The President of India / The Members of the Bank of India
Report on the Standalone Financial Statements:
1. We have audited the accompanying standalone financial statements of Bank of India(the Bank') as at March 31 2018 which comprise the Balance Sheet as at March 312018 the Profit and Loss Account and the Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.Incorporated in these standalone financial statements are the returns of: a. The Headoffice 20 branches and Treasury Branch audited by us; b. 2735 domestic branches auditedby other auditors; and c. 29 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. Alsoincorporated in the Balance Sheet and the Profit and Loss Account are the returns from2371 domestic branches which have not been subjected to audit. These unaudited branchesaccount for 5.31% of advances 16.49% of deposits 4.47% of interest income and 15.65% ofinterest expenses.
Management's Responsibility for the Standalone financial statements:
2. The Bank's Management is responsible for the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Bank in accordance with the requirement of Reserve Bankof India provisions of the Banking Regulation Act 1949 Banking Companies (Acquisitionand Transfer of Undertakings) Act 1970 recognised accounting practices including theAccounting Standards issued by the Institute of Chartered Accountants of India. Thisresponsibility includes the design implementation and maintenance of internal controlsand risk management systems relevant to the preparation of the standalone financialstatements that are free from material misstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We conducted our audit in accordance with the Standards on Auditingissued by the Institute of Chartered Accountants of India. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the standalone financial statements are free from materialmisstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgement including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the bank's preparation andfair presentation of the standalone 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 audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by management as well as evaluating the overallpresentation of the standalone financial statements.
5. We believe that the audit evidence we have obtained is sufficient opinion.
6. In our opinion as shown by books of the Bank and to the best of our informationand according to the explanations given to us: a. the Balance Sheetreadwithsignificantaccounting policies and notes thereon is a full and fair Balance Sheetcontaining all the necessary particulars is properly drawn up so as to exhibit a true andfair view of state of affairs of the Bank as at March 31 2018 in conformity withaccounting principles generally accepted in India; b. the Profit and Loss Account readwith significant accounting policies and notes thereon shows a true balance of loss inconformity with accounting principles generally accepted in India for the year covered bythe account; and c. the Cash Flow Statement gives a true and fair view of the cash flowsfor the year ended on that date.
Emphasis of Matter:
7. Without qualifying our opinion we draw attention to: a. Note No. 4 of Schedule 18to the financial statements regarding withdrawal from Revenue Reserve for payment ofinterest on Additional Tier I
Perpetual Basel III Compliant Bonds. b. Note No. 5.2 of Schedule 18 to the financialstatements regarding RBI dispensation permitting banks to spread provisioning to Mark toMarket losses on investment held in AFS and HFT for the quarter ended 31st March 2018. c.Note No. 9.k of Schedule 18 to the financial statements regarding RBI dispensationpermitting banks to spread additional liability on account of enhancement in gratuitylimits.
Report on Other Legal and Regulatory Requirements:
8. The Standalone Balance Sheet and the Profit and Loss Account have been drawn up inForms "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 haveobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit and have found them to besatisfactory; b. The transactions of the Bank which have come to our notice have beenwithin the powers of the Bank; and c. The returns received from the offices and branchesof the Bank have been found adequate for the purposes of our audit.
10. We further report that. a. The standalone Balance Sheet and standalone Profit &Loss account dealt with by this report are in agreement with the books of accounts andreturns. b. The reports on the accounts of the audited by the branch auditors of the bankunder Section 29 of the Banking Regulation Act 1949 have been sent to us and have beenproperly dealt with by us in preparing this report. c. In our opinion the standaloneBalance Sheet Profit and Loss Account and Cash Flow Statement comply with the applicableAccounting Standards.
|For G D Apte & Co ||For NBS. & Co. ||For Banshi Jain & Associates. |
|Chartered Accountants ||Chartered Accountants ||Chartered Accountants |
|(FRN 100515W) ||(FRN 110100W) ||(FRN 100990W) |
|Saurabh Peshwe ||Pradeep Shetty ||Parag Jain |
|Partner || || |
|M. No. 121546 ||0 M. No. 046940 ||M. No. 078548 |
|Place : Mumbai || || |
|Date : May 28 2018 || || |