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
Flow Statement for the year then ended, and a summary of significant
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
Sheet and the Profit and Loss Account are the returns from 8,714 Indian
other accounting units) which have not been
subjected to audit. These unaudited branches account for
advances, 17.81% of deposits, and 4.99% of interest income and 16.08%
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
with the requirements of the Reserve Bank of India, the provisions of
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
systems relevant to the preparation of the financial statements that are
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.
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,
assessment of the risks of material misstatement of the financial
due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant
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
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.
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
fair view of state of affairs of the Bank as at 31st March 2016 in
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
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
Emphasis of Matter
7. We draw attention to Note 18 of Schedule 18: ''Notes to Accounts''
(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
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,
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
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
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Place : Kolkata
Date : 27th May, 2016.