To the Members of Punjab National Bank Report on the Financial Statements
1. We have audited the accompanying Standalone nancial statements of Punjab NationalBank (the Bank) as at March 31 2017 which comprise the Balance Sheet asat March 31 2017 and Pro t and Loss Account and the Cash Flow statement for the yearthen ended and a summary of signi cant accounting policies and other explanatoryinformation. Incorporated in these nancial statements are the returns of 21 branchesTreasury Division and 34 other o ces audited by us 3607 branches audited by StatutoryBranch Auditors (including 1 o -shore banking unit)and 3 foreign branches audited by localauditors in respective countries. The branches audited by us and those audited by otherauditors have been selected by the Bank in accordance with the guidelines issued to theBank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Pro tand Loss Account are the returns from 3310 branches 114 other o ces of the Bank whichhave not been subjected to audit. These unaudited branches and o ces account for 5.73% ofadvances 21.81%of deposits 6.70% of interest income and 23.11% of interest expenses.
Managements Responsibility for the Standalone Financial Statements
2. Management is responsible for the preparation of these nancial statements inaccordance with the Banking Regulation Act 1949 accounting principles generally acceptedin India along-with recognition and measurement principles laid down in the AccountingStandards issued by the Institute of Chartered Accountants of India so far as they areapplicable to the Bank and Reserve Bank of India guidelines from time to time. Thisresponsibility includes the design implementation and maintenance of internal controlrelevant to the preparation of the nancial statements that are free from materialmisstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these nancial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the nancial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the nancial statements. The procedures selected depend on theauditorsjudgment including the assessment of the risks of material misstatement ofthe nancial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Banks preparation and fairpresentation of the nancial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on thee ectiveness of the Banks 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 thenancial statements.
5. We believe that the audit evidence we have obtained is su cient and appropriate toprovide a basis for our audit 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: (i) the Balance Sheet read with the notesthereon is a full and fair Balance Sheet containing all the necessary particulars isproperly drawn up so as to exhibit a true and fair view of state of a airs of the Bank asat March 31 2017 in conformity with accounting principles generally accepted in India;(ii) the Pro t and Loss Account read with the notes thereon shows a true balance of prot in conformity with accounting principles generally accepted in India for the yearcovered by the account; and (iii) the Cash Flow Statement gives a true and fair view ofthe cash ows for the year ended on that date.
Emphasis of Matter
7. Without qualifying our opinion we draw attention to Note no. 15 C regardingvaluation of Plan Assets of long-term bene ts resulting in excess of fair value of planassets over present value of obligation amounting to Rs.2026.60 crores creditedto "Payments to and Provisions for Employees- Employee Cost " with consequentialimpact on results for the year.
Report on Other Legal and Regulatory Requirements
8. The Balance Sheet and the Pro t and Loss Account have been drawn up in 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 and Transfer of Undertakings) Act 1970and subject also to the limitations of disclosure required therein we report that: (a) Wehave obtained 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 o ces and branches ofthe Bank have been found adequate for the purposes of our audit.
10 We further report that:
(a) the Balance Sheet and Pro t and Loss account dealt with by this report are inagreement with the books of account and returns; (b) the reports on the accounts of thebranch o ces audited by branch auditors of the Bank under section 29 of the BankingRegulation Act 1949 have been sent to us and have been properly dealt with by us inpreparing this report; (c) In our opinion the Balance Sheet Pro t and Loss Account andCash Flow Statement comply with the applicable accounting standards.
|For Chhajed & Doshi ||For R. Devendra Kumar ||For Hem Sandeep & |
|Chartered Accountants ||& Associates ||Co. |
|Firm Regn.No. ||Chartered Accountants ||Chartered Accountants |
|101794W ||Firm Regn.No. ||Firm Regn.No.009907N |
| ||114207W || |
|Sudesh Punhani ||Neeraj Golas ||Manish Gupta |
|Partner ||Partner ||Partner |
|M.No.017222 ||M.No.074392 ||M.No.092257 |
|For Suri & Co. ||For SPMG & Co. || |
|Chartered Accountants ||Chartered Accountants || |
|Firm Regn.No.004283S ||Firm Regn.No.509249C || |
|R. Mahesh ||Satish Chander || |
|Partner ||Partner || |
|M.No.024775 ||M.No.087562 || |
|Place: New Delhi || || |
|Date: May 16 2017 || || |