United Bank of India

BSE: 533171 | NSE: UNITEDBNK | ISIN: INE695A01019 
Market Cap: [Rs.Cr.] 3,042.20 | Face Value: [Rs.] 10
Industry: Banks - Public Sector

Auditor's Report
AUDITORS' REPORT

To The President of India

Report On The Financial Statements

1. We have audited the accompanying financial statements of UNITED BANK OF INDIAas at March 31, 2014, which comprises the Balance Sheet as at March 31, 2014, and Profitand Loss Account and the Cash Flow Statement for the year then ended, and a summary ofsignificant accounting policies and other explanatory information. Incorporated in thesefinancial statements are the returns of 20 branches and treasury operations audited by usand 621 branches/retail hub audited by branch auditors. The branches audited by us andthose audited by other auditors have been selected by the Bank in accordance with theguidelines issued to the Bank by the Reserve Bank of India. Also incorporated in theBalance Sheet, the Profit and Loss Account and the Cash Flow Statement are the returnsfrom 35 Regional Offices, 1354 Branches; 1 Staff Training College, 1 Cash ManagementSystem and 1 Central Pension Processing Centre which have not been subjected to audit.These unaudited branches account for 7.73% of gross advances, 35.42% of deposits, 4.94% ofinterest income and 33.61% of interest expense.

Management's Responsibility For The Financial Statements

2. Management is responsible for the preparation of these financial statements inaccordance with the provisions of Section 29 of the Banking Regulation Act, 1949 and todisclose the information as may be necessary to conform to forms 'A & B' respectivelyof the Third Schedule to the Banking Regulation Act, 1949. These financial statementscomply with the applicable Accounting Standards issued by the Institute of CharteredAccountants of India. This responsibility includes the design, implementation andmaintenance of internal control relevant to the preparation of the financial statementsthat are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgement, including the assessment of the risks of material misstatement of thefinancial statements, whether due to fraud or error. In making those risk assessments, theauditor considers internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinionon the effectiveness of the entity's internal control. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by management, as well as evaluating the overall presentation of thefinancial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

6. Emphasis of Matter

6.1 In accordance with Standard of Audit (SA) 706 "Emphasis of MatterParagraph", without qualifying our opinion, we draw attention to Note 4.3 to thefinancial statements, which describes the accounting treatment of the expenditure oncreation of Deferred Tax Liability on Special Reserve under section 36(1)(viii) of theIncome Tax Act, 1961 as at 31st March 2013, pursuant to RBI's Circular No.DBDO.No.BP.BC.77/21.04.018/2013-14 dated 20th December 2013.

Pending settlement of the proposed wage revision effective from November 2012, an adhocprovision of Rs. 170 crores is held as at 31 March 2014.

6.2 In accordance with Standard of Audit (SA) 706 "Emphasis of MatterParagraph", without qualifying our opinion, we draw attention to Note No.3.4 inSchedule 18 regarding deferment of pension and gratuity liability of the Bank to theextent of Rs. 89.47 crores pursuant to the exemption granted by the Reserve Bank of Indiafrom application of the provisions of Accounting Standard (AS)-15 on "EmployeeBenefits".

Opinion

7. Subject to what is stated above, in our opinion, and to the best of our informationand according to the explanation given to us and as shown by the books of the bank, andread with the Accounting Policies and the Notes on the Accounts, we have to report that: i. The Balance Sheet, is a full and fair Balance Sheet of the Bank containing all thenecessary particulars, as required by the Banking Regulation Act 1949 and is properlydrawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31March, 2014 in conformity with accounting principles generally accepted in India; ii.The Profit and Loss Account, shows a true balance of Loss, in conformity with accountingprinciples generally accepted in India, for the year covered by the account; and iii. TheCash Flow Statement gives a true and fair view of the cash flows for the year ended onthat date.

Report On Other Legal and Regulatory Requirements

8. In our opinion, the Balance Sheet and the Profit and Loss Account have been drawn upin Forms "A" and "B" respectively of the Third Schedule to the BankingRegulation Act, 1949 and is in accordance with the provisions of section 29 of the BankingRegulation Act, 1949.

9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and asrequired by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 andsubject also to the limitations of disclosure required therein, we report that:

i. We have obtained all the information and explanations which to the best of ourknowledge and belief, were necessary for the purpose of our audit and have found them tobe satisfactory.

ii. The transactions of the Bank, which have come to our notice have been within thepowers of the Bank.

iii. The returns received from the offices and branches of the Bank have been foundadequate for the purpose of our audit.

10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statementcomply with the applicable Accounting Standards.

M/s. Dinesh Mehta & Co. M/s. Ramamoorthy (N) & Co. M/s. P C Bindal & Co. M/s. S P M R & Associates
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
FRN 000220N FRN FRN 003824N FRN 007578N
(CA Anup Mehta) (CA Surendranath Bharathi) (CA Samit Gupta) (CA Pramod Kr. Maheshwari)
Partner Partner Partner Partner
Membership No. 93133 Membership No. 23837 Membership No. 93783 Membership No. 85362
Date : 05.05.2014
Place : Kolkata

 

   
Futures & Options Quote
Future Data Not present
Key Information

Key Executives:

Deepak Narang , Executive Director

Kiran B Vadodaria , Director(PartTime NonOfficial)

Piyush Kanti Ghosh , Director (Officer Employee)

Sanjay Arya , Executive Director


Company Head Office / Quarters:

United Tower,
11 Hemanta Basu Sarani,
Kolkata,
West Bengal-700001
Phone : West Bengal-91-033-22487472 / West Bengal-
Fax : West Bengal-91-033-22489391 / West Bengal-
E-mail : investors@unitedbank.co.in
Web : http://www.unitedbankofindia.com

Registrars:


 
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