1) We have audited the accompanying Standalone Financial Statements of
Bank of India (‘the Bank), which comprise the Balance Sheet as at March 31, 2023,
the Statement of Profit and Loss and the Statement of Cash Flows for the year then ended,
and notes to Standalone Financial Statements including Significant Accounting Policies and
other explanatory information in which are included returns for the year ended on that
date of:
(i) 20 Domestic branches, Treasury Branch and Digital Banking
department audited by us;
(ii) 3616 domestic branches and processing centres audited by
respective Statutory Branch Auditors and
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 included in the Balance Sheet, the Statement of Profit and
Loss and Statement of Cash Flows are the returns from 1806 domestic branches and one
foreign branch which have not been subjected to audit. These unaudited branches account
for 4.70 % of advances, 13.43 % of deposits, 4.22 % of interest income and 12.38 % of
interest expenses.
2) 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 and are in conformity with the accounting principles generally accepted
in India and give true and fair view:
a) In case of Balance Sheet, of the state of affairs of the Bank as at
March 31, 2023,
b) true balance of profit, in case of Profit & Loss account for the
year ended on that date; and
c) true and fair view of the cash flows, in the case of Cash Flow
Statement for the year ended on that date.
3) We conducted our audit in accordance with the Standards on Auditing
(SAs) issued by The Institute of Chartered Accountants of India. 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 Institute of Chartered
Accountants of India together with ethical requirements that are relevant to our audit of
the Standalone Financial Statements under provision of the Act, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the code of
ethics. We believe that the audit evidence obtained by us and audit evidences obtained by
other auditors in terms of their reports referred to in "Other Matter" paragraph
below, is sufficient and appropriate to provide a basis for our opinion.
4) We draw attention to Note No. 9 of the standalone financial
statements, regarding amortization of additional liability on account of revision in
family pension. The Bank has charged an amount of Rs. 306.04 Crores to the profit and loss
account for the year ended March 31, 2023 and balance unamortized expense of Rs. 183.63
Crores has been carried forward.
Our opinion is not modified in respect of this matter.
5) Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial statements of the
current period. These matters were addressed in the context of our audit of the 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.
Information Other than the Financial Statements and Auditors Report
thereon
6) The Banks Board of Directors is responsible for the other
information. The other information comprises the information included in the Management
report and Chairmans Statement but does not include the Standalone Financial Statements
and our Auditors report thereon.
Our opinion on the Standalone Financial Statements does not cover the
other information and Pillar 3 disclosures under Basel III Disclosure and we do 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 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.
When we read the other information, if we conclude that there is
material misstatement therein, we are required to communicate the matter to those charged
with governance and determine the actions under the applicable laws and regulations.
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 The Institute of Chartered Accountants of India, and provisions of Section 29 of
the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank
of India (‘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 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, the Board of
Directors are 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. The Board of Directors is also
responsible for overseeing the Banks financial reporting process.
Auditor?s Responsibilities for the Audit of the 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 skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
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. •
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances.
• 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 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 financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
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 control 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 / financial information of
3637 branches and processing centres (including 21 foreign branches) included in the
Standalone Financial Statements of the Bank whose financial statements/financial
information reflects TOTAL assets of Rs.3,79,885.63 Crores at March 31, 2023 and TOTAL
revenue of Rs 21,771.66 Crores for the year ended on that date, as considered in the
Standalone Financial Statements. The financial statements/ financial information of these
branches and processing centres have been audited by the branch auditors whose reports
have been furnished to us, and 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 6
& 9 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, 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 and
processing centres not visited by us;
b) the Balance Sheet, the Profit and Loss Account and the Statement of
Cash Flows dealt with by this report are in agreement with the books of account and with
the returns received from the branches and processing centres not visited by us;
c) the reports on the accounts of the branch offices 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 Statement of Cash Flows comply with the applicable accounting standards, to the extent
they are not inconsistent with the accounting policies prescribed by Reserve Bank of
India.
13) As required by letter No. 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 FY: 2019-20", read with subsequent
communication dated May 19, 2020 issued by the RBI, we further report on the matters
specified in paragraph 2 of the aforesaid letter 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 the 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) On the basis of the written representations received from the
directors as on March 31, 2023, none of the directors is disqualified as on March 31, 2023
from being appointed as a director in terms of subsection (2) of Section 164 of the
Companies Act, 2013.
d) There are no qualifications, reservations or adverse remarks
relating to the maintenance of accounts and other matters connected therewith.
14) Our audit report on the adequacy and operating effectiveness of the
Banks internal financial controls over financial reporting as required by the RBI Letter
DOS. ARG.No.6270/08.91.001/2019-20 dated March 17, 2020 (as amended) is given in Annexure
A to this report. Our report expresses an unmodified opinion on the Banks internal
financial controls over financial reporting as at 31st March 2023.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR?S REPORT
(Referred to in paragraph 14 under ‘Report on Other Legal and
Regulatory Requirements section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting as
required by the Reserve Bank of India (the "RBI") Letter
DOS.ARG.No.6270/08.91.001/2019-20 dated March 17, 2020 (as amended) (the "RBI
communication")
We have audited the internal financial controls over financial
reporting of Bank of India ("the Bank") as of March 31, 2023 in conjunction with
our audit of the standalone financial statements of the Bank for the year ended on that
date which includes internal financial controls over financial reporting of the Banks
branches.
Management?s Responsibility for Internal Financial Controls
The Banks management is responsible for establishing and maintaining
internal financial controls based on the internal control over financial reporting
criteria established by the Bank considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the Banks policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Banking Regulation Act, 1949 and the circulars and
guidelines issued by the Reserve Bank of India.
Auditor?s Responsibility
Our responsibility is to express an opinion on the Banks internal
financial controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants
of India (the "ICAI") and the Standards on Auditing (SAs) issued by the ICAI, to
the extent applicable to an audit of internal financial controls. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting were established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls over financial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal financial controls based on the
assessed risk. The procedures selected depend on the auditors judgement, including the
assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error.
We believe that the audit evidence we have obtained and the audit
evidence obtained by the branch auditors, in terms of their reports referred to in the
Other Matters paragraph below, is sufficient and appropriate to provide a basis for our
audit opinion on the Banks internal financial controls over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Banks internal financial controls over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A Banks internal financial controls over
financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Bank; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and
expenditures of the Bank are being made only in accordance with authorisations of
management and directors of the Bank; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
Banks assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial
Reporting
Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
controls over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, and to the best of our information and according to the
explanations given to us and based on the consideration of the reports of the branch
auditors referred to in the "Other Matters" paragraph below, the Bank has, in
all material respects generally adequate internal financial controls over financial
reporting and such internal financial controls over financial reporting were operating
effectively as at March 31, 2023, based on the criteria for internal control over
financial reporting established by the Bank considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India.
Other Matters
Our aforesaid report, insofar as it relates to the operating
effectiveness of internal financial controls over financial reporting of 3014 (number,
specify scoped in / IFCoFR reporting branches) branches is based on the corresponding
reports of the respective branch auditors of those branches.
Further the control over operations of inter office accounts need to be
strengthened.
Our opinion is not modified in respect of this matter.
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