1. We have audited the attached Balance Sheet of Indian Overseas Bank
as at 31st March 2008, the Profit and Loss Account and Cash Flows
Statement of the Bank for the year ended 31st March 2008 and annexed
thereto in which are incorporated the returns of 20 branches and 38
Regional Offices audited by us and 1522 branches including 6 Overseas
Branches audited by other auditors. The branches audited by us and
those audited by other auditors have been selected by the Bank in
accordance with the guidelines issued by Reserve Bank of India. Also
incorporated in the Balance Sheet and Profit & Loss Account, the
returns from 341 branches / centres which have not been subjected to
audit. These unaudited branches account for 1.27% of advances, 5.08% of
deposits, 0.38% of interest income and 2.41 % of interest expenses.
These financial statements are the responsibility of the Banks
Management. Our responsibility is to express an opinion based on our
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statements. An audit
includes examination on a test basis, evidence supporting the amounts
and disclosure 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
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. 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.
4. Reference is invited to:-
i) Significant Accounting Policy No.2.2, 2.5 & 2.7 (Schedule - 17)
regarding revenue recognition which are not in conformity with
Accounting Standard - 9 issued by the Institute of Chartered
Accountants of India.
ii) Note No. 3(a) to Notes on Accounts (Schedule - 18) regarding
recoverability of claims pending and / or yet to be lodged with
The impact of the items stated herein above on the Profit & Loss
Account, Balance Sheet and Capital Adequacy Ratio and business ratios
as stated in Notes on Accounts (Schedule-18) is not ascertainable.
Reference is also invited to Note No.3(e) to Notes on Accounts
(Schedule 18) regarding non - classification of advance as per
prudential norms of RBI.
5. The additional disclosures made in Note No. 4.2, 5, 6 and 7 to the
Notes on Accounts (Schedule 18) with regard to information in respect
of Restructured Accounts, Business Ratios, Maturity Pattern of Assets
and Liabilities and Exposure to Sensitive Sectors, respectively are
based on the records/ information as certified by the Bank and relied
upon by us.
6. Subject to the limitation of the audit indicated in Paragraph 1
above, and as required by the Banking Companies (Acquisition and
Transfer of Undertakings) Act 1970 and subject to the limitation of
disclosure required therein and also subject to our observations in
Paragraph 4 & 5 above, we report as under:
a) 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 generally accepted Accounting Principles
i) The Balance Sheet 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 2008 and
ii) The Profit and Loss Account shows a true balance of Profit for the
year ended 31st March 2008.
iii) The Cash Flows Statement gives a true and fair view of the cash
flow for the year ended 31st March 2008.
b) 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 the same to be satisfactory.
c) The transactions of the Bank, which have come to our notice have
been within the powers of the Bank.
d) The returns received from the offices and branches of the Bank have
been found adequate for the purpose of our audit.
For S.K. Singhania & Co For SRRK. Sharma Associates For R.S. Sipayya
Chartered Accountants Chartered Accountants Chattered
(RAJESH SINGHANIA) (SRRK. SHARMA) (R.S. SIPAYYA)
Partner Partner Partner
M.No. 52722 M. No. 18088 M. No.17762
For Vaithisvaran & Co For Maharaj N.R. Suresh & Co For 0m Agarwal
Chartered Accountants Chartered Accountants Chartered
(R. VENKATESH) (N.R. SURESH) (O.P. AGARWAL)
Partner Partner Partner
M.No.203816 M.No. 21661 M.No.016603