Mar 31, 2023
Report on Audit of the Standalone Financial Statements.
Opinion
1.    We have audited the accompanying standalone financial statements of Canara Bank ('the Bank'), which comprise the Balance Sheet as at March 31, 2023, the Profit and Loss Account and the Statement of Cash Flow for the year then ended, and notes to standalone financial statements including a summary of significant accounting policies and other explanatory information ('Standalone Financial Statement') in which are included the returns for the year ended on that date of:
i)    The Head Office, 20 Branches, 1 Integrated Treasury Wing audited by us.
ii)    2775 domestic branches audited by statutory branch auditors.
iii)    3 Foreign branches audited by respective 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 to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet, the Profit and Loss Account and Statement of Cash Flows are the returns from 6911 domestic branches which have not been subjected to audit. These unaudited branches account for 26.32% of advances, 50.36% of deposits, 29.62% of interest income and 52.46% of interest expenses.
2.    In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Banking Regulation Act, 1949 in the manner so required for bank and are in conformity with the accounting principles generally accepted in India and:
a) the Balance Sheet, read with 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 the state of affairs of the Bank as at March 31, 2023;
b)    the Profit and Loss Account, read with notes thereon shows a true balance of Profit for the year ended as on that date; and
c)    the statement of Cash Flows gives a true and fair view of the cash flows for the year ended on that date.
3.    We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India ("ICAI"). Our responsibilities under those Standards are further described in the Auditors' Responsibilities for the Audit of the standalone financial statements section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the ICAI together with ethical requirements that are relevant to our audit of the standalone financial statements, prepared in accordance with the Accounting Principles generally accepted in India including the Accounting Standards issued by the ICAI, and the provisions of the section 29 of Banking Regulations Act, 1949 and circulars and guidelines issued by Reserve Bank of India and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. Â Â Â We draw attention to the following:
i) Note No. 14(j) of the accompanying Statement regarding adoption of new tax regime rates as per section 115BAA of the Income Tax Act, 1961 with effect from Assessment Year 2022-23. While calculating the impact of the change in Tax regime from Assessment Year 2022-23, an amount of deferred tax of '2,972.77 Crores have been charged to P&L
Account in the current year. Further, Provision for Income Tax of previous Financial Year 2021- 22 of '1,578.20 Crores have also been reversed in the current year including '443.06 Crores on account of change of regime.
Our Opinion is not modified in respect of this matter.
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
Sl. No. |
Key Audit Matter |
Response to Key Audit Matter |
1 |
Income Recognition, Asset Classification, Adequacy of provisions thereon & Investments. Advances and investments constitute the largest class of assets of the bank. Classification, income recognition and provisioning thereon have been in conformity with the guidelines and various norms prescribed by Reserve Bank of India. The management of the bank relies on the CBS (Core Banking Solutions) along with other allied IT systems accompanied by various estimates, prudent judgement relating to performance of borrowers, determination of security value, manual interventions including services of experts & professionals for asset classification, Income recognition and provisioning thereon. |
Principal Audit Procedures: Our audit was focused on income recognition, asset classification and provisioning pertaining to advances considering the materiality of the balances. We assessed the Bank's system in place to identify and provide for nonperforming assets. Our audit approach consisted of testing of the design and operating effectiveness of the internal controls with respect to the followings: ⢠   Assessing the Controls with respect to approval, documentation, disbursement, monitoring of advances. ⢠   Review of the CBS and other related & allied systems for compliance with the prudential norms issued by Reserve Bank of India. ⢠   Evaluation of the design of internal controls relating to identification and making provision for nonperforming assets. ⢠   Review of the relevant information technology systems used in identification and making provision for such NPA as per the RBI Guidelines. ⢠   Evaluated and tested the management estimates and judgements for the purpose of identification of NPA and adequacy of provision required as per RBI's Prudential norms. ⢠   Reviewed the reliability, effectiveness and accuracy of the manual interventions, wherever it has come to our knowledge on test check basis. |
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⢠   Relied on the reports / returns/ judgements of the Statutory Branch Auditors (SBA) in case of branches not audited by us for identification and provisioning for nonperforming assets and for overall compliance in conformity with SA-600 ⢠   Test checked the identification and provisioning of nonperforming assets in accordance with RBI Guidelines issued from time to time and also the mechanism for identification of stressed accounts ⢠   Relied on the opinions and reports of various experts, which includes independent valuers, lawyers, legal experts and such other professionals, who have rendered services to the bank in various capacities in conformity with SA-620. ⢠   Reviewed the internal audit/inspection reports / Concurrent audit reports, wherever available. ⢠   Verification of valuation, classification, provisioning and income recognition of investments by carrying out substantive tests including arithmetical accuracy, data accuracy and control over the financial reporting system. |
2 |
Key Information Technology (IT) systems including migration |
Principal Audit Procedures: We conducted an assessment and identified |
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(Flex Cube - Oracle based) used in financial |
key IT applications, databases and operating |
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reporting process. |
systems that are relevant to |
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The Bank's operational and financial processes are dependent on IT systems due to large volume of transactions |
our audit and have identified CBS, BSPL Reporting Package and Treasury System primarily as relevant for financial reporting. |
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that are processed on |
Our audit approach |
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daily basis and hence, |
consisted testing of the |
 |
considered as a key audit |
design and operating |
 |
matter, correctness & |
effectiveness of the internal |
 |
effectiveness of which |
controls as follows: |
 |
are mainly dependent on |
⢠Obtained an |
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the Core Banking Solution |
understanding of |
 |
(CBS) and other allied |
the Bank's IT control |
 |
systems. |
environment and IT |
 |
We have relied upon the consistent and accurate |
policies during the audit period. |
 |
functioning of CBS & |
⢠Reviewed the design, |
 |
other allied systems |
implementation and |
 |
with respect to Income |
operating effectiveness of |
 |
Recognition, Classification |
the Bank's basic IT controls |
 |
of Assets and provisioning |
including application, access controls that |
 |
of advances in conformity |
are critical to financial |
 |
with the RBI guidelines, |
reporting on test check |
 |
reconciliation & ageing of various suspense and |
basis. |
 |
sundry accounts along |
⢠Reviewed the IS Audit |
 |
with such other accounts, |
Reports and discussed |
 |
recording investment transactions. |
with IS Wing on compliance to key ISÂ Controls. |
 |  |
⢠Tested key automated and |
 |  |
business cycle controls and logic for system generated reports relevant to the audit on test check basis. |
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Deferred Tax Asset The bank has recognized a net deferred tax asset of '5980.73 Crores as on March 31, 2023. Objective estimation, recognition and measurement of Deferred Tax Asset are based on the judgement and numerous estimates regarding the availability of profits in future in conformity with AS-22 issued by the ICAI. It has been carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. |
Principal Audit Procedures: We have performed the following procedures as part of of our control testing: ⢠   Review of the policies used for recognition and measurement of deferred tax assets in accordance with AS-22-Accounting for Taxes on Income. ⢠   Assessed the probability of the availability and visibility of profits against which the bank will be able to use the Deferred Tax Asset in future. |
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Various Litigations & Contingent Liability Assessment of Contingent liabilities in respect of certain litigations with respect to taxes and various other claims filed by other parties upon bank, not acknowledged as debts. The bank's assessment is supported by facts of matter, their own judgement, past experience and advises from independent experts, wherever necessary. Accordingly, unexpected adverse outcomes may significantly impact the bank's reported profit and the balance sheet. |
Principal Audit Procedures: Our approach to audit is based on the following: ⢠   Review of the current status of the tax litigations and other contingent liabilities. ⢠   Examination of the communications received from various authorities and follow up actions thereon. ⢠   Evaluation of merits of the subject matter under consideration with reference to the background and reliance on the expert opinion thereon. |
Information other than the Standalone Financial
Statements and Auditorsâ Report thereon:
6.    The Bank's Board of Directors is responsible for the preparation of other information. The other information comprises the Pillar III Disclosures under the New Capital Adequacy Framework (BASEL III Disclosures) (but does not include the financial statements and our auditors' report thereon), Corporate Governance Report, which we obtained prior to issuance of this Auditors' Report and the Directors' Report, Key Financial Indicators and Shareholder's Information, which is expected to be made available to us after the date of our auditors' report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors' report, we conclude there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to Those Charged with Governance.
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements:
7.    The Bank's Board of Directors is responsible with respect to 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 accounting principles generally accepted in India, including the Accounting Standards issued by ICAI, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India ('RBI') from time to time.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Bank's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the bank's financial reporting process.
Auditorsâ Responsibilities for the Audit of the Standalone
Financial Statements:
8. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
a) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
b)    Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances..
c)    Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
d)    Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the bank to cease to continue as a going concern.
e)    Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
9. We did not audit the financial statements / information of2775 domestic branches and 3 foreign branches included in the Standalone Financial Statements of the Bank whose financial statements / financial information reflect total advances of '3,60,792.19 crores as at March 31, 2023 and total revenue of '28,906.02 crores for the year ended on that date, as considered in the Standalone Financial Statements. These branches and processing centres cover 38.67% of advances, 47.76% of deposits, 43.68% of non-performing assets and 38.75% of revenue. The financial statements/ information of these branches has been audited by the Bank's Statutory Branch Auditors whose reports have been furnished to us and in our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the reports of such Branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements:
10.    The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;
11.    Subject to the limitations of the audit indicated in above paragraphs and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein, we report that:
a)    We have sought and 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.
12.    As required by RBI Letter No DOS.ARG. No. 6270/ 08.91.001 / 2019-20 dated March 17, 2020 on "Appointment of Statutory Central Auditors (SCAs) in Public Sector Banks - Reporting obligations for SCA's from FY 2019-20", read with subsequent communication dated May 19, 2020 issued by RBI, we further report on the matters specified in paragraph 2 of the aforesaid letter as under:
a)    In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards issued by ICAI, to the extent they are not inconsistent with the accounting policies prescribed by the RBI.
b)    There are no observations or comments on financial transactions or matters which have any adverse effect on the functioning of the bank.
c)    On the basis of the written representations received from the directors as on March 31, 2023, none ofthe directors is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Companies Act, 2013.
d)    There are no qualifications, reservations or adverse remarks relating to maintenance of accounts and other matters connected therewith.
e) Our audit report on the adequacy and operating effectiveness of the Bank's Internal Financial Controls over Financial Reporting as required by the RBI Letter OS.ARG.No.6270/08.91.001/ 2019-20 dated March 17, 2020 (as amended) is given in Annexure A to this report. Our report expresses an unmodified opinion on the Bank's Internal Financial Controls over Financial Reporting as at March 31, 2023.
13. We further report that:
a)    in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us;
b)    the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows dealt with by this report are in agreement with the books of accounts and with the returns received from the branches not visited by us;
c)    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; and
d)    In our opinion, the Balance Sheet, Profit and Loss Account and the Statement of Cash Flows comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI.
For N. K. Bhargava & Co. Â Â Â For Rao & Emmar
Chartered Accountants    Chartered Accountants
FRN:000429N Â Â Â FRN:003084S
(N. K. Bhargava) Â Â Â (Kamal Rai Madhra)
Partner    Partner
Membership No: 080624 Â Â Â Membership No: 098607
UDIN: 23080624BGVDQF8903 UDIN: 23098607BGXQGK2548
For P A & Associates    For Arun K Agarwal & Associates
Chartered Accountants    Chartered Accountants
FRN:313085E Â Â Â FRN:003917N
(Brajananda Dash) Â Â Â (Arun Kumar Agarwal)
Partner    Partner
Membership No: 062142 Â Â Â Membership No: 082899
UDIN:23062142BGWTYO7768 UDIN: 23082899BGXXGM3041
For Sarath & Associates
Chartered Accountants FRN: 005120S
(S Srinivas)
Partner
Membership No: 202471 UDIN: 23202471BGTEKH3195
Place : Bengaluru Date : 08.05.2023
Mar 31, 2022
Report on Audit of the Standalone Financial StatementsOpinion
1. We have audited the accompanying standalone financial statements of Canara Bank (''the Bank''), which comprise the Balance Sheet as at 31st March 2022, the Profit and Loss Account and the Statement of Cash Flow for the year then ended, and notes to standalone financial statements including a summary of significant accounting policies and other explanatory information (''Standalone Financial Statement'') in which are included the returns for the year ended on that date of 20 branches and Integrated Treasury Wing audited by us and 3532 branches (including 3 foreign branches) audited by statutory branch auditors and respective local auditor. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet, the Profit and Loss Account and Statement of Cash Flow, the returns from 6185 domestic branches which have not been subjected to audit. These unaudited branches account for 19.97% of advances, 39.71% of deposits, 23.15% of interest income and 41.70% of interest expenses.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Banking Regulation Act, 1949 in the manner so required for bank and are in conformity with the accounting principles generally accepted in India and :
a. the Balance Sheet, read with 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 the state of affairs of the Bank as at 31st March 2022;
b. the Profit and Loss Account, read with notes thereon shows a true balance of Profit for the year ended as on that date; and
c. the statement of Cash Flow gives a true and fair view of the cash flows for the year ended on that date.
3. We conducted our audit in accordance with the Standards on Auditing (SA''s) issued by the Institute of Chartered Accountants of India ("ICAI"). Our responsibilities under those Standards are further described in the Auditors'' Responsibilities for the Audit of the standalone financial statements section of our report. We are independent of the Bank in accordance with the code of ethics issued by the ICAI together with ethical requirements that are relevant to our audit of the standalone financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. We draw attention to:
a. Note 16 to the accompanying standalone financial statement, which describes the change in accounting policy of appropriation of recovery in suit filed accounts and accounts recalled by way of proceeds through SARFAESI / DRT and normal recovery in the accounts w.e.f. 1st April 2021 resulting in increase in Interest Income by ''533.15 Crores and consequential effect in Gross NPA by '' 470.89 crores and NPA provision by ''247.28 crores for the year ended on 31st March, 2022.
b. Note 19 to the accompanying standalone financial statement, which describes accumulated losses and share premium account during the year ended on 31.03.2022 (in Q2), Bank has set off its accumulated losses of ''18495.30 crores as at 31.03.2021 against the
available balance in the share premium account after obtaining approval from shareholders as well as the Reserve Bank of India.
c. Note 20 to the accompanying standalone financial statement, which describes the business uncertainties due to outbreak of COVID-19 pandemic and the management''s evaluation of its impact on the business operations of the Bank.
Our report is not modified in respect of this matter.
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
Sl. No. |
Key Audit Matter |
Response to Key Audit Matter |
1 |
Income Recognition, Asset Classification, Adequacy of provisions thereon & Investments. Advances and investments constitute the largest class of assets of the bank. Classification, income recognition and provisioning thereon have been in conformity with the guidelines and various norms prescribed by Reserve Bank of India. The management of the bank relies on the CBS (Core Banking Solutions) along with other allied IT systems accompanied by various estimates, prudent judgement relating to performance of borrowers, determination of security value, manual interventions including services of experts & professionals for asset classification, Income recognition and provisioning thereon. |
Principal Audit Procedures: Our audit was focused on income recognition, asset classification and provisioning pertaining to advances considering the materiality of the balances. We assessed the Bank''s system in place to identify and provide for nonperforming assets. Our audit approach consisted of testing of the design and operating effectiveness of the internal controls with respect to the followings: ⢠Assessing the Controls with respect to approval, documentation, disbursement, monitoring of advances. ⢠Review of the CBS and other related & allied systems for compliance with the prudential norms issued by Reserve Bank of India. ⢠Evaluation of the design of internal controls relating to identification and making provision for nonperforming assets. ⢠Review of the relevant information technology systems used in identification and making provision for such NPA as per the RBI Guidelines. ⢠Evaluated and tested the management estimates and judgements for the purpose of identification of NPA and adequacy of provision required as per RBI''s Prudential norms. ⢠Reviewed the reliability, effectiveness and accuracy of the manual interventions, wherever it has come to our knowledge on test check basis |
⢠Relied on the reports / returns / judgements of the Statutory Branch Auditors (SBA) in case of branches not audited by us for identification and provisioning for nonperforming assets and for overall compliance in conformity with SA-600 ⢠Test checked the identification and provisioning of nonperforming assets in accordance with RBI Guidelines issued from time to time and also the mechanism for identification of stressed accounts ⢠Relied on the opinions and reports of various experts, which includes independent valuers, lawyers, legal experts and such other professionals, who have rendered services to the bank in various capacities in conformity with SA-620. ⢠Reviewed the internal audit / inspection reports / Concurrent audit reports, wherever available. ⢠Verification of valuation, classification, provisioning and income recognition of investments by carrying out substantive tests including arithmetical accuracy, data accuracy and control over the financial reporting system. |
2 |
Key Information Technology (IT) systems including migration (Flex Cube - Oracle based) used in financial reporting process. The Bank''s operational and financial processes are dependent on IT systems due to large volume of transactions that are processed on daily basis and hence, considered as a key audit matter, correctness & effectiveness of which are mainly dependent on the Core Banking Solution (CBS) and other allied systems. We have relied upon the consistent and accurate functioning of CBS & other allied systems with respect to Income Recognition, Classification of Assets and provisioning of advances in conformity with the RBI guidelines, reconciliation & ageing of various suspense and sundry accounts along with such other accounts, recording investment transactions. |
Principal Audit Procedures: We conducted an assessment and identified key IT applications, databases and operating systems that are relevant to our audit and have identified CBS, BSPL Reporting Package and Treasury System primarily as relevant for financial reporting. Our audit approach consisted testing of the design and operating effectiveness of the internal controls as follows: ⢠Obtained an understanding of the Bank''s IT control environment and IT policies during the audit period. ⢠Reviewed the design, implementation and operating effectiveness of the Bank''s basic IT controls including application, access controls that are critical to financial reporting on test check basis. ⢠Reviewed the IS Audit Reports and discussed with IS Wing on compliance to key IS Controls. ⢠Tested key automated and business cycle controls and logic for system generated reports relevant to the audit on test check basis. |
3 |
Deferred Tax Asset The bank has recognized a net deferred tax asset of ''8953.50 Crores as on 31st Mar, 2022. Objective estimation, recognition and measurement of Deferred Tax Asset are based on the judgement and numerous estimates regarding the availability of profits in future in conformity with AS-22 issued by the ICAI. It has been carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. |
Principal Audit Procedures: We have performed the following procedures as part of our control testing: ⢠Review of the policies used for recognition and measurement of deferred tax assets in accordance with AS-22-Accounting for Taxes on Income. ⢠Assessed the probability of the availability and visibility of profits against which the bank will be able to use the Deferred Tax Asset in future. |
4 |
Various Litigations & Contingent Liability Assessment of Contingent liabilities in respect of certain litigations with respect to taxes and various other claims filed by other parties upon bank, not acknowledged as debts. The bank''s assessment is supported by facts of matter, their own judgement, past experience and advises from independent experts, wherever necessary. Accordingly, unexpected adverse outcomes may significantly impact the bank''s reported profit and the balance sheet. |
Principal Audit Procedures: Our approach to audit is based on the following: ⢠Review of the current status of the tax litigations and other contingent liabilities. ⢠Examination of the communications received from various authorities and follow up actions thereon. ⢠Evaluation of merits of the subject matter under consideration with reference to the background and reliance on the expert opinion thereon. |
Information other than the Standalone Financial
Statements and Auditorsâ Report thereon:
6. The Bank''s Board of Directors is responsible for the preparation of other information. The other information comprises the Pillar III Disclosures under the New Capital Adequacy Framework (BASEL III Disclosures) (but does not include the financial statements and our auditors'' report thereon), Corporate Governance Report, which we obtained prior to issuance of this Auditors'' Report, and the Directors Report, which is expected to be made available to us after the date of our auditors'' report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be material misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors'' report, we conclude there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements
7. The Bank''s Board of Directors is responsible with respect to 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 accounting principles generally accepted in India, including the Accounting Standards issued by ICAI, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (''RBI'') from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Bank''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the bank''s financial reporting process.
Auditorsâ Responsibilities for the Audit of the Standalone
Financial Statements
8. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
b. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
d. Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the bank''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors'' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors'' report. However, future events or conditions may cause the bank to cease to continue as a going concern.
e. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors'' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
9. We did not audit the financial statements / information of 6185 branches included in the standalone financial statements of the Bank whose financial statements / financial information reflect total assets of ''1,60,817.45 crores as at 31st March 2022 and total revenue of ''17,234.93 crores for the year ended on that date, as considered in the standalone financial statements. These branches and processing centres cover 19.97 % of advances, 39.71% of deposits, 10.52% of non-performing assets and 28.67% of revenue.
Our opinion is not modified in respect of this matter. Report on Other Legal and Regulatory Requirements
10. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;
11. Subject to the limitations of the audit indicated in above paragraphs and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein, we report that:
a) We have sought and 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.
12. As required by RBI Letter No DOS.ARG. No. 6270/ 08.91.001 / 2019-20 dated March 17, 2020 on "Appointment of Statutory Central Auditors (SCAs) in Public Sector Banks - Reporting obligations for SCA''s from FY 2019-20", read with subsequent communication dated May 19, 2020 issued by RBI, we further report on the matters specified in paragraph 2 of the aforesaid letter as under:
a) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards issued by ICAI, to the extent they are not inconsistent with the accounting policies prescribed by the RBI.
b) There are no observations or comments on financial transactions or matters which have any adverse effect on the functioning of the bank.
c) On the basis of the written representations received from the directors as on 31st March, 2022, none of the directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Section 164 (2) of the Companies Act, 2013.
d) There are no qualifications, reservations or adverse remarks relating to maintenance of accounts and other matters connected therewith.
e) Our audit report on the adequacy and operating effectiveness of the Bank''s Internal Financial Controls over Financial Reporting as required by the RBI Letter OS.ARG.No.6270/08.91.001/ 2019-20 dated March 17, 2020 (as amended) is given in Annexure A to this report. Our report expresses an unmodified opinion on the Bank''s Internal Financial Controls over Financial Reporting as at 31st March, 2022.
13. We further report that:
a) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us;
b) the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows dealt with by this report are in agreement with the books of accounts and with the returns received from the branches not visited by us;
c) 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; and
d) In our opinion, the Balance Sheet, Profit and Loss Account and the Statement of Cash Flows comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI.
For N. K. Bhargava & Co. For Rao & Emmar
Chartered Accountants Chartered Accountants
FRN:000429N FRN:003084S
(N. K. Bhargava) (R Subramanian)
Partner Partner
Membership Number 080624 Membership Number 015617
For P A & Associates For Arun K Agarwal & Associates
Chartered Accountants Chartered Accountants
FRN:313085E FRN:003917N
(Prashant Panda) (Arun Kumar Agarwal)
Partner Partner
Membership Number 051092 Membership Number 082899
For SARATH & ASSOCIATES
Chartered Accountants FRN:005120S
(P Sarath Kumar)
Partner
Membership Number 021755
Place : Bengaluru Date : 06.05.2022
Mar 31, 2021
Independent Auditorâs ReportTo,The Members of Canara Bank
Report on Audit of the Standalone Financial Statements
Opinion
1. We have audited the standalone financial statements of Canara Bank (''the Bank''), which comprise the Balance Sheet as at 31st March 2021, the Statement of Profit and Loss and the Statement of Cash Flows for the year then ended, and notes to standalone financial statements including a summary of significant accounting policies and other explanatory information in which are included the returns for the year ended on that date of 20 branches, Integrated Treasury Wing audited by us and 5890 branches (including 4 foreign branches) audited by statutory branch auditors. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also included in the Balance Sheet, the Statement of Profit and Loss and Statement of Cash Flows are the returns from 4510 branches which have not been subjected to audit. These unaudited branches account for 9.39% of advances, 20.20% of deposits, 7.28% of interest income and 19.10% of interest expenses.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Banking Regulation Act, 1949 in the manner so required for bank and are in conformity with the accounting principles generally accepted in India and :
a. the Balance Sheet, read with 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 the State of Affairs of the Bank as at 31st March 2021;
b. the Statement of Profit and Loss, read with notes thereon shows a true balance of Profit; and
c. the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.
3. We conducted our audit in accordance with the Standards on Auditing (SA''s)issued by the Institute of Chartered Accountants of India ("ICAI"). Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the standalone financial statements section of our report. We are independent of the Bank in accordance with the code of ethics issued by the Institute of Chartered Accountants of India together with ethical requirements that are relevant to our audit of the standalone financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
Sl. No. |
Key Audit Matter |
Response to Key Audit Matter |
1 |
Adequacy of provisions in respect of Advances. Advances are classified as performing and nonperforming assets in accordance with the prudential norms issued by RBI. The identification of non-performing assets and creation of provision on such advances involves key judgements relating to performance of borrowers, determination of security value, etc. Accordingly, our audit was focused on income recognition, asset classification and provisioning pertaining to advances due to involvement of management judgement and considering the materiality of the balances |
Principal Audit Procedures: We assessed the Bank''s system in place to identify and provide for nonperforming assets. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows: ⢠Evaluated the design of internal controls relating to identification and making provision for non-performing assets. ⢠Tested the relevant information technology systems used in identification and making provision for such NPA as per the RBI Guidelines. ⢠Evaluated and tested the management estimates and judgements for the purpose of identification of NPA and adequacy of provision required as per RBI''s Prudential norms. ⢠Considered branch audit reports for identification and provisioning for nonperforming assets ⢠Test checked the identification and provisioning of nonperforming assets in accordance with RBI Guidelines issued from time to time. ⢠Ensured exceptions noticed during our audit procedures are duly corrected. |
2 |
Key Information technology (IT) systems including migration (Flex Cube - Oracle based) used in financial reporting process. The Bank''s operational and financial processes are dependent on IT systems due to large volume of transactions that are processed on daily basis and hence considered as a key audit matter. |
Principal Audit Procedures: We conducted an assessment and identified key IT applications, databases and operating systems that are relevant to our audit and have identified CBS, BSPL Reporting Package and Treasury System primarily as relevant for financial reporting. Our audit approach consisted testing of the design and operating effectiveness of the internal controls as follows: ⢠Obtained an understanding of the Bank''s IT control environment and IT policies during the audit period. ⢠Reviewed the design, implementation and operating effectiveness of the Bank''s basic IT controls including application, access controls that are critical to financial reporting on test check basis. ⢠Reviewed the IS Audit Reports and discussed with IS Wing on compliance to key IS Controls. ⢠Tested key automated and business cycle controls and logic for system generated reports relevant to the audit on test check basis. ⢠The bank has conducted migration audit of the system through a third party domain expert and we have relied on the report of such audit |
3 |
Modified Audit |
Principal Audit |
Procedures carried out |
Procedures: |
|
considering COVID-19 |
Due to the outbreak of |
|
outbreak: |
2nd Wave of COVID-19 |
|
Due to 2nd Wave of |
pandemic that caused lockdown and other |
|
COVID-19 pandemic, |
travel restrictions |
|
lockdown and travel |
imposed by the various |
|
restrictions imposed by |
State Governments / |
|
various State Governments / |
local administration and |
|
Local Authorities and also |
also in light of increasing |
|
in light of increasing COVID |
COVID cases in respective |
|
cases in respective regions |
regions during the period of our audit, we |
|
during the period of our |
could not travel to the |
|
audit and Bank to facilitate |
certain Branches/Circle |
|
carrying out audit remotely |
offices /Administrative/ |
|
wherever physical access |
Corporate Offices and |
|
was not possible, audit |
carry out the audit |
|
could not be conducted by |
processes physically at |
|
visiting the premises of |
the respective offices. |
|
certain Branches / Circle Offices / Wings in the Corporate Office of the bank. |
Wherever physical access was not possible, necessary records / reports / documents / certificates were made |
|
As we could not gather |
available to us by the Bank |
|
audit evidence in person/ |
through digital medium, |
|
physically / through discussions and personal interactions with the |
emails and remote access to CBS, BSPL and other relevant application software. To this extent, |
|
officials at the Branches / |
the audit process was |
|
Circle / Administrative / |
carried out based on such |
|
Corporate Offices, we have |
documents, reports and |
|
identified such modified |
records made available |
|
audit procedures as a Key |
to us which were relied |
|
Audit Matter. Accordingly, our audit |
upon as audit evidence for conducting the audit and reporting for the |
|
procedures were modified |
current period. |
|
to carry out the audit |
Accordingly, we modified |
|
remotely. |
our audit procedures as follows: |
|
a We, the Statutory |
||
Central Auditors and certain Statutory Branch Auditors conducted |
||
verification of necessary records / documents / CBS / BSPL and other Application software electronically through remote access / emails |
in respect of certain Branches / Circle Offices / Administrative Offices and other offices of the Bank wherever physical access was not possible. b. Carried out verification of scanned copies of the documents, deeds, certificates and the related records made available to us through emails and remote access over secure network of the Bank. c. Making enquiries and gathering necessary audit evidence through Video Conferencing, dialogues and discussions over phone calls / conference calls, emails and similar communication channels. d. Resolution of our audit observations telephonically / through email instead of a face-to-face interaction with the designated officials. |
5. Attention is drawn to Clause 6.25 of Schedule No 18 to the accompanying standalone financial statements, that the figures for the current quarter and year ended 31st March, 2021 includes figures of erstwhile Syndicate Bank amalgamated with the Bank whereas figures for the corresponding year ended 31st March, 2020 are of pre-amalgamated Canara Bank and hence the same are not comparable.
6. Attention is drawn to Clause 6.17 of Schedule No. 18 to the accompanying standalone financial statements, which describes the uncertainties due to outbreak of COVID-19 pandemic and the management''s evaluation of its impact on the business operations of the Bank.
Our report is not modified in respect of this matter.
Information other than the Financial Statements and
Auditor''s Report thereon:
7. The Bank''s Board of Directors is responsible for the other information. The other information comprises the Pillar III Disclosures under the New Capital Adequacy Framework (BASEL III Disclosures) (but does not include the financial statements and our auditor''s report thereon), Corporate Governance Report, which we obtained prior to the date of this Auditor''s Report, and the Directors Report, which is expected to be made available to us after the date of our auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be material misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor''s report, we conclude there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements
8. The Bank''s Board of Directors is responsible with respect to 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 accounting principles generally accepted in India, including the Accounting Standards issued by ICAI, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (''RBI'') from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent;
and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are freefrom material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Bank''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
Auditorâs Responsibilities for the Audit of the Financial
9. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit 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.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the bank''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the bank to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to out weigh the public interest benefits of such communication.
10. We did not audit the financial statements / information of 4510 branches included in the standalone financial statements of the Bank whose financial statements / financial information reflect total assets of ''469653.35 Crs as at 31st March 2021 and total revenue of ''11869.08 Crs for the year ended on that date, as considered in the standalone financial statements. The financial statements / information of these branches have been audited by the branch auditors whose reports have been furnished to us, and in our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
11. The Balance Sheet and the Statement of Profit and Loss have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;
12. Subject to the limitations of the audit indicated in above paragraphs and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 / 1980, and subject also to the limitations of disclosure required therein, we report that:
a) We have sought and 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.
13. As required by Letter No DOS.ARG. No. 6270 / 08.91.001 / 2019-20 dated March 17,2020 on "Appointment of Statutory Central Auditors (SCAs) in Public Sector Banks - Reporting obligations for SCA''s from FY 2019-20", read with subsequent communication dated May 19, 2020 issued by RBI, we further report on the matters specified in paragraph 2 of the aforesaid letter as under:
a) In our opinion,theaforesaid Financial Statements comply with the Accounting Standards issued by ICAI, to the extent they are not inconsistent with the accounting policies prescribed by the RBI.
b) There are no observations or comments on financial transactions or matters which have any adverse effect on the functioning of the bank.
c) On the basis of the written representations received from the directors as on 31st March, 2021, none of the directors is disqualified as on 31st March, 2021 from being appointed as a director in terms of Section 164 (2) of the Companies Act, 2013.
d) There are no qualifications, reservations or adverse remarks relating to maintenance of accounts and other matters connected therewith.
e) Our audit report on the adequacy and operating effectiveness of the Bank''s Internal Financial Controls over Financial Reporting as required by the RBI Letter DOS.ARG.No.6270 / 08.91.001/ 2019-20 dated March 17, 2020 (as amended) is given in Annexure A to this report. Our report expresses an unmodified opinion on the Bank''s Internal Financial Controls over Financial Reporting as at 31st March, 2021.
14. We further report that:
a) In our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us.
b) The Balance Sheet, the Statement of Profit and Loss and the Statement of Cash Flows dealt with by this report are in agreement with the books of accounts and with the returns received from the branches not visited by us;
c) 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;and
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Statement of Cash Flows comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI.
Mar 31, 2019
Report on Audit of the Standalone Financial Statements Opinion
1. We have audited the accompanying standalone financial statements of Canara Bank (âthe Bankâ), which comprise the Balance Sheet as at 31 March 2019, the Profit and Loss Account and the Statement of Cash Flows for the year then ended, and notes to financial statements including a summary of significant accounting policies and other explanatory information in which are included returns for the year ended on that date of 20 branches audited by us and 3857 branches audited by statutory branch auditors. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also included in the Balance Sheet, the Profit and Loss Account and Statement of Cash Flows are the returns from 2439 branches which have not been subjected to audit. These unaudited branches account for 4.81 percent of advances, 14.93 per cent of deposits, 3.80 per cent of interest income and 15.11 per cent of interest expenses.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Banking Regulation Act, 1949 in the manner so required for bank and are in conformity with accounting principles generally accepted in India and give a true and fair view:
a. In case of the Balance sheet, of the state of affairs of the Bank as at 31st March, 2019;
b. In case of Profit and loss account, of the profit for the year ended on that date; and
c. In case of statement of cash flows, of its cash flows for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAâs) issued by the Institute of Chartered Accountants of India (ICAI). Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Bank in accordance with the code of ethics issued by the Institute of Chartered Accountants of India together with ethical requirements that are relevant to our audit of the financial statements in India, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on financial statements.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were ofmost significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a seperate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Sl. No. |
Key Audit Matter |
Auditorâs Response to Key Audit Matter |
1 |
Adequacy of classification |
Principal Audit Procedures: |
and provisions in respect |
We assessed the Bankâs |
|
of Advances. |
system in place to identify |
|
Advances are classified |
and provide for non |
|
as performing and non |
performing assets. Our audit approach |
|
performing assets in |
r r consisted testing of the |
|
accordance with the |
design and operating |
|
prudential norms issued |
effectiveness of the internal |
|
by RBI. The bank has |
controls and substantive |
|
a system of auto |
testing as follows: |
|
classification of advances |
- Reviewed the design, |
|
as NPA in accordance |
implementation and |
|
with the RBI Guidelines. |
operating effectiveness |
|
However the identification |
of the Bankâs General IT |
|
of NPA and creation of |
controls over the key IT |
|
systems for the purpose |
||
provision on such advances |
of identification of non |
|
also involves key judgments |
performing assets and |
|
relating to performance of |
provisioning thereon. |
|
borrowers, determination |
- Tested the relevant |
|
of security value, sources of |
information technology |
|
repayment, application of |
systems used in |
|
regulatory conditions, etc. |
identification and |
|
Accordingly, our audit was |
making provision for such NPA as per the RBI |
|
focused on income recog |
Guidelines including |
|
nition, asset classification |
involvement of manual |
|
and provisioning pertain |
process and manual |
|
ing to advances due to in |
controls in relation to |
|
volvement of management |
income recognition, |
|
judgment and considering |
asset classification and |
|
the materiality of the bal- anrpc |
provisioning pertaining to advances. |
|
ances. |
- Evaluated and tested the management estimates and judgments for the purpose of identification of NPA and adequacy of provision required as per RBIâs Prudential Norms. - Considered branch audit reports for identification and provisioning for nonperforming assets. - Ensured exceptions noticed during our audit procedures are duly corrected. |
2 |
Assessment of Deferred |
Principal Audit Procedures |
tax assets recognized by |
performed: |
|
the bank on carryforward |
- Considered the taxable |
|
of losses. |
profits of the bank |
|
Deferred tax assets on |
and taxes paid in the |
|
unabsorbed depreciation |
past, obtained details |
|
or carry forward of losses |
of carry forward losses |
|
are to be recognized only |
under income tax and |
|
when there is a virtual |
details of estimates of |
|
certainty supported by |
taxable incomes for |
|
convincing evidence that |
future periods without |
|
sufficient future taxable |
considering further |
|
income will be available |
capital infusion, of |
|
against which such |
restructuring and |
|
deferred tax assets can be |
without considering expected recoveries |
|
realised. Determination |
||
from assets where |
||
of virtual certainty is a |
resolution proceedings |
|
matter of judgment based on convincing evidence. |
are underway. - Tested the period over |
|
Considering the involve |
which the deferred |
|
ment of manage mentâs |
tax assets on such |
|
estimation and judgment |
unabsorbed losses |
|
in determining virtual |
would be recovered |
|
certainty of sufficient |
against future taxable |
|
future taxable income |
income. |
|
being available this matter |
- Tested the manage |
|
has been determined as a |
mentâs under lying |
|
key audit matter. |
assumptions and judgm |
|
Refer Para 5.6 of Schedule |
ents in estimating the |
|
18 to the Standalone |
future taxable incomes |
|
Financial Statements. |
against which such unabsorbed losses would be recovered. - We have reviewed past income tax assessment orders, unresolved tax issues and their current status under litigation, based on our understanding on the likely outcome of the issues on the dispute and the amount of allowable carry forward losses. |
3 |
Key Information technology (IT) systems (Flex Cube - Oracle based) used in financial reporting process. The Bankâs operational and financial processes are dependent on IT systems due to large volume of transactions that are processed on daily basis and hence considered as a key audit matter. |
Principal Audit Procedures: We conducted an assessment and identified key IT applications, databases and operating systems that are relevant to our audit and have identified CBS and Flexcube Treasury System primarily as relevant for financial reporting. Our audit approach consisted testing of the design and operating effectiveness of the internal controls as follows: - Obtained an understanding of the Bankâs IT control environment and IT policies during the audit period. - Reviewed the design, implementation and operating effectiveness of the Bankâs basic IT controls including application, access controls that are critical to financial reporting. - Reviewed the IS Audit Reports and discussed with IS Wing on compliance to key IS Controls. - Tested key automated and business cycle controls and logic for system generated reports relevant to the audit on test check basis. |
Information other than the Financial Statements and Auditorâs Report thereon
5. The Bankâs Board of Directors is responsible for the other information. The other information comprises the Pillar III Disclosures under the New Capital Adequacy Framework (BASEL III Disclosures) (but does not include the financial statements and our Auditorâs Report thereon), which we obtained prior to the date of this Auditorâs Report, and the Corporate Governance Report, Directors Report, which is expected to be made available to us after the date of our auditorâs report.
Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements of our knowledge obtained during the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors report, we conclude there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
6. The Bankâs Board of Directors is responsible with respect to 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 accounting principles generally accepted in India, including the Accounting Standards issued by ICAI, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBIâ) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Bankâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
Auditorâs Responsibilities for the Audit of the Financial Statements
7. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the bankâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the bank to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
8. We did not audit the financial statements / information of 3857 branches included in the standalone financial statements of the Bank whose financial statements / financial information reflect total advances of Rs.2,59,839.27 Crs as at 31st March 2019 and total revenue of Rs.22,204.30 Crs for the year ended on that date, as considered in the standalone financial statements. The financial statements / information of these branches have been audited by the branch auditors whose reports have been furnished to us, and in our opinion in so far as it relates to the amounts and disclosures included in respect of branches, are based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
9. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;
10. Subject to the limitations of the audit indicated in paragraphs 5 to 7 above and as required by the Banking Companies (Acquisition and 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 have been found adequate for the purposes of our audit.
11. We further report that:
a) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us.
b) the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us;
c) 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; and
d) In our opinion, the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI.
For Dagliya and Co. For Komandoor & Co LLP.
Chartered Accountants Chartered Accountants
FRN.000671S FRN. 001420S/S200034
(P Manohara Gupta) (T. Nagendranadh)
Partner Partner
Membership Number 016444 Membership Number 226246
For D. K. Chhajer & Co. For S N K & Co.
Chartered Accountants Chartered Accountants
FRN. 304138E FRN. 109176W
(Niraj K Jhunjhunwala) (Ankit D Danawala)
Partner Partner
Membership Number 057170 Membership Number 119972
Place : Bengaluru
Date : May 10, 2019
Mar 31, 2018
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Canara Bank as at 31st March, 2018, which comprise the standalone Balance Sheet as at 31st March, 2018, Standalone Profit and Loss Account, the Standalone Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of 20 branches audited by us, 3661 branches audited by statutory branch auditors and 7 foreign branches audited by local auditors in respective countries. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Standalone Balance Sheet and the Standalone Profit and Loss Account are the returns from 2523 branches which have not been subjected to audit. These unaudited branches account for 4.87 per cent of advances, 16.72 per cent of deposits, 3.64 per cent of interest income and 16.30 per cent of interest expenses.
Managementâs Responsibility for the Standalone Financial Statements
2. The bankâs management is responsible for the preparation of these Standalone financial statements in accordance with the Banking Regulation Act 1949, Reserve Bank of India guidelines issued from time to time and Accounting Standards generally accepted in India. This responsibility of the Management includes design, implementation and maintenance of internal control relevant to the preparation of the Standalone Financial Statements that are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
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 as to whether the standalone financial statements are free from material misstatements.
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 auditorâs judgement, 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 Bankâs 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 effectiveness of the entityâs 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.
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:
I. The Standalone Balance sheet, read with the 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 31st March, 2018 in conformity with accounting principles generally accepted in India;
II. The Standalone Profit and Loss Account, read with the 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
III. The Standalone Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. The Standalone Balance Sheet and the Profit and Loss Account have been drawn up in Forms âAâ and âBâ respectively of the Third Schedule to the Banking Regulation Act, 1949.
8. 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 / 1980 and also subject 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;
c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit;
9. We further report that:
a) The Standalone Balance Sheet and the Standalone Profit & Loss Account dealt with by this report are in agreement with the books of account and returns;
b) The report on the accounts of the Branch/Offices audited by the 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 Standalone Balance Sheet, Profit & Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.
J Singh & Associates J L Sengupta & Co.
Chartered Accountants Chartered Accountants
FRN : 110266W FRN : 307092E
(J Singh) (S Mandal)
Partner Partner
Membership No 042023 Membership No 068309
Dagliya & Co. Komandoor & Co LLP
Chartered Accountants Chartered Accountants
FRN :000671S FRN : 001420S/ S200034
(P Manohara Gupta) (K Mohan Acharya)
Partner Partner
Membership No 016444 Membership No 029082
Place : Bengaluru
Date : May 11, 2018
Mar 31, 2017
INDEPENDENT AUDITORSâ REPORT
To,
The Members of Canara Bank
Report on the Financial Statements
1. We have audited the accompanying financial statements of Canara Bank as on 31st March, 2017, which comprise the Balance Sheet as at 31st March, 2017, Profit and Loss Account, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of 20 branches audited by us, 3234 branches audited by statutory branch auditors and 7 foreign branches audited by local auditors in respective countries. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns from 2821 branches which have not been subjected to audit. These unaudited branches account for 5.24 per cent of advances, 15.39 per cent of deposits, 5.00 per cent of interest income and 14.95 per cent of interest expenses.
Managementâs Responsibility for the Financial
Statements
2. The bank''s management is responsible for the preparation of these financial statements in accordance with the Banking Regulation Act 1949, Reserve Bank of India guidelines issued from time to time and Accounting Standards generally accepted in India. This responsibility of the Management includes design, implementation and maintenance of internal control relevant to the preparation of the Financial Statements that are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
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 as to 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 effectiveness of the entity''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.
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:
I. The Balance sheet, read with the 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 31st March, 2017 in conformity with accounting principles generally accepted in India;
II. The Profit and Loss Account, read with the significant accounting policies and the notes thereon shows a true balance of profit, in conformity with accounting principles generally accepted in India, for the year covered by the account; and
III. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms âAâ and âBâ respectively of the Third Schedule to the Banking Regulation Act, 1949.
8. 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 / 1980 and also subject 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;
c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit;
9. We further report that
a) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account and returns;
b) The report on the accounts of the Branch / Offices audited by the 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 & Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.
For Ram Raj & Co. For V K Niranjan & Co.
Chartered Accountants Chartered Accountants
FRN:002839S FRN:002468S
G Venkateshwara Rao Jayarajan M
Partner Partner
Membership No. 024182 Membership No. 011105
For J Singh & Associates For J L Sengupta & Co.
Chartered Accountants Chartered Accountants
FRN:110266W FRN:307092E
J Singh S R Ananthakrishnan
Partner Partner
Membership No. 042023 Membership No. 018073
Place : Bengaluru
Dated : May 08, 2017
Mar 31, 2015
Report on the Financial Statements
1. We have audited the accompanying financial statements of Canara
Bank as on 31st March, 2015, which comprise the Balance Sheet as at
31st March, 2015, Profit and Loss Account, the Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information. Incorporated in these financial
statements are the returns of 20 branches audited by us, 2671 branches
audited by statutory branch auditors and 6 foreign branches audited by
local auditors in respective countries. The branches audited by us and
those audited by other auditors have been selected by the Bank in
accordance with the guidelines issued to the Bank by the Reserve Bank
of India. Also incorporated in the Balance Sheet and the Profit and
Loss Account are the returns from 3116 branches which have not been
subjected to audit. These unaudited branches account for 4.97 per cent
of advances, 16.39 per cent of deposits, 4.18 per cent of interest
income and 14.54 per cent of interest expenses.
Management''s Responsibility for the Financial Statements
2. The bank''s management is responsible for the preparation of these
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 Banking Regulati on Act 1949, Reserve Bank of India
guidelines and recognized accounting policies and practices, including
Accounting Standards issued by Institute of Chartered Accountants of
India (ICAI), as applicable. This responsibility of the management
includes maintenance of adequate accounting records in accordance with
the provisions of applicable laws for safeguarding the assets of the
Bank and for preventing and detecting frauds and other irregularities;
the selection of and application of appropriate accounti ng policies;
making judgments and estimates that are prudent; and the design,
implementation and maintenance of internal financial controls, that
were operating effectively for ensuring the accuracy and completeness
of the accounting records, and risk management systems relevant to the
preparation and presentation of the financial statements that give a
true and fair view and free from material misstatement, whether due to
fraud or error, which have been used for the purpose of preparation of
Financial Statements by the management of the Bank, as aforesaid.
In making those risk assessments, the management has implemented such
internal controls that are relevant to the preparation of the financial
statement and designed procedures that are appropriate in the
circumstances so that the internal control with regard to all the
activities of the Bank is effective.
Auditors'' Responsibility
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
effectiveness of the entity''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.
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:
I. the Balance sheet, read with the 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 31st March, 2015 in
conformity with accounting principles generally accepted in India;
II. the Profit and Loss Account, read with the significant accounting
policies and the notes thereon shows a true balance of profit, in
conformity with accounting principles generally accepted in India, for
the year covered by the account; and
III. 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 the Schedule 18: ''Notes to Accounts''
regarding:
I. Note 6.19 to the financial statement, which provide details of
crediting Sundry Liability(Interest Capitalisation) on account of past
period FITL directly from the Revenue Reserve as a onetime measure, as
permitted by Reserve Bank of India vide their letter dated June 27,
2014.
II. Note 6.17 (a) and (b) to the financial statements, which provide
details of identification and adjustment during the year regarding
amortization of pension and gratuity liability as permitted by Reserve
Bank of India vide their circular dated February 9, 2011.
III. Note 6.20 to the financial statements, which provide details of
staggering of provision of Rs.801.07 crores for certain non-performing
advances as permitted by Reserve Bank of India vide their letter dated
May 15, 2015. Our opinion is not qualified in respect of the above
stated matters.
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, 1970/1980 and a 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;
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, Profit and Loss Account and Cash
Flow Statement comply with the applicable accounting Standards.
For P. Chopra For A.R. Das For S. C. Vasudeva
& Co. & Associates & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN :004957N FRN : 306109E FRN : 000235N
(Rakesh Jain) (Syamal Kumar Nayak) (Ashish Agarwal)
Partner Partner Partner
Membership No. Membership Membership
087925 No.051353 No.093790
For Vinay Kumar & Co. For Ram Raj & Co. For V K Niranjan & Co.
Chartered Chartered Chartered
Accountants Accountants Accountants
FRN :000719C FRN : 002839S FRN : 002468S
(Vinay Kumar Agrawal) (K Siva Subramanya (Niranjan V K)
Partner Prasad) Partner
Membership Partner Membership
No.013795 Membership No.021432
No.024456
Place: Bengaluru
Date: 25th May, 2015
Mar 31, 2014
1. We have audited the accompanying financial statements of Canara
Bank as at March 31, 2014, which comprise the Balance Sheet as at March
31, 2014, 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 (Notes to Accounts). Incorporated in
these financial statements are the returns of 20 branches audited by
us, 2081 branches audited by branch auditors and 4 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 to the Bank by the Reserve Bank of India. Also
incorporated in the Balance Sheet and the Profit and Loss Account are
the returns from 2649 branches which have not been subjected to audit.
These unaudited branches account for 5.76 percent of advances, 17.30
percent of deposits, 3.53 percent of interest income and 14.75 percent
of interest expenses.
Management''s responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements in accordance with the requirements of Reserve Bank of
India, Banking Regulation Act, 1949 and applicable Accounting
Standards. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation of the
financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
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 judgement, 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 presentation of the financial statements that
gives a true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
opinion on the effectiveness on 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.
Opinion
6. In our opinion, as shown by books of Bank, and to the best of our
information and according to the explanations given to us:
(i) the Balance Sheet, read with the Notes to Accounts 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, 2014 in conformity with accounting
principles generally accepted in India;
(ii) the Profit and Loss Account, read with the Notes to Accounts
thereon shows a true balance of profit, in conformity with accounting
principles generally accepted in India, for the year covered by the
account; and
(iii) the Cash Flow Statement gives a true and fair view of the cash
flows for the year ended on that date.
Emphasis of Matter
We draw attention to:
a. Note 6.4 to the financial statements, which describes the
accounting treatment of the expenditure on creation of Deferred Tax
Liability on Special Reserve under Section 36(1)(viii) of the
Income-tax Act, 1961 as at March 31, 2013, pursuant to RBI''s Circular
No. DBOD. No. BP. BC. 77 / 21.04.018 / 2013-14 dated December 20,
2013.
b. Note 6.15 to the financial statements, which provides details with
regard to the identification and adjustment during the year of
amortization of pension and gratuity liability as permitted by Reserve
Bank of India vide their circular dated February 9, 2011.
c. Note 6.19 to the financial statements, which provides details with
regard to the spreading the creation of Sundry Liability (Interest
Capitalisation) on account of past period FITL as permitted by Reserve
Bank of India vide their letter dated January 3, 2014.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
7. 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.
8. 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.
c. The returns received from the offices and branches of the Bank
have been found adequate for the purposes of our audit.
9. In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement comply with the applicable Accounting Standards.
For Loonker & Co. For P. Chopra & Co.
Chartered Accountants Chartered Accountants
Firm Registration No. 000172W Firm Registration No. 004957N
(Hrudyesh N. Pankhania) (Pradeep Kumar Chopra)
Partner Partner
Membership No. 138932 Membership No. 082598
For A.R. Das & Associates For S. C. Vasudeva & Co.
Chartered Accountants Chartered Accountants
Firm Registration No. 306109E Firm Registration No.000235N
(Syamal Kumar Nayak) (Sanjay Vasudeva)
Partner Partner
Membership No. 051353 Membership No.090989
For Vinay Kumar & Co. For Ford Rhodes Parks & Co.
Chartered Accountants Chartered Accountants
Firm Registration No.000719C Firm Registration No. 102860W
(Nikhil Singhal) (A.D. Shenoy)
Partner Partner
Membership No. 079557 Membership No. 011549
Bangalore
May 05, 2014
Mar 31, 2012
1. We have audited the accompanying financial statements of Canara
Bank as at 31st March 2012, which comprise the Balance Sheet as at 31st
March 2012, Profit & Loss Account and the Cash Flow Statement for the
year then ended, significant Accounting Policies and other explanatory
information. Incorporated in these financial statements are the returns
of 20 branches audited by us, 2660 branches audited by Branch Auditors
and 4 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 statement of
Profit & Loss Account are the returns from 915 Branches, which have not
been subjected to audit. These unaudited branches account for 1.16 per
cent of advances, 6.05 per cent of deposits, 0.90 per cent of interest
income and 5.00 percent of interest expenses.
Management's responsibility for the Financial Statements:
2. Management is responsible for the preparation of these financial
statements in accordance with the Banking Regulation Act, 1949. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation of the financial statements
that are free from material misstatements, whether due to fraud or
error.
Auditor's Responsibility:
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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from
material misstatements.
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. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the 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.
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:
(i) the Balance Sheet read together with the 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 the state of affairs of the Bank as at March 31, 2012, in
conformity with the accounting principles generally accepted in India;
(ii) the Profit & Loss Account together with the accounting policies
and the notes thereon shows a true balance of profit, in conformity
with the accounting principles generally accepted in India, for the year
covered by the account; and
(iii) the Cash Flow Statement gives a true and fair view of the cash flows
For the year ended on that date
Report on Other Legal and Regulatory Requirements:
7. The Balance Sheet and the Profit & Loss Account have been drawn up
in Forms "A" and "B" respectively of the Third Schedule to the
Banking Regulations Act, 1949.
8. 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 also subject 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.
c. The returns received from the Offices and Branches of the Bank have
been found adequate for the purposes of our audit.
9. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement comply with the applicable Accounting Standards.
For S Bhandari&Co. For Manubhai & Co.
Chartered Accountants Chartered Accountants
Firm Registration
No.000560C
Firm Registration
No,106041W
PD Baid Hitesh M Pomal
Partner Partner
Member ship
No.072625 Member ship
No. 106137
For RK Kumar&Co. For Nandy Halder & Ganguli
Chartered Accountants Chartered Accountants
Firm Registration
No.001595S Firm Registration
No.302017E
CR Sundararajan RP Nandy
Partner Partner
MembershipNo.025400 MembershipNo.051027
ForHKChaudhry&Co. ForK. VenkatachalamAiyer&Co.
Chartered Accountants Chartered Accountants
Firm Registration
No.006154N FirmRegistrationNo.004610S
InderjitSoni A Gopalakrishnan
Partner Partner
Membership No.088694 MernbershipNo.018159
BANGALORE
MAY 10, 2012
Mar 31, 2011
1. We have audited the accompanying financia statements of Canara Bank
as at 31st March 2011, which comprise the Balance Sheet as at 31st
March 2011, Profit & Loss Account and the Cash Flow Statement for the
year then ended, significant Accounting Policies and other explanatory
information. Incorporated in these financia statements are the returns
of 20 branches audited by us, 2716 branches audited by Branch Auditors
and 4 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.
Also incorporated in the Balance Sheet and the statement of Profit &
Loss are the returns from 521 Branches, which have not been subjected
to audit. These unaudited branches account for 0.37 per cent of
advances, 1.61 per cent of deposits, 0.16 per cent of interest income
and 1.20 per cent of interest expenses.
Managements Responsibility for the Financial Statements:
2. Management is responsible for the preparation of these financial
statements in accordance with the Banking Regulation Act, 1949. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation of the financia I
statements that a re free from material misstatement, whether due to
fraud or error.
Auditors Responsibility:
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 requirethatwe comply with ethical
requirementsand plan and perform the audit to obtain reasonable
assurance about whether the financial statements arefreefrom 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 auditors 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
banks preparation and fair presentation of the financia statements in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the 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 auditopinion.
Emphasis of Matter:
6. Without qualifying our opinion, we draw attention to Note No.5.3 to
the Schedule 18 of the financia statements, which describes deferment
of pension and gratuity liability of the Bank to the extent of
Rs.2026.48 Crore pursuant to the exemption granted bythe Reserve Bankof
India to the Public Sector Banks from the application of the provisions
of Accounting Standard (AS) 15, Employee Benefits, vide its circular
No. DBOD. BP. BC/80/21.04.018/2010-11 dated 09.02.2011 on Re-opening of
Pension Option to Employees of Public Sector Banks and Enhancement in
Gratuity Limits-Prudential Regulatory Treatment.
Opinion:
7. In our opinion, as shown bythe books of the bank, and to the best
of our information and according to the explanations given to us:
(i) the Balance Sheet read together with the 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 the state of affairs of the Bank as at March 31, 2011, in
conformity with the accounting principles generally accepted in India;
(ii) the Profit & Loss Account read together with the Accounting
Policies and Notes thereon shows a true balance of profit, in
conformity with the accounting principles generally accepted in India,
fortheyearcovered bythe account; and
(iii) the Cash Flow Statement gives a true and fair view of the cash
flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
8. The Balance Sheet and the Profit &t Loss Account have been drawn up
in Forms "A" a nd "B" respectively of the Third Schedule to the Ban
king Regulations Act, 1949.
9. Subject to the limitations of the audit indicated in paragraph lto
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 reportthat:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessaryforthe purposes of our
auditand havefoundthemto be satisfactory.
b. The transactions of the Bank, which have come to our notice, have
been within the powers of the Bank.
c. The returns received from the Offices and Branches of the Bank have
been found adequate forthe purposes of ouraudit.
10. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement comply with the applicable Accounting Standards.
For S Bhandari & Co. For Manubhai &Co.
Chartered Accountants Chartered Accountants
Firm Registration No.000560C Firm Registration No,106041W
SS Bhandari Hitesh M Pomal
Partner Partner
Membership No.011332 Membership No. 106137
For R K Kumar & Co. For Nandy Haider & Ganguli
Chartered Accountants Chartered Accountants
Firm Registration No.001595S Firm Registration No.302017E
C RSundararajan Partha S Chanda
Partner Partner
Membership No.025400 Membership No.056653
For H KChaudhry &Co. For K. Venkatachalam Aiyer &Co.
Chartered Accountants Chartered Accountants
Firm Registration No.006154N Firm Registration No.004610S
Monish Baweja K Narayanan
Partner Partner
Membership No.087384 Membership No.007024
BANGALORE
MAY 05, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Canara Bank as at
31st March 2010 and also the Profit & Loss Account and the Cash Flow
Statement annexed thereto for the year ended on that date in which are
incorporated the returns of 20 Indian Branches audited by us, 2569
other Indian branches audited by Branch Auditors and 3 Foreign Branches
audited by the Overseas 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. Also
incorporated in the Balance Sheet and the Profit & Loss Account are the
returns from 454 Branches, which have not been subjected to audit.
These unaudited branches account for 0.52 per cent of advances, 2.75
per cent of deposits, 0.45 per cent of interest income and 2.82 per
cent of interest expenses. These financial statements are the
responsibility of the Banks Management. Our responsibility is to
express an opinion on these Financial Statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessingthe accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basisforouropinion.
3. The Balance Sheet and the Profit & Loss Account have been drawn up
in Forms "A" and "B" respectively of the Third Schedule to the Banking
Regulations Act, 1949.
4. Subject to the limitations of the audit indicated in paragraph 1
above, and as required by the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970 and also subject 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. ThetransactionsoftheBank, which havecometo our notice, have been
within the powers of the Bank.
c. The returns received from the Offices and Branches of the Bank have
been found adequate forthe purposes of ouraudit.
5. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement comply with the applicable Accounting Standards.
6. Inouropinion, as shown bythe books of the Bank, and to the best of
our information and according to the explanations given to us:
(i) The Balance Sheet is a full and fair Balance Sheet read together
with Accounting Policies and Notes on Accounts containing all the
necessary particulars, is properly drawn up so as to exhibit a true and
fair view of the state of affairs of the Bank as at 31st March 2010;
(ii) The Profit & Loss Account read together with Accounting Policies
and Notes on Accounts shows a true balance of Profit for the year ended
on that date; and
(iii) The Cash Flow Statement gives a true and fair view of the cash
flow for the year covered bythe statement.
For M Anandam & Co.
Chartered Accountants Firm
Registration No.000125S
AVS adasiva
Partner
Membership No.18404
For S Bhandari & Co.
Chartered Accountants Firm
Registration No.000560C
P D Baid
Partner
Membership No. 72625
For R K Kumar & Co.
Chartered Accountants
Firm Registration No.0015955
BRAshok
Partner
Membership No.23313
For N Sankaran & Co.
Chartered Accountants
Firm Registration NO.003590S
B Chandrasekhar
Partner Membership No.16616
For Manubhai &Co.
Chartered Accountants
Firm Registration NO.106041W
Kshitij M Patel
Partner
Membership No. 45740
For Nandy Haider & Ganguli
Chartered Accountants Firm Registration No.302017E
Amp Haider
Partner Membership No.7144
BANGALORE APRIL 28, 2010
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