1.  We have audited the accompanying Financial Statements of United
 Bank of India as at 31st March, 2011 which comprises the Balance Sheet
 as at March 31, 2011, the Prof t and Loss Account and the Cash Flow
 Statement for the year then ended, and a summary of signif cant
 accounting policies and other explanatory information. Incorporated in
 these financial statements are the returns of 20 branches audited by us
 and 1196 branches audited by branch 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, the Prof t and
 Loss Account and the Cash Flow Statement are the returns from 30
 Regional Of ces, 381 Branches and 1 Staf Training College which have
 not been subjected to audit.  The unaudited branches account for 1.58
 per cent of gross advances, 5.83 per cent of deposits, 1.30 per cent of
 interest income and 5.29 per cent of interesThexpense.
 
 Managements Responsibility For The Financial Statements
 
 2.  Management is responsible for the preparation of these f nancial
 statements in accordance with the Banking Regulation Act, 1949. The
 responsibility includes the design, implementation and maintenance of
 internal control relevant to the preparation 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 f nancial
 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. T ose Standards require that we comply with
 ethical requirements and plan and perform the audit to obtain
 reasonable assurance about whether the f nancial statements are free
 from material misstatement.
 
 4.  An audit involves performing procedures to obtain audiThevidence
 about the amounts and disclosures in the f nancial statements. The
 procedures selected depend on the auditors judgment, including the
 assessment of the risks of material misstatement of the f nancial
 statements, whether due to fraud or error. In making those risk
 assessments, the auditor considers the internal control relevant to the
 Banks preparation and fair presentation of the f nancial statements in
 order to design audit procedures that are appropriate in the
 circumstances. An audit also includes evaluating the appropriateness of
 the accounting policies used and the reasonableness of the accounting
 estimates made by management, as well as evaluating the overall
 presentation of the f nancial statements.
 
 5.  We believe that the audiThevidence we have obtained is suf cient
 and appropriate to provide a basis for our audit opinion.
 
 6.  In accordance with Standard on Audit (SA) 706 Emphasis of Matter
 Paragraph”, without qualifying our opinion, we draw attention to:
 
 i. Note No. 5.3 (a) in Schedule 18 regarding charging of the residual
 portion of transitional obligations during the year in respect of
 employee benef ts and
 
 ii. Note No. 5.3 (b) in Schedule 18 regarding deferment of pension and
 gratuity liability of the bank to the extent of Rs.357.85 crores pursuant
 to the exemption granted by the Reserve Bank of India from application
 of the provisions of Accounting Standard 15.  
 
 Opinion
 
 7.  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 signif cant 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 af airs of the Bank as at 31st March, 2011 in conformity
 with accounting principles generally accepted in India;
 
 ii. The Profit and Loss Account, read with the significant policies and
 the notes thereon, shows a true balance of the prof t, 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 f
 ows for the year ended on that date.
 
 Report On Other Legal And Regulatory Requirements
 
 8.  The Balance Sheet and Prof t and Loss Account have been drawn up in
 Forms A and B respectively of the T ird Schedule to the Banking
 Regulation Act, 1949.
 
 9.  Subject to the limitations of the audit indicated in paragraph 1 to
 5 above and as required by the Banking Companies (Acquisition and
 Transfer of Undertakings) Act, 1970 and the limitations of disclosure
 required therein we report that:
 
 i. We have obtained all the information and explanations which to the
 best of our knowledge and belief, were necessary for the purpose of our
 audit and have found them to be satisfactory.
 
 ii. The transactions of the Bank, which have come to our notice, have
 been within the powers of the Bank.
 
 iii. The returns received from the of ces and branches of the Bank have
 been found adequate for the purpose of our audit.
 
 10.  In our opinion, the Balance Sheet, Prof t and Loss Account and
 Cash Flow Statement comply with the applicable Accounting Standards.
 
 M/s. H.S. Rustagi & Co.
 
 Chartered Accountants
 
 (CA N.K. Rustagi)
 
 Partner
 
 Membership No. 085676
 
 M/s. George Read & Co.
 
 Chartered Accountants
 
 FRN 302208E
 
 (CA Rajiv Panja)
 
 Partner
 
 Membership No. 057393
 
 M/s. D. K. Chhajer & Co.
 
 Chartered Accountants
 
 FRN 304138E
 
 (CA Niraj Jhunjhunwala)
 
 Partner
 
 Membership No. 057170
 
 M/s. M. Choudhury & Co.
 
 Chartered Accountants
 
 FRN 302186E
 
 (CA M. Choudhury)
 
 Partner
 
 Membership No. 003800
 
 M/s. M.C. Bhandari & Co.
 
 Chartered Accountants
 
 FRN 303002E
 
 (CA Neelima Jain)
 
 Partner
 
 Membership No. 065286
 
 M/s. Ramesh C. Agrawal & Co.
 
 Chartered Accountants
 
 FRN 001770C
 
 (CA Ramesh C. Agrawal)
 
 Partner
 
 Membership No.070229
 
 Date : 29.04.2011
 Place : Kolkata