The Members of Central Bank of India
Report On the Financial Statements
1. We have audited the accompanying financial statements of Central Bank of India (the"Bank") as at March 31 2017 which comprise the Balance Sheet as at March 312017 and the Profit and Loss Account and the Cash Flow Statement for the year then endedand a summary of significant accounting policies notes and other explanatory information.Incorporated in these financial statements are the returns of20 Branches 23 RegionalOffices audited by us and 2158 branches audited by statutory branch auditors. Thebranches audited by us and those audited by other auditors have been selected by Bank inaccordance with the guidelines issued to the Bank by the Reserve Bank of India. Alsoincorporated in the Balance Sheet and Profit and Loss Account are the returns of 2536branches 36 Regional Offices which have not been subjected to audit. Theseunaudited branches account for 14.51 per cent of advances 31.74 per cent of deposits8.41 per cent of interest income and 29.90 per cent of interest expense.
Management's Responsibility for the Financial Statements
2. The bank's management is responsible for the preparation of these financialstatements in accordance with Banking Regulation Act 1949 Reserve Bank of IndiaGuidelines and circulars issued from time to time and accounting standards generallyaccepted in India. This responsibility includes the design implementation and maintenanceof internal control relevant to the preparation and presentation of the financialstatements that are free from material misstatements whether due to fraud or error.
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 judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal control relevant to the Bank's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the bank's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.
5. We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinion.
6. In our opinion as shown by the books of the bank and to the best of ourinformation and according to the explanations given to us: accounting policies and thenotes thereon is a full and fair Balance Sheet
a) the Balance Sheet read with significant containing all the necessary particularsis properly drawn up so as to exhibit a true and fair view of state of affairs of the Bankas at March 31 2017 in conformity with accounting principles generally accepted in India;accounting policies
b) the Profit and Loss Account read with significant the notes thereon shows atrue balance of loss in conformity with accounting principles generally accepted inIndia 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:
Note no. 6(h)(vi) of Schedule18regardingInter-BankParticipationCertificate(IBPC) of Rs.22991.22 crores which have been issued on risk sharing basis for a maximum period of 180days thereby reducing the Bank's total advances as on March 31 2017 by Rs. 22991.22crores.
Our opinion is not qualified in respect of above matter.
Report on Other Legal and Regulatory Requirements
8. The Balance Sheet and the Profit and Loss Account have been drawn up in accordancewith Section 29 of the Banking Regulation Act 1949;
9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and asrequired by the Banking Companies (Acquisition & Transfer of Undertakings) Act1970/1980 and subject also to the limitations of disclosure required therein we reportthat:
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 as supplemented withthe information furnished by the Management have been found adequate for the purposes ofour audit.
10. We further report that:
a) the Balance Sheet and Profit and Loss Account dealt with by this report are inagreement with the books of account and returns;
b) the reports on the accounts of the branch offices audited by branch auditors of thebank under section 29 of the Banking Regulation Act 1949 have been sent to us and havebeen properly dealt with by us in preparing this report;
c) In our opinion the Balance Sheet Profit and Loss Account and Cash Flow Statementcomply with the applicable Accounting Standards.
| ||For CHANDABHOY & JASSOOBHOY ||For LODHA & CO. |
| ||CHARTERED ACCOUNTANTS ||CHARTERED ACCOUNTANTS |
| ||F.R. No.101647W ||F.R.No.301051E |
| ||(CA AMBESH A. DAVE) ||(CA R.P. SINGH) |
| ||PARTNER ||PARTNER |
| ||M.No.049289 ||M.No.052438 |
| ||For PATHAK H. D. & ASSOCIATES ||For S. K. MEHTA & CO. |
| ||CHARTERED ACCOUNTANTS ||CHARTERED ACCOUNTANTS |
| ||F.R.No.107783W ||F.R. No.000478N |
| ||(CA B.P. CHATURVEDI) ||(CA S. K. MEHTA) |
|Place: Delhi ||PARTNER ||PARTNER |
|Date: May 13 2017 ||M.No.015585 ||M.No.010870 |