state bank of travancore Auditors report

INDEPENDENT AUDITOR’S REPORT TO STATE BANK OF INDIA

Report on the Financial Statements

We, the undersigned auditors of State Bank of Travancore, appointed under Section 41 (1) of the State Bank of India (Subsidiary Banks) Act, 1959 do hereby report that:

1. We have audited the accompanying financial statements of State Bank of Travancore as at 31st March, 2016, which comprise the Balance Sheet as at March 31, 2016, Profit and Loss Account, Cash Flow Statement for the year then ended, Principal Accounting Policies and Notes to Accounts. Incorporated in these financial statements are the returns of Zonal Offices, various departments of Head Office and 20 branches audited by us and 820 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 Profit and Loss Account are the returns from 337 branches which have not been subjected to audit. These unaudited branches account for 4.09% of advances, 5.35% of deposits, 3.66% of interest income and 4.37% of interest expenses of the Bank.

Management’s responsibility for the financial statements

2. Management is responsible for the preparation of these financial statements in accordance with the applicable laws of India. 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.

Auditor’s responsibility

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 judgment, 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, but not for the purpose of expressing an opinion on the effectiveness of the bank’s internal control. 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 suficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, as shown by the 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 afiairs of the Bank as at 31st March, 2016 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. a. We draw attention to Note No. 4.3 C of Schedule 18 to the financial statements in respect of deferment of shortfall arising from sale of certain Non-Performing Assets during the year ended 31st March, 2015 and 31st March, 2016. The total unamortised balance as at 31st March 2016 is Rs. 374.96 crores. Our opinion is not modiffed in respect of this matter. b. We draw attention to Note No. 9.4 of Schedule 18 to the financial statements in respect of change in accounting policy relating to recognition of commission on Bank Guarantee and Letters of Credit on cash basis.

Our opinion is not modiffed in respect of this matter.

Report on Other Legal and Regulatory requirements

8. The Balance Sheet and the Profit and Loss Account have been drawn up in the 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 State Bank of India (Subsidiary Banks) Act, 1959 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 purpose 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. d. The reports on accounts of the branches audited by branch auditors have been dealt with in preparing our report in the manner considered necessary by us. 10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.

	AUDITORS
For Kumar Vijay Gupta & Co	For G Venugopal Kamath & Co
Chartered Accountants	Chartered Accountants
Pawan Kumar	Thrivikrama Shenoy.V.
Partner	Partner
Membership No.097900	Membership No.209891
FRN: 007814N	FRN: 004674S
For Gopalaiyer and Subramanian	For Babu A. Kallivayalil & Co
Chartered Accountants	Chartered Accountants
Suresh K R	Babu Abraham Kallivayalil
Partner	Partner
Membership No.025453	Membership No.026973
FRN: 000960S	FRN: 005374S
Mumbai
25th April, 2016