You are here » Home » Companies » Company Overview » Bank of India

Bank of India.

BSE: 532149 Sector: Financials
NSE: BANKINDIA ISIN Code: INE084A01016
BSE LIVE 15:55 | 07 Dec 114.50 -2.55
(-2.18%)
OPEN

117.55

HIGH

118.20

LOW

113.55

NSE LIVE 15:55 | 07 Dec 114.25 -2.75
(-2.35%)
OPEN

117.60

HIGH

118.10

LOW

113.50

OPEN 117.55
PREVIOUS CLOSE 117.05
VOLUME 659199
52-Week high 128.75
52-Week low 78.60
P/E
Mkt Cap.(Rs cr) 12076.31
Buy Price 114.50
Buy Qty 438.00
Sell Price 0.00
Sell Qty 0.00
OPEN 117.55
CLOSE 117.05
VOLUME 659199
52-Week high 128.75
52-Week low 78.60
P/E
Mkt Cap.(Rs cr) 12076.31
Buy Price 114.50
Buy Qty 438.00
Sell Price 0.00
Sell Qty 0.00

Bank of India. (BANKINDIA) - Auditors Report

Company auditors report

To

The Shareholders of Bank of India Report on the abridged Financial Statements

The accompanying abridged Financial Statements which comprise the Standalone andconsolidated (a) abridged Balance Sheet as at 31st March 2016 (b) the abridged Profit andLoss Account and (c) abridged Cash Flow Statement for the year then ended and relatednotes are derived from the audited standalone and consolidated Financial Statements ofBank of India (‘the Bank’) for the year ended 31st March 2016. We express anunmodified audit opinion on those Financial Statements in our report dated 24th May 2016.

The abridged financial statements do not contain all the disclosures required by theAccounting Standards applied in the preparation of the audited financial statements of theBank. Reading the abridged Financial Statements therefore is not a substitute forreading the audited financial statements of the Bank.

Management’s Responsibility for the Financial Statements

The Management is responsible for the preparation of summary of financial statements inaccordance with guidelines issued by Ministry of Finance Government of India vide theirletter dated 1st August 2012 which are based on the audited financial statements for theyear ended 31st March 2016 prepared in accordance with regulatory guidelines accountingstandards and accounting policies generally accepted in India.

Auditor’s Responsibility

Our responsibility is to express an opinion on the abridged financial statements basedon our procedures which are conducted in accordance with Standard of Auditing (SA) 810“Engagements to report on summary financial statements” issued by the Instituteof Chartered Accountants of India.

Opinion

In our opinion the abridged financial statements prepared in accordance withguidelines issued by Ministry of Finance Government of India vide their letter dated 1stAugust 2012 are derived from the audited financial statements of the bank for the yearended 31st March2016 and are a fair summary of those financial statements.

INDEPENDENT AUDITORS’ REPORT

To

The President of India

Report on the Financial Statements:

1. We have audited the accompanying financial statements of Bank of India (“theBank”) as at March 31 2016 which comprise the Balance Sheet as at March 31 2016the Profit and Loss Account and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information. Incorporatedin these financial statements are the returns of:

a. The Head Office 20 branches and Treasury branch audited by us;

b. 3102 domestic branches audited by other auditors; and

c. 27 foreign branches audited by local auditors.

The branches audited by us and those audited by other auditors have been selected bythe Bank in accordance with the guidelines issued by the Reserve Bank of India except fora foreign branch not audited by local auditor which account for 1.38% of advances 1.27%of deposits 0.45% of interest income and 0.33% of interest expenses.

Also incorporated in the Balance Sheet and the Profit and Loss Account are the returnsfrom 1893 domestic branches which have not been subjected to audit and 1 foreign branchwhich has not been audited. These unaudited branches account for 5.20% of advances 14.03%of deposits 3.66% of interest income and 13.02% of interest expenses.

Management’s Responsibility for the Financial Statements:

2. The Management is responsible for the preparation of these financial statements inaccordance with the requirement of Reserve Bank of India provisions of the BankingRegulation Act 1949 Banking Companies (Acquisition and Transfer of Undertakings) Act1970 recognised accounting practices including the Accounting Standards issued by theInstitute of Chartered Accountants of India. This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation of thefinancial statements that are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility:

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

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’s judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the bank’spreparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on the effectiveness of the Bank’s internal control. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by management as well as evaluating theoverall presentation of the financial statements.

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

Opinion:

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

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

b. The Profit and Loss Account read with significant accounting policies and notesthereon shows a true balance of loss in conformity with accounting principles generallyaccepted 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 yearended on that date.

Emphasis of Matter:

7. We draw attention to:

a. Note No.18.4 to the financial statements relating to change in accounting policy forprovisioning in respect of NPAs classified as Doubtful (secured portion) - one year tothree years resulting in decrease in provision for NPAs for the year by ' 2835.68 Croreswith consequential decrease in Net loss for the year (net of tax) by ' 1854.31 Crores;

b. Note No. 18.9(b) to the financial statements regarding the deferment of the loss onsale of financial assets to ARCs resulting in decrease in operating expenses by ' 214.24Crores with consequential decrease in Net loss for the year (net of tax) by ' 140.10Crores;

c. Note No 18.9(c) to the financial statements regarding provision in respect of foodcredit availed by Government of Punjab as per RBI Circular dated 12th April2016.

d. Note No. 18.9(f) to the financial statements regarding reclassification andadditional provision in respect of certain advances pursuant to Asset Quality Reviewconducted by Reserve Bank of India;

e. Note No 18.9(i) to the financial statements regarding recognition of Deferred TaxAsset on account of provisions for Non Performing Assets;

f. Note No. 18.9(j) to the financial statements regarding amortisation of provision forcertain NPAs and loss on sale of certain NPAs during the year which was deferred fromMarch 2015;

g. Note No 18.9(k) to the financial statements regarding provision in respect ofloans/bonds of Power Distribution Companies (DISCOM) as per extant RBI guidelines.

Our opinion is not qualified in respect of these 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 BankingRegulation Act 1949.

9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and asrequired by the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 andsubject 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 ourknowledge and belief were necessary for the purposes of our audit and have found them tobe satisfactory;

b. The transactions of the Bank which have come to our notice have been within thepowers of the Bank; and

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

10. In our opinion the Balance Sheet Profit and Loss Account and Cash Flow Statementcomply with the applicable Accounting Standards.

For M. M. Nissim and Co. For J. P. Kapur & Uberai For D. Singh & Co.
(SF3TRST 107122 [3^) (FRN 107122W) (SFDTST 000593 S-T) (FRN 000593N) (SFDTST 001351 S-T) (FRN 001351N)
(ST. k. 044577) M. No. 044577 (ST. k. 093323) M. No. 093323 (ST. k. 098641) M. No. 098641
For Grover Lalla & Mehta For B Rattan & Associates For G D Apte & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
(SF3TRST 002830 ST) (FRN 002830N) (SFDTCST 011798 ST) (FRN 011798N)
Pankaj Bansal Bishamver Kumar Karn Saurabh Peshwe
Partner Partner Partner
(ST. k-r. 502661) M. No. 502661 (ST. kTr. 094790) M. No. 094790 (SfT. err. 121546) M. No. 121546
Place : Mumbai
Date : 24th May 2016

REPORT OF THE INDEPENDENT AUDITORS

To

The Board of Directors of Bank of India

Report on the Consolidated Financial Statements

1. We have audited the accompanying consolidated financial statements of Bank of India(“the Parent Bank”) and its subsidiaries associates and joint venturescollectively hereinafter referred to as “Bol Group” and the consolidatedfinancial statements comprise the Consolidated Balance Sheet as at 31st March 2016 theConsolidated Statement of Profit and Loss and Consolidated Cash Flow Statement for theyear then ended together with a summary of significant accounting policies and otherexplanatory information. The consolidated financial statements are based on -

a) Financial statements of the Parent Bank audited by us;

b) Financial statements of four domestic subsidiaries one domestic joint venture onedomestic associates audited by other auditors; and

c) Financial statements of five overseas subsidiaries prepared by the Management andreviewed by other auditors specifically for consolidation purpose; and

d) Unaudited financial statements of four domestic associates and one overseasassociate.

Management's Responsibility for the Consolidated Financial Statements

2. Management is responsible for the preparation of these consolidated financialstatements that give a true and fair view of the consolidated financial positionconsolidated financial performance and consolidated cash flows of Bol Group in accordancewith accounting principles generally accepted in India; this includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the consolidated financial statements that give a true and fair view andare free from material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these consolidated financialstatements based on our audit. We conducted our audit in accordance with the Standards onAuditing issued by the Institute of Chartered Accountants of India. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the consolidated financial statements are free frommaterial misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the consolidated financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the consolidated financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal control relevant to the BOI Group'spreparation and presentation of the consolidated financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by management as well as evaluating theoverall presentation of the consolidated financial statements.

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

Opinion

6. In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of the reports of the other auditors on thefinancial statements of the subsidiaries as noted below the consolidated financialstatements give a true and fair view in conformity with the accounting principlesgenerally accepted in India;

a) in the case of the Consolidated Balance Sheet of the state of affairs of the BolGroup as at 31st March 2016;

b) in the case of the Consolidated Statement of Profit and Loss of the loss for theyear ended on that date; and

c) in the case of the Consolidated Cash Flow Statement of the cash flows for the yearended on that date.

Emphasis of Matter

7. We draw attention to:

a) Note No.18.9 to the consolidated financial statements relating to change inaccounting policy for provisioning in respect of NPAs classified as Doubtful (securedportion) - one year to three years resulting in decrease in provision for NPAs for theyear by ' 2835.68 Crores with consequential decrease in Net loss for the year (net oftax) by '1854.31 Crores;

b) Note No. 18.12(a) to the consolidated financial statements regarding the defermentof the loss on sale of financial assets to ARCs resulting in decrease in operatingexpenses by ' 214.24 Crores with consequential decrease in Net loss for the year (net oftax) by ' 140.10 Crores;

c) Note No 18.12(b) to the consolidated financial statements regarding provision inrespect of food credit availed by Government of Punjab as per RBI Circular dated 12thApril 2016.

d) Note No. 18.12(c) to the consolidated financial statements regardingre-classification and additional provision in respect of certain advances pursuant toAsset Quality Review conducted by Reserve Bank of India;

e) Note No 18.12(g) to the consolidated financial statements regarding recognition ofDeferred Tax Asset on account of provisions for Non Performing Assets;

f) Note No. 18.12(h) to the consolidated financial statements regarding amortisation ofprovision for certain NPAs and loss on sale of certain NPAs during the year which wasdeferred from March 2015;

g) Note No 18.12(i) to the consolidated financial statements regarding provision inrespect of loans/ bonds of Power Distribution Companies (DISCOM) as per extant RBIguidelines.

Our opinion is not qualified in respect of these matters.

Other Matters

8. We did not audit the financial statements of -

a) subsidiaries whose financial statements reflect total assets (net) of ' 2937Crores total revenues (net) of ' 341 Crores and net cash outflows of' 3894 Crores

b) joint venture whose financial statements reflect total assets (net) of ' 2752Crores total revenues (net) of ' 45 Crores and net cash outflows of' 1 Crores

c) associates reflecting share of net profit of the Parent Bank of ' 59 Crores.

These financial statements have been audited / reviewed by other auditors whose reportshave been furnished to us by the Management our opinion on the consolidated financialstatements to the extent they have been derived from such financial statements is basedsolely on the report of such other auditors. Our opinion is not qualified in the respectof this matter.

9. We have also relied on the un-audited financial statements of six associates as madeavailable to us by the management of the Parent Bank based on which share of profit of' 33Crores have been considered in the consolidation.

10. Our opinion is not qualified in respect of the matters stated in paragraphs 7 and 8above.

For M. M. Nissim and Co. For J. P. Kapur & Uberai For D. Singh & Co.
(SF3TRST 107122 [3^) (FRN 107122W) (SFDTST 000593 S-T) (FRN 000593N) (SFDTST 001351 S-T) (FRN 001351N)
(ST. k. 044577) M. No. 044577 (ST. k. 093323) M. No. 093323 (ST. k. 098641) M. No. 098641
For Grover Lalla & Mehta For B Rattan & Associates For G D Apte & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
(SF3TRST 002830 ST) (FRN 002830N) (SFDTCST 011798 ST) (FRN 011798N)
Pankaj Bansal Bishamver Kumar Karn Saurabh Peshwe
Partner Partner Partner
(ST. k-r. 502661) M. No. 502661 (ST. kTr. 094790) M. No. 094790 (SfT. err. 121546) M. No. 121546
Place : Mumbai
Date : 24th May 2016

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard