partner) (Partner) Membership No : 080496 Membership No : 084906



Place: Pune

Dated: 30th April 2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of BANK OF MAHARASHTRA as at 31st March 2010 and also the Profit and Loss Account and the Cash Flow statement annexed thereto for the year ended on that date, in which are incorporated the returns of 20 branches audited by us and 1224 branches audited by Branch Auditors.

The branches audited by us and those audited by other auditors, as informed to us, have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit & Loss Account are the returns from 14.32% branches which have not been subjected to audit but certified by the management. These unaudited branches account for 1.53% of advances, 3.03% of deposits, and 0.76% of interest income and 0.60% of interest expenses. These financial statements are the responsibility of the Bank s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements prepared, in all material respects are in accordance with the identified financial reporting framework and are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3 The Balance Sheet and Profit & Loss Account have been drawn up in Form A and B respectively of the Third Schedule to the Banking Regulation Act, 1949.

4 Without qualifying our opinion, attention is drawn to - Pursuant to exercising of the option during the period, as per the Circular No: DBOD.No.BP.BC.26/ 21.04.048/ 2008-09 dated 30th July 2008 issued by Reserve Bank of India, to treat the eligible accounts under Debt Relief Scheme, which otherwise would have slipped to NPA to the extent of Rs. 124.87 crores being the outstanding balance as on 31.03.2010, which hitherto were classified as per IRAC norms during the previous financial year, as performing assets, by making provision of Rs. 10.66 crore for loss in Present Value terms, consequent thereto, the net profit (net of taxes) and reserves of the bank as on that date would have been decreased by Rs. 12.56 crores;

5. Subject to the limitations of audit indicated in paragraph 1 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and subject to the limitation of disclosure required therein and subject to :

i) the effect of adjustments that may arise from the on going reconciliation of certain assets/liabilities, clearing differences, inter branch accounts/inter branch transfer of fixed assets, (as stated In Note No. 9.3 of Schedule 18 annexed to the Balance Sheet), the consequential impact thereof on the accounts is not ascertainable;

ii) the Bank is following the policy of recognizing the income from commission, locker rent etc. on cash basis during the year, instead of accrual basis as stated in para no. 6.1 Schedule 17 Significant Accounting Policies which are not in conformity with the Accounting Standard 9 Revenue Recognition, issued by The Institute of Chartered Accountants of India; and

iii) inherent bugs noticed in the software system, used by the bank as stated in Note No: 9.4 of Schedule 18 annexed to the Balance Sheet, the impact thereof on the on the accounts is not ascertainable;

We report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory.

b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank,

c. The returns received from the offices and branches of the Bank have been found adequate for the purpose of our audit.

6. In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.

7 In our opinion, as shown by books of Bank, and to the best of our information and according to the explanations given to us:

i. The Balance Sheet, read with the notes thereon and Statement of Significant Accounting Policies is a full and fair Balance Sheet containing all the necessary particulars and is properly drawn up so as to exhibit a true and fair view of the state of affairs of the Bank as at 31st March 2010 in conformity with accounting principles generally accepted in India;

ii. the Profit & Loss Account, read with the notes thereon and Statement of Significant Accounting Policies shows a true Balance of Profit, in conformity with accounting principles generally accepted in India, for the year ended 31st March 2010; and

iii the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

For Wahi & Gupta For V.C. Gautam&Co. For B. Chhawchharia & Co. For Ray & Co. For Jodh Joshi and Co.

FRN2263N FRN 365 N FRN 305123E FRN 313124E FRN 104317W

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

(K. P. WAHI) (VISHNU GAUTAM) (S.K. CHHAWCHHARIA) (SUBRATAROY) (YASH K VERMA)

Partner Partner Partner Partner Partner

Membership No.: 16164 Membership No. 16257 Membership No 8482 Membership No. 051205 Membership No. 105954

Place : Pune

Date ; April 30, 2010

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