Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of State Bank of India (“the Bank”) as at March 31 2017, which comprises the Balance Sheet as at March 31, 2017, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these standalone financial statements are the returns of -
i) The Central Offices, 14 Local Head Offices, Global Market Group, International Business Group, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and 42 branches audited by us;
ii) 9,873 Indian Branches audited by other auditors;
iii) 53 Foreign Branches audited by the 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 8,200 Indian Branches (including other accounting units) which have not been subjected to audit. These unaudited branches account for 3.86 % of advances, 15.50% of deposits, and 4.90 % of interest income and 14.51 % of interest expenses.
Management’s Responsibility for the Standalone Financial Statements
2. The Bank’s management is responsible for the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognised accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI). This responsibility of the management includes the design, implementation and maintenance of internal controls and risk management systems relevant to the preparation of the standalone financial statements that are free from material misstatement, whether due to fraud or error. In making those risk assessments, the management has implemented such internal controls that are relevant to the preparation of the standalone financial statements 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 standalone financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank’s preparation and fair presentation of the standalone financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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 standalone financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion, as shown by books of the Bank, and to the best of our information and according to the explanations given to us:
(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 March 31, 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 “A” and “B” respectively of the Third Schedule to the Banking Regulation Act 1949 and these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955 and regulations there under.
8. Subject to the limitations of the audit indicated in paragraphs 1 to 5 above and as required by the State Bank of India Act, 1955, and subject also to the limitations of disclosure required there in, 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, the Profit and Loss Account and the Cash Flow Statement comply with the applicable accounting standards.
For VARMA & VARMA
Chartered Accountants
CHERIAN K BABY
Partner : M.No.016043
Firm Regn. No. 004532 S
For B. CHHAWCHHARIA & CO.
Chartered Accountants
S. K. CHHAWCHHARIA
Partner: M.No. 008482
Firm Regn. No. 305123 E
For GSA & ASSOCIATES
Chartered Accountants
SUNIL AGGARWAL
Partner : M No.083899
Firm Regn. No. 000257 N
For AMIT RAY & CO.
Chartered Accountants
BASUDEB BANERJEE
Partner : M No.070468
Firm Regn. No. 000483 C
For RAO & KUMAR
Chartered Accountants
K. PARVATHI KUMAR
Partner : M.No.11684
Firm Regn. No. 003089 S
For V. SANKAR AIYAR & CO.
Chartered Accountants
G SANKAR
Partner : M No.046050
Firm Regn. No.109208 W
For MANUBHAI & SHAH LLP
Chartered Accountants
HITESH M. POMAL
Partner: M.No.106137
FirmRegn.No.106041W/W100136
For CHATTERJEE & CO.
Chartered Accountants
R. N. BASU
Partner : M No.050430
Firm Regn. No.302114 E
For S L CHHAJED & CO.
Chartered Accountants
S.N.SHARMA
Partner : M No. 071224
Firm Regn. No.000709 C
For BRAHMAYYA & CO.
Chartered Accountants
N. SRI KRISHNA
Partner : M No. 026575
Firm Regn. No.000511 S
For S. N. MUKHERJI & CO.
Chartered Accountants
SUDIP K. MUKHERJI
Partner : M No.013321
Firm Regn. No. 301079 E
For M. BHASKARA RAO & CO.
Chartered Accountants
M. V. RAMANA MURTHY
Partner : M.No.206439
Firm Regn. No.000459 S
For BANSAL & CO.
Chartered Accountants
SURINDER K. BANSAL
Partner : M.No. 014301
Firm Regn. No. 001113 N
For MITTAL GUPTA & CO.
Chartered Accountants
AKSHAY KUMAR GUPTA
Partner: M.No. 070744
Firm Regn. No. 001874 C
Place : Kolkata
Date : May 19, 2017
1. We have audited the accompanying financial statements of State Bank
of India ("the Bank") as at March 31, 2016, which comprises the Balance
Sheet as at March 31, 2016, the Profit and Loss Account and the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information. Incorporated in
these financial statements are the returns of
i) The Central Offices, 14 Local Head Offices, Global Market Group,
International Business Group, Corporate Accounts Group (Central),
Mid-Corporate Group (Central), Stressed Assets Management Group
(Central) and 42 branches audited by us;
ii) 8,903 Indian Branches audited by other auditors;
iii) 55 Foreign Branches audited by the 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 8,714 Indian
Branches (including other accounting units) which have not been
subjected to audit. These unaudited branches account for 4.03% of
advances, 17.81% of deposits, and 4.99% of interest income and 16.08%
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 fows of the Bank in accordance
with the requirements of the Reserve Bank of India, the provisions of
the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and
recognized accounting policies and practices, including the Accounting
Standards issued by the Institute of Chartered Accountants of India
(ICAI). This responsibility of the management includes the design,
implementation and maintenance of internal controls and risk management
systems relevant to the preparation of the financial statements that are
free from material misstatement, whether due to fraud or error. In
making those risk assessments, the management has implemented such
internal controls that are relevant to the preparation of the financial
statements 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.
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 judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Bank''''s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the 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 suffcient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion, as shown by books of the Bank, and to the best of
our information and according to the explanations given to us:
(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 2016 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
fows for the year ended on that date.
Emphasis of Matter
7. We draw attention to Note 18 of Schedule 18: ''''Notes to Accounts''''
regarding:
(a) Note No. 18.8 – para 20: non-amortization of Rs.1,131.01 crore on
account of loss on sale of assets to Reconstruction Companies.
(b) Note No. 18.8 – para 21: utilization of Counter Cyclical Buffer of
Rs.1, 149 crore during the year.
Our opinion is not qualifed in respect of the above stated matter.
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 and these give information as required to be given
by virtue of the provisions of the State Bank of India Act, 1955 and
regulations there under.
9. Subject to the limitations of the audit indicated in paragraphs 1
to 5 above and as required by the State Bank of India Act, 1955, and
subject also to the limitations of disclosure required there in, 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, the Profit and Loss Account and
the Cash Flow Statement comply with the applicable accounting
standards.
For M/s Varma & Varma
Chartered Accountants
Cherian K Baby
Partner, M.No.016043
Firm Regn.No.004532 S
For M/s V. Sankar Aiyar & Co.
Chartered Accountants
Ajay Gupta
Partner, M.No.090104
Firm Regn.No.109208 W
For M/s Manubhai & Shah LLP
Chartered Accountant
Hitesh M Pomal
Partner, M.No.106137
Firm Regn.No.106041W/W100136
For M/s Chatterjee & Co.
Chartered Accountants
S K Chatterjee
Partner, M.No.003124
Firm Regn.No.302114 E
For M/s S L Chhajed & Co.
Chartered Accountants
S N Sharma
Partner, M.No.071224
Firm Regn.No.000709 C
For M/s Mehra Goel & Co.
Chartered Accountants
R K Mehra
Partner, M.No.006102
Firm Regn.No.000517 N
For M/s S. N. Mukherji & Co.
Chartered Accountants
Sudip Mukherji
Partner, M.No.013321
Firm Regn.No.301079 E
For M/s M. Bhaskara Rao & Co.
Chartered Accountants
M V Ramana Murthy
Partner, M.No.206439
Firm Regn.No.000459 S
For M/s Bansal & Co.
Chartered Accountants
D S Rawat
Partner, M.No.083030
Firm Regn.No.001113 N
For M/s Mittal Gupta & Co.
Chartered Accountants
Akshay Kumar Gupta
Partner, M.No.070744
Firm Regn.No.001874 C
For M/s S R R K Sharma Associates
Chartered Accountants
S R R K Sharma
Partner, M.No.18088
Firm Regn.No.003790 S
For M/s B. Chhawchharia & Co.
Chartered Accountants
Kshitiz Chhawchharia
Partner, M.No.061087
Firm Regn. No. 305123 E
For M/s GSA & Associates
Chartered Accountants
Sunil Aggarwal
Partner, M.No.083899
Firm Regn.No.000257 N
For M/s Amit Ray & Co.
Chartered Accountants
Basudeb Banerjee
Partner, M.No.070468
Firm Regn.No.000483 C\
Place : Kolkata
Date : 27th May, 2016.
1. We have audited the accompanying financial statements of State Bank
of India ("the Bank") as at 31st March 2015, which comprises the
Balance Sheet as at March 31,2015, the Profit and Loss Account and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Incorporated in these financial statements are the returns of
i) The Central Offices, 14 Local Head Offices, Global Market Group,
International Business Group, Corporate Accounts Group (Central),
Mid-Corporate Group (Central), Stressed Assets Management Group
(Central) and 42 branches audited by us;
ii) 8928 Indian Branches audited by other auditors;
iii) 52 Foreign Branches audited by the 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 8144 Indian
Branches (including other accounting units) which have not been
subjected to audit. These unaudited branches account for 4.19% of
advances, 17.54% of deposits, 5.30% of interest income and 16.26% 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 requirements of the Reserve Bank of India, the
provisions of the Banking Regulation Act, 1949, the State Bank of India
Act, 1955
and recognised accounting policies and practices, including the
Accounting Standards issued by the Institute of Chartered Accountants
of India (ICAI). This responsibility of the management includes the
design, implementation and maintenance of internal controls and risk
management systems relevant to the preparation of the financial
statements that are free from material misstatement, whether due to
fraud or error. In making those risk assessments, the management has
implemented such internal controls that are relevant to the preparation
of the financial statements 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.
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 judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Bank''s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the 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 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 Schedule 18: "Notes to Accounts" regarding:
i) Notes 18.7 - para [a]: change in method/rate of depreciation on
Fixed Assets resulting in an increase in profit by Rs.420.76 crores.
ii) Notes 18.7 - para [b(i)(1c)]: change in valuation of Plan Assets of
long-term benefits from Book Value to Fair Value, resulting in increase
in the value of Plan Assets by Rs. 2182.87 crores.
iii) Notes 18.8 - para 21: non-amortization of Rs. 2179.42 crores on
account of loss on sale of assets to Reconstruction Companies.
iv) Notes 18.8 - para 22: utilization of Counter Cyclical Buffer of
Rs.382 crores during the year.
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, and that these give information as required to be
given by virtue of the provisions of the State Bank of India Act, 1955
and regulations there under.
9. Subject to the limitations of the audit indicated in paragraphs 1 to
5 above and as required by the State Bank of India Act, 1955, and
subject also to the limitations of disclosure required there in, 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, the Profit and Loss Account and
the Cash Flow Statement comply with the applicable acco unting
standards.
For S. Venkatram & Co. For V.P. Aditya & Co. For S. N. Nanda & Co.
Chartered Accountants Chartered Accountants
Chartered Accountants
G. Narayanaswamy Surendra Kakkar Gaurav Nanda
Partner : M.No.002161 Partner: M.No.071912 Partner: M.No.500417
Firm Regn.No.004656S Firm Regn.No.000542C Firm Regn.No.000685N
For S. Jaykishan For Dhamija Sukhija
& Co. For Sriramamurthy & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Sunirmal Chatterjee Prabhat Sukhija J. Lalitha
Partner: M.No.017361 Partner: M.No.514761 Partner: M.No.201855
Firm Regn.No.309005E FirmRegn.No.000369N Firm Regn.No.003032S
For Prakash & Santosh For T R Chadha & Co. For K. B. Sharma & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
G K Mishra Vikas Kumar Hemant Sharma
Partner: M.No.074586 Partner: M.No.075363 Partner: M.No.503080
Firm Regn.No.000454C FirmRegn.No.006711N Firm Regn.No.002318N
For Mehra Goel & Co. For SRRK Sharma
Associates For B. Chhawchharia & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
R K Mehra G S Krishnamurthy Kshitiz Chhawchharia
Partner: M.No.006102 Partner: M.No.013841 Partner: M.No.061087
Firm Regn.No.000517N Firm Regn.No.003790S Firm Regn.305123E
For S. N. Mukherji & Co. For V. Sankar Aiyar & Co.
Chartered Accountants Chartered Accountants
Sudip Kumar Mukherji S. Venkatraman
Partner, M.No.013321 Partner: M.No.034319
Firm Regn.No.301079E Firm Regn.No.109208W
Place: Kolkata
Date: 22 May 2015
