Auditor Report of Bank of India

Mar 31, 2025

1. We have audited the accompanying Standalone Financial
Statements of Bank of India (‘the Bank''), which comprise
the Balance Sheet as at March 31, 2025, the Profit and
Loss Account and the Cash Flow Statement 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 14 other
offices (Head-office and 13 FGMO Offices) audited by
us;

(ii) 1843 domestic branches and processing centres
audited by respective Statutory Branch Auditors and

(iii) 22 Foreign branches audited by respective local
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 included in the Balance Sheet, the Profit and Loss
Account and Cash Flow Statement are the returns from 4328
domestic branches and Nil foreign branch which have not
been subjected to audit. These unaudited branches account
for 15.92 % of advances, 33.54 % of deposits, 12.07% of
interest income and 27.10 % 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 in the manner so required for
the bank and are in conformity with 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
March 31,2025;

b) the Profit and Loss Account, read with the notes
thereon shows a true balance of profit; 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 of Chartered
Accountants of India (the “ICAI”). Our responsibilities under
those Standards are further described in the Auditor''s
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 financial statements prepared in accordance
with the accounting principles generally accepted in India,
including the ICAI Accounting Standards, as amended from
time to time subject to Directions/Guidelines issued by the
Reserve Bank 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 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..

Key Audit Matters

3. Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
Standalone Financial Statements for the year ended March
31, 2025. 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.

Sr	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
1	Compliance of Income Recognition, Asset Classification and	We have carried out the audit of the advances and investments based on the IRAC Norms/Circulars and directives issued by Reserve Bank of India and the policy of the Bank. Advances: Our audit procedure included: a) Understanding the IT system and controls put in place and logic and validations built in the system by the bank for identification, classification and provisioning in case of advances. b) Testing on sample basis whether the classification of advances as performing or non-performing and provisioning have been carried out as per the guidelines of Reserve Bank of India. c) Communication to the Statutory Branch Auditors (SBAs) to verify the compliance of IRAC Norms and procedures and the policies adopted by the bank and reliance on the audit reports furnished by the SBAs. d) Carrying out substantive test on major advances including Specially Mentioned Accounts (SMA) and also verification of security by checking the valuation reports in respect of the audit of branches conducted by us. e) Reliance on the internal audit reports, concurrent audit reports, credit audit, system audit and special audits conducted by the bank. Investments: Our audit procedure included: a) Understanding the IT system and controls put in place and logic and validations built in the system by the bank for identification, classification and provisioning in case of investments. b) Testing on sample basis whether the classification and valuation of investments is carried out as per the guidelines of Reserve Bank of India. c) Verification on sample basis whether proper provision for depreciation in the value of investments is made as per RBI guidelines. d) Reliance made on the internal audit reports, concurrent audit reports and system audit conducted by the bank.
	Provisioning Norms on advances and investments as Der guidelines issued bv Reserve Bank of India (IRAC Norms) Advances: Bank has to classify the accounts as Derformina advances or non-performing advances based on the guidelines/ circulars and directives issued by Reserve Bank of India. The guidelines issued by Reserve Bank of India is for all credit facilities given by the bank and is to be mandatorily followed for the purpose of Income Recognition, Asset Classification and Provisioning. Identification of performing and non-performing advances is system driven. The software used by the bank identifies the accounts for classification and provisioning as per the guidelines issued by Reserve Bank of India. The Income recognition, asset classification and provisioning if not done properly as per the IRAC norms issued by Reserve Bank of India may materially impact the financial statements of the bank. The bank has implemented IRAC Automation software for identification and classifying of NPA accounts through the software. Investments: Bank has to classify the investments as performing or non-performing based on the guidelines/circulars and directives issued by Reserve Bank of India. Identification of performing and non-performing investments is generally system driven. The valuation is done as per the guidelines issued by Reserve Bank of India and the valuations are done based on the price quoted on BSE/NSE, FIMDA /FBIL rates etc. The Income recognition, asset classification and provisioning if not done properly as per the IRAC norms issued by Reserve Bank of India may materially impact the financial statements of the bank. Advances and Investments constitute 62.31% and 24.85% respectively of total assets of the bank. As advances and investments form part of a major portion of the business of the bank and the regulatory compliances are involved, we have considered this aspect as Key Audit Matter.
2	Evaluation of uncertain tax litigations and contingent liabilities The Bank has various litigations including Income-tax litigations, involving disputed claims against those litigations, which are pending at various courts / forums and are at various stages in the judicial process. Bank has also disputes regarding availability of input credits / applicability of Reverse Charge Mechanism on certain payments under Indirect Tax.	Our audit procedure included: a) Understanding the current status of the litigations / tax assessments. Also obtained details of completed tax assessments and latest orders, communication received from various tax authorities and the appeals filed till the year ended March 31,2025, from the management. b) Evaluating the management''s underlying assumptions in estimating the tax provision and the possible outcome of the disputes. This includes considering the legal precedence and other rulings in evaluating management''s position on these uncertain tax positions.

Sr	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
3	Assessment of Information Technology (IT): a. IT controls with respect to recording of transactions, generating various reports in compliance with RBI guidelines including IRAC norms, preparing financial statements and reporting of compliances to regulators etc. is an important part of the process. Such reporting is highly dependent on the effective working of Core Banking Software and other allied systems. We have considered this as key audit matter as any control lapses, validation failures, incorrect input data and wrong extraction of data may result in wrong reporting of data to the management and regulators.	Our audit procedure included: a) Obtained an understanding of the Bank''s IT control environment and key changes during the audit period that may be relevant to the audit. b) Reviewed the Reports of various IS Auditors / Consultants appointed by the Bank and discussed with IT Department on compliance with key IT controls, including IRAC Automation Controls. c) Reviewed the design, implementation and operating effectiveness of the Bank''s IT controls including application, access controls that are critical to financial reporting on test check basis. d) Where we identified the need to perform additional procedures, we placed reliance on manual compensating controls; such as reconciliations between systems and other information sources or performing additional testing; extended our sample sizes, to obtain adequate and appropriate audit evidence.

Other Matter

4. We did not audit the financial statements / financial information
of 1787 branches and processing centres including 22
foreign branches included in the Standalone Financial
Statements of the Bank whose financial statements/financial
information reflects total assets of Rs.234960.07 Crore at
March 31, 2025 and total revenue of Rs.19251.13 Crore for
the year ended on that date as considered in the Standalone
Financial Statements. These branches and processing
centres cover 31.67% of advances, 47.18% of deposits and
30.13 % of Non-performing assets as on March 31, 2025
and 24.84 % of revenue for the period April 1,2024 to March
31, 2025.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 in our opinion, in so far as it relates to the amounts
and disclosures included in respect of these branches and
processing centres, are solely based on the report of such
branch auditors.

In conduct of our audit, we have taken note of the unaudited
returns in respect of 4328 domestic branches and Nil foreign
branch certified by the respective branch''s management.
These unaudited branches cover 15.92 % of advances,
33.54 % of deposits and 16.63% of non-performing assets
as on March 31,2025 and 12.74 % of revenue for the period
April 1,2024 to March 31,2025.

The accompanying Standalone Financial Statements
includes comparative figures for the year ended March 31,
2024, which have been audited by an earlier set of four
audit firms as joint auditors, who have expressed unmodified

opinion vide their audit report dated May 10, 2024, and three
of those four audit firms are continuing audit firms.

Our opinion is not modified in respect of these matters.

Information Other than the Financial Statements and Auditors
Report thereon

5. The Bank''s Board of Directors is responsible for the
preparation of the Other Information. The other information
comprises the information included in the Management
report and Chairman''s Statement (including annexures in
the Annual Report) but does not include the Standalone
Financial Statements and our Auditor''s report thereon, which
is expected to be made available for us after the date of this
Auditors'' Report.

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
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.

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

6. The Bank''s 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 ICAI, 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 Bank''s 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
Bank''s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone

Financial Statements

7. 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 auditor''s 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. As required by
the RBI letter DOS.ARG.No.6270/08.91.001/2019-
20 dated March 17, 2020 (as amended), we are also
responsible for expressing our opinion on whether
the Bank has adequate internal financial controls with
reference to the Standalone Financial Statements in
place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the Board of
Directors.

• Conclude on the appropriateness of the Board of
Directors'' 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
Bank''s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor''s 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
auditor''s 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 the misstatements in the
financial statements that, individually or aggregate, makes
it probable that the economic decisions of a reasonably
knowledgeable user of the financial statements may
be influenced. We consider quantitative materiality and
qualitative factors in (i) planning of the scope of our audit
work and evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatement in the
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 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 auditor''s 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.

Report on Other Legal and Regulatory Requirements

8. The Balance Sheet and the Profit and Loss Account have
been drawn up in accordance with Section 29 of the Banking
Regulation Act, 1949;

9. Subject to the limitations of the audit indicated in paragraphs
on Auditor''s Responsibilities (para 7), Management
Responsibilities (para 6) and Other matters (para 4) 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.

10. 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) As the bank is not registered under the Companies
Act, 2013 the disqualifications from being a director of
the bank under sub-section (2) of Section 164 of the
Companies Act, 2013 do not apply to the bank.

d) There are no qualifications, reservations or adverse
remarks relating to the maintenance of accounts and
other matters connected therewith.

e) Our audit report on the adequacy and operating
effectiveness of the Bank''s internal financial controls
over financial reporting as required by the RBI Letter
D0S.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 Bank''s internal financial controls over financial
reporting as at March 31,2025.

11. 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 Cash Flow Statement 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 Cash Flow Statement comply with the applicable
accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by Reserve Bank of India.

For S. Jaykishan	For A. Bafna & Co.
Chartered Accountants	Chartered Accountants
(FRN: 309005E)	(FRN: 003660C)
Nemai Gorai	Vivek Gupta
Partner // ICAI M. No. 057892	Partner // ICAI M. No. 400543
UDIN: 25057892BMHYOI5401	UDIN: 25400543BMLIFJ9974
For SCV & Co. LLP	For SARDA & PAREEK LLP
Chartered Accountants	Chartered Accountants
(FRN:000235N / N500089)	(FRN:109262W/W100673)
Ashish Agarwal	Giriraj Soni
Partner // ICAI M. No. 093790	Partner // ICAI M. No. 109738
UDIN: 25093790BMJKLV1520	UDIN: 25109738BMHWMY1247

Place: Mumbai
Date: May 9, 2025

---

Mar 31, 2024

Bank of India

Report on Audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying Standalone Financial Statements of Bank of India (‘the Bank''), which comprise the Balance Sheet as at March 31, 2024, the Profit and Loss Account and the Cash Flow Statement 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, Digital Banking department and 14 other offices (Head-office and NBG Offices) audited by us;

(ii) 2860 domestic branches and 84 processing centres audited by respective Statutory Branch Auditors and

(iii) 22 Foreign branches audited by respective local 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 included in the Balance Sheet, the Profit and Loss Account and Cash Flow Statement are the returns from 2267 domestic branches and one foreign branch which have not been subjected to audit. These unaudited branches account for 7.24% of advances, 17.68% of deposits, 5.95% of interest income and 14.29% 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 in the manner so required for the bank and are in conformity with 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 March 31,2024;

b) the Profit and Loss Account, read with the notes thereon shows a true balance of profit; 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

3. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered

Accountants of India (the “ICAI”). Our responsibilities under those Standards are further described in the Auditor''s 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 financial statements prepared in accordance with the accounting principles generally accepted in India, including the ICAI Accounting Standards, as amended from time to time subject to Directions/Guidelines issued by the Reserve Bank 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 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.

Emphasis of Matter

4. We draw attention to:

(i) Note No. 14 (i) of Schedule-18 of the accompanying Standalone Financial Statements, regarding amortization of additional liability on account of revision in family pension amounting to Rs. 612.09 Crores. The Bank has charged an amount of Rs. 142.40 Crores to the Profit and Loss Account for the year ended March 31, 2024, and balance unamortized expense of Rs. 41.22 Crores has been carried forward.

(ii) Note No. 6.8.2 of Schedule-18 of the accompanying Standalone Financial Statements, regarding Bank''s exercising the irreversible option to shift to the new tax regime under section 115BAA of the Income-tax Act, 1961, effective for the financial year ended March 31, 2023, and onwards and resultant additional onetime charge of Rs. 1,459.89 Crores in the Profit and Loss Account for the year ended March 31, 2024 on account of remeasurement of deferred tax assets (net).

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 for the year ended March 31, 2024. 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.

S. No.	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
1	Compliance of Income Recognition, Asset Classification and	We have carried out the audit of the advances and investments based on the IRAC Norms/Circulars and directives issued by Reserve Bank of India and the policy of the Bank. Advances: Our audit procedure included: a) Understanding the IT system and controls put in place and logic and validations built in the system by the bank for identification, classification and provisioning in case of advances. b) Testing on sample basis whether the classification of advances as performing or non-performing and provisioning have been carried out as per the guidelines of Reserve Bank of India. c) Communication to the Statutory Branch Auditors (SBAs) to verify the compliance of IRAC Norms and procedures and the policies adopted by the bank and reliance on the audit reports furnished by the SBAs. d) Carrying out substantive test on major advances including Specially Mentioned Accounts (SMA) and also verification of security by checking the valuation reports in respect of the audit of branches conducted by us. e) Reliance on the internal audit reports, concurrent audit reports, credit audit, system audit and special audits conducted by the bank. Investments: Our audit procedure included: a) Understanding the IT system and controls put in place and logic and validations built in the system by the bank for identification, classification and provisioning in case of investments. b) Testing on sample basis whether the classification and valuation of investments is carried out as per the guidelines of Reserve Bank of India. c) Verification on sample basis whether proper provision for depreciation in the value of investments is made as per RBI guidelines. d) Reliance made on the internal audit reports, concurrent audit reports and system audit conducted by the bank.
	Provisioning Norms on advances and investments as per
	guidelines issued bv Reserve Bank of India (IRAC Norms) Advances: Bank has to classify the accounts as Derforming advances or non-performing advances based on the guidelines/ circulars and directives issued by Reserve Bank of India. The guidelines issued by Reserve Bank of India is for all credit facilities given by the bank and is to be mandatorily followed for the purpose of Income Recognition, Asset Classification and Provisioning. Identification of performing and non-performing advances is system driven. The software used by the bank identifies the accounts for classification and provisioning as per the guidelines issued by Reserve Bank of India. The Income recognition, asset classification and provisioning if not done properly as per the IRAC norms issued by Reserve Bank of India may materially impact the financial statements of the bank. The bank has implemented IRAC Automation software for identification and classifying of NPA accounts through the software. Investments: Bank has to classify the investments as performing or non-performing based on the guidelines/circulars and directives issued by Reserve Bank of India. Identification of performing and non-performing investments is generally system driven. The valuation is done as per the guidelines issued by Reserve Bank of India and the valuations are done based on the price quoted on BSE/NSE, FIMDA /FBIL rates etc. The Income recognition, asset classification and provisioning if not done properly as per the IRAC norms issued by Reserve Bank of India may materially impact the financial statements of the bank. Advances and Investments constitute 61.71% and 24.89% respectively of total assets of the bank. As advances and investments form part of a major portion of the business of the bank and the regulatory compliances are involved, we have considered this aspect as Key Audit Matter.
2	Evaluation of uncertain tax litigations and contingent liabilities The Bank has various litigations including Income-tax litigations, involving disputed claims against those litigations, which are pending at various courts / forums and are at various stages in the judicial process. Bank has also disputes regarding availability of input credits / applicability of Reverse Charge Mechanism on certain payments under Indirect Tax.	Our audit procedure included: a) Understanding the current status of the litigations / tax assessments. Also obtained details of completed tax assessments and latest orders, communication received from various tax authorities and the appeals filed till the year ended March 31,2024, from the management. b) Evaluating the management''s underlying assumptions in estimating the tax provision and the possible outcome of the disputes. This includes considering the legal precedence and other rulings in evaluating management''s position on these uncertain tax positions.

S. No.	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
	This is a key audit matter due to uncertainty of the outcome which involves significant judgment to determine the possible outcome of these disputes. There is high level of judgement required in estimating the level of provisioning and any unexpected adverse outcomes may significantly impact the Bank''s reported profit and state of affairs presented in the Balance Sheet.	c) Discussed with management''s tax team to understand the status of all significant provisions, and any changes to management''s judgements in the year. Also read the correspondence with tax authorities and Company''s external tax advisors / lawyers to evaluate our assessment of recorded estimates and evaluate the completeness of the provisions recorded and whether any change was required to management''s position on these uncertainties.
3	Assessment of Information Technology (IT): a. IT controls with respect to recording of transactions, generating various reports in compliance with RBI guidelines including IRAC norms, preparing financial statements and reporting of compliances to regulators etc. is an important part of the process. Such reporting is highly dependent on the effective working of Core Banking Software and other allied systems. We have considered this as key audit matter as any control lapses, validation failures, incorrect input data and wrong extraction of data may result in wrong reporting of data to the management and regulators.	Our audit procedure included: a) Obtained an understanding of the Bank''s IT control environment and key changes during the audit period that may be relevant to the audit. b) Reviewed the Reports of various IS Auditors / Consultants appointed by the Bank and discussed with IT Department on compliance with key IT controls, including IRAC Automation Controls. c) Reviewed the design, implementation and operating effectiveness of the Bank''s IT controls including application, access controls that are critical to financial reporting on test check basis. d) Where we identified the need to perform additional procedures, we placed reliance on manual compensating controls; such as reconciliations between systems and other information sources or performing additional testing; extended our sample sizes, to obtain adequate and appropriate audit evidence.

Information Other than the Financial Statements and Auditors Report thereon

6. The Bank''s Board of Directors is responsible for the preparation of the Other Information. The other information comprises the information included in the Management report and Chairman''s Statement (including annexures in the Annual Report) but does not include the Standalone Financial Statements and our Auditor''s report thereon, which is expected to be made available for us after the date of this Auditors'' Report.

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 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.

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 Bank''s 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 ICAI, 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.

8. In preparing the Standalone Financial Statements, the Board of Directors are responsible for assessing the Bank''s 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.

9. The Board of Directors is also responsible for overseeing the Bank''s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone

Financial Statements

10. 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 auditor''s 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.

11. 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. As required by the RBI letter DOS.ARG.No.6270/08.91.001/2019-20 dated March 17, 2020 (as amended), we are also responsible for expressing our opinion on whether the Bank has adequate internal financial controls with reference to the Standalone Financial Statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors'' 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 Bank''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s 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 auditor''s 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 the misstatements in the financial statements that, individually or aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning of the scope of our audit work and evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatement in the 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 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 auditor''s 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

12. We did not audit the financial statements / financial information of 2860 branches and 84 processing centres including 22 foreign branches included in the Standalone Financial Statements of the Bank whose financial statements/financial information reflects total assets of Rs.4,17,244.17 Crore at March 31,2024 and total revenue of Rs. 29,148.86 Crore for the year ended on that date as considered in the Standalone Financial Statements. These branches and processing centres cover 55.66% of advances, 80.78 % of deposits and 52.11% of Non-performing assets as on March 31 2024 and 44.42 % of revenue for the period April 1, 2023 to March 31, 2024.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 in our opinion, in so far as it relates to the amounts and disclosures included in respect of these branches and processing centres, are solely based on the report of such branch auditors.

13. In conduct of our audit, we have taken note of the unaudited returns in respect of 2267 domestic branches and one foreign branch certified by the respective branch''s management. These unaudited branches cover 7.24% % of advances, 17.68 % of deposits and 6.74 % of non-performing assets as on March 31 2024 and 6.72% of revenue for the period April 1,2023 to March 31 2024.

14. The accompanying Standalone Financial Statements includes comparative figures for the year ended March 31, 2023, which have been audited by an earlier set of three audit firms as joint auditors, who have expressed unmodified opinion vide their audit report dated May 6, 2023, and one of those three audit firms is a continuing audit firm.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

15. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949;

16. Subject to the limitations of the audit indicated in paragraphs on Auditor''s Responsibilities (para 10, 11), Management Responsibilities (para 7,8,9) and Other matters (para 12,13,14) 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.

17. 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) As the bank is not registered under the Companies Act, 2013 the disqualifications from being a director of the bank under sub-section (2) of Section 164 of the Companies Act, 2013 do not apply to the bank.

d) There are no qualifications, reservations or adverse remarks relating to the maintenance of accounts and other matters connected therewith.

e) Our audit report on the adequacy and operating effectiveness of the Bank''s 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 Bank''s internal financial controls over financial reporting as at March 31,2024.

18. 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 Cash Flow Statement 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 Cash Flow Statement comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by Reserve Bank of India.

For Mukund M Chitale & Co.	For S. Jaykishan
Chartered Accountants	Chartered Accountants
(FRN: 106655W)	(FRN: 309005E)
Nilesh RS Joshi	Ritesh Agarwal
Partner // ICAI M. No. 114749	Partner // ICAI M. No. 062410
UDIN: 24114749BKCBYI6008	UDIN: 24062410BKCYMT3957
For A. Bafna & Co.	For SCV & Co. LLP
Chartered Accountants	Chartered Accountants
(FRN: 003660C )	(FRN:000235N / N500089)
Mukesh Kumar Gupta	Anuj Dhingra
Partner // ICAI M. No. 073515	Partner // ICAI M. No. 512535
UDIN: 24073515BKGQGV2357	UDIN: 24512535BKCXDV4697
Place: Mumbai Date: May 10, 2024

---

Mar 31, 2023

Opinion

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

(iii) 21 Foreign branches audited by respective local 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 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.

Basis for Opinion

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 Auditor''s 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.

Emphasis of Matter

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.

Key Audit Matters

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.

Sl. No.	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
1)	Compliance of Income Recognition, Asset Classification and Provisioning Norms on advances and investments as per guidelines issued by Reserve Bank of India (IRAC Norms) Advances Bank has to classify the accounts as performing advances or non performing advances based on the guidelines/circulars and directives issued by Reserve Bank of India. The guidelines issued by Reserve Bank of India is for all credit facilities given by the bank and is to be mandatorily followed for the purpose of Income Recognition, Asset Classification and Provisioning. Identification of performing and non performing advances is system driven. The software used by the bank identifies the accounts for classification and provisioning	We have carried out the audit of the advances and investments based on the IRAC Norms/ Circulars and directives issued by Reserve Bank of India and the policy of the Bank. Advances: Our audit procedure included: a) Communication to the branch statutory auditors to verify the compliance of IRAC Norms and procedures and the policies adopted by the bank and reliance on the audit reports furnished by the branch statutory auditors. b) Understanding the IT system and controls put in place and logic and validations built in the system by the bank for identification, classification and provisioning in case of advances. c) Testing on sample basis whether the classification of advances as performing

Sl. No.	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
	as per the guidelines issued by Reserve Bank of India. The Income recognition, asset classification and provisioning if not done properly as per the IRAC norms issued by Reserve Bank of India may materially impact the financial statements of the bank. The bank has implemented IRAC Automation software for identification and classifying of NPA accounts through the software. Investments: Bank has to classify the investments as performing or non performing based on the guidelines/circulars and directives issued by Reserve Bank of India. Identification of performing and non performing investments is generally system driven. The valuation is done as per the guidelines issued by Reserve Bank of India and the valuations are done based on the price quoted on BSE/NSE, FIMDA /FBIL rates etc. The Income recognition, asset classification and provisioning if not done properly as per the IRAC norms issued by Reserve Bank of India may materially impact the financial statements of the bank. Advances and Investments constitute 59.58 % and 25.06 % respectively of total assets of the bank. As advances and investments form part of a major portion of the business of the bank and the regulatory compliances are involved, we have considered this aspect as Key Audit Matter.	or non-performing and provisioning have been carried out as per the guidelines of Reserve Bank of India. d) Carrying out substantive test on major advances including Specially Mentioned Accounts (SMA) and also verification of security by checking the valuation reports in respect of the audit of branches conducted by us. e) Reliance on the internal audit reports, concurrent audit reports, credit audit, system audit and special audits conducted by the bank. Investments: Our audit procedure included: a) Understanding the IT system and controls put in place and logic and validations built in the system by the bank for identification, classification and provisioning in case of investments. b) Testing on sample basis whether the classification and valuation of investments is carried out as per the guidelines of Reserve Bank of India. c) Verification on sample basis whether proper provision for depreciation in the value of investments is made as per RBI guidelines. d) Reliance made on the internal audit reports, concurrent audit reports and system audit conducted by the bank.

Sl. No.	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
2)	Evaluation of uncertain tax litigations and contingent liabilities The Bank has various litigations including tax litigations. The Bank has also disputes regarding availability of input credits/applicability of Reverse Charge Mechanism on certain payments under Indirect Tax. This is a key audit matter due to uncertainty of the outcome which involves significant judgment to determine the possible outcome of these disputes.	Our audit approach involved: a) Understanding the current status of the litigations/tax assessments; b) Review of the latest orders, communication received from various tax authorities and the appeals filed; c) Reliance on the opinion of legal and tax consultants, where available.
3)	Assessment of Information Technology (IT): a. IT controls with respect to recording of transactions, generating various reports in compliance with RBI guidelines including IRAC norms, preparing financial statements and reporting of compliances to regulators etc. is an important part of the process. Such reporting is highly dependent on the effective working of Core Banking Software and other allied systems. We have considered this as key audit matter as any control lapses, validation failures, incorrect input data and wrong extraction of data may result in wrong reporting of data to the management and regulators.	Our audit procedure includes:- a) Understanding and testing of operative effectiveness of the system. b) Understanding the coding system adopted by the bank for various categories of customers. c) Understanding and testing of different validations available in the system d) Checking the user requirements for any changes in the regulations/ policy of the bank e) Testing of logic used for extracting the data. f) On sample basis reviewing the reports generated. g) Reliance on the system audit report of the bank.

Sl. No.	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
4)	Recognition of Deferred Tax Assets: As per Significant Accounting Policy of the Bank, which is in accordance with AS 22 Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India Deferred tax assets should be recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. We identified the recognition of deferred tax assets as a key audit matter involves judgement by management as to the likelihood of the realization of these deferred tax assets, which is based on a number of factors including whether there will be sufficient taxable profits in future periods to support recognition.	Our audit procedure included evaluating management assessment on the sufficiency of the future taxable profits in support of the recognition of deferred tax assets such as assumptions and other parameters used for recognition of deferred tax asset.

Information Other than the Financial Statements and

Auditors Report thereon

6) The Bank''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management report and Chairman''s Statement but does not include the Standalone Financial Statements and our Auditor''s 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 Bank''s 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 Bank''s 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 Bank''s 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 auditor''s 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 management''s 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 bank''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s 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 auditor''s 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 auditor''s 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 Bank''s 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 Bank''s internal financial controls over financial reporting as at 31st March 2023.

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Mar 31, 2022

Opinion

1) We have audited the accompanying Standalone Financial Statements of Bank of India (‘the Bank''), which comprise the Balance Sheet as at March 31, 2022, 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) 3281 domestic branches and processing centres audited by respective Statutory Branch Auditors and

(iii) 21 Foreign branches audited by respective local 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 included in the Balance Sheet, the Statement of Profit and Loss and Statement of Cash Flows are the returns from 2070 domestic branches and one foreign branch which have not been subjected to audit. These unaudited branches account for 5.48 % of advances, 16.07 % of deposits, 4.58 % of interest income and 16.43 % 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, 2022,

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.

Basis for Opinion

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 Auditor''s 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.

Emphasis of Matter

4) We draw attention to Note No. 14(i) of Schedule 18 of the standalone financial statements, regarding amortization of additional liability on account of revision in family pension amounting to Rs. 612.09 Crores. The Bank has charged an amount of Rs. 61.21 Crores and Rs. 122.42 Crores to the profit and loss account for the quarter and year ended March 31, 2022 and balance unamortized expense of Rs. 489.67 Crores has been carried forward.

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 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.

S l . No.	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
	Compliance of Income Recognition, Asset Classification and Provisioning Norms on advances and investments as per guidelines issued by Reserve Bank of India (IRAC Norms) Advances Bank has to classify the accounts as performing advances or non performing advances based on the guidelines/circulars and directives issued by Reserve Bank of India. The guidelines issued by Reserve Bank of India is for all credit facilities given by the bank and is to be mandatorily followed for the purpose of Income Recognition, Asset Classification and Provisioning. Identification of performing and non performing advances is system driven. The software used by the bank identifies the accounts for classification and provisioning as per the guidelines issued by Reserve Bank of India. The Income recognition, asset classification and provisioning if not done properly as per the IRAC norms issued by Reserve Bank of India may materially impact the financial statements of the bank.	We have carried out the audit of the advances and investments based on the IRAC Norms/ Circulars and directives issued by Reserve Bank of India and the policy of the Bank. Advances: Our audit procedure included: a) Communication to the branch statutory auditors to verify the compliance of IRAC Norms and procedures and the policies adopted by the bank and reliance on the audit reports furnished by the branch statutory auditors. b) Understanding the IT system and controls put in place and logic and validations built in the system by the bank for identification, classification and provisioning in case of advances. c) Testing on sample basis whether the classification of advances as performing or non-performing and provisioning have been carried out as per the guidelines of Reserve Bank of India.

S l . No.	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
	The bank has implemented IRAC Automation software for identification and classifying of NPA accounts through the software. Investments : Bank has to classify the investments as performing or non performing based on the guidelines/circulars and directives issued by Reserve Bank of India. Identification of performing and non performing investments is generally system driven. The valuation is done as per the guidelines issued by Reserve Bank of India and the valuations are done based on the price quoted on BSE/NSE, FIMDA / FBIL rates etc. The Income recognition, asset classification and provisioning if not done properly as per the IRAC norms issued by Reserve Bank of India may materially impact the financial statements of the bank. Advances and Investments constitute 57.29% and 23.75% respectively of total assets of the bank. As advances and investments form part of a major portion of the business of the bank and the regulatory compliances are involved, we have considered this aspect as Key Audit Matter.	d) Carrying out substantive test on major advances including Specially Mentioned Accounts (SMA) and also verification of security by checking the valuation reports in respect of the audit of branches conducted by us. e) Reliance on the internal audit reports, concurrent audit reports, credit audit, system audit and special audits conducted by the bank. f) The bank has appointed an independent external agency to carry out systems audit of IRAC Automation software. As per the report submitted by the agency, all observations are complied / being complied with and the same has been relied upon by us. Investments: Our audit procedure included: a) Understanding the IT system and controls put in place and logic and validations built in the system by the bank for identification, classification and provisioning in case of investments. b) Testing on sample basis whether the classification and valuation of investments is carried out as per the guidelines of Reserve Bank of India. c) Verification on sample basis whether proper provision for depreciation in the value of investments is made as per RBI guidelines. d) Reliance made on the internal audit reports, concurrent audit reports and system audit conducted by the bank.

S l . No.	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
2	Evaluation of uncertain tax	Our audit approach involved: a) Understanding the current status of the litigations/tax assessments; b) Review of the latest orders, communication received from various tax authorities and the appeals filed; c) Reliance on the opinion of legal and tax consultants, where available.
	litiaations and continaent
	liabilities The Bank has various litigations including tax litigations. The Bank has also disputes regarding availability of input credits/applicability of Reverse Charge Mechanism on certain payments under Indirect Tax. This is a key audit matter due to uncertainty of the outcome which involves significant judgment to determine the possible outcome of these disputes.
3	Assessment of Information	Our audit procedure includes:- a) Understanding and testing of operative effectiveness of the system. b) Understanding the coding system adopted by the bank for various categories of customers. c) Understanding and testing of different validations available in the system d) Checking the user requirements for any changes in the regulations/ policy of the bank e) Testing of logic used for extracting the data. f) On sample basis reviewing the reports generated. g) Reliance on the system audit report of the bank. The Bank has carried out migration audit through an external agency which has confirmed that they have completed the compliance activity for the CRM and Core observations identified in Go-Live and Post migration. They have also confirmed that there are no open items and we have relied on the same. Also, the management has confirmed that there is no material financial impact on account of such migration.
	Technology (IT): a. IT controls with respect to recording of transactions, generating various reports in compliance with RBI guidelines including IRAC norms, preparing financial statements and reporting of compliances to regulators etc. is an important part of the process. Such reporting is highly dependent on the effective working of Core Banking Software and other allied systems. We have considered this as key audit matter as any control lapses, validation failures, incorrect input data and wrong extraction of data may result in wrong reporting of data to the management and regulators. b. The Bank has migrated the existing CBS system from Finacle 7 to Finacle 10.

Information Other than the Financial Statements and

S l . No.	Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
4	Recognition of Deferred Tax	Our audit procedure included evaluating management assessment on the sufficiency of the future taxable profits in support of the recognition of deferred tax assets such as assumptions and other parameters used for recognition of deferred tax asset.
	Assets: As per Significant Accounting Policy of the Bank, which is in accordance with AS 22 Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India Deferred tax assets should be recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. We identified the recognition of deferred tax assets as a key audit matter involves judgement by management as to the likelihood of the realization of these deferred tax assets, which is based on a number of factors including whether there will be sufficient taxable profits in future periods to support recognition.

Auditors Report thereon

6) The Bank''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management report and Chairman''s Statement but does not include the Standalone Financial Statements and our Auditor''s report thereon which is expected to be made available to us after the date of this Auditors'' Report.

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 Bank''s 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 Bank''s 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 Bank''s 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 auditor''s 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 management''s 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 bank''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s 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 auditor''s 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 auditor''s 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 3302 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. 3,03,497.48 crores at March 31, 2022 and total revenue of Rs 15,898.72 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, 2022, none of the directors is disqualified as on March 31, 2022 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 Bank''s 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 Bank''s internal financial controls over financial reporting as at 31st March 2022.

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Mar 31, 2019

To

The President of India / The Members of the Bank of India

Opinion

1. We have audited the standalone financial statements of Bank of India (‘the Bank’), which comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss and the Statement of Cash Flows 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 and Treasury Branch audited by us and 2783 domestic branches audited by statutory branch auditors and 24 foreign branches audited by local 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 included in the Balance Sheet, the Statement of Profit and Loss and Statement of Cash Flows are the returns from 2288 branches which have not been subjected to audit. These unaudited branches account for 5.93% of advances, 19.11% of deposits, 4.73% of interest income and 17.59% 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 give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Bank as at March 31, 2019, and its loss and its cash flows for the year ended on that date.

Basis for Opinion

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 Auditor’s 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 we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter:

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

a. Note. 6.(1)(ii) of Schedule No.18 regarding change in accounting policies in appropriation of recovery in NPA accounts.

b. Note.9.(f) and 9(g) of Schedule No.18 regarding provision made in NPA accounts

Key Audit Matters

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.

Key Audit Matter

Audit Procedure followed to address the Key Audit Matter

1.Compliance of Income Recognition, Asset Classification and Provisioning Norms on advances and invesments as per guidelines issued by Reserve Bank of India. Advances: Bank has to classify the accounts under performing advances and non performing advances based on the guidelines/circulars and directives issued by Reserve Bank of India. The guidelines issued by Reserve Bank of India is for all credit facilities given by the bank and is to be mandatorily followed for the purpose of Income Recognition, Asset Classification and Provisioning. Identification of performing and non performing advances are system driven. The software used by the bank identifies the accounts for classification and provisioning as per the guidelines issued by Reserve Bank of India. The Income recognition, asset classification and provisioning if not done properly as per the IRAC norms issued by Reserve Bank of India may materially impact the financial satements of the bank.

We have carried out the audit of the advances and invesments based on the IRAC Norms/ Circulars and directives issued by Reserve Bank of India and the policy of the bank. We have carried out following procedures for verification of compliance with the RBI guidelines. Advances: -We have communicated to the branch satutory auditors to verify the compliance of IRAC Norms and procedures and the policies adopted by the bank and we have relied on the audit reports given by the branch satutory auditors. - Undemanding the IT system and controls put in place and logic and validations built in the system by the bank for identification, classification and provisioning in case of advances. -On sample basis tesed whether the classification of advances under performing and non performing and provisioning is carried out as per the guidelines of Reserve Bank of India. -During audit of branches allotted to us we have carried out subsantivetes on major advances including Specially Mentioned Accounts (SMA) and also verified the security aspect by checking the valuation reports. -Reliance is also placed on the internal audit reports, concurrent audit reports, credit audit, system audit and special audits conducted by the bank. -Verification and implementations of MOC’s suggesed by satutory branch auditors and satutory central auditors during consolidation of financial satements.

Invesments: Bank has to classify the invesments under performing and non performing based on the guidelines/circulars and directives issued by Reserve Bank of India. Identification of performing and non performing invesments is generally system driven. The valuation is done as per the guidelines issued by Reserve Bank of India and the valuations are done based on the price quoted on BSE/NSE, FIMDA / FBIL rates etc. The Income recognition, asset classification and provisioning if not done properly as per the IRAC norms issued by Reserve Bank of India may materially impact the financial statements of the bank. Advances and Investments confutes 54.54% and 23.61% respectively of total assets of the bank. As advances and investments form part of a major portion of the business of the bank and the regulatory compliances involved, we have considered this aspect as Key Audit Matter.	Investments: Undemanding the IT system and controls put in place and logic and validations built in the system by the bank for identification, classification and provisioning in case of invesments. -On sample basis tesed whether the classification and valuation of invesments is carried out as per the guidelines of Reserve Bank of India. -On sample basis also verified whether proper provision for depreciation in the value of invesments and ensured that provision for depreciation is done as per RBI guidelines. - Reliance is also placed on the internal audit reports, concurrent audit reports and system audit conducted by the bank.
2.Evaluation of uncertain tax litigations and contingent liabilities Claims agains the bank not acknowledged as debt including tax litigations as on March 31, 2019 is disclosed in Schedule 12 and Note No.9(a)(i) of Notes to Accounts to financial satements. Under Indirect Taxes, there are ongoing disputes regarding availability of input credits/ applicability of Reverse Charge Mechanism on certain payments under Service Tax Act/Goods and Service Tax Act. This is a key audit matter due to uncertainty of the outcome which involves significant judgment to determine the possible outcome of these disputes.	We went through the current satus of the tax litigations and contingent liabilities. We obtained the details of lates orders and tax assessments. We gathered recent information received on the tax and other litigations for assessing the liabilities. Wherever required reliance is placed on the opinion of legal and tax consultants.
3.Assessment of Information Technology (IT): IT controls with respect to recording of transactions, generating various reports in compliance with RBI guidelines including IRAC, preparing financial statements and reporting of compliances to regulators etc	-Undemanding and teeing of operative effectiveness of the system. -Undemanding the coding system adopted by the bank for various categories of customers -Undemanding and teeing of different validations available in the system

is an important part of the process. Such reporting is highly dependent on the effective working of Core Banking Software and other allied systems We have considered this as key audit matter as any control lapses, validation failures, incorrect input data and wrong extraction of data may result in wrong reporting of data to the management and regulators.	-Checked the user requirements for any changes in the regulations/ policy of the bank -Teeing of logic used for extracting the data. -On sample basis reviewed the reports generated. -Reliance is placed on system audit report of the bank.
4.Impact of Change in Accounting Policy During the year bank has changed its accounting policy in respect of appropriation of recovery in NPA accounts. Refer Note No.6.1(ii)of Notes to Accounts to financial statements. We have considered this as Key Audit Matter as nonimplementation of the change in accounting policy in the system may have significant impact on the financial satements of the bank.	-We have communicated the change in accounting policy to the satutory branch auditors to verify the implementation of the change in the system. -On sample basis we have verified the large advances of the branches audited by us and checked whether the change in accounting policy has been implemented. -On tes check basis we have also verified the overall impact of change in accounting policy. -We have suggested the management to lengthen the system wherever we have observed deficiencies in the implementation of the change in accounting policy.
5.Recognition of Deferred Tax Asset: As on March 31, 2019 the Bank has recognised a net deferred tax asset of Rs 11885.61 crore. Deferred tax assets should be recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available agains which such deferred tax assets can be realised. Due to the huge amount of deferred tax assets recognised over a period based on the profit forecased over future period of time increases the uncertainty and risk of recognition of such asset. Hence we have considered this as a Key Audit Matter.	-We have verified that recognition criteria for Deferred Tax Asset as per Accounting Standard 22 Accounting for Taxes on Income issued by The Insitute of Chartered Accountants of India have been complied with. -Assessed the assumptions and other parameters used by the bank management for recognition of the deferred tax asset.

Information Other than the financial statements and Auditors Report thereon

6. The Bank’s Board of Directors are responsible for the other information. The other information comprises the information included in the Management report and Chairman’s Statement but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the 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 Bank’s Board of Directors are 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 Bank’s 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 are also responsible for overseeing the Bank’s 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 auditor’s 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.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

- Conclude on the appropriateness of management’s 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 bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s 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 auditor’s 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 auditor’s 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 2807 branches included in the standalone financial statements of the Bank whose financial statements / financial information reflect total advances of Rs.217896.27 Crore as at March 31, 2019 and total interest income of Rs.18488.73 Crore for the year ended on that date, as considered in the standalone financial statements. The financial statements / information of these branches has been audited by the branch auditors whose reports have been furnished to us, and in our opinion inso 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 7 to 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 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 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.

For NBS & Co. For Banshi Jain & Associates. For Chaturvedi & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

(FRN 110100W) (FRN 100990W) (FRN302137E)

Pradeep Shetty Parag Jain S.C.Chaturvedi

Partner Partner Partner

M. No. 046940 M. No. 078548 M. No. 012705

Place : Mumbai

Date : 16th May 2019

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Mar 31, 2018

INDEPENDENT AUDITORS’ REPORT

The President of India / The Members of the Bank of India

Report on the Standalone Financial Statements:

1. We have audited the accompanying standalone financial statements of Bank of India (‘the Bank'') as at March 31,

2018, which comprise the Balance Sheet as at March 31, 2018, the 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 standalone financial statements are the returns of:

a. The Head office, 20 branches and Treasury Branch audited by us;

b. 2,735 domestic branches audited by other auditors; and

c. 29 foreign branches audited by local auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued by the Reserve Bank of India.

Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns from 2,371 domestic branches which have not been subjected to audit. These unaudited branches account for 5.31% of advances, 16.49% of deposits, 4.47% of interest income and 15.65% of interest expenses.

Management’s Responsibility for the Standalone financial statements:

2. The Bank''s Management is responsible for 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 requirement of Reserve Bank of India, provisions of the Banking Regulation Act, 1949, Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, recognized accounting practices including the Accounting Standards issued by the Institute of Chartered Accountants of India. This responsibility includes the design, implementation and maintenance of internal controls and risk management systems relevant to the preparation of the standalone 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 standalone 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 standalone financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone 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 the Bank, and to the best of our information and according to the explanations given to us:

a. the Balance Sheet, read with significant accounting policies and 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 March 31, 2018 in conformity with accounting principles generally accepted in India;

b. the Profit and Loss Account, read with significant accounting policies and notes thereon shows a true balance of loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c. 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. 4 of Schedule 18 to the financial statements regarding withdrawal from Revenue Reserve for payment of interest on Additional Tier I Perpetual Basel III Compliant Bonds.

b. Note No. 5.2 of Schedule 18 to the financial statements regarding RBI dispensation permitting banks to spread provisioning to Mark to Market losses on investment held in AFS and HFT for the quarter ended 31st March 2018.

c. Note No. 9.k of Schedule 18 to the financial statements regarding RBI dispensation permitting banks to spread additional liability on account of enhancement in gratuity limits.

Report on Other Legal and Regulatory Requirements:

8. The Standalone 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, 1970 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.

10. We further report that.

a. The standalone Balance Sheet and standalone Profit & Loss account dealt with by this report are in agreement with the books of accounts and returns.

b. The reports on the accounts of the branch/offices audited by the 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.

c. In our opinion, the standalone Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable Accounting Standards.

For G D Apte & Co For NBS. & Co. For Banshi Jain & Associates.

Chartered Accountants Chartered Accountants Chartered Accountants

(frn 100515W) (frn 110100W) (frn 100990W)

Saurabh Peshwe Pradeep Shetty Parag Jain

Partner Partner Partner

m. No. 121546 m. No. 046940 m. No. 078548

Place : Mumbai

Date : May 28, 2018

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Mar 31, 2017

Report on the Standalone Financial Statements:

1. We have audited the accompanying standalone financial statements of Bank of India (‘the Bank’) as at March 31, 2017, which comprise the Balance Sheet as at March 31, 2017, the 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 standalone financial statements are the returns of:

a. The Head office, 20 branches and Treasury Branch audited by us;

b. 2,575 domestic branches audited by other auditors; and

c. 29 foreign branches audited by local auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued by the Reserve Bank of India.

Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns from 2,527 domestic branches which have not been subjected to audit. These unaudited branches account for 5.33% of advances, 16.85% of deposits, 6.35% of interest income and 16.28% of interest expenses.

Management’s Responsibility for the Standalone financial statements:

2. The Bank’s Management is responsible for 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 requirement of Reserve Bank of India, provisions of the Banking Regulation Act, 1949, Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, recognised accounting practices including the Accounting Standards issued by the Institute of Chartered Accountants of India. This responsibility includes the design, implementation and maintenance of internal controls and risk management systems relevant to the preparation of the standalone 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 standalone 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 standalone financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone 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 the Bank, and to the best of our information and according to the explanations given to us:

a. the Balance Sheet, read with significant accounting policies and 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 March 31, 2017 in conformity with accounting principles generally accepted in India;

b. the Profit and Loss Account, read with significant accounting policies and notes thereon shows a true balance of loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c. 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. 18.3 to the financial statements regarding change in accounting policy in respect of Depreciation on Fixed Assets.

b. Note No. 18.4 to the financial statements regarding withdrawal from Revenue Reserve for payment of interest on Additional Tier I Perpetual Basel III Compliant Bonds.

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, 1970 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.

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

For Grover, Lalla & Mehta For B Rattan & Associates For G D Apte & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

(FRN 002830N) (FRN 011798N) (FRN 100515W)

Alok Goyal Bharat Rattan Saurabh Peshwe

Partner Partner Partner

M. No. 501529 M. No. 090682 M. No. 121546

Place : Mumbai

Date : 22^nd May 2017

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Mar 31, 2015

1. We have audited the accompanying financial statements of Bank of India (''the Bank'') as at March 31,2015, which comprise the Balance Sheet as at March 31, 2015, the 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

a. The Head office and 20 branches (Including Treasury Branch) audited by us;

b. 2100 domestic branches audited by other auditors; and

c. 25 foreign branches audited by local auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued by the Reserve Bank of India.

Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns from 2772 domestic branches which have not been subjected to audit. These unaudited branches account for 5.54% of advances, 16.33% of deposits, 4.97% of interest income and 15.00% of interest expenses.

Management''s Responsibility for the Financial Statements

2. The Management is responsible for the preparation of these financial statements in accordance with the requirement of Reserve Bank of India, provisions of the Banking Regulation Act, 1949, Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, recognised accounting practices including the Accounting Standards issued by the Institute of Chartered Accountants 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 judgement, 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 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:

a. The Balance Sheet, read with significant accounting policies and 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 March 31, 2015 in conformity with accounting principles generally accepted in India;

b. the Profit and Loss Account, read with significant accounting policies and 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

c. 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. We draw attention to:

a. Note no. 18.2 to the financial statements relating to change in the accounting policy for provisioning in respect of NPAs classified as Doubtful category (Secured portion) - up to one year resulting in decrease in the provision for NPAs for the year by Rs. 811.00 Crores with consequential increase in Net profit for the year (net of tax) by Rs. 535.34 Crores.

b. Note No. 18.5.2 regarding utilisation of Floating Provision of Rs. 232.22 Crores during the year as permitted by RBI

c. Note No. 18.7(f) regarding the deferment of provision in respect of certain NPAs and loss on sale of certain NPAs resulting in decrease in the provision by Rs. 709.31 Crores and decrease in operating expenses by Rs. 403.21 Crores with consequential increase in Net Profit for the year (net of tax) by Rs. 734.37 Crores.

d. Note No. 18.7(g) regarding the deferment of the loss on sale of financial assets to ARCs resulting in decrease in operating expenses by Rs. 478.91 Crores with consequential increase in Net Profit for the year (net of tax) by Rs. 316.13 Crores.

Our opinion is not qualified in respect of these matters.

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, 1970and 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.

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

M/s. Isaac & Suresh M/s. M. M. Nissim and Co M/s. D. Singh & Co. Chartered Accountants Chartered Accountants Chartered (FRN 001150S) (FRN 107122W Accountants (FRN 001351N)

K. Vijaya Mohan Valiathan Sanjay Khemani simran singh Partner Partner Parter M. No. 028648 M. No. 044577 M. No. 098641

M/s. J. P. Kapur & Uberai M/s. Grover, Lalla & M/S.Rattan & Chartered Accountants Mehta associates (FRN 000593N) Chartered Accountants Chartered (FRN 000593N) Accountants (FRN 008976N)

Deepak Menon Ashok Grover Rakesh kumar Partner Partner Parter M. No. 084225 M. No. 081784 M. No. 095399

Date : 28th May, 2015

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Mar 31, 2014

The accompanying abridged Financial Statements, which comprise the Standalone and Consolidated (a) abridged Balance Sheet as at 31st March 2014, (b) the abridged Proft and Loss Account, and (c) abridged Cash Flow Statement for the year then ended, and related notes, are derived from the audited Standalone and Consolidated Financial Statements of Bank of India (''the Bank'') for the year ended 31st March 2014. We expressed an unmodified audit opinion on those Financial Statements in our report dated 15th May 2014.

The abridged Financial Statements do not contain all the disclosures required by the Accounting Standards applied in the preparation of the audited Financial Statements of the Bank. Reading the abridged Financial Statements, therefore, is not a substitute for reading the audited Financial Statements of the Bank.

Management''s responsibility for the abridged Financial Statements

Management is responsible for the preparation of summary of Financial Statements in accordance with guidelines issued by Ministry of Finance, Government of India, vide their letter dated 1st August, 2012, which are based on the audited Financial Statements for the year ended 31st March 2014, prepared in accordance with regulatory guidelines, Accounting Standards and accounting principles generally accepted in India.

Auditor''s responsibility

Our responsibility is to express an opinion on the abridged Financial Statements based on our procedures, which were conducted in accordance with Standard on Auditing (SA) 810, "Engagements to Report on Summary Financial Statements" issued by the Institute of Chartered Accountants of India.

Opinion

In our opinion, the abridged Financial Statements, prepared in accordance with guidelines issued by Ministry of Finance, Government of India, vide their letter dated 1st August, 2012 are derived from the audited Financial Statements of the Bank for the year ended 31st March 2014 and are a fair summary of those Financial Statements.

M/s. SRB & Associates M/s. Isaac & Suresh M/s. M. M. Nissim and Co.

Chartered Accountants Chartered Accountants Chartered Accountants

(FRN 310009E) (FRN 001150S) (FRN 107122W)

Sanjeet Patra Benny Joseph Sanjay Khemani

Patner Partner Partner

M. No. 056121 M. No. 200689 M. No. 044577

M/s. D. Singh & Co. M/s. J. P. Kapur & Uberai M/s. Andros & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

(FRN 001351N) (FRN 000593N) (FRN 008976N)

Simran Singh Deepak Menon Om Prakash Lakra

Partner Partner Partner

M. No. 098641 M. No. 084225 M. No. 081431

Date : 29th May, 2014

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Mar 31, 2012

1. We have audited the attached Balance Sheet of BANK OF INDIA as at 31st March, 2012, the Profit and Loss Account and the Cash Flow for the year ended on that date annexed thereto in which are incorporated the returns of 20 branches (including Treasury Branch) audited by us, 2651 branches audited by other auditors and 24 foreign branches audited by local 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 Profit and Loss Account are the returns from 1328 branches which have not been subjected to audit. These unaudited branches account for 2.50% percent of advances, 8.87% percent of deposits, 2.06% percent of interest income and 6.04% percent of interest expenses. These financial statements are the responsibility of the Bank's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. 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.

4. Subject to the limitations of the audit indicated in paragraph 1 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, we report that:

a) In our opinion and to the best of our knowledge and according to the information and explanations given to us and as shown by the books of the Bank:

(i) The Balance Sheet read together with the Significant Accounting Policies and Notes forming part of Accounts is a full and fair Balance Sheet containing the necessary particulars, and is properly drawn up so as to exhibit a true and fair view of the affairs of the Bank as at 31st March, 2012;

(ii) The Profit and Loss Account read together with the Significant Accounting Policies and Notes forming part of Accounts shows a true balance of Profit in conformity with accounting principles generally accepted in India for the year covered by the accounts; and

(iii) The Cash Flow Statement gives a true and fair view of the cash flows for the year covered by the Statement.

b) 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.

c) The transactions of the Bank which have come to our notice have been within the powers of the Bank.

d) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

For Agarwal & Saxena For Karnavat & Co. For Chaturvedi & Shah

Chartered Accountants Chartered Accountants Chartered Accountants

(Firm Reg. No. 002405C) (Firm Reg. No. 104863W) (Firm Reg. No. 101720W)

(Anil K. Saxena) (Shashikant Gupta) (Vitesh D. Gandhi)

Partner Partner Partner

M. No. 71600 M. No. 45629 M. No. 110248

For L.B. Jha & Co For Sankaran & Krishnan For SRB & Associates

Chartered Accountants Chartered Accountants Chartered Accountants

(Firm Reg. No. 301088E) (Firm Reg. No. 003582S) (Firm Reg. No. 310009E)

(K.K. Bhanja) (M.K. Kumar) (Sanjeet Patra)

Partner Partner Partner

M. No. 14722 M. No. 202092 M. No. 056121

Mumbai, 30th April, 2012

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Mar 31, 2011

1. We have audited the attached Balance Sheet of BANK OF INDIA as at 31st March, 2011, the Profit and Loss Account and the Cash Flow for the year ended on that date annexed thereto in which are incorporated the returns of 20 branches (including Treasury Branch) audited by us, 2796 branches audited by other auditors and 24 foreign branches audited by local 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 Profit and Loss Account are the returns from 674 branches which have not been subjected to audit. These unaudited branches account for 1.23% percent of advances, 2.43% percent of deposits, 0.97% percent of interest income and 2.48% percent of interest expenses. These financial statements are the responsibility of the Banks management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. 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.

4. Without qualifying our opinion, we draw attention to Note no.4(a) of Schedule 18 to the financial statements, which describes deferment of pension and gratuity liability of the bank to the extent of Rs. 2112.89 crores pursuant to the exemption granted by the Reserve Bank of India to the public sector banks from application of the provisions of Accounting Standard (AS) 15, Employee Benefits vide its circular no. DBOD. BPBC/80/21.04.018/2010-11 dated February 09, 2011 on Re-opening of Pension Option to Employees of Public Sector Banks and Enhancement in Gratuity Limits – Prudential Regulatory Treatment.

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

a) In our opinion and to the best of our knowledge and according to the information and explanations given to us and as shown by the books of the Bank:

(i) The Balance Sheet read together with the Significant Accounting Policies and Notes forming part of Accounts is a full and fair Balance Sheet containing the necessary particulars, and is properly drawn up so as to exhibit a true and fair view of the affairs of the Bank as at 31st March, 2011;

(ii) The Profit and Loss Account read together with the Significant Accounting Policies and Notes forming part of Accounts shows a true balance of Profit in conformity with accounting principles generally accepted in India for the year covered by the accounts; and

(iii) The Cash Flow Statement gives a true and fair view of the cash flows for the year covered by the Statement.

b) 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.

c) The transactions of the Bank which have come to our notice have been within the powers of the Bank.

d) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.



For Sundaram & Srinivasan For Agarwal & Saxena Chartered Accountants Chartered Accountants (Firm Reg. No. 004207S) (Firm Reg. No. 002405C)

(C. Naresh) (Anil K. Saxena) Partner Partner M. No. 28684 M. No. 71600



For Karnavat & Co. For L.B. Jha & Co. Chartered Accountants Chartered Accountants (Firm Reg. No. 104863W) (Firm Reg. No. 301088E)

(Sunil Hirawat) (K.K. Bhanja) Partner Partner M. No. 33951 M. No. 14722



For Sankaran & Krishnan For Chaturvedi & Shah Chartered Accountants Chartered Accountants (Firm Reg. No. 003582S) (Firm Reg. No. 101720W)

(S. Chandran) (H.P. Chaturvedi) Partner Partner M. No. 8646 M. No. 33523



Mumbai, 25th May, 2011

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Mar 31, 2010

1. We have audited the attached Balance Sheet of BANK OF INDIA as at 31st March, 2010 and also the Profi t and Loss Account for the year ended on that date annexed thereto in which are incorporated the returns of 20 branches audited by us, 2595 branches audited by other auditors and 24 foreign branches audited by local 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 Profi t and Loss Account are the returns from 592 branches which have not been subjected to audit. These unaudited branches account for 1.15% percent of advances, 2.76% percent of deposits, 2.12% percent of interest income and 0.70% percent of interest expenses. We have also audited the cash fl ow statement as stated in Notes forming part of Accounts for the year ended on that date. These fi nancial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these fi nancial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by the management, as well as evaluating the overall fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. The Balance Sheet and the Profi t and Loss Account have been drawn up in Forms “A” and “B” respectively of the Third Schedule to the Banking Regulation Act, 1949.

4. Subject to the limitations of the audit indicated in paragraph 1 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, we report that:

a) In our opinion and to the best of our knowledge and according to the information and explanations given to us and as shown by the books of the Bank:

(i) The Balance Sheet read together with the Signifi cant Accounting Policies and Notes forming part of Accounts is a full and fair Balance Sheet containing the necessary particulars, and is properly drawn up so as to exhibit a true and fair view of the affairs of the Bank as at 31st March, 2010;

(ii) The Profit and Loss Account read together with the Significant Accounting Policies and Notes forming part of Accounts shows a true balance of Profit in conformity with accounting principles generally accepted in India for the year covered by the accounts; and

(iii) The Cash Flow Statement gives a true and fair view of the cash fl ows for the year covered by the Statement.

b) 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.

c) The transactions of the Bank which have come to our notice have been within the powers of the Bank.

d) The returns received from the offi ces and branches of the Bank have been found adequate for the purposes of our audit.

For P. C. Modi & Co. For A. K. G. & Associates For V. Ramaswamy Iyer & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

(Firm Reg No. 000239C) (Firm Reg No. 002688N) (Firm Reg No. 002974S)

(Bharat Sonkhiya) (Harvinder Singh) (D. V. Yegnanarayanan)

Partner Partner Partner

Membership No. 403023 Membership No. 87889 Membership No. 010472

For Sundaram & Srinivasan For Mehrotra & Mehrotra For Agarwal & Saxena

Chartered Accountants Chartered Accountants Chartered Accountants

(Firm Reg No. 004207S) (Firm Reg No. 000226C) (Firm Reg No. 002405C)

(C. Naresh) (A. N. Rastogi) (Anil K. Saxena)

Partner Partner Partner

Membership No. 28684 Membership No. 70168 Membership No. 71600

Mumbai, 7th May, 2010