STATE BANK OF INDIA
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The President of India,
1. We, the undersigned Auditors of State Bank of India, appointed under
Section 41 (1) of the State Bank of India Act, 1955, do hereby report to
the Central Government upon the Balance Sheet, Profit and Loss Account and
the Cash Flow Statement of the Bank.
2. We have audited the accompanying financial statements of State Bank of
India as at 31st March 2012, which comprise the Balance Sheet as at March
31, 2012, Profit & Loss Account and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information. Incorporated in the said financial statements are
the returns of:
i) The Central Office, fourteen Local Head Offices, Global Markets Group,
International Business Group, Corporate Accounts Group (Central), Mid-
Corporate Group (Central), Stressed Assets Management Group (Central) and
forty two branches audited by us;
ii) 11060 Indian Branches audited by branch auditors; and
iii) 52 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 Reserve Bank of India.
Also incorporated in the Balance Sheet and the Statement of Profit and Loss
are the returns from 3811 Indian branches and other accounting units, which
have not been subjected to audit. These unaudited branches account for
1.18% of advances, 4.56% of deposits, 1.06% of interest income and 4.89% of
interest expenses.
3. The management is responsible for the preparation of these financial
statements in accordance with the requirements of the Reserve Bank of
India, the provisions of the Banking 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 includes the design,
implementation and maintenance of internal control relevant to the
preparation of the financial statements that are free from material
misstatements, whether due to fraud or error.
4. 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.
5. 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, including the assessment of the
risk 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.
6. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
7. Without qualifying our opinion, we draw attention to:
a) Note 18 of Schedule 18: `Notes to Accounts` regarding the additional
provision of Rs. 1,350 crores in respect of certain non performing domestic
advances.
b) Note 13 of Schedule 18: `Notes to Accounts` regarding deferment of
gratuity liability of the bank to the extent of Rs. 300 crores in
accordance with RBI circular no.DBOD.BP.BC.80/21.04.018/ 2010-11 dated
February 9, 2011 and the exemption granted by the Reserve Bank of India to
the Bank from applicability of provisions of accounting Standard 15:
Employee Benefits.
8. 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:
a) The Balance Sheet, read with the significant accounting policies and
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 2012 in conformity with
accounting principles generally accepted in India;
b) 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 India, for the
year covered by the account; and
c) The Cash Flow Statement gives a true and fair view of the cash flows for
the year ended on that date.
9. 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, 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.
10. Subject to limitations of the audit indicated in paragraphs 2 to 5
above and as required by the SBI Act, 1955, and subject also to the
limitations of disclosure required there in, 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 purposes of our audit.
11. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with applicable accounting standards.
In terms of our report of even date
STATUTORY CENTRAL AUDITORS
For Kalyaniwalla & Mistry For Dagliya & Co.
Chartered Accountants Chartered Accountants
Viraf Mehta P. Manohara Gupta
Partner: M. No. 32083 Partner: M. No. 016444
Firm Regn. No. 104607 W Firm Regn. No. 000671 S
For B. M. Chatrath & Co. For M. Verma & Associates
Chartered Accountants Chartered Accountants
S. Krishnan Madan Verma
Partner: M. No. 051626 Partner: M. No. 080939
Firm Regn. No. 301011 E Firm Regn. No. 501433 C
For K.K. Soni & Co. For Krishnamoorthy & Krishnamoorthy
Chartered Accountants Chartered Accountants
K. K. Soni C. R. Rema
Partner: M. No. 007737 Partner: M. No. 029182
Firm Regn. No. 000947 N Firm Regn. No. 001488 S
For Essveeyar, For Todi Tulsyan & Co.
Chartered Accountants Chartered Accountants
B. Shanmuganathan Sushil Kumar Tulsyan
Partner: M. No. 027882 Partner: M. No. 075899
Firm Regn. No.000808 S Firm Regn. No. 002180 C
For Venugopal & Chenoy For Singhi & Co.
Chartered Accountants Chartered Accountants
D. V. Jankinath Rajiv Singhi
Partner: M. No. 029505 Partner: M. No. 053518
Firm Regn. No. 004671 S Firm Regn. No. 302049 E
For K. G. Somani & Co. For SCM Associates
Chartered Accountants Chartered Accountants
Anju Somani P K Bal
Partner: M. No. 511267 Partner: M. No. 055147
Firm Regn. No. 006591 N Firm Regn. No. 314173 E
For K. C. Mehta & Co. For SBA & Company
Chartered Accountants Chartered Accountants
Chirag Bakshi Ashok Kumar Jain
Partner: M. No. 047164 Partner: M. No. 072262
Firm Regn. No. 106237 W Firm Regn. No. 004651 C
Place: Kolkata
Date : 18th May, 2012. |