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, 2017, which comprise the Balance Sheet as at March 31, 2017, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these standalone financial statements are the returns of:
a. The Head office, 20 branches and Treasury Branch audited by us;
b. 2,575 domestic branches audited by 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 by the Bank in accordance with the guidelines issued by the Reserve Bank of India.
Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns from 2,527 domestic branches which have not been subjected to audit. These unaudited branches account for 5.33% of advances, 16.85% of deposits, 6.35% of interest income and 16.28% of interest expenses.
Management’s Responsibility for the Standalone financial statements:
2. The Bank’s Management is responsible for the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the requirement of Reserve Bank of India, provisions of the Banking Regulation Act, 1949, Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, recognised accounting practices including the Accounting Standards issued by the Institute of Chartered Accountants of India. This responsibility includes the design, implementation and maintenance of internal controls and risk management systems relevant to the preparation of the standalone financial statements that are free from material misstatement, whether due to fraud or error.
3. Our responsibility is to express an opinion on these standalone 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 standalone financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone 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 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 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 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. Without qualifying our opinion, we draw attention to:
a. Note No. 18.3 to the financial statements regarding change in accounting policy in respect of Depreciation on Fixed Assets.
b. Note No. 18.4 to the financial statements regarding withdrawal from Revenue Reserve for payment of interest on Additional Tier I Perpetual Basel III Compliant Bonds.
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 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 and Transfer of Undertakings) Act, 1970 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 have been found adequate for the purposes of our audit.
10. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement comply with the applicable Accounting Standards.
For Grover, Lalla & Mehta For B Rattan & Associates For G D Apte & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
(FRN 002830N) (FRN 011798N) (FRN 100515W)
Alok Goyal Bharat Rattan Saurabh Peshwe
Partner Partner Partner
M. No. 501529 M. No. 090682 M. No. 121546
Place : Mumbai
Date : 22nd May 2017