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Allahabad Bank - Auditor's Report

BSE   28 Nov 14 | 12:00 AM

121.25 6.15 (5.34%)
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Code: 532480
Face Value: 10

NSE   28 Nov 14 | 12:00 AM

121.35 6.2 (5.38%)
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Code: ALBK
Performance
1 Week : Rs 118.65 (2.19%)
1 Month : Rs 106.85 (13.48%)
1 Year : Rs 91.30 (32.80%)
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INDEPENDENT AUDITORS REPORT





To The President of India

Report on the financial statements

1. We have audited the accompanying financial statements of ALLAHABAD BANK as at 31st March, 2014, which comprise the Balance Sheet as at March 31, 2014, and Profit and Loss Account and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of 20 branches including 1 Forex cum Treasury Branch, audited by us and 1231 branches audited by branch auditors and one overseas branch Audited by local auditor. 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 Statement of Profit and Loss are the returns from 1590 branches which have not been subjected to audit. These unaudited branches account for 9.07 per cent of advances, 29.35 per cent of deposits, 5.69 per cent of interest income and 24.73 per cent of interest expenses.

Management’s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements in accordance with Banking Regulation Act 1949. 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 auditors’ 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 entity’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 sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, as shown by books of 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 affairs of the Bank as at 31st March 2014 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 audit; and iii. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Emphasis of Matter

7. Without qualifying our opinion, we draw attention to:

a) Note no 5.13 (a) of Schedule 18 which describes deferment of pension liability and gratuity liability due to increase in ceiling to the extent of Rs149.36 crores pursuant to the exemption granted by the Reserve Bank of India to the Public Sector Banks from application of provisions of AS-15(Employees benefit) vide its circular no DBOD.BP.BC8021.04.0182010-11 dated February 9, 2011on reopening of pension option to employees of Public Sector Banks.

b) Note no 5.3(a) of schedule 18 to the financial statements, which describes the accounting treatment of the expenditure on creation of Deferred Tax Liability on Special Reserve under Section 36(1) (viii) of the Income Tax Act, 1961 as at March 31, 2013, pursuant to RBI’s Circular No. DBOD. No. BP. BC.77 21.04.018 2013-14 dated December 20, 2013. c) Note 5.3(b) of schedule 18 to the financial statements, which provide details with regard to the accounting treatment on creation of Sundry Liability (Interest Capitalisation) on account of past period FITL as permitted by Reserve Bank of India vide their letter dated April 11, 2014.

Report on Other Legal and Regulatory Requirements

8. 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.

9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 19701980, 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. c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable accounting standards.

For Ms Raghu Nath Rai & Co. For Ms Khandelwal Kakani & Co.
Chartered Accountants Chartered Accountants
(Sharat Prakash) (Santosh Deshmukh)
Partner Partner
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