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 31, 2017 and the Profit and Loss Account, and the Cash Flow Statement for the year then ended and a summary of significant accounting policies, notes and other explanatory information. Incorporated in these financial statements are the returns of 20 Branches, 23 Regional Offices audited by us and 2158 branches audited by statutory branch auditors. The branches audited by us and those audited by other auditors have been selected by Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and Profit and Loss Account are the returns of 2536 branches, 36 Regional Offices which have not been subjected to audit. These unaudited branches account for 14.51 per cent of advances, 31.74 per cent of deposits, 8.41 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 financial statements in accordance with Banking Regulation Act, 1949, Reserve Bank of India Guidelines and circulars issued from time to time and accounting standards generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements 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 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 bank''''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.
6. In our opinion, as shown by the 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 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 March 31, 2017 in conformity with accounting principles generally accepted in India;
b) the Profit and Loss Account, read with significant accounting policies and the notes thereon shows a true balance of loss, 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.
Emphasis of Matter
7. We draw attention to:
Note no. 6(h)(vi) of Schedule 18 regarding Inter- Bank Participation Certificate (IBPC) of Rs. 22,991.22 crores which have been issued on risk sharing basis, for a maximum period of 180 days, thereby reducing the Bank''''s total advances as on March 31, 2017 by Rs.22,991.22 crores.
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 accordance with Section 29 of the Banking Regulation Act, 1949;
9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and as required by the Banking Companies (Acquisition & 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; and
c) The returns received from the offices and branches of the Bank, as supplemented with the information furnished by the Management, have been found adequate for the purposes of our audit.
10. We further report that:
a) the Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account and returns;
b) the reports on the accounts of the branch offices audited by branch auditors of the bank under section 29 of the Banking Regulation Act, 1949 have been sent to us and have been properly dealt with by us in preparing this report;
c) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply 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)
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 Date: May 13, 2017