1. We have audited the accompanying financial statements of Indian
Overseas Bank as at 31st March, 2014, which comprise the Balance Sheet
as at March 31, 2014, and 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 audited by us
and 1540 branches including 6 overseas 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 and the Statement of Profit and Loss
are the returns from 1748 branches which have not been subjected to
audit. These unaudited branches account for 7.04 per cent of advances,
18.50 per cent of deposits, 18.08 per cent of interest income and 16.40
per cent 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 Regulations 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 misstatement, whether due to
fraud or error.
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 judgement, including the
assessment of the risks 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 the
Bank''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 the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion. 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 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 affairs of
the Bank as at 31st March 2014 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 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.
7. Emphasis of Matter
a) We draw attention to Note No.8 regarding amortization of pension and
gratuity liability of Rs.1005.21 crore over a period of 5 years from
b) We draw attention to Note No 3.5 regarding utilization of floating
provision and counter cyclical provisioning buffer held as on March
31,2013 for meeting specific provision for non performing assets during
the year ended March 31,2014 amounting to Rs.324.20 crore.
Our opinion is not qualified in respect of the above.
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.
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 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.
In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the applicable Accounting Standards.
FOR BADARI, MADHUSUDHAN
& SRINIVASAN FOR B.THIAGARAJAN
& CO FOR SANKAR & MOORTHY
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 005389S FRN 004371S FRN 003575S
(N. SRINIVASAN) (B. THIAGARAJAN) (V.C. JAMES)
Partner Partner Partner
M.No. 027887 M.No.018270 M.No.22565
FOR P.R.MEHRA & CO FOR DASS KHANNA & CO
Chartered Accountants Chartered Accountants
FRN 000051N FRN 000402N
(SWINDER KUMAR) (RAKESH SONI)
M.No. 014211 M.No. 083142