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Auditor Report of State Bank of India

Mar 31, 2015

1. We have audited the accompanying financial statements of State Bank of India ("the Bank") as at 31st March 2015, which comprises the Balance Sheet as at March 31,2015, 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

i) The Central Offices, 14 Local Head Offices, Global Market Group, International Business Group, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and 42 branches audited by us;

ii) 8928 Indian Branches audited by other auditors;

iii) 52 Foreign Branches audited by the 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 from 8144 Indian Branches (including other accounting units) which have not been subjected to audit. These unaudited branches account for 4.19% of advances, 17.54% of deposits, 5.30% of interest income and 16.26% of interest expenses.

MANAGEMENT''S RESPONSIBILITY FOR THE

FINANCIAL STATEMENTS

2. The Bank''s management is responsible for the preparation of these 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 requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955

and recognised accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI). This responsibility of the management includes the design, implementation and maintenance of internal controls and risk management systems relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In making those risk assessments, the management has implemented such internal controls that are relevant to the preparation of the financial statements and designed procedures that are appropriate in the circumstances so that the internal control with regard to all the activities of the Bank is effective.

AUDITOR''S RESPONSIBILITY

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

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

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

OPINION

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

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

(ii) the Profit and Loss Account, read with the significant accounting policies and 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. We draw attention to Schedule 18: "Notes to Accounts" regarding:

i) Notes 18.7 - para [a]: change in method/rate of depreciation on Fixed Assets resulting in an increase in profit by Rs.420.76 crores.

ii) Notes 18.7 - para [b(i)(1c)]: change in valuation of Plan Assets of long-term benefits from Book Value to Fair Value, resulting in increase in the value of Plan Assets by Rs. 2182.87 crores.

iii) Notes 18.8 - para 21: non-amortization of Rs. 2179.42 crores on account of loss on sale of assets to Reconstruction Companies.

iv) Notes 18.8 - para 22: utilization of Counter Cyclical Buffer of Rs.382 crores during the year. Our opinion is not qualified in respect of the above stated matters.

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, and that these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955 and regulations there under.

9. Subject to the limitations of the audit indicated in paragraphs 1 to 5 above and as required by the State Bank of India Act, 1955, and subject also to the limitations of disclosure required there in, 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, the Profit and Loss Account and the Cash Flow Statement comply with the applicable acco unting standards.

For S. Venkatram & Co. For V.P. Aditya & Co. For S. N. Nanda & Co. Chartered Accountants Chartered Accountants Chartered Accountants

G. Narayanaswamy Surendra Kakkar Gaurav Nanda Partner : M.No.002161 Partner: M.No.071912 Partner: M.No.500417 Firm Regn.No.004656S Firm Regn.No.000542C Firm Regn.No.000685N

For S. Jaykishan For Dhamija Sukhija & Co. For Sriramamurthy & Co. Chartered Accountants Chartered Accountants Chartered Accountants

Sunirmal Chatterjee Prabhat Sukhija J. Lalitha Partner: M.No.017361 Partner: M.No.514761 Partner: M.No.201855 Firm Regn.No.309005E FirmRegn.No.000369N Firm Regn.No.003032S

For Prakash & Santosh For T R Chadha & Co. For K. B. Sharma & Co. Chartered Accountants Chartered Accountants Chartered Accountants

G K Mishra Vikas Kumar Hemant Sharma Partner: M.No.074586 Partner: M.No.075363 Partner: M.No.503080 Firm Regn.No.000454C FirmRegn.No.006711N Firm Regn.No.002318N

For Mehra Goel & Co. For SRRK Sharma Associates For B. Chhawchharia & Co. Chartered Accountants Chartered Accountants Chartered Accountants

R K Mehra G S Krishnamurthy Kshitiz Chhawchharia Partner: M.No.006102 Partner: M.No.013841 Partner: M.No.061087 Firm Regn.No.000517N Firm Regn.No.003790S Firm Regn.305123E

For S. N. Mukherji & Co. For V. Sankar Aiyar & Co. Chartered Accountants Chartered Accountants

Sudip Kumar Mukherji S. Venkatraman Partner, M.No.013321 Partner: M.No.034319 Firm Regn.No.301079E Firm Regn.No.109208W

Place: Kolkata Date: 22 May 2015


Mar 31, 2014

1. We have audited the accompanying financial statements of State Bank of India ("the Bank") as at 31st March, 2014, which comprises the Balance Sheet as at 31st March, 2014, 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

i) The Central Offices, 14 Local Head Offices, Global Market Group, International Business Group, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and 42 branches audited by us;

ii) 8252 Indian Branches audited by other auditors;

iii) 54 foreign Branches audited by the 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 from 8355 Indian Branches and other accounting units which have not been subjected to audit. These unaudited branches account for 4.66% of advances, 18.75% of deposits, 5.73% of interest income and 18.28% of interest expenses.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

2. The Bank''s management is responsible for the preparation of these 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 requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognised accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI). This responsibility of the management includes the design, implementation and maintenance of internal controls and risk management systems relevant to the preparation of the financial statements that are free from material misstatement,

whether due to fraud or error. In making those risk assessments, the management has implemented such internal controls that are relevant to the preparation of the financial statements and designed procedures that are appropriate in the circumstances so that the internal control with regard to all the activities of the Bank is effective.

AUDITOR''S RESPONSIBILITY

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

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

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

OPINION

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

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

(ii) the Profit and loss Account, read with the significant accounting policies and 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. We draw attention to Notes 18.8 of Schedule 18: ''Notes to Accounts regarding:

(a) para 16: regarding utilisation of specific provisions of Rs.2,056.26 crores made in earlier years;

(b) para 18: utilization of counter cyclical provisioning buffer amounting to Rs.750 crores towards specific provision for Non-Performing Assets;

(c) para 19: charge of Rs.1,525.13 crores to Revenue and Other Reserves for creation of Deferred Tax Liability on Special Reserve created u/s 36(1)(viii) of Income Tax Act, as per RBI guidelines.

Our opinion is not qualified in respect of the above stated matters.

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, these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955 and regulations there under.

9. Subject to limitations of the audit indicated in paragraphs 1 to 5 above and as required by the State Bank of India Act, 1955, and subject also to the limitations of disclosure required there in, 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, the Profit and loss Account and the Cash flow Statement comply with the applicable accounting standards.

For S Venkatram & Co. for Singhi & Co. for SCM Associates Chartered Accountants Chartered Accountants Chartered Accountants

G Narayanaswamy Rajiv Singhi P K Bal

Partner : M.No. 002161 Partner : M.No.053518 Partner : M.No. 055147

firm Regn. No.004656 S firm Regn. No.302049 E firm Regn.No. 314173 E

for S N Nanda & Co. for Sriramamurthy & Co. for T r Chadha & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

S N Nanda D Prasanna kumar Vikas kumar

Partner : M.No. 005909 Partner : M.No.023999 Partner : M.No. 075363

firm Regn. No.000685 N firm Regn. No.003032 S firm Regn. No.006711 N

for Prakash & Santosh for Dhamija Sukhija & Co. for K B Sharma & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

Arun kumar K M Sukhija Hemant Sharma

Partner : M No.087378 Partner: M.No.016942 Partner : M No.503080

firm Regn. No. 000454 C firm Regn. No.000369 N firm Regn.No. 002318 N

for Add & Associates for V P Aditya & Co. for S Jaykishan

Chartered Accountants Chartered Accountants Chartered Accountants

S Dey Bandopadhyay V P Aditya Sunirmal Chatterjee

Partner: M.No. 064055 Partner : M No.006387 Partner : M.No. 017361

firm Regn. No.308064 E firm Regn. No.000542 C firm Regn. No.309005 E

for mehra goel & Co. for SRRK Sharma Associates

Chartered Accountants Chartered Accountants

R K Mehra S R R k Sharma

Partner: M.No.006102 Partner : M No.016304

firm Regn. No.000369 N firm Regn. No. 003790 S

Place : Kolkata

Date : 23rd May 2014


Mar 31, 2013

1. We have audited the accompanying financial statements of State Bank of India as at 31st March 2013, which comprises the Balance Sheet as at March 31, 2013, 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

i) The Central Office, 14 Local Head Offices, Global Market Group, International Business Group, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and 42 branches audited by us;

ii) 7480 Indian Branches audited by other auditors;

iii) 53 Foreign Branches audited by the local auditors; and

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 Reserve Bank of India.

Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 8170 Indian Branches and other accounting units which have not been subjected to audit. These unaudited branches account for 5.38% of advances, 19.47% of deposits, 6.25% of interest income and 16.91% of interest expenses.

Managements Responsibility for the Financial Statements

2. The management is responsible for the preparation of these financial statements in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognised accounting policies and practices, including the 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 misstatements, whether due to fraud or error.

Auditors Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with 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 obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

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

Opinion

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

(ii) the Profit and Loss Account, read with the significant accounting policies and 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.

Matter of Emphasis

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

a) Notes 18.8 - para 13 of Schedule 18 : Notes to Accounts regarding deferment of gratuity liability of the bank to the extent of Rs. 200 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.BP.BC/80/21.04.01.018/2010-11 dated February 9, 2011.

b) Notes 18.8 - para 16 of Schedule 18 : During the year, the Bank has made specific provisions of Rs. 706.26 crore for certain Non-performing domestic advances to provide for estimated actual loss in collectible amounts.

8. 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, these give information as required to be given by virtue of the provisions of the State bank of India Act, 1955 and regulations there under.

9. Subject to limitations of the audit indicated in paragraphs 1 to 5 above and as required by the State bank of India Act, 1955, and subject also to the limitations of disclosure required there in, 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, the Profit and Loss Account and the Cash Flow Statement comply with applicable accounting standards.

For Todi Tulsyan & Co. For Singhi & Co. For SCM Associates

Chartered Accountants Chartered Accountants Chartered Accountants

Sushil Kumar Tulsyan Rajiv Singhi S K Jhunjhunwala

Partner:M.No. 075899 Partner:M.No. 053518 Partner:M.No. 055639

Firm Regn. No. 002180 C Firm Regn. No.302049 E Firm Regn. No. 314173 E

For S Venkatram & Co. For Sriramamurthy & Co. For T R Chadha & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

G Narayanaswamy M Poorna Chander Rao Vikas Kumar

Partner:M.No. 002161 Partner:M.No.027113 Partner:M.No. 075363

Firm Regn. No.004656 S Firm Regn. No.003032 S Firm Regn. No.006711 N

For S N Nanda & Co. For V Soundararajan & Co. For K B Sharma & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

S N Nanda V S Sukumar Munish Jain

Partner:M.No. 005909 Partner:M.No. 018203 Partner:M No.094750

Firm Regn. No.000685 N Firm Regn. No.003943 S Firm Regn. No. 002318 N

For ADD & Associates For Dhamija Sukhija & Co. For Prakash & Santosh

Chartered Accountants Chartered Accountants Chartered Accountants

Nimai Kumar Das Reena Sukhija Santosh Kumar Gupta

Partner:M.No. 051309 Partner: M.No.081977 Partner: M No.016304

Firm Regn. No.308064 E Firm Regn. No.000369 N Firm Regn. No. 000454 C

For V P Aditya & Co. For S Jaykishan

Chartered Accountants Chartered Accountants

V P Aditya Sunirmal Chatterjee

Partner:M No.006387 Partner:M.No. 017361

Firm Regn. No.000542 C Firm Regn. No.309005 E

Place : Kolkata

Date : 23rd May 2013


Mar 31, 2012

1. We, the undersigned Auditors of State Bank of India, appointed under Section 41 (1) of the State Bank of India Act, 1955, do hereby report to the Central Government upon the Balance Sheet, Profit and Loss Account and the Cash Flow Statement of the Bank.

2. We have audited the accompanying financial statements of State Bank of India as at 31st March 2012, which comprise the Balance Sheet as at March 31, 2012, Profit & Loss Account and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in the said financial statements are the returns of:

i) The Central Office, fourteen Local Head Offices, Global Markets Group, International Business Group, Corporate Accounts Group (Central), Mid- Corporate Group (Central), Stressed Assets Management Group (Central) and forty two branches audited by us;

ii) 11060 Indian Branches audited by branch auditors; and

iii) 52 Foreign Branches audited by the 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 Reserve Bank of India.

Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 3811 Indian branches and other accounting units, which have not been subjected to audit. These unaudited branches account for 1.18% of advances, 4.56% of deposits, 1.06% of interest income and 4.89% of interest expenses.

3. The management is responsible for the preparation of these financial statements in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognized accounting policies and practices, including the 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 misstatements, whether due to fraud or error.

4. 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.

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

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

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

a) Note 18 of Schedule 18: Notes to Accounts regarding the additional provision of Rs1,350 crores in respect of certain non performing domestic advances.

b) Note 13 of Schedule 18: Notes to Accounts regarding deferment of gratuity liability of the bank to the extent of Rs300 crores in accordance with RBI circular no.DBOD.BP.BC.80/21.04.018/ 2010-11 dated February 9, 2011 and the exemption granted by the Reserve Bank of India to the Bank from applicability of provisions of accounting Standard 15: Employee Benefits.

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

b) the Profit and Loss Account, read with the significant accounting policies and 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 for the year ended on that date.

9. 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, these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955, and Regulations there under.

10. Subject to limitations of the audit indicated in paragraphs 2 to 5 above and as required by the SBI Act, 1955, and subject also to the limitations of disclosure required there in, 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.

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



For Kalyaniwalla & Mistry For Dagliya & Co.

Chartered Accountants Chartered Accountants

Viraf Mehta P. Manohara Gupta

Partner:M.No. 32083 Partner: M.No. 016444

Firm Regn. No. 104607 W Firm Regn. No. 000671 S

For B. M. Chatrath & Co. For M. Verma & Associates

Chartered Accountants Chartered Accountants

S. Krishnan Madan Verma

Partner :M.No. 051626 Partner :M.No. 080939

Firm Regn. No. 301011 E Firm Regn. No. 501433 C

For K.K. Soni & Co. For Krishnamoorthy & Krishnamoorthy

Chartered Accountants Chartered Accountants

K. K. Soni C. R. Rema

Partner :M.No. 007737 Partner :M.No. 029182

Firm Regn. No. 000947 N Firm Regn. No. 001488 S

For Essveeyar For Todi Tulsyan & Co.

Chartered Accountants Chartered Accountants

B. Shanmuganathan

Partner : M.No. 027882 Sushil Kumar Tulsyan

Partner : M.No. 075899

Firm Regn. No. 000808S Firm Regn. No.002180 C For Venugopal & Chenoy For Singhi & Co.

Chartered Accountants Chartered Accountants

D.V.Jankinath Rajiv Singhi

Partner: M.No. 029505 Partner : M.No. 053518

Firm Regn. No. 004671 S Firm Regn. No. 302049 E

For K G. Somani & Co For SCM Associates

Chartered Accountants Chartered Accountants

Anju Somani P K Bal

Partner: M.No.511267 Partner: M.No. 055147

Firm Regn. No. 006591 N Firm Regn. No. 314173 E

For K.C.Mehta & Co For SBA & Company

Chartered Accountants Chartered Accountants

Chirag Bakshi Ashok Kumar Jain

Partner : M.No. 047164 Partner . M.No. 072262

Firm Regn. No. 106237 W Firm Regn. No. 004651 C

Kolkata

18th May, 2012


Mar 31, 2011

1. We, the undersigned Auditors of State Bank of India, appointed under Section 41 (1) of the State Bank of India Act, 1955, do hereby report to the Central Government upon the Balance Sheet, Profit and Loss Account and the Cash Flow Statement of the Bank.

2. We have audited the attached Balance Sheet of State Bank of India as at 31st March 2011, the Profit & Loss Account and the Cash Flow Statement of the Bank for the year ended on that date annexed thereto. Incorporated in the said financial statements are the accounts of:

i) The Central Office, fourteen Local Head Offices, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and forty two branches audited by us;

ii) 11374 Indian Branches audited by other auditors;

iii) 47 Foreign Branches audited by the local auditors; and

iv) 2817 other Indian Branches and other accounting units, the unaudited returns of which are certified by the Branch Managers. These unaudited branches account for 0.67% of advances, 2.60% of deposits, 0.86% of interest income and 4.16% of interest expenses.

3. The management is responsible for the preparation of these financial statements in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognized accounting policies and practices, including the 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 misstatements, whether due to fraud or error.

4. 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.

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

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

7. Without qualifying our opinion we draw your attention to Note 18.8 of schedule 18 Notes to Accounts to the financial statements regarding

a) deferment of gratuity liability of the bank to the extent of Rs. 400 crores in accordance with RBI circular no. DBOD.BP.BC.80 / 21.04.018/2010-11 dated February 9, 2011 and the exemption granted by the Reserve Bank of India to the Bank from applicability of provisions of Accounting Standard (AS) 15, Employee Benefits, and

b) charge of Rs. 7,927.41 crores to Reserves on account of the additional pension cost in respect of earlier years due to wage revision in accordance with the dispensation granted by Reserve Bank of India to the Bank vide their letter number DBOD/BP/No./16165/ 21.04.018/2010-11 dated April 18, 2011 and the exemption granted by the Reserve Bank of India to the Bank from applicability of provisions of Accounting Standard (AS) 15, Employee Benefits.

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

b) the Profit and Loss Account, read with the significant accounting policies and 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 for the year ended on that date.

9. 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, these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955, and Regulations there under.

10. Subject to limitations of the audit indicated in paragraph 2 to 5 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein, we report that:

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

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

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

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

For Kalyaniwalla & Mistry For Dagliya & Co. Chartered Accountant Chartered Accountant

Viraf Mehta P. Manohara Gupta Partner M.No. 32083 Partner M.No. 016444 Firm Regn. No. 104607 W Firm Regn. No. 000671 S

For B. M. Chatrath & Co. For M. Verma & Associates Chartered Accountants Chartered Accountants

A. Chatrath Mohender Gandhi Partner M.No. 052975 Partner M.No. 088396 Firm Regn. No. 301011 E Firm Regn. No. 501433 C

For K.K. Soni & Co. For Krishnamoorthy & Krishnamoorthy Chartered Accountants Chartered Accountants

K. K. Soni R. Venugopal Partner M.No. 7737 Partner M.No. 202632 Firm Regn. No. 000947 N Firm Regn. No. 001488 S

For Essveeyar, For Todi Tulsyan & Co. Chartered Accountants Chartered Accountants

R. Vijayaraghavan Sushil Kumar Tulsyan Partner : M.No. 022442 Partner : M.No. 075899 Firm Regn. No.000808 S Firm Regn. No. 002180 C

For Venugopal & Chenoy For R. K. J. K. Khanna & Co. Chartered Accountants Chartered Accountants D. V. Jankinath Vipin Bali Partner : M.No. 029505 Partner :M.No. 083436 Firm Regn. No. 004671 S Firm Regn. No. 000033 N

For K. G. Somani & Co. For Raj Bordia & Co. Chartered Accountants Chartered Accountants

Vinod Somani R. S. Bordia Partner : M.No. 085277 Partner : M.No. 081200 Firm Regn. No. 006591 N Firm Regn. No. 003293 C

For K. C. Mehta & Co. For SBA & Company Chartered Accountants Chartered Accountants

Milin Mehta B. D. Bhatter Partner : M.No. 038665 Partner : M.No. 071499 Firm Regn. No. 106237 W Firm Regn. No. 004651 C

Kolkata

17th May, 2011


Mar 31, 2010

1. We, the undersigned Auditors of State Bank of India, appointed under Section 41(1) of the State Bank of India Act, 1955, do hereby report to the Central Government upon the Balance Sheet, Profit & Loss Account and the Cash Flow Statement of the Bank.

2. We have audited the attached Balance Sheet of State Bank of India as at 31st March 2010, the Profit & Loss Account and the Cash Flow Statement of the Bank for the year ended on that date annexed thereto. Incorporated in the said financial statements are the accounts of:

(i) The Central Office, fourteen Local Head Offices, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and forty two branches audited by us;

(ii) 9827 Indian Branches audited by other auditors;

(iii) 44 Foreign Branches audited by the local auditors; and

(iv) 2632 other Indian Branches, the unaudited returns of which are certified by the Branch Managers. These unaudited branches account for 0.89% of advances, 3.78% of deposits, 0.96% of interest income and 4.33% 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.

3. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

4. The Balance Sheet and the Profit & Loss Account have been drawn up in Forms A and B respectively of the Third Schedule to the Banking Regulation Act, 1949 and these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955, and Regulations there under.

5. We report, read with paragraph 2 above:

(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.

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

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

(i) the Balance Sheet, read with the Principal Accounting Policies and the Notes to Accounts, 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 31* March 2010;

(ii) the Profit and Loss Account, read with the Principal Accounting Policies and the Notes to Accounts, shows a true balance of Profit for the year ended on that date; and

(iii) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date, and are in conformity with the Accounting Principles generally accepted in India.

STATUTORY CENTRAL AUDITORS

For Essveeyar,

Chartered Accountants

P. Manohara Gupta

M.No. 016444

Firm Regn. No.000671 S

For K. C. Mehta & Co.,

Chartered Accountants

Milin Mehta

Partner : M.No. 038665

Firm Regn. No.106237 W



For Kalyaniwalla & Mistry,

Chartered Accountants



Vinayak M. Padwal

Partner : M.No. 049639

Firm Regn. No.104607 W

For M. Verma & Associates, Chartered Accountants

Madan Verma

Partner : M No. 080939 Firm Regn. No. 501433 C

For Krishnamoortny & Krishnamoorthy, Chartered Accountants



C. R. Rema Partner: M.No. 029182

Firm Regn. No. 001488 S

Kolkata

14th May, 2010

 
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