1. We have audited the accompanying financial statements of BANK OF
MAHARASHTRA as at 31st March, 2012 which comprise the Balance Sheet as
at March 31, 2012, and 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 20 branches & The
Treasury & International Banking Branch (TIBB) audited by us and 1203
branches audited by Branch Auditors.
The branches audited by us and those audited by other auditors, as
informed to us, 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 Statement of Profit & Loss
are the returns from 22.97% branches which have not been subjected to
audit but certified by the management. These unaudited branches account
for 1.67% of advances, 5.95% of deposits, and 1.12% of interest income
and 5.21% of interest expenses.
Management''s Responsibility for the Financial Statements -
2. Management is responsible for the preparation of these financial
statements in accordance with 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.
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 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 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 auditor''s judgment, including the
assessment of the risk 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 Banking
Company''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 our audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Emphasis of Matters -
6. Without qualifying our opinion, we draw attention to -
Note No. 10.4D in Schedule 18 which describes deferment of pension and
gratuity liability of the bank to the extent of Rs 307.42 crores,
pursuant to the exemption granted by the Reserve Bank of India to the
public sector banks from application of the provisions of Accounting
Standard 15 (Revised) - Employees Benefit vide its Circular DBOD.
BP.BC/80/21.04.018/2010-11 of 9th February, 2011 on Reopening of
pension Option to Employees of Public Sector Bank and Enhancement in
Gratuity limits - Prudential Regulatory Treatment.
Had the said Circular not been issued, the profit before tax of the
Bank would have been lower by Rs 307.42 crores pursuant to application
of the requirements of AS 15 (Revised), the consequential effect of
which has not been ascertained on other related components of the
7. We have observed that -
a) the effect of adjustments that may arise from the ongoing
reconciliation of certain assets/liabilities, clearing differences,
inter branch accounts/inter branch transfer of fixed assets and charge
of depreciation on fixed assets, (as stated in Note No. 9.3 of Schedule
18 annexed to the Balance Sheet), the consequential impact thereof on
the accounts is not ascertainable; and
b) the Bank is following the policy of recognizing the income from
commission, locker rent etc. on cash basis during the year, instead of
accrual basis as stated in Para no. 6.1 Schedule 17 Significant
Accounting Policies which are not in conformity with the Accounting
Standard 9 Revenue Recognition, issued by The Institute of Chartered
Accountants of India. The impact thereof on the accounts is not
Subject to our observations above, 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 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, 2012 in conformity with accounting
principles generally accepted in India;
ii. The Profit and Loss Account, read with 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 & Regulatory Requirements
8. The Balance Sheet and Profit & 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 audit indicated in paragraph 1 to 5
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.
c. The returns received from the offices and branches of the Bank have
been found adequate for the purpose 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 Ray & Co. For Jodh Joshi And Co For JCR & Co. For N.Kumar
Chhabra & Co.
FRN : 313124E FRN : 104317W FRN : 105270W FRN : 000837N
Chartered Chartered Chartered Chartered
Accountants Accountants Accountants Accountants
For DSP &
Associates For Kirtane & Pandit
FRN:006791 FRN: 105215
Sumit Sikdar Aparna P. S. Sankaran Jashvant Raval Navtej Kumar
Partner Partner Partner Partner
Membership Membership Membership Membership
No.120622 No.:113982 No.:012926 No.:080426
Atul Jain Shared Bhagwat