Mar 31, 2023
Report on Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of Central Bank Of India (âthe Bank''), which comprise the Standalone Balance Sheet as at 31st March 2023, the Standalone Profit and Loss Account and the Standalone Cash Flow Statement for the year then ended, and notes to Standalone Financial Statements including a summary of significant accounting policies and other explanatory information in which are included the returns for the year ended on that date of the Head Office, 12 Zones and
i. 1 Specialized Integrated Treasury Branch audited by us
ii. 20 branches audited by us
iii. 1507 branches audited by respective statutory 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 Standalone Balance Sheet, the Standalone Profit and Loss Account and the Standalone Cash Flow Statement are the returns from 2966 branches which have not been subjected to audit. These unaudited branches account for 24.65 per cent of advances, 44.21 per cent of deposits, 29.45 per cent of interest income and 42.05 per cent of interest expenses.
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 (hereinafter referred to as âthe Actâ) in the manner so required for the Bank and are in conformity with accounting principles generally accepted in India and:
a) the Standalone 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, 2023;
b) the Standalone Profit and Loss Account, read with the notes thereon shows a true balance of profit for the year ended on that date; and
c) the Standalone Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.
Basis for Opinion
2. We conducted our audit in accordance with the Standards on Auditing (âSAsâ) issued by the Institute of Chartered Accountants of India (âICAIâ). Our responsibilities under those Standards are further described in the âAuditors'' Responsibilities for the Audit of the Standalone Financial Statementsâ 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 prepared in accordance with the accounting principles generally accepted in India, including the Accounting Standards issued by the ICAI, and provisions of section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBIâ) from time to time 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.
Emphasis of Matter
3. We draw attention to:
a) Note no. 14 (h) of the Statement regarding amortization of additional liability on revision of family pension amounting to '' 821.95 crore. The Bank has charged an amount of '' 164.40 crore to
the Profit and Loss Account for the year ended 31st March 2023 and the balance unamortised expense of '' 113.03 crore has been carried forward pursuant to RBI circular no. RBI/2021-22/105 DORACC. REC.57/21.04.018/2021-22 dt.4th October,2021.
b) Note no. 15 (g) of the Statement regarding deferred tax, wherein on the basis of tax review made by the Bank''s management with respect to the possible tax benefits arising out of the timing difference, the net deferred tax asset of '' 5798.91 crore is recognised as on 31st March 2023(? 6862.05 crore as on 31st March 2022).
c) Note no. 15 (a) of the Statement regarding accounting of Performance Link Incentive to employees on accrual basis during the year which was being done on cash basis in earlier years resulting in decrease of profit by '' 104.24 crore.
d) Note No. 4 (h) of the Statement, which describes the uncertainties due to the COVID-19 pandemic and management''s evaluation of impact on the Bank''s financial performance which will depend on future developments, which are uncertain.
Our opinion is not modified in respect of these matters.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended 31st March 2023. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matters |
Auditors'' response |
1. Identification and provisioning of non- |
Our audit approach included assessment of the design, |
performing advances made in accordance with the prudential norms prescribed by Reserve Bank of India on Income recognition, Asset Classification and provisioning pertaining to Advances (refer Schedule 9 read with Note 2 of Schedule 17 to the standalone financial statements) |
operating effectiveness of key internal controls over approval, recording and monitoring of loans and substantive audit procedures in respect of income recognition, asset classification and provisioning pertaining to advances. In particular: |
Advances comprise substantial portion of the |
⢠We have evaluated and understood the Bank''s |
Bank''s total assets. Identification of non-performing |
internal control system in adhering to the relevant |
advances (NPAs) is carried out, based on system |
RBI guidelines regarding income recognition, asset |
identification, by the Core Banking Solution (CBS) |
classification and provisioning pertaining to advances. |
software in operation based on the various controls |
⢠We assessed and evaluated the process of |
and logic embedded therein. |
identification of NPAs, and corresponding reversal of |
Provisions in respect of such NPAs and restructured advances are made based on management''s assessment of the degree of impairment of the advances subject to and guided by the minimum provisioning levels prescribed under RBI guidelines, prescribed from time to time. The provisions on NPAs are also based on the valuation of the security available. In case of restructured accounts, provision is made in accordance with the RBI guidelines. We |
income and creation of provision. ⢠We have analyzed and understood key IT systems/ applications used operational effectiveness of relevant controls including involvement of manual process and manual controls in relation to income recognition, asset classification and provisioning pertaining to advances. In order to ensure the effectiveness of the |
identified NPA identification and provision on loans |
operation of the key controls and compliance to the |
and advances as a key audit matter because of |
directions of the RBI, we have verified whether both CBS |
the significant efforts involved by the management |
system and the management have: |
in identifying NPAs based on the RBI Guidelines, the level of management judgement involved in determining the provision (including the provisions |
⢠timely recognized the depletion in the value of available security. |
on assets which are not classified as NPAs), the |
⢠made adequate provisioning based on such time- |
valuation of security of the NPAs and on account of |
to-time monitoring and identification of asset |
the significance of these estimates to the standalone |
classification including accounts which meet the |
financial statements of the Bank. |
criteria for asset classification benefit in accordance |
with the Reserve Bank of India COVID-19 Regulatory Package. |
Key Audit Matters |
Auditors'' response |
⢠We placed reliance upon the Independent Auditor''s Report of the respective Branch Auditors with respect to income recognition, asset classification and provisioning as well as Memorandum of changes suggested both at the branches and at Head Office. |
2. Investments
Investment portfolio of the Bank comprises of investments in government securities, bonds, debentures, shares, security receipts and other approved securities which are classified under three categories, Held to Maturity, Available for Sale and Held for Trading. Investments comprise a substantial portion of the Bank''s total assets.
Valuation of Investments, identification of Non-Performing Investments (NPI) and the corresponding non-recognition of income and provision thereon, is carried out in accordance with the relevant circulars / guidelines / directions of RBI. (refer Schedule 8 read with Note 5 of Schedule 17 to the standalone financial statements)
The valuation of each type of aforesaid security is to be carried out as per the methodology prescribed in the circulars and directives issued by the RBI which involves collection of data/ information from various sources such as FBIL rates, rates quoted on BSE/ NSE, financial statements of unlisted companies, NAV in case of security receipts etc.
As per the RBI directions, there are certain investments that are valued at market price however certain investments are based on the valuation methodologies that include statistical models with inherent assumptions, assessment of price for valuation based on financial statements etc. The price discovered for the valuation of these Investments is only a fair assessment of the Investments.
Hence, the valuation of Investments requires special attention and further in view of the significance of the amount of Investments in the financial statements, the same has been considered as Key Audit Matter in our audit.
Our audit approach towards Investments with reference to the RBI circulars/ directives included the review and testing of the design, operating effectiveness of internal controls and substantive audit procedures in relation to valuation, classification, identification of Non-Performing Investments, provisioning/ depreciation related to Investments. In particular:
⢠We assessed and understood the system and
internal control as laid down by the Bank to comply with relevant RBI guidelines regarding valuation, classification, identification of Non- Performing Investments, Provisioning and depreciation on Investments.
⢠Tested accuracy and compliance for selected sample of investments with the RBI Master circulars and directions by re-performing valuation for each category of security in accordance with the RBI guidelines.
⢠We assessed and evaluated the process of
identification of NPIs, and corresponding reversal of income and creation of provision.
⢠We carried out substantive audit procedures to recompute independently the provision to be created and depreciation to be provided.
⢠We assessed that the standalone financial statement disclosures appropriately reflected the Bank''s exposure to investments valuation risks with reference to the requirements of the prevailing accounting standards and the RBI guidelines.
Key Audit Matters |
Auditors'' response |
3. Information technology (IT) systems used in financial reporting process The Bank''s operational and financial reporting processes are dependent on IT systems run through Core Banking Solutions (CBS) and other integrated software with automated processes and controls large volume of transactions. The process and controls are to ensure appropriate user access and management processes in use. |
We conducted an assessment and identified key IT applications, database and operating systems that are relevant to our audit and have identified CBS and Treasury System primarily as relevant for financial reporting. For the key IT systems pertaining to CBS and treasury operations used to prepare accounting and financial information, our areas of audit focus included Access Security (including controls over privileged access), application change controls, database management and network operations. In particular: |
The Bank has an in-house Department of Information & technology (DIT) run under the supervision of the top management and with the support of expert consulting agencies, for maintaining It services. |
⢠We obtained an understanding of the Bank''s IT control environment and key changes during the audit period that may be relevant to the audit. |
Accordingly, our audit was focused on key IT systems and controls due to the pervasive Impact on the standalone financial statements and the same has been considered as Key Audit Matter in our audit. |
⢠We tested the design, implementation and operating effectiveness of the Bank''s General IT controls over the key IT systems that are critical to financial reporting including obtaining reports from independent experts. This included evaluation of Bank''s controls to evaluate segregation of duties and access rights being provisioned / modified based on duly approved requests, access for exit cases being revoked in a timely manner. |
⢠We also tested key automated and manual business cycle controls and logic for system generated reports relevant to the audit; including testing of compensating controls or performed alternate procedures to assess whether there were any unaddressed IT risks that would materially impact the standalone financial statements, information other than the standalone Financial Statements and Auditors'' Report thereon. |
4. Provisions, Contingent Liabilities and Claims:
Assessment of Provisions and Contingent Liability in respect of certain litigations on various claims filed by other parties not acknowledged as debt (Note No. 13 of Schedule 17 and Note No. 15. i. of Schedule 18).
There is high level of judgement required in estimating the level of provisioning. The Bank''s assessment is supported by the facts of matter, their own judgement, past experience, and advice from legal and independent experts wherever considered necessary. Accordingly, unexpected adverse outcomes may significantly impact the Bank''s reported profit and state of affairs presented in Balance Sheet.
Contingent Liability is a possible obligation, outcome of which is contingent upon occurrence or nonoccurrence of one or more uncertain future events. In the judgement of the management, such claims and litigations including tax demands against the bank would not eventually lead to a liability.
However, unexpected adverse outcomes may significantly impact the Bank''s reported financial results which is uncertain/ unascertainable at this stage.
Considering the uncertainty relating to the outcome of these matters which requires application of judgment in interpretation of law, this has been determined as a key Audit Matter.
We have obtained an understanding of Internal Controls relevant to the audit in order to design our audit procedures that are appropriate in the circumstances.
We broadly reviewed the underlying assumptions and estimates used by the management for provisioning but as the extent of impact is dependent on future developments which are highly uncertain, we primarily relied on those assumptions and estimates, which are subject matter of periodic review by the Bank.
We have relied upon the management note and legal opinions obtained by the bank regarding the claims and tax litigations and involved our internal team to review the nature of such litigations and claims, their current status, sustainability, examining recent orders and/or communication received from various tax authorities/ judicial forums and follow up actions thereon and likelihood of claims/litigations materializing into eventual liability upon final resolution, from the available records and developments to date.
Information other than the Standalone Financial
Statements and Auditors'' report thereon
5. The Bank''s Board of Directors is responsible for the other information. The other information comprises the Corporate Governance Report, which we obtained at the time of issuance of this auditors'' report, and the Directors'' Report including annexures, and Management Discussion and Analysis which is expected to be made available to us after that date but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and the Pillar 3 disclosures under Capital Adequacy Framework (Basel III disclosures) and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of auditors'' report, 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 regard.
When we read the Directors'' Report including annexures, and Management Discussion and Analysis, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance and determine the actions under the applicable laws and regulations.
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 applicable Accounting Standards, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBI'') from time to time (âRBI guidelinesâ) and judicial pronouncements. 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management 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 management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Bank''s financial reporting process.
Auditors'' responsibilities for the audit of the standalone financial statements
7. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone 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 standalone 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.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
⢠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 standalone 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 Standalone financial statements, including the disclosures, and whether the Standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of the misstatements in the standalone financial statements that, individually or aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning of the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatement in the standalone financial statements.
We communicate with those charge 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 Standalone financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditors'' 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.
8. We did not audit the financial statements/ information of 1507 branches included in the standalone financial statements of the Bank whose financial statements / financial information reflect total assets of '' 2,07,308 crore as at 31st March 2023 and total revenue of '' 6,763 crore for the year ended on that date, as considered in the standalone financial statements. These branches cover 34.16 per cent of advances, 51.10 per cent of deposits and 19.30 per cent of non-performing assets as at 31st March 2023 and 40.23 per cent of revenue for the year ended on that date. The financial statements/ information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.
9. In the conduct of our audit, we have taken note of the unaudited returns in respect of 2966 branches certified by the respective branch''s management whose financial statements/ information reflect total assets of '' 90,252 crore as at 31st March 2023 and total revenue of '' 5,393 crore for the year ended on that date. These unaudited branches cover 24.65 per cent of advances, 44.21 per cent of deposits and 13.43 per cent of non-performing assets as on 31st March 2023 and 32.08 per cent of revenue for the year then ended.
Our opinion is not modified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
10. The standalone Balance sheet and the standalone Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;
Subject to the limitations of the audit indicated in paragraphs 5 to 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.
11. As required by letter No. DOS.ARG.No. 6270/08.91.001/2019-20 dated March 17, 2020 on âAppointment of Statutory Central Auditors (SCAs) in Public Sector Banks - Reporting obligations for SCAs from FY 2019-20â, read with subsequent communication dated May 19, 2020 issued by the RBI, we further report on the matters specified in paragraph 2 of the aforesaid letter as under:
a) In our opinion, the aforesaid standalone financial statements comply with the applicable Accounting Standards issued by ICAI, to the extent they are not inconsistent with the accounting policies prescribed by RBI.
b) There are no observations or comments on financial transactions or matters which have any adverse effect on the functioning of the Bank.
c) As the Bank is not registered under the Companies Act, 2013 the disqualifications from being a director of the bank under sub-section (2) of Section 164 of the Companies Act, 2013 do not apply to the bank.
d) There are no qualifications, reservations or adverse remarks relating to the maintenance of accounts and other matters connected therewith.
e) Our audit report on the adequacy and operating effectiveness of the Bank''s internal financial controls
over financial reporting as required by the RBI Letter No. DOS. ARG. No. 6270/ 08.91.001/2019-20 dated March 17, 2020 (as amended) is given in Annexure A to this report. Our report expresses an unmodified opinion on the Bank''s internal financial controls over financial reporting with reference to the standalone financial statements as at 31st March 2023.
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 standalone Balance Sheet, the standalone Profit and Loss Account and the Standalone Cash Flow Statement dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us.
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 Standalone Balance Sheet, the Standalone Profit and Loss Account and the Standalone Cash Flow Statement comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI.
Mar 31, 2022
Report on Audit of the StandaloneFinancial Statements
1. We have audited the accompanying standalone financial statements of Central Bank Of India (âthe Bank''), which comprise the Balance Sheet as at 31st March 2022, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and notes to Standalone Financial Statements including a summary of significant accounting policies and other explanatory information in which are included the returns for the year ended on that date of the Head Office, 12 Zones, 1 Specialized Integrated Treasury Branch and 20 branches audited by us and 1869 branches audited by respective statutory 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, the Profit and Loss Account and the Cash Flow Statement are the returns from 2639 branches which have not been subjected to audit. These unaudited branches account for 16.76 per cent of advances, 34.97 per cent of deposits, 9.27 per cent of interest income and 33.12 per cent of interest expenses.
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 (hereinafter referred to as âthe Actâ) in the manner so required for the Bank and are in conformity with accounting principles generally accepted in India and:
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 affairs of the Bank as at 31st March, 2022;
b) the Profit and Loss Account, read with the notes thereon shows a true balance of profit for the year ended on that date; and
c) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.
3. We conducted our audit in accordance with the Standards on Auditing (âSAsâ) issued by the Institute of Chartered Accountants of India (âICAIâ). Our responsibilities under those Standards are further described in the âAuditors'' responsibilities for the audit of the standalone financial statementsâ 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 prepared in accordance with the accounting principles generally accepted in India, including the Accounting Standards issued by the ICAI, and provisions of section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBIâ) from time to time 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.
4. We draw attention to:
a) Note no. 15 (v) of Schedule 18 to the standalone financial statements regarding amortization of additional liability on revision of family pension amounting to ? 821.95 crore. The Bank has charged an amount of ? 544.52 crore to the Profit and Loss Account for the year ended 31st March 2022 and the balance unamortised expense has been carried
forward pursuant to RBI circular no. RBI/2021-22/105 DORACC.REC.57/21.04.018/2021-22 dt. 4th October, 2021.
b) Note no. 1(d) of Schedule 18 to the standalone financial statements regarding set-off of accumulated losses amounting to ? 18724.22 crore against the available balance in share premium account after obtaining approval from the shareholders and the Reserve Bank of India.
c) Note no. 20(g) of Schedule 18 to the standalone financial statements regarding deferred tax, wherein on the basis of tax review made by the Bank''s management with respect to the possible tax benefits arising out of the timing difference, the net deferred tax asset of ? 6862.05 crore is recognised as on 31st March 2022 (? 7545.68 crore as on 31st March 2021).
d) Note No. 11 of Schedule 18 to the standalone
financial statements, which describes the
uncertainties due to the COVID-19 pandemic and management''s evaluation of impact on the Bank''s financial performance which will depend on future developments, which are uncertain.
Our opinion is not modified in respect of the above matters.
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended 31st March 2022. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matters |
Auditors'' response |
1. Identification and provisioning of non- |
Our audit approach included assessment of the design, |
performing advances made in accordance with |
operating effectiveness of key internal controls over |
the prudential norms prescribed by Reserve |
approval, recording and monitoring of loans and substantive |
Bank of India on Income recognition, Asset |
audit procedures in respect of income recognition, asset |
Classification and provisioning pertaining to |
classification and provisioning pertaining to advances. |
Advances (refer Schedule 9 read with Note 2 of Schedule 17 to the standalone financial |
In particular: |
statements) |
» We have evaluated and understood the Bank''s internal |
Advances comprise substantial portion of the |
control system in adhering to the relevant RBI guidelines |
Bank''s total assets. Identification of non-performing |
regarding income recognition, asset classification and |
advances (NPAs) is carried out, based on system |
provisioning pertaining to advances. |
identification, by the Core Banking Solution (CBS) |
» We assessed and evaluated the process of identification |
software in operation based on the various controls |
of NPAs, and corresponding reversal of income and |
and logic embedded therein. |
creation of provision. |
Provisions in respect of such NPAs and restructured |
» We have analyzed and understood key IT systems/ |
advances are made based on management''s |
applications used operational effectiveness of relevant |
assessment of the degree of impairment of |
controls including involvement of manual process and |
the advances subject to and guided by the |
manual controls in relation to income recognition, asset |
minimum provisioning levels prescribed under |
classification and provisioning pertaining to advances. |
RBI guidelines, prescribed from time to time. The |
In order to ensure the effectiveness of the operation of |
provisions on NPAs are also based on the valuation |
the key controls and compliance to the directions of the |
of the security available. In case of restructured |
RBI, we have verified whether both CBS system and the |
accounts, provision is made in accordance with |
management have: |
the RBI guidelines. We identified NPA identification and provision on loans and advances as a key audit |
» Timely recognized the depletion in the value of available |
matter because of the significant efforts involved |
security. |
by the management in identifying NPAs based |
» Made adequate provisioning based on such time-to- |
on the RBI Guidelines, the level of management |
time monitoring and identification of asset classification |
judgement involved in determining the provision |
including accounts which meet the criteria for asset |
(including the provisions on assets which are not |
classification benefit in accordance with the Reserve |
classified as NPAs), the valuation of security of the |
Bank of India COVID-19 Regulatory Package. |
NPAs and on account of the significance of these |
» We placed reliance upon the Independent Auditor''s |
estimates to the standalone financial statements of |
Report of the respective Branch Auditors with respect to |
the Bank. |
income recognition, asset classification and provisioning as well as Memorandum of changes suggested both at the branches and at Head Office. |
Key Audit Matters |
Auditors'' response |
|
2. |
Investments Investment portfolio of the Bank comprises of investments in government securities, bonds, debentures, shares, security receipts and other approved securities which are classified under three categories, Held to Maturity, Available for Sale and Held for Trading. Investments comprise a substantial portion of the Bank''s total assets. Valuation of Investments, identification of Non-Performing Investments (NPI) and the corresponding non-recognition of income and provision thereon, is carried out in accordance with the relevant circulars / guidelines / directions of RBI. (refer Schedule 8 read with Note 4 of Schedule 17 to the standalone financial statements) The valuation of each type of aforesaid security is to be carried out as per the methodology prescribed in the circulars and directives issued by the RBI which involves collection of data/ information from various sources such as FBIL rates, rates quoted on BSE/ NSE, financial statements of unlisted companies, NAV in case of security receipts etc. As per the RBI directions, there are certain investments that are valued at market price however certain investments are based on the valuation methodologies that include statistical models with inherent assumptions, assessment of price for valuation based on financial statements etc. The price discovered for the valuation of these Investments is only a fair assessment of the Investments. Hence, the valuation of Investments requires special attention and further in view of the significance of the amount of Investments in the financial statements, the same has been considered as Key Audit Matter in our audit. |
Our audit approach towards Investments with reference to the RBI circulars/ directives included the review and testing of the design, operating effectiveness of internal controls and substantive audit procedures in relation to valuation, classification, identification of Non-Performing Investments, provisioning/ depreciation related to Investments. In particular: » We assessed and understood the system and internal control as laid down by the Bank to comply with relevant RBI guidelines regarding valuation, classification, identification of Non- Performing Investments, Provisioning and depreciation on Investments. » Tested accuracy and compliance for selected sample of investments with the RBI Master circulars and directions by re-performing valuation for each category of security in accordance with the RBI guidelines. » We assessed and evaluated the process of identification of NPIs, and corresponding reversal of income and creation of provision. » We carried out substantive audit procedures to recompute independently the provision to be created and depreciation to be provided. » We assessed that the standalone financial statement disclosures appropriately reflected the Bank''s exposure to investments valuation risks with reference to the requirements of the prevailing accounting standards and the RBI guidelines. |
3. |
Information technology (IT) systems used in financial reporting process The Bank''s operational and financial reporting processes are dependent on IT systems run through Core Banking Solutions (CBS) and other integrated software with automated processes and controls large volume of transactions. The process and controls are to ensure appropriate user access and management processes in use. The Bank has an in-house Department ofInformation & technology (DIT) run under the supervision of the top management and with the support of expert consulting agencies, for maintaining IT services. Accordingly, our audit was focused on key IT systems and controls due to the pervasive Impact on the standalone financial statements and the same has been considered as Key Audit Matter in our audit. |
We conducted an assessment and identified key IT applications, database and operating systems that are relevant to our audit and have identified CBS and Treasury System primarily as relevant for financial reporting. For the key IT systems pertaining to CBS and treasury operations used to prepare accounting and financial information, our areas of audit focus included Access Security (including controls over privileged access), application change controls, database management and network operations. In particular: » We obtained an understanding of the Bank''s IT control environment and key changes during the audit period that may be relevant to the audit. » We tested the design, implementation and operating effectiveness of the Bank''s General IT controls over the key IT systems that are critical to financial reporting including obtaining reports from independent experts. This included evaluation of Bank''s controls to evaluate segregation of duties and access rights being provisioned / modified based on duly approved requests, access for exit cases being revoked in a timely manner. |
Key Audit Matters |
Auditorsâ response |
» We also tested key automated and manual business cycle controls and logic for system generated reports relevant to the audit; including testing of compensating controls or performed alternate procedures to assess whether there were any unaddressed IT risks that would materially impact the standalone financial statements, information other than the standalone Financial Statements and Auditors'' Report thereon. |
|
4. Provisions, Contingent Liabilities and Claims: |
We have obtained an understanding of Internal Controls |
Assessment of Provisions and Contingent Liability |
relevant to the audit in order to design our audit procedures |
in respect of certain litigations on various claims filed by other parties not acknowledged as debt |
that are appropriate in the circumstances. |
(Note No. 11 of Schedule 17 and Note No. 20. i. of |
We broadly reviewed the underlying assumptions and |
Schedule 18). |
estimates used by the management for provisioning but as |
There is high level of judgement required in |
the extent of impact is dependent on future developments |
estimating the level of provisioning. The Bank''s |
which are highly uncertain, we primarily relied on those |
assessment is supported by the facts of matter, |
assumptions and estimates, which are subject matter of |
their own judgement, past experience, and advice from legal and independent experts wherever |
periodic review by the Bank. |
considered necessary. Accordingly, unexpected |
We have relied upon the management note and legal opinions |
adverse outcomes may significantly impact the |
obtained by the bank regarding the claims and tax litigations |
Bank''s reported profit and state of affairs presented in Balance Sheet. |
and involved our internal team to review the nature of such litigations and claims, their current status, sustainability, |
Contingent Liability is a possible obligation, |
examining recent orders and/or communication received |
outcome of which is contingent upon occurrence or non-occurrence of one or more uncertain future |
from various tax authorities/judicial forums and follow |
events. In the judgement of the management, |
up actions thereon and likelihood of claims/litigations |
such claims and litigations including tax demands |
materializing into eventual liability upon final resolution, from |
against the bank would not eventually lead to a liability. However, unexpected adverse outcomes may significantly impact the Bank''s reported financial results which is uncertain/ unascertainable at this stage. Considering the uncertainty relating to the outcome of these matters which requires application of judgment in interpretation of law, this has been determined as a key Audit Matter. |
the available records and developments to date. |
6. The Bank''s Board of Directors is responsible for the other information. The other information comprises the Corporate Governance Report, which we obtained at the time of issuance of this auditors'' report, and the Directors'' Report including annexures, and Management Discussion and Analysis which is expected to be made available to us after that date but does not include the financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and the Pillar 3 disclosures under Capital Adequacy Framework (Basel III disclosures) and we do not express any form of
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of auditors'' report, 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 regard.
When we read the Directors'' Report including annexures, and Management Discussion and Analysis, if we conclude that there is material misstatement therein,
we are required to communicate the matter to those charged with governance and determine the actions under the applicable laws and regulations.
7. 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 applicable Accounting Standards, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBI'') from time to time (âRBI guidelinesâ) and judicial pronouncements. 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management 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 management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so. The Board of Directors is also responsible for overseeing the Bank''s financial reporting process.
8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' 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 aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these standalone 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 standalone 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.
» Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
» 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 standalone 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 Standalone financial statements, including the disclosures, and whether the Standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of the misstatements in the financial statements that, individually or aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning of the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatement in the financial statements.
We communicate with those charge 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 Standalone financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditors'' 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.
9. We did not audit the financial statements/ information of 1869 branches included in the standalone financial statements of the Bank whose financial statements / financial information reflect total assets of ? 2,30,319.41 crore as at 31st March 2022 and total revenue of ? 6,490.25 crore for the year ended on that date, as considered in the standalone financial statements. These branches cover 43.90 per cent of advances, 61.16 per cent of deposits and 22.92 per cent of nonperforming assets as at 31st March 2022 and 25.19 per cent of revenue for the year ended 31st March 2022. The financial statements/ information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.
10. In the conduct of our audit, we have taken note of the unaudited returns in respect of 2639 branches certified by the respective branch''s management whose financial statements/ information reflect total assets of ? 58318.30 crore as at 31st March 2022 and total revenue of ? 2836.01 crore for the year ended on that date. These unaudited branches cover 16.76 per cent of advances, 34.97 per cent of deposits and 8.76 per cent of non-performing assets as on 31st March 2022 and 11.01 per cent of revenue for the year then ended.
Our opinion is not modified in respect of the above matters.
11. The standalone Balance sheet and the standalone Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;
12. Subject to the limitations of the audit indicated in paragraphs 7 to 10 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.
13. As required by letter No. DOS.ARG.No.
6270/08.91.001/2019-20 dated March 17, 2020 on âAppointment of Statutory Central Auditors (SCAs) in Public Sector Banks - Reporting obligations for SCAs from FY 2019-20â, read with subsequent communication dated May 19, 2020 issued by the RBI, we further report on the matters specified in paragraph 2 of the aforesaid letter as under:
a) In our opinion, the aforesaid standalone financial statements comply with the applicable Accounting Standards issued by ICAI, to the extent they are not inconsistent with the accounting policies prescribed by RBI.
b) There are no observations or comments on financial transactions or matters which have any adverse effect on the functioning of the Bank.
c) As the Bank is not registered under the Companies Act, 2013 the disqualifications from being a director of the bank under sub-section (2) of Section 164 of the Companies Act, 2013 do not apply to the bank.
d) There are no qualifications, reservations or adverse remarks relating to the maintenance of accounts and other matters connected therewith.
e) Our audit report on the adequacy and operating effectiveness of the Bank''s internal financial controls over financial reporting as required by the RBI Letter No. DOS. ARG. No. 6270/ 08.91.001/2019-20 dated March 17, 2020 (as amended) is given in
Annexure A to this report. Our report expresses an unmodified opinion on the Bank''s internal financial controls over financial reporting with reference to the standalone financial statements as at 31st March 2022.
14. 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 standalone Balance Sheet, the standalone Profit and Loss Account and the Cash Flow Statement
dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us.
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 Cash Flow Statement comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI.
For S JAYKISHAN For CHHAJED & DOSHI
Chartered Accountants Chartered Accountants
F.R. No. 309005E F.R. No. 101794W
(CA RITESH AGRAWAL) (CA KIRAN K. DAFTARY)
PARTNER PARTNER
M. No.062410 M. No.010279
UDIN:22062410AIPWFO9548 UDIN:22010279AIPVUH9802
For A S K A & CO For KISHORE & KISHORE
Chartered Accountants Chartered Accountants
F.R. No. 122063W F.R. No. 000291N
(CA VIJAY SHELAR) (CA P. R. KARANTH)
PARTNER PARTNER
M. No.101504 M. No.018808
UDIN:22101504AIPVUC2673 UDIN:22018808AIPVVF2318
Place : Mumbai Date : May 9th, 2022
Mar 31, 2019
Report on Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying Standalone Financial Statements of Central Bank of India (âthe Bankâ) which comprise the Balance Sheet as at March 31, 2019, the Profit and Loss Account and the Cash Flow Statement 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 the Returns for the year ended on that date of 20 branches audited by us and 2549 branches audited by other statutory 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 included in the Balance sheet and Profit and Loss Account are the returns from 2090 branches which have not been subjected to audit. These Unaudited branches account for 9.75 percent of advances, 27.61 per cent of deposit, 5.90 per cent of interest income and 25.17 per cent of Interest expenses.
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 in the manner so required for bank and are in conformity with the accounting principles generally accepted in India and give:
a. true and fair view in case of the Balance sheet, of the state of affairs of the Bank as at March 31, 2019;
b. true balance of loss, in case of Profit and Loss account for year ended on that date; and
c. true and fair view of cash flows in case of the Cash Flow Statement for the year ended as on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by Institute of Chartered Accountants of India (ICAI). Our responsibilities under those Standards are further described in the Auditorsâ 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 ICAI together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Banking Regulation Act, 1949 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.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements for the year ended March 31, 2019. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matters |
Auditorsâ Response |
1. Loans & Advances Identification and provisioning of Non performing advances made in accordance with the prudential norms prescribed by Reserve Bank of India on Income recognition, Asset Classification and provisioning pertaining to Advances. (refer Schedule 9 read with Note 5 of Schedule 17 to the financial statements) Advances comprise a substantial portion of the Bankâs total assets. The management exercises significant judgment in the asset classification and provisioning. and valuation of the security involves high degree of estimation and judgment, the carrying value of the advances could be materially misstated either individually or collectively, and in view of the materiality of advances to the total assets, the classification of the advances and provisioning thereon has been considered by us as a key audit matter. Identification of such non-performing advances is carried out in the Bank, based on system identification, by the Core Banking Solution (CBS) software in operation based on the various controls and logic embedded therein. The management also exercises significant judgment in adherence to the IRAC norms and adequate provisioning in required cases. |
Our audit approach included testing the design, operating effectiveness of internal controls and substantive audit procedures in respect of income recognition, asset classification and provisioning pertaining to advances. In particular: - we have evaluated and understood the Bankâs internal control system in adhering to the relevant RBI guidelines regarding income recognition, asset classification and provisioning pertaining to advances; - we have analyzed and understood key IT systems/ applications used operational effectiveness of relevant controls, including involvement of manual process and manual controls in relation to income recognition, asset classification and provisioning pertaining to advances ; In order to ensure the effectiveness of the operation of the key controls and compliance to the directions of the RBI in this regards, we have verified whether both CBS system and the management have, (a) timely recognised the depletion in the value of available security; (b) made adequate provisioning based on such time to time monitoring and identification of asset classification. We placed reliance upon the Independent Auditorsâ Report of the Statutory Branch Auditorsâ as well as all MOCs both at branches as well as at H.O.level. Reliance also placed on the Audit Reports of the Statutory Branch Auditors with respect to income recognition, asset classification and provisioning. The results of our audit process were observed to be adequate and satisfactory, considering the materiality. |
2. Investments Investment portfolio of the bank comprises of Investments in Government Securities, Bonds, Debentures, Shares, Security Receipts and other Approved Securities which are classified under three categories, Held to Maturity, Available for Sale and Held for Trade. Investment also comprise, a substantial portion of the Bankâs total assets. Valuation of Investments, identification of Non-performing Investments (NPI) and the corresponding non-recognition of income and provision thereon, is carried out in accordance with the relevant circulars / guidelines / directions of RBI. (refer Schedule 8 read with Note 3 of Schedule 17 to the financial statements) |
Our audit approach towards Investments with reference to the RBI circulars / directives included the review and testing of the design, operating effectiveness of internal controls and substantive audit procedures in relation to valuation, classification, identification of Non Performing Investments, provisioning / depreciation related to Investments. In particular, - We assessed and understood the system and internal control as laid down by the Bank to comply with relevant RBI guidelines regarding valuation, classification, identification of Non Performing Investments, Provisioning and depreciation on Investments. |
The valuation of each type of aforesaid security is to be carried out as per the methodology prescribed in the circulars and directives issued by the RBI which involves collection of data/ information from various sources such as FBIL rates, rates quoted on BSE/ NSE, financial statements of unlisted companies, NAV in case of security receipts etc. As per the RBI directions, there are certain investments that are valued at market price however certain investments are based on the valuation methodologies that include statistical models with inherent assumptions, assessment of price for valuation based on financial statements etc. The price discovered for the valuation of these Investments is only a fair assessment of the Investments. Hence the valuation of Investments requires special attention and further in view of the significance of the amount of Investments in the financial statements, the same has been considered as Key Audit Matter in our audit. |
- For selected sample of investments, tested accuracy and compliance with the RBI Master circulars and directions by re-performing valuation for each category of security in accordance with the RBI guidelines. - We assessed and evaluated the process of identification of NPIs, and corresponding reversal of income and creation of provision. - We carried out substantive audit procedures to recompute independently the provision to be created and depreciation to be provided. The results of our audit process were observed to be adequate and satisfactory considering the materiality of the transactions. |
3. Information technology (IT) systems used in financial reporting process The Bankâs operational and financial reporting processes are dependent on IT systems run through Core Banking Solutions (CBS) and other integrated software with automated processes and controls large volume of transactions. The process and controls are to ensure appropriate user access and management processes in use. Bank has an in house Department of Information & technology (DIT) run under the supervision of the top management and with the support of expert consulting agencies, for maintaining IT services. Accordingly, our audit was focused on key IT systems and controls due to the pervasive impact on the financial statements and the same has been considered as Key Audit Matter in our audit. |
We conducted an assessment and identified key IT applications, database and operating systems that are relevant to our audit and have identified CBS and Treasury System primarily as relevant for financial reporting. For the key IT systems pertaining to CBS and treasury operations used to prepare accounting and financial information, our areas of audit focus included Access Security (including controls over privileged access), application change controls, database management and network operations. In particular: - we obtained an understanding of the Bankâs IT control environment and key changes during the audit period that may be relevant to the audit. - we tested the design, implementation and operating effectiveness of the Bankâs General IT controls over the key IT systems that are critical to financial reporting. This included evaluation of Bankâs controls to evaluate segregation of duties and access rights being provisioned / modified based on duly approved requests, access for exit cases being revoked in a timely manner. - we also tested key automated and manual business cycle controls and logic for system generated reports relevant to the audit; including testing of compensating controls or performed alternate procedures to assess whether there were any unaddressed IT risks that would materially impact the financial statements. Information other than the Financial Statements and Auditorsâ Report thereon. The results of our audit process were observed to be adequate and satisfactory. |
Information other than the financial statements and Auditorsâ report thereon
5. The Bankâs Board of Directors is responsible for the other information. The other information comprises the Directorsâ Report including annexure, the Corporate Governance Report and Management Discussion and Analysis, but does not include the Standalone Financial Statements and our Auditorsâ Report thereon. The other information is expected to be made available to us after the date of this Auditorsâ Report.
Our opinion on the Standalone Financial Statements does not cover the other information and the Basel III disclosure, we will not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the other information, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance and determine the actions under the applicable laws and regulations Responsibilities of Management and those charged with governance for the Standalone Financial Statements
6. The Bankâs 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 ICAI, and provisions of section 29 of the banking Regulation Act, 1949 and circulars and guidelines issued by 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 Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, Management is responsible for assessing the Bankâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
Auditorsâ Responsibility for the Audit of the Standalone Financial Statements
7. Our objectives are to obtain reasonable assurance about whether the Standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs 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 Standalone 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 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 option. The risk of not detecting a material misstatement resulting from fraud is higher than that for one resulting from error, as fraud may involve collusion, forgery, intentional omission, misrepresentation, 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 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 bankâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosure in the Standalone 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 auditorâs 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 Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charge 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 charge with governance with the 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 safeguard.
From the matters communicated with those charge with governance, we determine those matters that were of most significance in audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that matters should not be communicated in our report because of the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefit of such communication.
Other Matter
8. We did not audit the financial statements/ information of 2549 branches included in the Standalone Financial Statements of the Bank whose financial statements/financial information reflect total advances of Rs. 96,589.14 crore as at March 31, 2019 and the total interest income of Rs. 17,577.07 crore for the year ended on that date, as considered in the Standalone Financial Statements/information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
9. The Balance sheet and the Profit and Loss Account have been drawn up in accordance with section 29 of the Banking Regulation Act, 1949;
10. Subject to the limitations of the audit indicated in paragraph 6 to 8 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970/1980, and subject also to the limitations of disclosures 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 purpose of our audit.
11. 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 the branches not visited by us.
b. The Balance Sheet, the Profit and Loss Account, and Cash Flow Statement dealt with by this Report are in agreement with the books of account and with the returns received from the branches not visited by us.
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 Cash Flow Statement comply with the applicable accounting standards; to the extent they are not inconsistent with the accounting policies prescribed by Reserve Bank of India.
For S. K. MEHTA & CO. For BORKAR & MUZUMDAR
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R. No.000478N F.R. No. 101569W
(CA JYOTI BAGGA) (CA DARSHIT DOSHI)
Partner Partner
M.No.087002 M.No.133755
For MUKUND M CHITALE & CO For AAJV AND ASSOCIATES
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R. No.106655W F.R. No.007739N
(CA A.V. KAMAT) (CA DEEPAK GARG)
Partner Partner
M.No.039585 M.No.093348
Place : Mumbai
Date : 15th May 2019
Mar 31, 2018
Report on the Standalone Financial Statements
1. We have audited the accompanying Standalone Financial Statements of Central Bank of India (the âBankâ) as at March 31, 2018 which comprise the Balance Sheet as at March 31, 2018 and the Profit and Loss Account, and the Cash Flow Statement for the year then ended and a summary of significant accounting policies, notes and other explanatory information. Incorporated in these Standalone Financial Statements are the returns of 20 Branches audited by us and 2400 branches audited by Statutory Branch Auditors. The branches audited by us and those audited by other auditors have been selected by Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and Profit and Loss Account are the returns of 2265 branches, which have not been subjected to audit. These unaudited branches account for 9.94 per cent of advances, 21.67 per cent of deposits, 5.16 per cent of interest income and 19.09 per cent of interest expense.
Managementâs Responsibility for the Financial Statements
2. The Bankâs Management is responsible for the preparation of these Standalone Financial Statements in accordance with Banking Regulation Act, 1949, Reserve Bank of India Guidelines and circulars issued from time to time and accounting standards generally accepted in India. This responsibility of the management includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the Standalone Financial Statements that are free from material misstatements, whether due to fraud or error.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on these Standalone 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 as to whether the Standalone Financial Statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Standalone Financial Statements. The procedures selected depend on the auditorâs judgment including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bankâs preparation and fair presentation of the Standalone Financial Statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the bankâs 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 Standalone Financial Statements.
5. We believe that the audit evidence that we have obtained is sufficient and appropriate to provide basis for our audit opinion.
Opinion
6. 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:
a) the Balance Sheet, read with significant accounting policies and the notes thereon, is 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 March 31, 2018 in conformity with accounting principles generally accepted in India;
b) the Profit and Loss Account, read with significant accounting policies and 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 true and fair view of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;
8. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and as required by the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970/1980 and also subject to the limitations of disclosures 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, 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, as supplemented by the information furnished by the Management, have been found adequate for the purposes 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 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 LODHA & CO. For PATHAK H D & ASSOCIATES
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R.No.301051E F.R.No.107783W
(CA GAURAV LODHA) (CA B.P. CHATURVEDI)
PARTNER PARTNER
M.No.507462 M.No.015585
For S. K. MEHTA & CO. For BORKAR & MUZUMDAR
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R. No.000478N F.R. No. 101569W
(CA JYOTI BAGGA) (CA B. M. AGARWAL)
PARTNER PARTNER
M.No.087002 M.No.033254
Place: Delhi
Date: May 17, 2018
Mar 31, 2017
To
The Members of Central Bank of India
Report On the Financial Statements
1. We have audited the accompanying financial statements of Central Bank of India (the âBankâ) as at March 31, 2017 which comprise the Balance Sheet as at March 31, 2017 and the Profit and Loss Account, and the Cash Flow Statement for the year then ended and a summary of significant accounting policies, notes and other explanatory information. Incorporated in these financial statements are the returns of 20 Branches, 23 Regional Offices audited by us and 2158 branches audited by statutory branch auditors. The branches audited by us and those audited by other auditors have been selected by Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and Profit and Loss Account are the returns of 2536 branches, 36 Regional Offices which have not been subjected to audit. These unaudited branches account for 14.51 per cent of advances, 31.74 per cent of deposits, 8.41 per cent of interest income and 29.90 per cent of interest expense.
Management''s Responsibility for the Financial Statements
2. The bank''s management is responsible for the preparation of these financial statements in accordance with Banking Regulation Act, 1949, Reserve Bank of India Guidelines and circulars issued from time to time and accounting standards generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that are free from material misstatements, whether due to fraud or error.
Auditor''s 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 auditor''s judgment including the assessment of the risks 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 the Bank''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 on the effectiveness of the bank''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 the books of the bank, and to the best of our information and according to the explanations given to us:
a) the Balance Sheet, read with significant accounting policies and 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 March 31, 2017 in conformity with accounting principles generally accepted in India;
b) the Profit and Loss Account, read with significant accounting policies and 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.
Emphasis of Matter
7. We draw attention to:
Note no. 6(h)(vi) of Schedule 18 regarding Inter- Bank Participation Certificate (IBPC) of Rs. 22,991.22 crores which have been issued on risk sharing basis, for a maximum period of 180 days, thereby reducing the Bank''s total advances as on March 31, 2017 by Rs.22,991.22 crores.
Our opinion is not qualified in respect of above matter.
Report on Other Legal and Regulatory Requirements
8. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of 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 & 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, as supplemented with the information furnished by the Management, have been found adequate for the purposes 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 CHANDABHOY & JASSOOBHOY For LODHA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R. No.101647W F.R.No.301051E
(CA AMBESH A. DAVE) (CA R.P. SINGH)
PARTNER PARTNER
M.No.049289 M.No.052438
For PATHAK H. D. & ASSOCIATES For S. K. MEHTA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R.No.107783W F.R. No.000478N
(CA B.P. CHATURVEDI) (CA S. K. MEHTA)
PARTNER PARTNER
M.No.015585 M.No.010870
Place: Delhi Date: May 13, 2017
Mar 31, 2015
1. We have audited the accompanying financial statements of Central
Bank of India as at March 31,2015 which comprise the Balance Sheet as
at March 31, 2015 and Profit and Loss Account and 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 20Branches, 37 Regional Offices
audited by us out of a total of 4689 branches, 80 Regional Offices,and
1819 branches audited by other branch auditors. Also incorporated in
the Balance Sheet and Profit and Loss Account are the returns of 2850
branches, 43 Regional Offices which have not been subjected to audit.
The unaudited branches account for 9.97% of advances, 30.75% of
deposits, 6.69% of interest income and 24.37% of interest expense. The
branches audited by us and those audited by other auditors have been
selected by Bank in accordance with the guidelines issued by the
Reserve Bank of India.
Management''s Responsibility for the Financial Statements
2. Management of the Bank is responsible for the preparation of these
financial statements that give true and fair view of the financial
position and financial performance of the Bank in accordance with
Banking Regulation Act, 1949 and 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 and presentation of the financial statements that are
free from material misstatements, whether due to fraud or error.
Auditor''s 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 statement. The
procedures selected depend on the auditor''s judgement including the
assessment of the risks 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 the
Bank''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 on the
effectiveness of the bank''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 the books of the bank, and to the best
of our information and according to the explanations given to us, we
report that:
i. The Balance Sheet read with the Significant Accounting Policies and
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 March 31,2015, in
conformity with accounting principles generally accepted in India.
ii. The Profit and Loss Account, read with the Significant Accounting
Policies and Notes thereon shows a true balance of Profit, in
conformity with 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 and Regulatory requirements
7. The Balance Sheet and the Profit and Loss Account have been drawn up
in Forms ''A'' & ''B'' respectively of the Third Schedule to the
Banking Regulation Act, 1949.
8. Subject to the limitations of the audit indicated in paragraphs 1 to
5 above and as required by the Banking Companies (Acquisition &
Transfer of Undertakings) Act, 1970 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, as
supplemented with the information furnished by the Management, have
been found adequate for the purposes of our audit.
9. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the applicable Accounting Standards.
For KUMAR CHOPRA & ASSOCIATES For P.K. SUBRAMANIAM
& CO. For DOOGAR &
ASSOCIATES
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS CHARTERED
ACCOUNTANTS
F.R. No. 000131N F.R. No. 004135S F.R. No. 000561N
(CA R.K.AGGARWAL) (CA SRIGOPAL INNANI) (CA MUKESH GOYAL)
PARTNER PARTNER PARTNER
M.No. 081510 M.No. 210087 M.No. 081810
For N. SARKAR & CO. For B.N. MISRA & CO. For CHANDABHOY
& JASSOOBHOY
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS CHARTERED
ACCOUNTANTS
F.R. No. 301075E F.R. No. 321095E F.R. No.101647W
(CA M. RAY) (CA B.N. MISRA) (CA AMBESH A.DAVE)
PARTNER PARTNER PARTNER
M.No. 012940 M.No. 083927 M.No. 049289
Place : Mumbai
Date : May 12, 2015
Mar 31, 2014
1. We have audited the accompanying financial statements of Central
Bank of India as at March 31, 2014 which comprise the Balance Sheet as
at March 31, 2014 and profit and Loss Account and 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, 38 Regional Offices audited
by us out of a total of 4550 branches, 80 Regional Offices, and 1441
branches/ Service Support Branches audited by other branch auditors.
Also incorporated in the Balance Sheet and profit and Loss Account are
the returns of 3089 branches, 42 Regional Offices which have not been
subjected to audit. The unaudited branches account for 9.98% of
advances, 38.61% of deposits, 8.78% of interest income and 31.70% of
interest expense. The branches audited by us and those audited by other
auditors have been selected by Bank in accordance with the guidelines
issued by the Reserve Bank of India.
Management''s Responsibility for the Financial Statements
2. Management of the Bank is responsible for the preparation of these
financial statements that give true and fair view of the financial
position and financial performance of the Bank in accordance with
Banking Regulation Act, 1949 and 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 and presentation of the financial statements that are
free from material misstatements, whether due to fraud or error.
Auditor''s 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 statement. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks 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 the
Bank''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 on the
effectiveness of the bank''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.
Emphasis of Matter
6. In accordance with Standard on Audit (SA) 706 "Emphasis of Matter
Paragraph" without qualifying our opinion, we draw attention to -
(i) Note no.10(c) of the Schedule 18 to the financial statements
regarding deferment of pension liability and gratuity liability of the
Bank, pursuant to the exemption granted by the Reserve Bank of India to
the Public Sector banks from application of the provisions of
Accounting Standard (AS) 15, Employees Benefits vide circular No. DBOP.
BP.BC/80/21.04.018/2010-11 dated 09.02.2011 on "Re-opening of Pension
Option to the employees of Public Sector Banks and Enhancement in
Gratuity Limits Prudential Regulatory treatment" Accordingly, out of
the unamortized amount of Rs. 590.77 crore as on 01.04.2013, the Bank has
amortised Rs. 239.99 crore for Pension and Rs. 55.40 crore for Gratuity
being proportionate amount for the year ended March 31, 2014 and balance
amount to be amortised in future period for Pension is Rs.239.98 crore
and for Gratuity is Rs.55.40 crore.
(ii) Note no.10 (g) of Schedule 18 to the financial statements, which
describes the accounting treatment of the expenditure on creation of
Deferred Tax Liability on Special Reserve under section 36(1) (viii) of
the Income Tax Act, 1961 as at 31st March 2013, pursuant to RBI''s
circular No. DBOD. No. BP.BC. 77/21.04.018/2013-14 dated 20th December,
2013.
Opinion
7. 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, we
report that:
i. The Balance Sheet read with the Significant Accounting Policies and
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 March 31, 2014, in
conformity with accounting principles generally accepted in India.
ii. The profit and Loss Account, read with the Significant Accounting
Policies and Notes thereon shows a true balance of loss, in conformity
with accounting principles generally accepted in India, for the year
covered by the accounts; 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 and Regulatory requirements
8. The Balance Sheet and the profit and Loss Account have been drawn up
in Forms ''A'' & ''B'' respectively of the Third Schedule to the Banking
Regulation Act, 1949.
9. Subject to the limitations of the audit indicated in paragraphs 1
to 5 above and as required by the Banking Companies (Acquisition &
Transfer of Undertakings) Act, 1970 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, as
supplemented with the information furnished by the Management, 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 KUMAR CHOPRA & For P.K. SUBRAMANIAM & CO For DOOGAR & ASSOCIATES
ASSOCIATES CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
CHARTERED ACCOUNTANTS F.R. No.004135S F.R. No.000561N
F.R. No.000131N
(CA SUNIL JAIN) (CA S. VENKATKRISHNAN) (CA MUKESH GOYAL)
PARTNER PARTNER PARTNER
M.No.080990 M.No.023488 M.No.081810
For N.SARKAR & CO For N. CHAUDHURI & CO. For B.N.MISRA & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R. No.301075E F.R. No.301032E F.R. No.321095E
(CA M. RAY) (CA ANUP BISWAS) (CA S. S. MOHAPATRA )
PARTNER PARTNER PARTNER
M.No.012940 M.No.050708 M.No.061619
Place : Mumbai
Date: May 10, 2014
Mar 31, 2013
1. We have audited the accompanying financial statements of Central
Bank of India as at 31st March, 2013, which comprise the Balance Sheet
as at March 31, 2013, and Profit and Loss Account and 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, 34 Regional
offices audited by us out of a total of 77 Regional offices, 1358
Branches and 53 Service Support Branches/Offices audited by other
branch auditors. Also incorporated in the Balance Sheet and Profit and
Loss Account are the returns of 2863 branches, 43 Regional offices
which have not been subjected to audit. The unaudited branches account
for 9.76% of advances, 42.05% of deposits, 8.45% of interest income and
26.33% of interest expense. The branches audited by us and those
audited by other auditors have been selected by Bank in accordance with
the guidelines issued by the Reserve Bank of India.
Management''s Responsibility for the Financial Statements
2. Management of the Bank is responsible for the preparation of these
financial statements that give true and fair view of the financial
position and financial performance of the Bank in accordance with
Banking Regulation Act, 1949 and 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 and presentation of the financial statements that are
free from material misstatements, whether due to fraud or error.
Auditor''s 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 auditor''s judgment, including the
assessment of the risks 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 the
Bank''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 the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. Dividend has been proposed by the Bank without writing off
unamortized amount of pension (Rs 479.96 Crore) and gratuity liability
(Rs. 110.80 Crore), subject to permission of Central Government.
7. Without qualifying our opinion, we draw attention to Note No. 11(c)
of the Schedule 18 to the financial statements, regarding deferment of
pension liability and gratuity liability of the Bank, pursuant to the
exemption granted by the Reserve Bank of India to the public sector
banks from application of the provisions of Accounting Standard (AS)
15, Employees Benefits vide circular no.
DBOD.BP.BC/80/21.04.018/2010-11, dated 09-02-2011 on "Re- opening of
Pension Option to the employees of Public Sector Banks and Enhancement
in Gratuity Limits- Prudential Regulatory Treatment." Accordingly,
out of the unamortized amount of Rs 886.15 crore as on 01/04/2012, the
Bank has amortized Rs 239.98 crore for Pension and Rs 55.40 crore for
Gratuity being proportionate amount for the year ended March 31, 2013
and balance amount to be amortized in future periods for Pension is Rs.
479.97 crore and for Gratuity is Rs.110.80 crore.
8. 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, we
report that :
(i) The Balance Sheet, read with the Significant Accounting Policies
and 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, in
conformity with accounting principles generally accepted in India;
(ii) The Profit and Loss Account, read with the Significant Accounting
Policies and Notes thereon, shows a true balance of profit, in
conformity with accounting principles generally accepted in India, for
the year covered by the accounts; 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 and Regulatory requirements
9. The Balance Sheet and the Profit and Loss Account have been drawn
up in Forms ''A'' & ''B'', respectively, of the Third Schedule to the
Banking Regulation Act, 1949.
10. Subject to the limitations of the audit indicated in paragraphs 1
to 5 above and as required by the Banking Companies (Acquisition &
Transfer of Undertakings) Act, 1970 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, as
supplemented with the information furnished by the Management, have
been found adequate for the purposes of our audit.
11. In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement comply with the applicable Accounting Standards.
For M/s. K.S. AIYAR & CO. For M/s. D.
RANGASWAMY & CO. For M/s. GHIYA
& CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R.NO.-100186W F.R.NO.-003073S F.R.NO.-001088C
(CA SANTANU GHOSH) (CA B. RAMANI) (CA SANJAY GHIYA)
PARTNER PARTNER PARTNER
M. N0.050927 M. N0.019603 M. NO.072467
For M/s. SAMSAND & For M/s. KUMAR CHOPRA & For M/s. P.K.
SUBRAMANIAM
ASSOCIATES ASSOCIATES & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R.NO.-003708N F.R.NO.-000131N F.R.NO.-004135S
(CA ANAND PARKASH) (CA R.K. AGGARWAL) (CA U.SURENDRA PRABHU)
PARTNER PARTNER PARTNER
M. NO.082735 M. NO.081510 M. NO.027601
Place : Mumbai
Date : May 10, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Central Bank of India
as at 31st March, 2012, 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, 37 Regional offices audited by
us out of a total of 74 Regional offices, 2540 Branches, 20
non-business offices and 9 CMS branches audited by other branch
auditors. Also incorporated in the Balance Sheet and Profit and Loss
Account are the returns of 1454 branches, 37 regional offices which
have not been subjected to audit. The unaudited branches account for
3.29% of advances, 12.50% of deposits, 12.51% of interest income and
11.14% of interest expense. The branches audited by us and those
audited by other auditors have been selected by Bank in accordance with
the guidelines issued by the Reserve Bank of India. These financial
Statements are the responsibility of 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 the 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 are free from material misstatement. 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 the management, as well as evaluating the overall presentation of
financial statements.
3. Dividend has been declared by the Bank without writing off
un-amortized amount of pension (Rs. 719.95 Crore) and gratuity liability
(Rs. 166.20 Crore), subject to permission of Central Government.
4. Without qualifying our opinion, we draw attention to Note no. 12 of
the schedule 18 to the financial statements, regarding deferment of
pension liability and gratuity liability of the Bank, pursuant to the
exemption granted by the Reserve Bank of India to the public sector
banks from application of the provisions of Accounting Standard (AS)
15, Employees Benefits vide circular no.
DBOD.BP.BC/80/21.04.018/2010-11, dated 09-02-2011 on "Re-opening of
Pension Option to the employees of Public Sector Banks and Enhancement
in Gratuity Limits- Prudential Regulatory Treatment." Accordingly, out
of the unamortized amount of Rs. 1181.53 crore as on 1/04/2011, the Bank
has amortized Rs. 239.98 crore for Pension and Rs. 55.40 crore for
Gratuity being proportionate amount for the year ended March 31, 2012.
5. The Balance Sheet and the Profit and Loss Account have been drawn
up in Form 'A' and 'B' respectively of the Third Schedule to the
Banking Regulation Act, 1949.
6. Subject to the limitations of the audit indicated in paragraph 1
above and as required by the Banking Companies (Acquisition and
Transfer of Undertakings) 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 purposes of our
audit and have found the same 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 as
supplemented with the information furnished by the Management, have
been found adequate for the purpose of our audit.
7. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the applicable accounting standards.
8. 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
a. The Balance Sheet read with the Significant Accounting Policies and
Notes thereon, 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,
2012 in conformity with accounting principles generally accepted in
India.
b. The Profit and Loss Account read with Significant Accounting
Policies and Notes thereon shows a true balance of Profit for the year
ended on that date in conformity with accounting principles generally
accepted in India and
c. The Cash Flow Statement gives a true and fair view of the cash
flows for the year ended on that date.
For M/s. SAGAR &
ASSOCIATES For M/s. GSA AND
ASSOCIATES For M/s. D.
RANGASWAMY & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R.N0.-003510S F.R.NO.-000257N F.R.NO.-003073S
(CA B. ARUNA ) (CA SUNIL AGGARWAL ) (CA ANUSHA SREENIVASAN)
PARTNER PARTNER PARTNER
M. NO.216454 M. NO.083899 M. NO.204567
For M/s. K.S.
AIYAR & CO. For M/s. GHIYA & CO. For M/s. SAMSAND &
ASSOCIATES
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
F.R.NO.-100186W F.R.NO.-001088C F.R.NO.-003708N
(CA SATISH K. KELKAR )(CA G.P. GUPTA) (CA MILAN SHRIMALI )
PARTNER PARTNER PARTNER
M. NO.038934 M. NO.075000 M. NO.088578
Place : Mumbai
Date : May 8, 2012
Mar 31, 2011
This Audit Report of Central bank of India is in supercession of our
earlier Audit Report for the year ended March 31, 2011 dated May 06,
2011. This Audit Report is necessitated pursuant to a revision in the
proposed dividend payable including to those equity shares allotted
under the rights issue as they rank for dividend on a pari-passu basis,
the issue having been made between March 24, 2011 and April 7, 2011 and
the said shares having been allotted by the Board on April 19, 2011.
1. We have audited the attached Balance Sheet of Central Bank of India
as at 31st March 2011, 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, 16 Zonal Offices audited by
us, 27 Regional Offices audited by us, 3085 Branches, 20 Non-Business
Offices and 9 CMS branches audited by other Branch Auditors. Also
incorporated in the Balance Sheet and Profit and Loss Account are the
returns of 623 Branches, 47 Regional Offices which have not been
subjected to audit. The unaudited branches account for 0.80 % of
advances, 3.83 % of deposits, 1.02 % of interest income and 3.28 % of
interest expense. The Branches audited by us and those audited by other
auditors have been selected by Bank in accordance with guidelines
issued by Reserve Bank of India. These financial Statements are the
responsibility of Banks Management. Our responsibility is to express
an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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 are free from material misstatement. 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 the management, as well as evaluating the overall presentation of
financial statements.
3. Dividend has been declared by the Bank without writing off
un-amortised amount of pension (Rs. 959.93 Crore) and gratuity liability
(Rs. 221.60 Crore), subject to permission of Central Government.
4. Without qualifying our opinion, we draw attention to Note no. 14 of
the schedule 18 to the financial statements, regarding deferment of
pension liability and gratuity liability of the Bank to the extent of Rs.
1181.53 Crore, pursuant to the exemption granted by the Reserve Bank of
India to the Public Sector Banks from application of the provisions of
Accounting Standard (AS) 15, Employees Benefits vide circular no.
DBOD.BP.BC/80/21.04.018/2010-11, dated 09-02-2011 on "Re-opening of
Pension Option to the employees of Public Sector Banks and Enhancement
in Gratuity Limits- Prudential Regulatory Treatment."
5. The Balance Sheet and the Profit and Loss Account have been drawn
up in Form ÃA and ÃB respectively of the Third Schedule to the
Banking Regulation Act, 1949.
6. Subject to the limitations of the audit indicated in paragraph 1
above and as required by the Banking Companies (Acquisition and
Transfer of Undertakings) 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 purposes of our
audit and have found the same 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 as
supplemented with the information furnished by the Management, have
been found adequate for the purpose of our audit.
7. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the applicable Accounting Standards.
8. 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
a. The Balance Sheet read with the Significant Accounting Policies and
Notes thereon, 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 2011
in conformity with accounting principles generally accepted in India.
b. The Profit and Loss Account read with Significant Accounting
Policies and Notes thereon shows a true balance of Profit for the year
ended on that date in conformity with accounting principles generally
accepted in India and
c. The Cash Flow Statement gives a true and fair view of the cash
flows for the year ended on that date.
For M/s Sagar & Associates
Chartered Accountants F.R.No. 003510S
(CA V. Vidyasagar Babu )
Partner
M. No. 27357
For M/s K. S. Aiyar & Co.
Chartered Accountants
F.R.No.100186W
(CA Raghuvir M. Aiyar )
Partner
M. NO.38128
For M/s GSA & Associates
Chartered Accountants
F.R.No. 000257N
(CA Sunil Aggarwal)
Partner
M.No. 083899
For M/s Ghiya & Co.
Chartered Accountants
F.R.No.1088C
(CA Sanjay Ghiya )
Partner
M. NO.072467
For M/s D. Rangaswamy & Co.
Chartered Accountants
F.R.No. 003073S
(CA Janani Radhakrishnan )
Partner
M. NO.27037
For M/s Samsand & Associates
Chartered Accountants
F.R.No.003708N
(CA Milan Shrimali )
Partner
M. NO.088578
Place : Mumbai
Date : May 30, 2011
Mar 31, 2010
This Audit Report of Central Bank of India is in supercession of our
earlier Audit Report for the year ended 31st march 2010 dated 2nd May
2010. This fresh Audit Report is necessitated due to the change in the
Financial Statements, as a result of the increase in proposed dividend
from 20% to 22% of the paid up equity share capital of the bank.
1. We have audited the attached Balance Sheet of Central Bank of India
as at March 31, 2010 and also the Profit and Loss Account and Cash Flow
Statement annexed thereto for the year ended on that date in which are
incorporated the returns of 20 Branches, 16 Zonal Offices and 28
Regional Offices audited by us, 2876 Branches, 20 Non-Business Offices
and 9 CMS Branches audited by branch auditors. Also incorporated in the
Balance Sheet and Profit and Loss account are the returns of 681
Branches and 50 Regional Offices which have not been subjected to
audit. The unaudited branches account for 1.91 per cent of advances,
4.26 per cent of deposits, 0.82 per cent of interest income and 3.76
per cent of interest expense. 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.
These financial statements are the responsibility of the Banks
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 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 the Profit and Loss Account have been drawn
up in Form A and B respectively of the Third Schedule to the
Banking Regulation Act, 1949.
4. Subject to the limitations of the audit indicated in Para 1 above
and as required by the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 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 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 as
supplemented with the information furnished by the management, have
been found adequate for the purpose of our audit.
5. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow statement comply with the applicable Accounting Standards.
6. 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 the necessary particulars, and is properly
drawn up so as to exhibit a true and fair view of state of affairs of
the Bank as at March 31,2010, 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.
For M/s. Bhushan Bensal For M/s. P. G. Bhagwat For M/s. Joseph
Jain Assosiated & Rajaram
Chartered Accountants Chartered Accountants Chartered Accountants
F.R.NO.-003884N F.R.NO.-101118W F.R.NO.-001375S
(CA Deepak Kumar Jain) (CA S. S. Athavale) (CA Thomas Philip)
Partner Partner Partner
M.No. 96980 M.No. 83374 M.No. 25844
For M/s. Ummed Jain & Co. For M/s. G.S.A. and Associates For M/s.
Sagar &
Associates
Chartered Accountants Chartered Accountants Chartered
Accountants
F.R.NO.-119250W F.R.NO.-00257N F.R.NO.
-003510S
(CA U. M. Jain) (CA Sunil Aggarwal) (CA Vidyasagar Babu)
Partner Partner Partner
M.No.70863 M.No.83899 M.No.27357
Place: Mumbai
Date: May 22,2010