Independent
Auditor’s Report
To,
Statutory
Central Auditors,
____________________________Bank,
____________
Report
on Financial Statements
1.
We have audited the
accompanying Financial Statements of __________________ Branch of _____________________
Bank which comprise the Balance Sheet as at 31st March 2014, Profit and Loss
Account for the year then ended, and other
explanatory information.
Management’s
Responsibility for the Financial Statements
2.
Management of the Branch is
responsible for the preparation of these Financial Statements that give true
and fair view of the financial position and financial performance of the Branch
in accordance with the Banking Regulation Act, complying with Reserve Bank of India
Guidelines from time to time. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation
and fair presentation of the financial statements that are 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 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 auditors’
judgement, including the assessment of the risks of material misstatement of
the financial statement, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’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 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, and to the
best of our information and according to the explanation given to us, read with
the Memorandum of Changes mentioned in paragraph 11 below and our qualifications mentioned in paragraph 12 below,
the financial statements give a true and fair view in conformity with the
accounting principles generally accepted in India:
a.
in the case of the Balance
Sheet, of the state of affairs of the Branch as at 31st March, 2014;
and
b.
in the case of Profit and
Loss Account, of the Profit/Loss 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 accordance with Section 29 of the
Banking Regulation Act, 1949;
8.
Subject to the limitations
of the audit as indicated in Paragraphs 3 to 5 above and paragraph 10 below, 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 purpose of the audit and have found them to be satisfactory.
b.
The transactions of the
branch which have come to our notice have been within the powers of the Bank.
9.
We further report that:
a.
the Balance Sheet and
Profit and Loss account dealt with by this report are in agreement with the
books of account and returns;
b.
in our opinion, proper
books of account as required by law have been kept by the branch so far as
appears from our examination of those books;
Other
Matters
10.
No adjustments/provisions
have been made in the accounts of the Branch in respect of matters usually
dealt with at Head Office, including in respect of:
a.
Bonus, ex-gratia, and other
similar expenditure and allowances to branch employees;
b.
Terminal permissible
benefits to eligible employees on their retirement (including additional
retirement benefits), Gratuity, Pension, liability for leave encashment
benefits and other benefits covered in terms of ‘AS 15 –Employee Benefits’
issued by the Institute of Chartered Accountants of India;
c.
Arrears of salary/wages/allowances,
if any, payable to staff;
d.
Staff welfare contractual
obligations;
e.
Old unreconciled/unlinked
entries at debit under various heads comprising Inter branch/office
Adjustments;
f.
Interest on overdue/matured
term deposits;
g.
Depreciation on fixed assets;
h.
Auditors’ fees and
expenses;
i.
Taxation (Current Tax and
Deferred Tax);
j.
Provision for
Advances;
k.
Reversal of
interest of new Non Performing Accounts.
11.
The following is a summary
of Memorandum of Changes submitted by us to the branch management.
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Memorandum of Changes (summary)
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No.
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Increase
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Decrease
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a. In respect
of Income
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b. In respect
of expenditure
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c. In respect
of Assets
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d. In respect
of Liabilities
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e. In respect
of Gross NPAs
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f. In respect
of Provision on NPAs
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g. In respect
of Classification of Advances
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h. In respect
of Risk Weighted Assets
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i. Other items
(if any)
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12.
Our
qualifications forming part of this report are annexed.
For __________________,
Chartered Accountants
(CA. ___________)
Partner
Mem # XXXXX
Place:
Date:
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