Union Bank of India

1.  We have audited the attached Balance Sheet of UNION BANK OF INDIA
 as at 31st March, 2009, the Profit and Loss Account and Cash Flow
 Statement annexed thereto for the year ended on that date, in which are
 incorporated the returns of 19 branches, 1 Treasury Branch, 18 Regional
 Offices audited by us and 2176 branches, 33 Service Branches and 1
 Foreign Branch audited by other auditors and 75 unaudited offices /
 centres. 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 Profit and Loss Account are the returns from 363 branches which
 have not been subjected to audit. These un-audited branches account for
 0.74% of advances, 3.76% of deposits, 0.37% of interest income and
 2.63% of interest expenses. These financial statements are the
 responsibility of the Banks Management. Our responsibility is to
 express an opinion based on our audit.
 
 2.  We conducted our audit in accordance with 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 mis- statement. An audit
 includes examining, on a test basis, evidence supporting the amounts
 and disclosures in the financial statements. An audit also includes
 assessing the 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
 basis for our opinion.
 
 3.  Subject to the limitations of the audit indicated in paragraph 1
 above and as required by Banking Companies (Acquisition and Transfer of
 Undertakings) Act, 1970 and subject to the limitations of disclosure
 required therein;
 
 We report that
 
 (a) 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.
 
 (b) In our opinion and to the best of our information and according to
 the explanations given to us and as shown by the books of the bank
 maintained in accordance with the generally accepted accounting
 principles in India:
 
 (i) The Balance Sheet read with the notes thereon and significant
 accounting policies is a full and fair Balance Sheet containing the
 necessary particulars, and is properly drawn up so as to exhibit a true
 and fair view of the affairs of the Bank as at 31st March, 2009.
 
 (ii) The Profit and Loss Account read with the notes thereon and
 significant accounting policies shows a true balance of the Profit for
 the year ended 31st March, 2009.
 
 (iii) The Cash Flow Statement gives a true and fair view of the cash
 flows for the year ended 31st March, 2009.
 
 (c) 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.
 
 (d) The transactions of the Bank which have come to our notice have
 been within the powers of the Bank.
 
 (e) The returns received from the offices and branches of the Bank have
 generally been found adequate for the purposes of our audit except that
 in the case of some branches, particulars inclusive of classification
 of advances were incomplete and in such cases the information available
 at the controlling offices has been relied upon.
 
 For PRICE PATT & CO.   For DASS MAULIK MAHENDRA   For S R GOYAL & CO
                        K. AGRAWALA & CO.
 CHARTERED ACCOUNTANTS  CHARTERED ACCOUNTANTS      CHARTERED ACCOUNTANTS
 
 (M. NAGANATHAN)       (MAHAVIR MUNDHRA)          (PRAVEEN GOYAL)
 PARTNER (M. No. 7547)  PARTNER (M. No. 58295)     PARTNER (M.No. 74789)
 
 For CHANDABHOY & 
 JASSOOBHOY         For G. D. APTE & CO.  For JAGANNATHAN & SARABESWARAN
 CHARTERED 
 ACCOUNTANTS        CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
 (SAMIR M CHINOY)  (C M DIXIT)                       (N. RANGAN)
 PARTNER 
 (M. No. 40853)     PARTNER (M. No. 17532) PARTNER (M.No. 12190)
 
 Place : Mumbai
 Date  : 7th May 2009