To the President of India/ Members of erstwhile Andhra Bank
Report on Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of erstwhile Andhra Bank (the Bank), which comprise the Balance Sheet as at 31st March 2020, the Profit and Loss account and the Cash Flow Statement for the year then ended, and notes to standalone financial statements including a summary of significant accounting policies and other explanatory information in which are included returns for the year ended on that date of 20 branches, investment and international Banking Division audited by us and 1930 branches audited by statutory 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 (RBI). Also included in the Balance Sheet, the Profit and Loss account and Statement of Cash Flows are the returns from 924 branches which have not been subjected to audit. These unaudited branches account for 5.38% of gross advances, 11.94% of deposits, 4.31% of interest income and 9.85% of interest expenses.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Banking Regulation Act, 1949 ("the act") in the manner so required for the bank and are in conformity with the accounting principles generally accepted in India and:
a. 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 the state of affairs of the Bank as at 31st March 2020;
b. the Profit and Loss Account, read with the notes thereon shows a true balance of loss; and
c. the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.
Basis for Opinion
2. We conducted our audit in accordance with the Standards on Auditing ("SAs") issued by the Institute Chartered Accountants of India ("the ICAI"). Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the ICAI together with ethical requirements that are relevant to our audit of the standalone financial statements and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Going Concern
3. The amalgamation of erstwhile Andhra Bank with union Bank of India has been affected with effect from April 01,2020 in terms of GOI notification CG-DL-E-04032020-216535 GSR 154(E) dated March 4, 2020 as per the scheme called the "Amalgamation of Andhra Bank and Corporation Bank with Union Bank of India Scheme, 2020". In terms of the said scheme, the undertaking of erstwhile Andhra Bank has been transferred to and has been vested in the union Bank of India with effect from April 01,2020. Accordingly, the management has prepared the financial statements on a going concern basis of accounting.
Emphasis of Matter
4. We draw attention to Note no. 3.26 of Schedule 18 of the Standalone Financial Statements regarding impact and challenges of COviD-19 pandemic resulting in a slowdown of the economic activity. The situation continues to be uncertain and the Bank is evaluating the situation on an ongoing basis with respect to the challenges faced.
Our opinion is not modified in respect of this matter.
Key Audit Matters
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the Key Audit Matters to be communicated in our report:
Sl. No. | Key Audit Matter | How our audit addressed the key Audit Matter |
1. | Identification and Classification of non-performing advances (NPAs) and provisioning in respect of NPAs | |
(Refer to Schedule 17 Note 6 for the Significant Accounting Policies, Schedule 9 and various disclosures contained in Schedule 18) | Our audit procedures included but were not limited to the following with respect to the judgements and estimates which could give rise to material misstatement or were possibly subject to management bias: | |
a) The completeness and timing of recognition of depletion in the value of security; and | ||
Advances constitute the most important line item on the assets side of the Banks Balance Sheet with reported total advances (net of provision) to the tune of Rs.1,57,742.33 crores, gross NPAs of Rs. 28,708.54 crores and provision on NPAs of Rs. 20,900.28 crores as at the year end i.e March 31, 2020. The advances constitute 64.68 % of the Banks total assets. | b) The measurement of individually assessed provisions, which is dependent on the valuation of primary and collateral securities, realisable value of inventories, trade receivables, valuation of collateral securities, liquidation value, legal status, stage of insolvency proceedings in NCLT referred cases etc. | |
In obtaining sufficient audit evidence we: | ||
Banks are governed by the prudential norms issued by the Reserve Bank of India (RBI) on income recognition, Asset Classification and provisioning (IRACP) and other circulars, notifications and guidelines issued by RBI from time to time relating to classification of Advances into performing and non-performing Advances (NPAs) and provisioning norms relating to NPAs. | a) understood and reviewed the operating effectiveness of key controls around the process of loan performance monitoring, assessment of drawing power in respect of Working Capital limits, evaluation of available security etc; | |
b) Evaluated and tested the key assumptions and judgements adopted by the management in assessment of depletion in the value of securities and asset classification; | ||
In terms of extant RBI guidelines, Banks are required to classify Advances as "Non Performing Assets" (Sub Standard, Doubtful and Loss) based on prescribed rules involving time lines and to provide for their delinquency at specified percentages (15%, 25%, 40% and 100%) based on the period since when such advances remained in the non performing category. | c) Performed procedures to obtain comfort on the accuracy of the collective impairment calculation process through recalculation of the provision made based on realisable value of security and other parameters; and | |
d) For material non-performing advances, we assessed the adequacy of the recognised individual provisions. | ||
Identification of performing and non-performing advances are carried out in the bank by its Core Banking Solution (CBS) software namely finacle. In order to comply with the prudential guidelines, the software has various controls and logics embedded therein. Although, identification of NPAs is rule based and system driven, the management exercises significant judgement when estimating the realizable value of primary security which consequently impacts the individual and collective provision for delinquency in respect of NPAs. | We also performed the following procedures: | |
a) Corrected all changes suggested by the Statutory Branch auditors with respect to income recognition, asset classification and provisioning. | ||
The carrying value of these advances (net of provisions) may be materially misstated if, either individually or in aggregate, the iRACP norms prescribed by RBi are not complied with. | b) Reviewed and placed reliance upon the independent Auditors Report and Long Form Audit Reports (LFAR) of the Statutory Branch Auditors. | |
Since the identification of NPAs and provisioning for such advances requires considerable level of management judgement/ estimation in the assessment of the realisable value of primary securities and given its significance to the overall audit including possible observations by RBi which could result in disclosures in the standalone financial statements and regulatory guidelines, we have identified this as a key audit matter. | c) Reviewed and verified the correctness of the asset classification and provisioning in respect of all material advances in the branches audited by us. | |
d) Tested compliance with the Significant accounting policies of the bank and the extant guidelines of the Reserve Bank of india. |
How our audit addressed the key Audit Matter | ||
Sl. No. | Key Audit Matter | e) Checked the correctness of data input, logical controls in the software for the purpose of identification of non-performing assets and provisioning thereon across selected samples. Also reviewed the IT Audit reports for identifying any control weakness. |
f) Ensured correction of all material misstatements observed by us during the course of our testing process with respect to income recognition, asset classification and provisioning. | ||
g) Reviewed the Concurrent Audit Reports, internal inspection Reports (SiFA), Stock Audit Reports, Forensic Audit Reports, valuation Reports, RBi Annual Financial inspection Report for the year ended March 31, 2019 etc. for identifying material control weaknesses, if any in terms of banks policies and procedures. | ||
h) Efficacy of various internal controls over advances as identified in the reports as above to determine the nature, timing and extent of our substantive procedures. | ||
2. | Investments - Valuation, Classification and Identification and Provisioning for Non-Performing Investments (NPIs) | |
(Refer to Schedule 17 Note 4 for the Significant Accounting Policies, Schedule 8 and Note no. 1.2 in Schedule 18) | Our audit approach towards investments with reference to the Reserve Bank of India ("RBI") circulars / directives included the review and testing of the design, implementation, operating effectiveness of internal controls and audit procedures in relation to valuation, classification, identification of Non-Performing investments, provisioning / depreciation related to investments as per RBi guidelines. | |
Investments constitute a significant line item on the assets side of the Banks Balance Sheet with reported total investments (net of provision) to the tune of Rs. 61,331.16 crores, gross NPIs of Rs.1204.82 crores and provision on NPIs of Rs. 1078.48 crores as at the year end i.e March 31,2020. The investments constitute 25.15% of the Banks total assets. | ||
Our audit procedures accordingly included but were not limited to the following: | ||
Investment portfolio of the bank comprises of investments in Government Securities, Bonds, Debentures, Shares, Security Receipts and other Approved Securities which are classified under three categories, Held to Maturity, Available for Sale and Held for Trade. | a) Evaluated and tested the key assumptions and judgements adopted by the management in the classification and valuation of investments; | |
Valuation of Investments, identification of Non-performing investments (NPi) and the corresponding nonrecognition of income and provision thereon, is carried out in accordance with the relevant circulars / guidelines / directions of the Reserve Bank of India (RBi). The valuation of each category (type) of aforesaid security is required to be carried out as per the methodology prescribed in circulars and directives issued by the RBi which involves collection of data/ information from various sources such as FIBIL rates, rates quoted on BSE/ NSE, financial statements of unlisted companies, NAv in case of mutual funds & security receipts etc. | b) Performed procedures to obtain comfort on the accuracy of the collective impairment calculation process through recalculation of the provision made based on the RBi guidelines; | |
c) Tested compliance with the Significant accounting policies of the bank and the extant guidelines of the Reserve Bank of india; | ||
d) Evaluated and assessed the process adopted for collection of information from various sources for determining the fair value of the investments; | ||
The classification and carrying value of these investments (net of provisions) may be materially misstated if, either individually or in aggregate, the valuation and classification norms prescribed by RBI are not complied with. | e) Ensured correction of all material misstatements observed by us during the course of our testing process with respect to income recognition, asset classification, valuation and provisioning of investments; |
Sl. No. | Key Audit Matter | How our audit addressed the key Audit Matter |
Since the classification and valuation of investments, identification of NPIs and provisioning for such investments requires considerable level of management judgement/ estimation in their valuation and given its significance to the overall audit and the complexities, volume of transactions and regulatory guidelines, we have identified this as a key audit matter. | i) Reviewed the Concurrent Audit Reports, internal inspection Reports (SiFA), RBi Annual Financial inspection Report for the year ended March 31,2019 etc. for identifying material control weaknesses, if any in terms of banks policies and procedures; and | |
The valuation of these investments was considered to be one of the areas which required significant auditor attention and was one of the matters of most significance in the standalone financial statements due to the materiality of total value of investments to the standalone financial statements. | j) Efficacy of various internal controls over investments as identified in the reports as above to determine the nature, timing and extent of our substantive procedures. | |
3. | Assessment of Provisions and Contingent liabilities in respect of certain litigations including Direct Taxes (DTA/ DTL) and various claims filed by other parties not acknowledged as debt (Schedule 12 read with Note 2.12 of Schedule 18 to the standalone financial statements) | |
In obtaining sufficient audit evidence we performed the following audit procedures: | ||
The assessment of Provisions and Contingent liabilities in respect of certain litigations including Direct Taxes (DTA/DTL) and various claims filed by other parties not acknowledged as debt requires considerable level of management judgement/ estimation in the assessment, thereof. | a) We reviewed the details of past Direct tax assessment orders, unresolved tax issues together with their impact on account of matters pending with appropriate assessing and appellate tax authorities, amount of allowable carried forward losses as per the income Tax orders etc; | |
As also defined in Accounting Standard (AS) 29 on Provisions, Contingent Liabilities and Contingent Assets issued by the institute of Chartered Accountants of India (iCAi), a "provision is a liability which can be measured only by using a substantial degree of estimation". | b) We reviewed the current status of the issues under litigation based on our understanding of the likely outcome of the issues under dispute and the possible outflow, if any; | |
The managements estimation of a provision and classification as a contingent liability is based on the specific facts of each event, their own judgment about the event/ transaction, past experience on similar events/ transactions, and advice from legal and independent tax consultants wherever considered necessary. The managements estimation is also, in some cases, based on advice received from independent lawyers, legal experts and tax advisors. Since the estimation is based on their opinion, there is an uncertainty in the outcome of these issues and judgment in the interpretation of law. | c) Obtained an understanding of internal controls relevant to the audit in order to design our audit procedures that were appropriate in the circumstances; | |
Accordingly, unexpected adverse outcomes may significantly impact the Banks reported loss and state of affairs presented in the Balance Sheet. | d) Examined recent orders and/or communication received from various tax authorities/ judicial forums and follow up action thereon; | |
We determined the above area as a Key Audit Matter in view of associated uncertainty relating to the outcome of these matters which requires application of judgment in interpretation of law. Accordingly, our audit was focused on analysing the facts of subject matter under consideration and judgments/ interpretation of law involved. | e) Evaluated the merit of the subject matter under consideration with reference to the grounds presented therein and available independent legal / tax advice including opinion of our internal tax experts; | |
f) Evaluated the contentions of the Bank through discussions, collection of details of the subject matter under consideration, the likely outcome and consequent potential outflows on those issues; and | ||
g) Verified disclosures related to significant litigations and taxation matters. |
Sl. No. | Key Audit Matter | How our audit addressed the key Audit Matter |
4. | Modified audit procedures in light of coronavirus ("COvID-19") pandemic | |
The World Health Organization (WHO) announced a global health emergency because of a new strain of coronavirus ("COVID-19") and classified its outbreak as a pandemic on March 11,2020. The consequential nationwide lockdown coupled with travel restrictions (air, rail and road) imposed by the Central/ State Government/ Local Authorities during the subsequent months being the period when the audit had to be conducted by us resulted in our not being able to visit the branches, Zones, Circle offices and Head Office for the purpose of audit, as in the past. Statutory branch auditors in respect of 212 branches could also not visit the branches on account of the Covid-19 related travel restrictions/ lockdown. | As a consequence of the government announcing a strict lockdown across the country to contain the spread of the coronavirus ("COVID-19") pandemic with restrictions to travel by air, rail or road, it was not possible for the audit team members, as in the past, to visit the branches/ Zonal Offices/ Circle Offices/ Head Office for carrying out the audit. | |
In this matter RBI also issued necessary directions/ guidelines to all Banks to facilitate audit of the branches and other offices through remote/ distance/ online basis wherever physical access was not possible on account of Covid-19 related travel restrictions. Accordingly, because of such travel restrictions none of us as Statutory Central Auditors could visit any of the top 20 branches, 36 Zonal Offices, 6 Circle Offices and Head Office under audit by us and audit of all these branches and offices was conducted by visiting a local branch/ Zonal Office of the bank for accessing the accounts through the Core Banking Solution (CBS) software and other electronic modes. | Accordingly, we adopted off site remote auditing process based on which we coupled information and communication technology (ICT) with access to the Core Banking Solution (CBS) finacle software at local branches/ Zonal Offices of erstwhile Andhra Bank to assess the accuracy of the standalone financial statements, gather electronic evidence and interact with the branch officials, all without the need to be physically present at the branches/ Zonal Offices/ Circle Offices and Head Office. in all such cases of remote/ distance/ online audit, necessary records/ reports/ documents/ certificates were made available to us by the Bank through digital medium, emails and remote access to finacle (CBS) etc. To this extent, the audit process was carried out on the basis of such documents, reports and records made available to us which were relied upon as audit evidence for conducting the audit and reporting for the current period. | |
In the absence of our being able to physically visit the branches/ offices for reviewing the records, documents etc and the fact that the effectiveness of the off-site remote auditing process was limited in terms of complying with the audit procedures prescribed in the Standards on Auditing issued by the institute of Chartered Accountants of India (ICAI) and obtaining sufficient appropriate audit evidence to help us obtain reasonable assurance about whether the standalone financial statements as a whole were free from material misstatement, whether due to fraud or error, we have identified such modified audit procedures as a Key Audit Matter. | In view of the aforesaid limitations, we modified our audit procedures as under: | |
a) Reviewed the transactions of the Branches/ Zonal Offices/ Circle Offices/ Administrative Offices/ Head Office through the Banks Core Banking Solution (CBS) finacle software for the year under audit. | ||
b) Reviewed and verified necessary records/ documents/ etc in respect of borrowers and other accounts electronically through remote access/ emails in respect of the Branches/ Zonal Offices/ Circle Offices/ Head Offices and other offices of the Bank. | ||
Accordingly, our audit procedures were modified to carry out the audit remotely. | c) Carried out verification of scanned copies of the documents, deeds, minutes, certificates and the related records made available to us through emails and remote access over secure network of the Bank. | |
d) Made enquiries and gathered necessary audit evidence through discussions over phone calls/ conference calls, emails and similar communication channels. | ||
e) Resolution of all our audit observations was made by the bank telephonically/through email instead of a face-to-face interaction with the designated officials. |
Information Other than the Standalone Financial Statements and Auditors Report thereon
6. The amalgamation of erstwhile Andhra Bank with Union Bank of India has been affected with effect from April 01,2020 in terms of GOI notification CG-DL-E-04032020-216535 GSR 154(E) dated March 4, 2020 as per the scheme called the "Amalgamation of Andhra Bank and Corporation Bank with Union Bank of India Scheme, 2020". In terms of the said scheme, the undertaking of erstwhile Andhra Bank has been transferred to and has been vested in the union Bank of India with effect from April 01,2020 and the Board of Directors of the erstwhile Andhra Bank has been dissolved with effect from the said date. As informed, the Other information comprising of Directors Report and Corporate Governance Report has not been issued in view of the aforesaid.
Our opinion on the standalone financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
7. The Banks Board of Directors is responsible with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards issued by iCAi, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by RBi from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Banks ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Banks financial reporting process.
Auditors Responsibilities for the Audit of the Standalone financial Statements
8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Banks ability to continue as a going concern. if we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the bank to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the Key Audit Matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
9. We did not audit the financial statements/ information of 1930 branches included in the standalone financial statements of the Bank whose financial statements/ financial information reflect total gross advances of Rs 1,04,072.50 crores as at 31st March 2020 and total revenue of Rs 11,328.61 crores for the year ended on that date, as considered in the standalone financial statements. The financial statements/ information of these branches have been audited by the branch auditors whose reports have been furnished to us, and in our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;
11. Subject to the limitations of the audit indicated in paragraphs 5 to 8 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein and as required by sub-section (3) of Section 30 of the Banking Regulation Act, 1949 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; and
c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.
12. We further report that:
a) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us.
b) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us;
c) the reports on the accounts of the branches audited by branch auditors of the Bank under section 29 of the Banking Regulation Act, 1949 have been sent to us and have been properly dealt with by us in preparing this report; and
d) in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by the RBI.
13. As required vide letter number DOS.ARG.No.6270/08.91.001/2019-20 dated March 17, 2020 on "Appointment of Statutory Central Auditors (SCAs) in public sector banks - reporting obligations for SCAs from financial year 2019-20", read with subsequent communication dated May 19, 2020 issued by the RBI, the further report on the matters specified in paragraph 2 of the aforesaid letter are as under :
a) In our opinion, the aforesaid standalone financial statements comply with the accounting standards issued by ICAI, to the extent they are not inconsistent with the accounting policies prescribed by RBi;
b) There are no observations or comments on financial transactions or matters which have any adverse effect on the functioning of the bank;
c) We are unable to comment on whether any of the director is disqualified from being a director of the bank under sub-section (2) of Section 164 of the Companies Act, 1956 since in terms of GOI notification CG-DL-E-04032020-216535 GSR 154(E) dated March 4, 2020 erstwhile Andhra Bank together with Corporation Bank have amalgamated with union Bank of India with effect from April 01,2020 and in terms of para (5) of the said notification, the Board of erstwhile Andhra Bank stands dissolved with effect from April 01,2020 together with all the whole time Directors ceasing to hold office from the said date;
d) There are no qualifications, reservations or adverse remarks relating to the maintenance of accounts and other matters connected therewith; and
e) The Bank has exercised the option to not implement "Internal Financial Controls with reference to the Financial Statements" during the current year as permitted by RBi on May 19, 2020. We accordingly do not provide any comment in this regard.
For Agarwal & Saxena | for Ray & Co |
Chartered Accountants | Chartered Accountants |
(Firm Reg. No. 002405C) | (Firm Reg. No. 313124E) |
(CA Anil K. Saxena) | (CA Subrato Roy) |
Partner | Partner |
M. No.071600 | M. No. 51205 |
UDIN : 20071600AAAAAK6945 | UDIN : 20051205AAAAAS1903 |
Place: Kanpur | Place : Kolkata |
for Santosh Gupta & Co | for G.S. Madhav Rao & Co. |
Chartered Accountants | Chartered Accountants |
(Firm Reg. No. 009713N) | (Firm Reg. No. 001907S) |
(CA Manoj Kumar) | (G Manikya Prasad) |
Partner | Partner |
M. No.108603 | M. No. 020105 |
UDIN : 20108603AAAABu9628 | UDIN : 20020105AAAABP9700 |
Place: Mumbai | Place: Hyderabad |
Place : Mumbai | |
Date : 23rd June 2020 |
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