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Auditor Report of Indian Bank

Mar 31, 2023

Report on Audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying Standalone Financial Statements of Indian Bank (‘the Bank’), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss Account and the Statement of Cash Flows 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:

i) The Central Office and its Departments, Treasury Branch and 20 Indian Branches audited by us;

ii) 1,772 Indian Branches (incl. GIFT City Branch) audited by respective Statutory Branch Auditors and

iii) 3 Foreign Branches audited by respective local auditors;

The Indian 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 (rbi). Also, incorporated in the Balance Sheet, the Statement of Profit and Loss Account and Statement of Cash Flows are the returns from 4,362 Indian branches which have not been subjected to Audit. These unaudited branches account for 21.99% of Advances, 52.03% of Deposits, 15.40% of Interest income and 44.79% 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 accounting principles generally accepted in India and give a:

a. true and fair view in case of the Balance Sheet read with the notes thereon, of the state of affairs of the Bank as at March 31, 2023;

b. true balance of Profit in case of the Statement of Profit and Loss Account read with the notes thereon, for the year ended on that date and

c. true and fair view of the cash flows in case of Cash Flow Statement for the year ended on that date.

Basis for Opinion

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

Key Audit Matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements for the year ended March 31 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:

Sr.

No.

Key Audit Matter

How the Key Audit Matter was addressed in our Audit

1.

Classification of Advances, Income Recognition, Identification of and provisioning for non-performing Advances (Refer Note 4)

The net advances of the Bank constitute 63.24% of the total assets, which is the significant part of the Standalone Financial Statements.

The Reserve Bank of India’s (“RBI”) guidelines on Income recognition and asset classification (“IRAC”) prescribe the prudential norms for identification and classification of nonperforming assets (“NPA”) and the minimum provision required for such assets.

Identification of performing and nonperforming Advances involves establishment of proper mechanism. The Bank accounts for all the transactions related to Advances in its Information Technology Systems (IT Systems) which also identifies whether the advances are performing or non performing, NPA classification and calculation of provision.

The carrying value of these advances (net of provisions) may be materially misstated if, either individually or in aggregate, the IRAC norms are not properly followed.

Considering the nature of the transactions, regulatory requirements, existing business environment, estimation/judgement involved in valuation of securities, it is a matter of high importance for the intended users of the Standalone Financial Statements and hence we have ascertained identification and provisioning for NPAs as a key audit matter.

Tests of control

Assessing the design, implementation and operating effectiveness of Key internal controls over approval, recording and monitoring of loans, monitoring process of overdue loans, measurement of provisions, identification of NPA accounts and corresponding reversal of income and assessing the reliability of management information (including overdue reports).

Substantive tests.

A sample of loan accounts that included large/stressed advances and some other advances on sample basis was taken in the top branches allocated to us, and in such samples we conducted the following checks:

• The accuracy of the data input in the system for income recognition and identification as performing or non performing advances.

• In the performing advances selected, assessed independently whether the classification was correctly done.

• Reviewed the Financial Statements, collateral valuation and other qualitative information available about these parties.

• Test of details over calculation of NPA provisions and reversal of income in line with IRAC norms.

• Checked the borrower wise NPA identification determined by the bank to ensure compliance with RBI guidelines.

• Checked the provisions on standard advances for various categories of loans, to ensure compliance with RBI norms.

• Existence and effectiveness of monitoring mechanisms such as internal audit, concurrent audit, systems audit etc in monitoring and timely reporting of NPAs.

• Reliance is also placed on audit reports of other Statutory branch auditors, which we have scrutinised and considered relevant observations.

2.

Classification and Valuation of Investments, Identification of and provisioning for NonPerforming Investments

• Investments include investments made by the Bank in various Government Securities, Bonds, Debenture, Shares, Security receipts and other approved securities classified under the categories, Held to maturity, Available for sale and Held for Trade.

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,

• Investments constitute 26.18% of the Bank’s

1)

We evaluated and understood the Bank’s internal

total assets. These are governed by the

control system to comply with relevant RBI

circulars and directives of the Reserve Bank

guidelines regarding valuation, classification,

of India (RBI). These directions of RBI, inter alia,

identification of Non-Performing Investments,

cover valuation of investments, classification

Provisioning/ depreciation related to investments;

of investments, identification of non-

2)

We assessed and evaluated the process adopted

performing investments, the corresponding

for collection of information from various sources

non-recognition of income and provision

for determining fair value of these investments;

there against.

3)

For the selected sample of investments in hand,

• The valuation of each category (type) of the

we tested accuracy and compliance with the RBI

aforesaid securities is to be done as per the

Master Circulars and directions by re-performing

method prescribed in circulars and directives

valuation for each category of the security. Samples

issued by the RBI which involves collection of

were selected after ensuring that all the categories

data/ information from various sources such

of investments (based on nature of security) were

as FIMMDA rates, rates quoted on BSE / NSE,

covered in the sample;

financial statements of unlisted companies etc. Considering the complexities and extent of judgement involved in the valuation,

4)

We assessed and evaluated the process of identification of NPIs, and corresponding reversal of

volume of transactions, investments on hand

5)

income and creation of provision;

and degree of regulatory focus, this has been

We carried out substantive audit procedures to

determined as a Key Audit Matter.

re-compute independently the provision to be

• Accordingly, our audit was focused on valuation of investments, classification,

maintained and depreciation to be provided in accordance with the circulars and directives of

identification of Non-Performing Investments

the RBI. Accordingly, we selected samples from

and provisioning related to investments.

the investments of each category and tested for NPIs as per the RBI guidelines and recomputed the provision to be maintained in accordance with the RBI Circular for those selected sample of NPIs;

6)

We tested the mapping of investments between the Investment application software and the financial statement preparation software to ensure compliance with the presentation and disclosure requirements as per the aforesaid RBI Circular/ directions.

Information Other than the Standalone Financial Statements and Auditor''s Report thereon

5. The Bank’s Board of Directors is responsible for the other information. The other information comprises the Corporate Governance Report which we have obtained at the time of issue of this report (but does not include the Standalone Financial Statements and our auditors’ report thereon). The Directors’ Report including annexures in annual report, if any, thereon is expected to be made available to us after the date of this auditor’s report.

Our opinion on the Standalone Financial Statements does not cover the other information and Pillar 3 disclosure under Basel III and we do not and 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 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 Directors’ Report of the Bank, including annexures in annual report, if any, thereon, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

6. The Bank’s Board of Directors is responsible with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance and cash flows of

the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards issued by ICAI, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (‘RBI’) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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.

Auditor''s 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 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 standalone financial statements.

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

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

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

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

Other Matters

8. We did not audit the financial statements / information of 1,775 branches(of which 178 are Processing Centers) included in the standalone financial statements of the Bank whose financial statements / financial information reflect total assets of Rs. 2,45,986.51 croresas at 31st March 2023 and total revenue of Rs.14,994.16 crores for the year ended on that date, as considered in the Standalone Financial Statements. These branches and Processing centers cover 41.46% of advances ,46.57% of deposits and 57.25% of Non-performing assets as at 31st March 2023 and 28.79% of revenue for the year ended 31st March 2023. This financial statements / information of these brancheshave 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 above matters.

9. The Standalone Financial Statements of the Bank for the previous year ended 31st March, 2022 were audited by the joint auditors, two of whom are predecessor audit firms and they had expressed unmodified opinion on such Standalone Financial Statements vide report dated 11.05.2022

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;

11. Subject to the limitations of the audit indicated in paragraphs 7 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 sought and 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.

12. As required by the RBI’s letter no. DOS.ARG.No.6270/08.91.001/2019-20 dated March 17, 2020(as amended), we

report that:

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 the 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) The provisions of Section 164(2) of the Companies Act, 2013 pertaining to disqualification of directors are not applicable 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 is given in Annexure A to this report. Our report expresses anunmodified opinion on the Bank’s internal financial controls over financial reporting as at 31st March, 2023.

13. 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 Statement of Cash Flows 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 1772 branch offices audited by branch auditors of the Bank under section 29 of the Banking Regulation Act, 1949 have been forwarded to us and have been properly dealt with by us in preparing this report; and

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

For P K F SRIDHAR & SANTHANAM LLP For G. NATESAN & CO For S A R C & ASSOCIATES

Chartered Accountants Chartered Accountants Chartered Accountants

FRN: 003990S/S200018 FRN: 002424S FRN: 006085N

P DEVI V MARGASAHAYAM CHETAN THAKKAR

Partner Partner Partner

(M. No. 223137) (M. No. 020555) (m. No. 114196)

UDIN: 23223137BGYLQA7492 UDIN: 23020555BGWSZP9058 UDIN: 23114196BGUMBA4340

For KAILASH CHAND JAIN & CO For S SINGHAL & CO

Chartered Accountants Chartered Accountants

FRN: 112318W FRN: 001526C

SANDEEP K JAIN MUKESH KUMAR KHANDELWAL

Partner Partner

(M. No. 110713) (M. No. 074661)

UDIN: 23110713BGYQGS4467 UDIN: 23074661BGXKJF3602

Date of Report : 08.05.2023

Place of Signature: Chennai


Mar 31, 2022

Report on Audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying Standalone Financial Statements of Indian Bank (''the Bank''), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss Account and the Statement of Cash Flows 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:

I. The Central Office and its Departments, Treasury Branch and 20 Indian Branches audited by us;

ii. 2102 Indian Branches (incl. GIFT City Branch) audited by respective Statutory BranchAuditors and

iii. 2 Foreign Branches audited by respective local auditors;

The Indian 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 (RBI). Also, incorporated in the Balance Sheet, the Statement of Profit and Loss Account and Statement of Cash Flows are the returns from 3974 Indian branches and 1 Foreign Branch which have not been subjected to Audit. These unaudited branches account for 19.95% of Advances, 44.98% of Deposits, 11.50% of Interest income and 43.06% 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 accounting principles generally accepted in India and give a:

a. true and fair view in case of the Balance Sheet read with the notes thereon, of the state of affairs of the Bank as at March 31, 2022;

b. true balance of Profit in case of the Statement of Profit and Loss Account read with the notes thereon, for the year ended on that date and

c. true and fair view of the cash flows in case of Cash Flow Statement for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India ("the ICAI"). Our responsibilities under those Standards are further described in the Auditors'' Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with ethical requirements that are relevant to our audit of the Standalone Financial Statements, 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:

We draw attention to:

4. Note No 4(l) of Schedule 18 of the standalone financial statements which describes the impact of ongoing uncertainties caused by COVID 19 pandemic on the future business and financial results and Management''s assessment of the same in the prevailing situation. The Management is continuously evaluating the effect of the uncertainties on an ongoing basis with reference to challenges under the prevailing uncertainties.

Our report is not modified in respect of above matters.

KeyAudit 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 March 31 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 KeyAudit Matters to be communicated in our report:

Sr.

No.

Key Audit Matter

How the Key Audit Matter was addressed in our Audit

1.

Classification of Advances, Income Recognition, Identification of and provisioning for non-performingAdvances (Refer Note 4)

The net advances of the Bank constitute 57.94% of the total assets, which is the significant part of the Standalone Financial Statements.

The Reserve Bank of India''s ("RBI") guidelines on Income recognition and asset classification ("IRAC") prescribe the prudential norms for identification and classification of non-performing assets ("NPA") and the minimum provision required for such assets.

Identification of performing and non-performing Advances involves establishment of proper mechanism. The Bank accounts for all the transactions related to Advances in its Information Technology Systems (IT Systems) which also identifies whether the advances are performing or non performing, NPA classification and calculation of provision.

The carrying value of these advances (net of provisions) may be materially misstated if, either individually or in aggregate, the IRAC norms are not properly followed.

Considering the nature of the transactions, regulatory requirements, existing business environment, estimation/ judgement involved in valuation of securities, it is a matter of high importance for the intended users of the Standalone Financial Statements and hence we have ascertained identification and provisioning for NPAs as a key audit matter.

Tests of control

Assessing the design, implementation and operating effectiveness of Key internal controls over approval, recording and monitoring of loans, monitoring process of overdue loans, measurement of provisions, identification of NPA accounts and corresponding reversal of income and assessing the reliability of management information (including overdue reports).

Substantive tests.

A sample of loan accounts that included large/stressed advances and some other advances on sample basis was taken in the top branches allocated to us, and in such samples we conducted the following checks:

• The accuracy of the data input in the system for income recognition and identification as performing or non performing advances.

• In the performing advances selected, assessed independently whether the classification was correctly done.

• Reviewed the Financial Statements, collateral valuation and other qualitative information available about these parties.

• Test of details over calculation of NPA provisions and reversal of income in line with IRAC norms.

• Checked the borrower wise NPA identification determined by the bank to ensure compliance with RBI guidelines.

• Checked the provisions on standard advances for various categories of loans, to ensure compliance with RBI norms.

• Existence and effectiveness of monitoring mechanisms such as internal audit, concurrent audit, systems audit etc in monitoring and timely reporting of NPAs.

• Reliance is also placed on audit reports of other Statutory branch auditors, which we have scrutinised and considered relevant observations.

2.

Classification and Valuation of Investments, Identification of and provisioning for NonPerforming Investments

• Investments include investments made by the Bank in various Government Securities, Bonds, Debenture, Shares, Security receipts and other approved securities classified under the categories, Held to maturity, Available for sale and Held for Trade.

• Investments constitute 25.99% of the Bank''s total assets. These are governed by the circulars and directives of the Reserve Bank of India (RBI). These directions of RBI, inter alia,

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 NonPerforming Investments, Provisioning/ depreciation related to Investments. In particular,

1) We evaluated and understood the Bank''s internal control system to comply with relevant RBI guidelines regarding valuation, classification, identification of Non-Performing Investments, Provisioning/depreciation related to investments;

2) We assessed and evaluated the process adopted for collection of information from various sources for determining fair value of these investments;

Sr.

No.

Key Audit Matter

How was the Key Audit Matter addressed in the Audit

cover valuation of investments, classification of investments, identification of non-performing investments, the corresponding nonrecognition of income and provision there against.

• The valuation of each category (type) of the

3)

For the selected sample of investments in hand, we tested accuracy and compliance with the RBI Master Circulars and directions by re-performing valuation for each category of the security. Samples were selected after ensuring that all the categories of investments (based on nature of security) were covered in the sample;

aforesaid securities is to be done as per the method prescribed in circulars and directives issued by the RBI which involves collection of

4)

We assessed and evaluated the process of identification of NPIs, and corresponding reversal of income and creation of provision;

data / information from various sources such as FIMMDA rates, rates quoted on BSE / NSE, financial statements of unlisted companies etc.

Considering the complexities and extent of judgement involved in the valuation, volume of transactions, investments on hand and degree of regulatory focus, this has been determined as a Key Audit Matter.

5)

We carried out substantive audit procedures to re-compute independently the provision to be maintained and depreciation to be provided in accordance with the circulars and directives of the RBI. Accordingly, we selected samples from the investments of each category and tested for NPIs as per the RBI guidelines and recomputed the provision to be maintained in accordance with the RBI Circular for those selected sample of NPIs;

Accordingly, our audit was focused on valuation of investments, classification, identification of NonPerforming Investments and provisioning related to investments.

6)

We tested the mapping of investments between the Investment application software and the financial statement preparation software to ensure compliance with the presentation and disclosure requirements as per the aforesaid RBI Circular/ directions.

Information Other than the Standalone Financial Statements andAuditor''s Report thereon

6. The Bank''s Board of Directors is responsible for the other information. The other information comprises the Corporate Governance Report which we have obtained at the time of issue of this report(but does not include the Standalone Financial Statements and our auditors'' report thereon). The Directors'' Report including annexures in annual report, if any, thereon is expected to be made available to us after the date of this auditor''s report.

Our opinion on the Standalone Financial Statements does not cover the other information and Pillar 3 disclosure under Basel III and we do not and 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 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 Directors'' Report of the Bank, including annexures in annual report, if any, thereon, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

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 Accounting Standards issued by ICAI, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (''RBI'') from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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.

Auditor''s Responsibilities for theAudit of the Standalone Financial Statements

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 auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 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 standalone financial statements.

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

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

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

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

Other Matters

9. We did not audit the financial statements / information of 2104 branches included in the standalone financial statements of the Bank whose financial statements/financial information reflect total assets of Rs. 2,84,742.50 crores as at 31st March 2022 and total revenue of Rs.13,762.05 crores for the year ended on that date, as considered in the Standalone Financial Statements. This 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 above matters

10. The Standalone Financial Statements of the Bank for the previous year ended 31st March, 2021 were audited by the joint auditors, four of whom are predecessor audit firms and they had expressed unmodified opinion on such Standalone Financial Statements.

Report on Other Legal and Regulatory Requirements

11. The standalone Balance Sheet and the standalone Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking RegulationAct, 1949;

12. Subject to the limitations of the audit indicated in paragraphs 7 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 sought and 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.

13. As required by the RBI''s letter no. DOS.ARG.No.6270/08.91.001/2019-20 dated March 17,2020 (as amended), we report that:

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 the RBI.

b) Our audit report on the adequacy and operating effectiveness of the Bank''s internal financial controls over financial reporting is given in Annexure A to this report. Our report expresses an unmodified opinion on the Bank''s internal financial controls over financial reporting as at 31st March, 2022.

c) The provisions of Section 164(2) of the Companies Act, 2013 pertaining to disqualification of directors are not applicable to the Bank.

d) There are no observations or comments on financial transactions or matters which have any adverse effect on the functioning of the bank.

e) There are no qualifications, reservations or adverse remarks relating to the maintenance of accounts and other matters connected therewith.

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 standalone Statement of Cash Flows 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 2102 branch offices audited by branch auditors of the Bank under section 29 of the Banking Regulation Act, 1949 have been forwarded to us and have been properly dealt with by us in preparing this report; and

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

For SRIRAMAMURTHY & CO For RAVI RAJAN & CO LLP For P K F SRIDHAR & SANTHANAM LLP

Chartered Accountants Chartered Accountants Chartered Accountants

FR No. 003032S FR No. 009073N / N500320 FR No. 003990S / S200018

Partner M. PRATYUSHA Partner SUMIT KUMAR Partner P DEVI

(M. No. 254141) (M. No. 512555) (M No. 223137)

UDIN: 22254141AJEANT9965 UDIN: 22512555AIUPTX7923 UDIN: 22223137AJQIZM2479

For G NATESAN & CO For SARC & ASSOCIATES

Chartered Accountants Chartered Accountants

FR No. 002424S FR No. 006085N

Partner VARALAKSHMI MURALI Partner CHETAN THAKKAR

(M. No. 028863) (M. No. 114196)

UDIN: 22028863AIUPRK7986 UDIN: 22114196AIUPWD3724

Place of Signature: Chennai Date of Report: 11th May, 2022


Mar 31, 2019

Report on Audit of the Standalone Financial Statements

Opinion

1. We have audited the standalone financial statements of Indian Bank which comprise the Balance Sheet as at 31 March 2019, the Statement of Profit and Loss and the Statement of Cash Flows for the year then ended, and notes to financial statements including a summary of significant accounting policies and other explanatory information in which are included returns for the year ended on that date of 20 branches and the Integrated Treasury Branch audited by us and 1744 branches audited by statutory branch auditors and 3 foreign branches of which two have been audited and one branch for which audit is yet to be completed by the local foreign 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, the Statement of Profit and Loss and Statement of Cash Flows are the returns from 1107 branches which have not been subjected to audit. These unaudited branches account for 4.91 percent of advances, 14.76 per cent of deposits, 2.58 per cent of interest income and 8.37 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 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, 2019;

b) the Profit and Loss Account, read with the notes thereon shows a true balance of profit/loss and

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

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Bank in accordance with the code of ethics issued by the Institute of Chartered Accountants of India together with ethical requirements that are relevant to our audit of the financial statements as in The Banking Regulations 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 financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation of securities:

- In respect of mortgage / Hypothecation of Fixed assets of the borrower, valuation is a key component. For arriving at the value of securities, we verify valuation report for fixed assets.

- The concern that arises in the above matter is that the valuation in case of fixed assets is adopted for the current year based on earlier years’ reports coupled with variations in valuations done by different valuers.

Resolution forthe matter:

The inherent deficiency in adopting an earlier year’s valuation for current year provisioning was brought to the attention of the management and discussed with those charged with governance. It was explained bythe management that RBI’sguidelines provide that a valuation made in respect of Fixed assets is valid for 3 years. As a prudent measure it was decided that updated valuation nearer to the date of the financials will be arranged. Further, as perthe Bank’s policy properties accepted as securities for advances of Rs.5 crores and above will be valued by two independent valuers and if the difference in valuation between the two valuers is more than 15%, such valuation exercise will be repeated with the new valuer till it reaches a consensus.

Based on this, the valuations furnished were adopted for the current year .

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

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

In preparing the 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 buttodoso.

Auditor’s Responsibilities for the Audit of the Financial Statements

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

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

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

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

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

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

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

Other Matter

7. We did not audit the financial statements / information of 1107 branches included in the standalone financial statements of the Bank whose financial statements/financial information reflect total assets of Rs.9993.86 crore as at 31st March 2019 and total revenue of Rs. 768 crore for the year ended on that date, as considered in the standalone financial statements. The financial statements / information of these branches have been audited by the branch auditors whose reports have been furnished to us, and in 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

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 paragraphs 5 to 7 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and also subject to the limitations of disclosure required therein, we report that:

a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the 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 forthe purposes of our audit.

10. We further report that:

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

b) the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows dealt with by this report are in agreement with the books of 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 Statement of Cash Flows comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI.

For GANDHI MINOCHA& CO For PAM S & ASSOCIATES For PS SUBRAMANIA IYER & CO

Chartered Accountants Chartered Accountants Chartered Accountants

FR No.000458N FR No. 316079E FR No.004104S

BHUPINDER SINGH SATYAJIT MISHRA V SWAMINATHAN

Partner Partner Partner

(M. No 092867) (M. No.057293) (M No. 022276)

For M THOMAS & CO For K C Mehta and Co

Chartered Accountants Chartered Accountants

FRNo.004408S FR No: 106237W

R MURALI CHIRAG BAKSHI

Partner Partner

Place : Chennai (M No. 080972) (M No. 047164)

Date : 14th May, 2019


Mar 31, 2018

INDEPENDENT AUDITORS’ REPORT

To

The Members of Indian Bank

Report on Financial Statements

1. We have audited the accompanying financial statements of INDIAN BANK (the "Bank") 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 and other explanatory information. Incorporated in these financial statements are the returns of 20 branches and the Integrated Treasury Branch audited by us and 1536 branches audited by Statutory Branch Auditors and 3 foreign branches audited by the local foreign auditors. The Branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit & Loss Account are the returns from 1263 branches which have not been subjected to audit. These un-audited branches account for 7.03 per cent of advances, 20.03 per cent of deposits, 7 per cent of interest income and 21.37 per cent of interest expenses..

Management’s Responsibility for the Financial Statements:

2. Management is responsible for the preparation of these financial statements in accordance with the Banking Regulation Act, 1949, Reserve Bank of India guidelines 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 of the financial statements that are free from material misstatement, 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 misstatements.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s 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 purposes 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 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 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, 2018, in conformity with accounting principles generally accepted in India;

(b) the Profit and Loss Account, read with the 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

(c) the Cash Flow Statement gives a true and fair view of the cash flows forthe 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 and Transfer of Undertakings)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 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 PRAKASH CHANDRA JAIN & CO

Chartered Accountants

FR No.002438C

PRATEEK NALWAYA

Partner

(M No. 414356 )

For GANDHI MINOCHA & CO

Chartered Accountants

FR No.000458N

AJAY KUMAR KATYAL

Partner

(M. No 087915)

For PAM S & ASSOCIATES

Chartered Accountants

FR No. 316079E

PRAMOD KUMAR MISRA

Partner

(M. No.052699 )

For P S SUBRAMANIA IYER & CO For M THOMAS & CO

Chartered Accountants Chartered Accountants

FR No.004104S FR No.004408S

J RAGHURAM A ROZARIO

Partner Partner

Place : Chennai (M No. 021929) (M No.021230)

Date : 10.05.2018


Mar 31, 2017

INDEPENDENT AUDITOR’S REPORT

To

The Members of Indian Bank

Report on Financial Statements

1. We have audited the accompanying financial statements of INDIAN BANK (the “Bank”) 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 and other explanatory information. Incorporated in these financial statements are the returns of 20 branches and the Treasury Branch audited by us and 1447 branches audited by Statutory Branch Auditors and 3 foreign branches audited by the local foreign auditors. The Branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit & Loss Account are the returns from 1211 branches which have not been subjected to audit. These unaudited branches account for 8.06 per cent of advances, 19.85 per cent of deposits, 5.38 per cent of interest income and 18.99 per cent of interest expenses.

Management''s Responsibility for the Financial Statements:

2. Management is responsible for the preparation of these financial statements in accordance with the Banking Regulation Act, 1949, Reserve Bank of India guidelines 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 of the financial statements that are free from material misstatement, 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 misstatements.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s 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 purposes 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 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 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 the 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

(c) the Cash Flow Statement gives a true and fair view of the cash flows forthe 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 and Transfer of Undertakings)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 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 G. BALU ASSOCIATES
Chartered Accountants
FR No.000376S
G. BALASUBRAMANYAN
Partner
M. No.7628


For PADMANABHAN RAMANI & RAMANUJAM
Chartered Accountants
FR No. 002510S
K. R. GANESH
Partner
M. No.022439


For PRAKASH CHANDRA JAIN & CO.
Chartered Accountants
FR No.002438C
PRATIBHA SHARMA
Partner
M. No.400755


For GANDHI MINOCHA & CO.
Chartered Accountants
FR No.000458N
BHUPINDER SINGH
Partner
M. No.092867


For PAMS & ASSOCIATES
Chartered Accountants
FR No.316079E
SATYAJIT MISHRA
Partner
M. No.

Place : Chennai
Date : 25.04.2017


Mar 31, 2015

1. We have audited the accompanying financial statements of INDIAN BANK (the "Bank") as at March 31, 2015, which comprise the Balance Sheet as at March 31, 2015 and Profit and Loss Account and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of 20 branches and a Treasury Branch audited by us, 1306 branches audited by Branch Auditors and 3 foreign branches audited by local auditors. The Branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued tothe Bankby the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit & Loss Account are the Returns from 1081 branches, which have not been subjected to audit. These un-audited branches account for 7.45 per cent of advances, 28.72 per cent of deposits, 4.59 per cent of interest income and 24.17 per centof interest expenses.

Management''s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements in accordance with the provisions of the Banking Regulation Act, 1949, requirements of Reserve Bank of India and applicable Accounting Standards issued by the Institute of Chartered Accountants of India ("ICAI"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due tofraud 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 onAuditing issued by the Institute of CharteredAccountants 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 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 purposes 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 presentationofthe financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriatetoprovidea basis for our audit opinion.

Opinion

6. In our opinion, as shown by books of the Bank, and to the best of our information and according tothe explanations giventous:

(i) the Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of 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 notes thereon shows a true balance of profit, in conformity with accounting principles generally acceptedinIndia, for the year coveredbythe account;and

(iii) the Cash Flow Statement gives a true and fair view of the cash flows for the year endedonthat date.

Emphasis of Matter

7. Without qualifying our opinion, wedraw attention to:

a. Note No. 9.3.1 of Schedule 18 to the financial statements, which describes charging of pension liability and gratuity liability of the Bank to the extent of Rs.195.85 Crores pursuant to the exemption granted by the Reserve Bank of India to the Public Sector Banks from application of the provisions of Accounting Standard (AS) 15, Employee Benefits, vide its circular dated 09.02.2011.

b. Note No. 8.6 of Schedule 18 regarding utilisation of a sum of Rs. 46.76 Crores from Floating Provisions towards specific provision for Non Performing Assets as permitted by Reserve Bank of India vide its circular dated 30th March, 2015 and also pursuant to Bank''s Board approved policy.

c. Note No.12.of Schedule 18 to the financial statements, consequent to change inpolicy:

(i) The Provisioning for all non performing assets classified as substandard (secured exposure) w.e.f. 01.10.2014 has been decreased from 25% to 15%, in line with IRAC norms of Reserve Bank of India (RBI), due to such change provision for NPA is decreasedbyRs.85.04 crore.

(ii) Reversal of excess provision of earlier years of Rs.31.51 crores, pursuant to Reserve Bank of India circular No.DBR.No.BP.BC.75/21.04.048/2014-15 dt 11th March, 2015, regarding treatment of profit and loss made on sale of financial assets.

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

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

For DEOKI BIJAY & CO. For S. P. PURI & CO. For C.K. PRUSTY & ASSOCIATES Chartered Accountants Chartered Accountants Chartered Accountants FR No. 313105E FR No.001152N FR No,323220E

DEEPAK KUMAR AGARWAL VIDUR PURI G. V. JAYABAL Partner Partner Partner (M. No.401163) (M. No. 090163) (M. No 015616)

For PADMANABHAN RAMANI & RAMANUJAM For G. BALU ASSOCIATES Chartered Accountants Chartered Accountants FR No. 002510S FR No.000376S

P. RANGA RAMANUJAM G. BALASUBRAMANYAN Place : Chennai Partner Partner Date :14.05.2015 (M. No.22201) (M No. 7628)


Mar 31, 2014

1. We have audited the accompanying financial statements of Indian Bank as at March 31, 2014, which comprise the Balance Sheet as at March 31, 2014, Profit and Loss Account and the Cash Flow Statement for the year then ended, a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of 20 branches audited by us, 1244 branches audited by Branch Auditors and 3 foreign branches audited by local auditors. The Branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit & Loss Account are the returns from 986 branches, which have not been subjected to audit. These un-audited branches account for 5.47 per cent of advances, 22.70 per cent of deposits, 3.89 per cent of interest income and 21.81 per cent of interest expenses.

Management''s Responsibility for the Financial Statements:

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

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 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 purposes 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 books of the Bank, and to the best of our information and according to the explanations given to us:

(i) the Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of 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 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.

Emphasis of Matter

7. Without qualifying our opinion, we draw attention to :

a. Note 9.2 of Schedule 18 to the financial statements, which describes deferment of pension liability and gratuity liability of the Bank to the extent of Rs. 195.84 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, Employee Benefits, vide its circular dated 09.02.2011.

b. Note No.9.8 of Schedule 18 referring to provision of Deferred Tax Liability (DTL) of Rs. 20.39 Crores on account of Special Reserve created under section 36(1)(viii) of the Income Tax Act, 1961 for the Financial Year 2013-14 through Profit and Loss Account. DTL of Rs. 168.25 Crores for the Special Reserve created up to 31.03.2013 made directly from Revenue Reserve pursuant to RBI Circular dated 20.12.2013.

c. Note No. 8.6 of Schedule 18 regarding utilisation of a sum of Rs. 46.06 Crores from Floating Provisions towards specific provision for Non Performing Assets as permitted by Reserve Bank of India vide its circular dated 07.02.2014 and also pursuant to Bank''s Board approved policy.

d. Note No.8.19 of Schedule 18 regarding reclassification under RBI''s prudential norms of IRAC for a restructured advance of Rs. 144 Crores transferred from Bank''s overseas branch to its Indian branch.

Report on Other Legal and Regulatory Requirements

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

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

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

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

For SHARP & TANNAN For BHATTACHARYA DAS & CO. For DEOKI BIJAY & CO.

Chartered Accountants Chartered Accountants Chartered Accountants

Firm''s Registration

No. 109982W Firm''s Registration

No. 307077E Firm''s Registration

No. 313105E

ASHWIN B. CHOPRA A.K.DAS NIRAJ PODDAR

Partner Partner Partner

(M. No.038159 ) (M. No. 011913) (M. No.401067)

For S.P.PURI & CO. For C.K.PRUSTY & ASSOCIATES Chartered Accountants Chartered Accountants

Firm''s Registration No. 001152N Firm''s Registration

No.323220E Place : Chennai VIDUR PURI C.K.PRUSTY

Date : 12.05.2014 Partner

(M. No .090163) Partner

(M. No. 057318)


Mar 31, 2012

1. We have audited the attached Balance Sheet of INDIAN BANK as at 31st March 2012, 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 and 34 Zonal Offices audited by us, 1608 Branches audited by statutory branch auditors, and 3 foreign branches audited by local statutory auditors for the sole purpose of inclusion in the consolidation. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns of 327 branches and 26 other offices, which have not been subjected to audit. These unaudited branches account for 1.12 % of advances, 5.74 % of deposits, 1.69 % of interest income and 5.29 % of interest expenses.

These financial statements are the responsibility of the Bank's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with 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 mis-statement. 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 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. As required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and subject to the limitations of disclosures required therein and the limitations of the audit indicated in Para (1) above, 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 branches and offices 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. Without qualifying our opinion, we draw attention to Note 9.2 of Schedule 18 to the financial statements, which describes deferment of pension and gratuity liability of the bank to the extent of Rs 587.53 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, Employee Benefits, vide its circular no.DBOD.BPBC/80/21.04.018/2010-11 dt.09.02.2011 on Re-opening of Pension Option to Employees of Public Sector Banks and Enhancement in Gratuity Limits - Prudential Regulatory Treatment".

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

(i) The Balance Sheet read together with 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 state of affairs of the Bank as at 31st March 2012 in conformity with accounting principles generally accepted in India.

(ii) The Profit and Loss Account read with the Significant Accounting Policies and notes thereon shows a true balance of the Profit for the year covered by the account in conformity with accounting principles generally accepted in India; and

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

For CHANDRAN & RAMAN For SURI & CO For KALYANASUNDARAM & CO

Chartered Accountants Chartered Accountants Chartered Accountants

Registration No. 000571S Registration No. 004283S Registration No. 001676S

S PATTABIRAMAN R MAHESH K RAMESHKUMAR

Partner Partner Partner

(M. No.14309) (M. No.24775) (M. No.23962)

For S MOHAN & CO For A B P & ASSOCIATES For Raj K Aggarwal & Associates

Chartered Accountants Chartered Accountants Chartered Accountants

Registration No. 000608N Registration No. 315104E Registration No.002585N

RAVINDER ARORA NIRANJAN AGRAWALLA RAJ K AGGARWAL

Partner Partner Partner

(M. No.85542) (M. No.87939) (M. No.81492)

Place : Chennai

Date : May 11, 2012


Mar 31, 2011

1. We have audited the attached Balance Sheet of INDIAN BANK as at 31stMarch 2011, the Profit and Loss Account and Cash Flow Statement of the Bank for the year ended on that date annexed thereto in which are incorporated the returns of (i) 20 Branches and 31 Zonal Offices audited by us, (ii) 1556 Branches audited by statutory branch auditors, and (iii) 3 foreign branches audited by local 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 incorporated in the Balance Sheet and the Profit and Loss Account are the returns of 284 branches and 26 other offices, which have not been subjected to audit. These unaudited branches account for 0.71 % of advances, 2.07 % of deposits, 0.54 % of interest income and 1.77 % of interest expenses.

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 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 mis-statement. 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 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. As required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and subject to the limitations of disclosures required therein and the limitations of the audit indicated in Para (1) above, 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 branches and offices of the Bank 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 books of bank, and to the best of our information and according to the explanations given to us:

(i) The Balance Sheet read with the notes thereon 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 state of affairs of the Bank as at 31st March 2011 in conformity with accounting principles generally accepted in India.

(ii) The Profit and Loss Account read with the notes thereon shows a true balance of the 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.

"Emphasis of matter

Without qualifying our opinion, we draw attention to Note 9.2.2 to the financial statements, which describes deferment of pension and gratuity liability of the bank to the extent of Rs.783.42 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, Employee Benefits, vide its circular no.DBOD. BRBC/80/21.04.018/2010-11 dt.09.02.2011 on Re- opening of Pension Option to Employees of Public Sector Banks and Enhancement in Gratuity Limits - Prudential Regulatory Treatment".

For GANESAN AND COMPANY For CHANDRAN & RAMAN For SURI & CO

Chartered Accountants Chartered Accountants Chartered Accountants

Registration No.000859S Registration NO.000571S Registration No.004283S

S SWAMINATHAN P N RAMCHANDRAN S SWAMINATHAN Partner Partner Partner

(M.No. 023998) (M.No. 013871) (M.No. 020583)

For KALYANASUNDARAM & CO For S. MOHAN & CO For ABP & ASSOCIATES

Chartered Accountants Chartered Accountants Chartered Accountants

Registration No.001676S Registration N0.000608N Registration NO.315104E

K. RAMESHKUMAR V M BHUTANI BIMAL KUMAR CHANDUKA

Partner Partner Partner

(M.No. 023962) (M.No. 012457) (M.No. 053714)

Place: Chennai Oate : April 23, 2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of INDIAN BANK as at 31st March 2010, the Profit and Loss Account and Cash Flow Statement of the Bank for the year ended on that date annexed thereto in which are incorporated the returns of (i) 20 Branches and 28 Circle Offices audited by us, (ii) 1483 Branches audited by branch auditors, and (iii) 2 foreign branches audited by local auditors. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns of 253 branches and 26 other offices, which have not been subjected to audit. These unaudited branches account for 0.92% of advances, 1.98% of deposits, 0.73% of interest income and 1.56% of interest expenses. 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 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 mis-statements. 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 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 Forms A and B respectively of the Third Schedule to the Banking Regulation Act, 1949.

4. As required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and subject to the limitations of disclosures required therein and the limitations of the audit indicated in Para (1) above, 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 and offices of the Bank 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 books of bank, and to the best of our information and according to the explanations given to us:

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

(ii) The Profit and Loss Account read with the notes thereon shows a true balance of the 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.

For P L MITTAL & CO For VISWANATHAN & SWAMINATHAN For GANESAN AND COMPANY

Chartered Accountants Chartered Accountants Chartered Accountants

Registration No. 002697N Registration No. 004763S Registration No. 000859S

P L MITTAL V SWAMINATHAN G HARIGOVIND

Partner Partner Partner

(M.No. 014278) (M.No. 022276) (M.No. 206563)

For CHANDRAN & RAMAN For SURI & CO For KALYANASUNDARAM & CO

Chartered Accountants Chartered Accountants Chartered Accountants

Registration No. 000571S Registration No. 004283S Registration No. 001676S

S G KALYANARAMAN S SWAMINATHAN K RAMESHKUMAR

Partner Partner Partner

(M.No. 010652) (M.No. 020583) (M.No. 023962)

Place : Chennai Date : April 24, 2010

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