Get Updates

Get notified about market trends, financial advice, and investment tips!

A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Auditor Report of Bank of Maharashtra

Mar 31, 2025

The President of India and Members of "BANK OF

MAHARASHTRA"

Report on Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of Bank of Maharashtra, which comprise the Balance Sheet as at 31st March 2025, the Profit and Loss Account and the Statement of Cash Flows for the year then ended, and notes to financial statements including a summary of significant accounting policies and other explanatory information in which are included the returns for the year ended on that date of the Head Office, 50 Zonal Offices and 20 branches and one Treasury and International Banking Division audited by us, and 682 branches audited by Statutory Branch Auditors of the Bank.

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, the Profit and Loss Account and the Statement of Cash Flows are the returns from 1927 branches which have not been subjected to audit. These unaudited branches account for 21.70% of advances, 46.21% of deposits, 20.98% of interest income and 44.35% 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 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 31st March, 2025;

b. the Profit and Loss Account, read with the notes thereon shows a true balance of profit for the year ended 31st March, 2025 and

c. the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

2. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India (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 Institute of Chartered Accountants of India 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 Accounting Standards issued by the ICAI, and provisions of section 29 of the Banking Regulation Act, 1949 and circulars, directions 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.

3. We draw attention to Note No. 18 in Schedule 18 of the Financial Statements regarding absence of sufficient number of Independent Directors on the board, the Bank has invoked Para 14A of Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970 and placed the Financial Statements directly to the Board for want of quorum in Audit Committee of the Board.

4. We draw attention to Note No. 4(g) in Schedule 18 of the Financial Statements where Bank continues to hold COVID-19 related provision of Rs. 1200 Crore as contingency provision as on 31st March 2025.

Our Opinion is not modified in respect of this matter.

5 Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended March 31 2025. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters prescribed below to be the key audit matters to be communicated in our report.


Sr.		How our Audit
Sr.	Key Audit Matters	procedures addressed
No		the Key Audit Matters
1.	Classification of	The audit was focused on
1.	Advances, Provisioning	income recognition, asset classification and
	and other relevant compliance of RBI	provisioning pertaining to advances. The matter has
	Guidelines:	been addressed as
	(Refer Note No. 4 of	follows:
	Schedule 17 of	Our audit procedures included the assessment
	Significant Accounting	of controls over the
	Policy to the Standalone Financial Statements)	approval, disbursements and monitoring of loans, and reviewing the logic and assumptions used in
	The Bank''s portfolio
	The Bank''s portfolio	the CBS and other related
	comprises of Net	IT systems for compliance
	Advances of Rs.	of the IRAC and
	236,083.80 crores as at	provisioning norms and
	March 31, 2025 comprising of wholesale	its operating effectiveness.
	and retail banking. As	This included evaluation
	required by Income	and understanding of the
	Recognition Asset	following:
	Classification (IRAC)	a)Tested the design and
	Norms, guidelines issued	operating effectiveness of
	by RBI and other	the key controls of the
	circulars, notifications	system of application,
	and directives issued by RBI, the Bank has	process of approval, recording, monitoring, recovery of loans,
	classified advances and	overdue and stressed
	has made appropriate provisions in accordance with such guidelines.	accounts, identification of NPA and provision for NPA.
		b) Tested samples
	Identification of	of performing assets and
	performing and non performing advances	assessed the application of IRAC norms, as prescribed by RBI, to
	involves establishment of	ensure the compliance of
	proper mechanism. The bank accounts for all the	the same.
	transactions related to Advances in its	c) Examined early warning signal reports,
	transactions related to Advances in its	other exceptional reports
	Information Technology	generated by the bank for
	System (IT System) viz.	the purpose of identifying
	Core Banking Solution (CBS) which also	potential NPA and steps taken for monitoring of such accounts including
	identifies whether the advances are performing or non performing.	red flagged accounts to overcome assessed risks and ensure effective
		implementation of risk
	Besides following the prudential norms on	management and related controls.
	Income Recognition,	d) Examined the
	Asset Classification and	adequacy and
	Provisioning relating to advances issued by the	appropriateness of disclosures as per the relevant RBI requirements
	Reserve Bank of India	relating to NPA and
	("RBI"), the bank also has	applicable Accounting
	certain policies for	Standards required to be made in accordance with
	provisioning on	Banking Regulation Act
	non-performing assets.	and RBI Circulars.

Sr.		How our Audit
Sr.	Key Audit Matters	procedures addressed
No		the Key Audit Matters
1.	The bank has system-based	e) System controls
1.	classification of	and manual controls over
	non-performing assets in	the timely recognition of
	accordance with IRAC norms. Since the identification of	non-performing assets.
	Non-performing advances	f) Evaluated and
	and provisioning of	tested the management
	Non-performing advances	estimates and judgements
	requires considerable level	for the purpose of
	of management estimation,	identification of NPA and
	application of various regulatory requirements	adequacy of provision
	and its significance to the	required as per RBI''s
	overall audit, we have identified this as a key audit	Prudential norms.
	matter.	g) Evaluated the effectiveness of automated
		IT based system of asset classification implemented by the Bank in accordance with the directives of RBI.
		h) We have relied on the reports/ returns and work done by other Statutory Branch Auditors (SBA) in cases of branches not visited by us to get an overall comfort with respect to overall compliance in accordance with SA 600 - Using the Work of Another Auditor.

Sr.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Classification and Valuation of Investments:

(Refer Note No. 3 of Schedule 17 of Significant Accounting policies to the Standalone Financial Statements)

Investments are classified into Fair Value through Profit and Loss (FVTPL) with subcategory of Held for trading (HFT), Available for Sale (AFS) and Held to Maturity (HTM) categories at the time of purchase. Investments intended to be held till maturity are classified as HTM Investments. Classification of Investments, valuation and provisioning thereof are based on RBI guidelines.

Compliance of Investment Portfolio as per guidelines issued by RBI is mandatory and involves management judgement in determining the value of bonds, debentures and other securities based on the policy and the model adopted by the Bank. Impact of Impairment assessment is having overall significance to the financial results of the Bank.

Interest Income from Investment of the Bank comprises 18.87% of the total income. In view of these significant points including assessment of non-performing Investments and provisions we have identified this aspect as a Key Audit Matter

Our audit approach towards investment portfolio with reference to the RBI Circulars / directives included a combination of test of the design, implementation, and operating effectiveness of internal controls, related process and substantive procedures in relation to classification, valuation, independent price verification, identification of non-performing investments (NPIs), provisioning/depreciation related to Investments.

Examined the investment agreements / term sheets, deal tickets, broker contract notes entered into during the current year, on a sample basis, to understand the relevant investment terms and identify any conditions that were relevant to the valuation of financial instruments.

For the selected sample of investments, tested the accuracy, completeness and compliance with the RBI guidelines and directives by re-performing valuation for each category of the security. Samples were selected in such a way that all the categories of investments (based on nature of security) were covered. Carried out on test check basis independent valuation exercise of unquoted investments on the basis of prescribed procedures in terms of the RBI guidelines.

We assessed and evaluated the process adopted for collection of information from various sources for determining fair value of these investments.

Assessed and evaluated the process of identification of NPIs and corresponding reversal of income and creation of provision. Carried out substantive audit procedures to recompute independently the provision to be maintained and depreciation to be provided in accordance with the RBI guidelines and directives of the RBI, selected samples from the investments in each category and tested for NPIs as per the RBI guidelines and recomputed the provision to be maintained in accordance with the RBI Circular for those selected sample of NPIs

Sr.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Verified Investment portfolio on sample basis and performed various substantive analytical procedures in determination of Income, gain / loss on sale and tested the controls implemented by the Bank in recognizing the profit / loss to profit and loss account.

Reviewed the reports of the internal audits, concurrent audits etc. conducted by the bank.

Ensured that adequate disclosures have been made by way of Notes to the financial statements as mandated by the RBI guidelines.

Information Technology Systems and Control Framework:

The Bank is having complex Information Technology environment which comprises of various interdependent IT systems and applications used in the day-to-day operations of the Bank for processing and recording large volume of transactions across various locations. Further the Bank''s key fi â nancial accounting and reporting processes are highly dependent on the Core Banking Solution (CBS), Treasury Solutions, IRAC and and other allied systems, software, network and hardware controls.

Considering the high-level of automation, complexity of the IT architecture, simultaneous and significant use of IT systems, appropriate IT general controls and application controls are required to ensure that such IT systems are able to process the data, as expected, completely, accurately and consistently for reliable financial reporting.

Hence, IT system controls have been considered as a Key Audit Matter as any control lapses, validation failures, incorrect input data and wrong extraction of data may result in wrong reporting to the management and regulators

Our significant audit procedures included the following:

We Involved our internal IS Audit team and obtained an understanding of the Bank''s IT related control environment, IT applications relevant for the purpose of our audit of the financial statements.

For this purpose, we had discussions with the process owners with respect to various IT policies, processes and procedures put in place by the Bank. Reviewed these IT policies and procedures including user management, change management, backup and recovery procedures, system & cyber security, incident management, physical and environment security, standard operating procedures, Segregation of duties, BCP, DRP, service level agreements, security policies to ensure that these are in line with business requirements of the Bank and comply with the relevant regulatory guidelines in this regard.

Tested the design and operating effectiveness of the Bank''s IT controls over the IT applications. Tested IT general controls particularly, logical access, change management and aspects of IT operational controls.

Sr.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Tested that requests for access to systems were appropriately reviewed and authorized; tested controls around Bank''s periodic review of access rights; inspected requests of changes to systems for appropriate approvals and authorizations.

Reviewed and placed reliance on the reports of various specialised audits by internal / external IS Auditors, consultants appointed by the Bank and discussed with IT Department on compliance with key IT controls, including IRAC Automation Controls.

In addition to the above, we tested the design and operating effectiveness of certain automated controls that were considered as key internal controls over -financial reporting.

On sample basis, verified the results obtained from the systems with the other information sources; and tested logic used for extracting the data.

Tested combination of compensating controls or remediated controls such as reconciliations between systems and other information sources and / or performed alternative audit procedures, where necessary

Sr.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Provisions and Contingent Liability:

Assessment of Provisions and Contingent Liability in respect of certain litigations on various claims filed by other parties not acknowledged as debt (Note No. 10 of Schedule 17 and Note No. 16 of Schedule 18)

There is high level of judgement required in estimating the level of provisioning. The Bank''s assessment is supported by the facts of matter, their own judgement, past experience, and advice from legal and independent experts wherever considered necessary. Accordingly, unexpected adverse outcomes may significantly impact the Bank''s reported profit and state of affairs presented in Balance Sheet.

We determined the above area as a Key Audit Matter in view of associated uncertainty relating to outcome of these matters which requires application of judgement in interpretation of Law.

We have obtained an understanding of Internal Controls relevant to the audit in order to design our audit procedures that are appropriate in the circumstances.

Understanding the current status of the litigations / tax assessments. Examining recent orders and communications received from various tax authorities / judicial forums and follow up actions thereon;

Evaluated the merit of the subject matter under consideration with reference to the grounds presented therein and available independent legal / tax advice including opinion of experts. Review and analysis of evaluation of the contentions of the Bank through discussions, collection of details of the subject matter under consideration, the likely outcome and consequent potential outflows on those issues.

Verified the disclosures related to significant litigations and taxation matters.

Accordingly, our audit was focused on analysing the facts of subject matter under consideration and judgements / interpretation of law involved.

6. The Bank''s Board of Directors is responsible for other information. The other information comprises the information other than Standalone Financial Statements and our Auditors'' Report thereon and the Pillar III disclosure under the Basel III disclosure.

Our opinion on the Standalone Financial Statements does not cover the other information and Pillar 3 disclosure under the Basel III Disclosure and we do not express any form of assurance conclusion thereon.

Standalone Financial Statements or our knowledge obtained during the course of audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the Other Information that we obtained prior to the date of this Auditors'' Report, we conclude that there is a material misstatement of this Other Information, we are required to report that fact. We have nothing to report in this matter.

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 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the 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.

8. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 auditors'' report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors'' report. However, future events or conditions may cause the bank to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our Audit work and evaluating the results of our work; and (ii) to evaluate the effect of identified misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters.

We describe these matters in our auditors'' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication

9 We did not audit the financial statements / information of 682 branches included in the Standalone Financial Statements of the Bank whose Financial Statements / Financial Information reflect total advances of Rs. 79025.94 crores as at March 31, 2025 and total revenue of Rs. 6514.95 crores for the year ended on that date, as considered in the Standalone Financial Statements. These branches cover 32.95% of advances, 48.99% of deposits and 43.15% of non-performing assets as at March 31, 2025 and 22.94% revenue for the year ended March 31, 2025. The Financial Statements / Information of these branches 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.

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;

Subject to the limitations of the audit indicated in paragraphs 7 to 9 above and as required by Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein and as required by sub-section (3) of section 30 of the Banking Regulation Act, 1949, we report that:

a. We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory;

b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and

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

11. 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 communications 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 the 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 is given in Annexure A to this report. Our report expresses an unmodified opinion on the Bank''s internal financial controls over financial reporting with reference to the Standalone Financial Statements as at March 31, 2025.

12. 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 accounts 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 RBI.

Mar 31, 2024

M/s. S Bhandari & Co LLP

Chartered Accountants, P-7, Tilak Marg,Â C-Scheme,

Jaipur - 302 005

M/s. Kirtane & Pandit LLP

Chartered Accountants, 5th. Floor, Wing A, GopalÂ House,

Kothrud, Pune- 411 038

M/s. Sundaram & Srinivasan

Chartered Accountants, 23, CP Ramaswamy Road,Â Alwarpet, Chennai-600 018

M/s. G D Apte & Co.

Chartered Accountants, D-509, NeelkanthÂ Business Park, Nathani Rd,Â Vidhya Vihar West,Â Mumbai 400 086.

To,

The President of India and Members of "BANK OF MAHARASHTRA"

Report on Audit of the Standalone Financial StatementsÂ Opinion

1) We have audited the accompanying standaloneÂ financial statements of Bank of Maharashtra, whichÂ comprise the Balance Sheet as at 31st March 2024, theÂ Profit and Loss Account and the Statement of CashÂ Flows for the year then ended, and notes to financialÂ statements including a summary of significantÂ accounting policies and other explanatory informationÂ in which are included the returns for the year ended onÂ that date of the Head Office, 46 Zonal Offices and 20Â branches and one Treasury and International BankingÂ Division audited by us, and 524 branches audited byÂ Statutory Branch Auditors of the Bank.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordanceÂ with the guidelines issued to the Bank by the ReserveÂ Bank of India. Also incorporated in the Balance Sheet,Â the Profit and Loss Account and the Statement of CashÂ Flows are the returns from 1967 branches which haveÂ not been subjected to audit. These unaudited branchesÂ account for 28.27% of advances, 52.68% of deposits,Â 20.85% of interest income and 48.58% interestÂ expenses.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaidÂ standalone financial statements give the informationÂ required by the Banking Regulation Act, 1949 in theÂ manner so required for bank and are in conformity withÂ accounting principles generally accepted in India and:

a) Â Â Â the Balance Sheet, read with the notes thereon is aÂ full and fair Balance Sheet containing all the necessaryÂ particulars, is properly drawn up so as to exhibit a trueÂ and fair view of the state of affairs of the Bank as at 31stÂ March, 2024;

b) Â Â Â the Profit and Loss Account, read with the notesÂ thereon shows a true balance of profit for the yearÂ ended 31st March, 2024 and

c) Â Â Â the Cash Flow Statement gives a true and fair view ofÂ the cash flows for the year ended on that date

Basis for Opinion

2) Â Â Â We conducted our audit in accordance with theÂ Standards on Auditing (SAs) issued by the ICAI. OurÂ responsibilities under those Standards are furtherÂ described in the Auditor's Responsibilities for the AuditÂ of the standalone Financial Statements section of ourÂ report. We are independent of the Bank in accordanceÂ with the Code of Ethics issued by the Institute ofÂ Chartered Accountants of India together with ethicalÂ requirements that are relevant to our audit of theÂ financial statements prepared in accordance with theÂ accounting principles generally accepted in India,Â including the Accounting Standards issued by the ICAI,Â and provisions of section 29 of the Banking RegulationÂ Act, 1949 and circulars, directions and guidelines issuedÂ by the Reserve Bank of India ('RBI") from time to timeÂ and we have fulfilled our other ethical responsibilities inÂ accordance with these requirements and the Code ofÂ Ethics. We believe that the audit evidence we haveÂ obtained is sufficient and appropriate to provide a basisÂ for our opinion.

Emphasis of Matter

3) Â Â Â We draw attention to Note No. 4(h) in Schedule 18 ofÂ the Financial Statements where Bank continues to holdÂ COVID-19 related provision of Rs. 1200 Crore asÂ contingency provision as on 31^stÂ March 2024.

Our Opinion is not modified in respect of this matter.

Key Audit Matters

4) Â Â Â Key audit matters are those matters that, in ourÂ professional judgment, were of most significance in ourÂ audit of the standalone financial statements of the yearÂ ended March 31 2024. These matters were addressed inÂ the context of our audit of the standalone financialÂ statements as a whole, and in forming our opinionÂ thereon, and we do not provide a separate opinion onÂ these matters. We have determined the mattersÂ prescribed below to be the key audit matters to beÂ communicated in our report.

Sr.

Key Audit Matters

How our Audit procedures addressedÂ the Key Audit Matters

Classification of Advances, ProvisioningÂ and other relevantÂ compliance of RBIÂ Guidelines:

(Refer Note No. 4 of Schedule 17 of SignificantÂ Accounting Policy to theÂ Standalone FinancialÂ Statements)

The Bank's portfolio comprises of Net AdvancesÂ of Rs.Â 200239.88Â Crores asÂ at March 31, 2024Â comprising of wholesaleÂ and retail banking. AsÂ required by IRAC Norms,Â guidelines issued by RBIÂ and other circulars,Â notification and directivesÂ issued by RBI, the Bank hasÂ classified Advances and hasÂ made appropriateÂ provisions in accordanceÂ with such guidelines.

Income from Advances constitutes 67.37% of TotalÂ Income. The provision inÂ respect of Non-PerformingÂ Asset is Rs. 2174.27 CroresÂ which constitutes 11.19 %Â of the total expenditure.

The carrying value of these advances (net ofÂ provisions) may beÂ materially misstated if,Â either individually or inÂ aggregate the IRAC Norms,Â are not properly followed.

The Bank has significant Credit Risk Exposure to aÂ large number of borrowersÂ across a wide range ofÂ borrowers, products,Â industries and there is aÂ high degree of complexity,Â uncertainty, judgementÂ involved in recoverability ofÂ Advances, estimation ofÂ provisions thereon andÂ identification of accountsÂ to be written off. If suchÂ prudential guidelines areÂ not followed by the BankÂ the profit for the year andÂ the net advances positionÂ will be materiallyÂ mis-stated. Hence, weÂ consider this as a Key AuditÂ Matter.

The audit was focused on income recognition, assetÂ classification andÂ provisioning pertaining toÂ advances. The matter hasÂ been addressed as follows:

â¢ Â Â Â Tested the design andÂ operating effectiveness ofÂ the Key controls of theÂ system of application,Â process of approval,Â recording, monitoring, andÂ recovery of loans, overdueÂ and stressed accounts,Â identification of NPA,Â provision for NPA includingÂ verification of valuationÂ reports of experts forÂ primary and collateralÂ securities based on theÂ understanding of theÂ prudential guidelines andÂ overall organizational ITÂ framework of the Bank andÂ its communication throughÂ various circulars andÂ reports.

â¢ Â Â Â Evaluated the InternalÂ Controls over sanctioning,Â disbursement, monitoringÂ process, considered systemÂ overrides or bypasses toÂ controls of advances,Â evaluated throughÂ supervisory frameworkÂ such as Internal Audit,Â Credit Audit, ConcurrentÂ Audit, Systems Audit, asÂ well as Internal Check andÂ operational existence andÂ effectiveness of suchÂ framework as per theÂ policies and procedures ofÂ the bank and in complianceÂ with prudential guidelines.Â Also reviewed approval ofÂ sanctions as per Bank'sÂ credit Policy andÂ performance of CreditÂ Assessments and controls.

â¢ Â Â Â Tested samples ofÂ Performing Assets andÂ assessed the application ofÂ IRAC Norms, as prescribedÂ by RBI, to ensureÂ compliance of the same.

Sr.

Key Audit Matters

How our Audit procedures addressedÂ the Key Audit Matters

â¢ Â Â Â Examined early warningÂ signal reports, otherÂ exceptional reportsÂ generated by the Bank forÂ the purpose of identifyingÂ potential NPA and stepsÂ taken for monitoring ofÂ such accounts includingÂ red flagged accounts toÂ overcome assessed risksÂ and ensure effectiveÂ implementation of riskÂ management and relatedÂ controls.

â¢ Â Â Â Adopted a framework ofÂ carrying out detailedÂ verification of corporateÂ wholesale (includingÂ Consortium, Pool BuyoutÂ and other large borrowers)Â on sample basis by way ofÂ review of collateralÂ documents includingÂ valuation reports, dueÂ diligence report, servicingÂ Agreement, deed ofÂ assignment, JLA andÂ External Credit ratingÂ reports to assess and focusÂ on larger exposures of theÂ Bank and mitigating theÂ areas of emerging risk.

â¢ Â Â Â Discussed with the SeniorÂ Management andÂ performed our ownÂ assessment includingÂ internal and externalÂ macroeconomic factorsÂ and testing the timelinesÂ and the accuracy of riskÂ assessment and riskÂ grading as per the Bank'sÂ lending policies, IRACÂ Norms and in accordanceÂ with Government Policies.

â¢ Â Â Â Examined the RetailÂ advances portfolio of theÂ Bank on sample basis toÂ ensure effective monitoringÂ and implementation ofÂ IRAC norms includingÂ income recognition,Â provisioning for such loans.Â The Bank has adopted LoanÂ Life Cycle ManagementÂ System for retail loansÂ which monitors, controlsÂ the retail portfolio of theÂ Bank and is tested for itsÂ effective implementationÂ and performance.

Sr.

Key Audit Matters

How our Audit procedures addressedÂ the Key Audit Matters

â¢ Â Â Â Tested the completenessÂ and accuracy of the dataÂ from the underlying sourceÂ systems, tested theÂ automated calculation andÂ evaluated the bank'sÂ oversight of the portfolio.

â¢ Â Â Â Reviewed the Bank'sÂ process for grantingÂ moratorium and/orÂ restructuring to borrowersÂ as per the RelevantÂ regulatory PackageÂ announced by RBI duringÂ the financial year. WeÂ tested the completenessÂ and accuracy of data usedÂ for computing generalÂ provisions in line withÂ regulatory packageÂ announced by RBI.

â¢ Â Â Â Examined the adequacyÂ and appropriateness ofÂ disclosures as per theÂ relevant RBI requirementsÂ relating to NPA andÂ applicable AccountingÂ Standards required to beÂ made in accordance withÂ Banking Regulation Act andÂ RBI Circulars.

â¢ Â Â Â Reviewed the reliability,Â effectiveness and accuracyÂ of manual interventions,Â wherever it has come to ourÂ notice, on test check basis.

â¢ Â Â Â Relied on theÂ reports/returns and workÂ done by other StatutoryÂ Branch Auditors (SBA) inÂ cases of branches notÂ visited by us to get anÂ overall comfort withÂ respect to overallÂ compliance in accordanceÂ with SA 600 - Using theÂ Work of Another Auditor.

â¢ Â Â Â Reviewed the work doneÂ by other experts likeÂ independent valuers,Â Lawyers, Legal Experts andÂ other such professionalsÂ who have rendered servicesÂ to the Bank, in accordanceÂ with SA 620 Using the WorkÂ of an Auditor's Expert.

Sr.

Key Audit Matters

How our Audit procedures addressedÂ the Key Audit Matters

Classification and Valuation of Investments:

(Refer Note No. 3 of Schedule 17 of SignificantÂ Accounting policies to theÂ Standalone FinancialÂ Statements)

Investments are classified into Held for Trading (HFT),Â Available for Sale (AFS) andÂ Held to Maturity (HTM)Â categories at the time ofÂ purchase. InvestmentsÂ intended to be held tillÂ maturity are classified asÂ HTM Investments.Â Classification ofÂ Investments, valuation andÂ provisioning thereof areÂ based on RBI guidelines.

Compliance of Investment Portfolio as per guidelinesÂ issued by RBI is mandatoryÂ and involves managementÂ judgement in determiningÂ the value of bonds,Â debentures and otherÂ securities based on theÂ policy and the modelÂ adopted by the Bank.

Impact of Impairment assessment is havingÂ overall significance to theÂ financial results of theÂ Bank.

Interest Income from Investment of the BankÂ comprises 18.99% of theÂ total income. In view ofÂ these significant pointsÂ including assessment ofÂ non performingÂ Investments and provisionsÂ we have identified thisÂ aspect as a Key AuditÂ Matter.

Our audit approach towards investmentÂ portfolio with reference toÂ the RBI Circulars / directivesÂ included a combination ofÂ test of the design,Â implementation, andÂ operating effectiveness ofÂ internal controls, relatedÂ process and substantiveÂ procedures in relation toÂ classification, valuation,Â independent priceÂ verification, identificationÂ of non-performingÂ investments (NPIs),Â provisioning/depreciationÂ related to Investments.

Examined the investment agreements / term sheetsÂ entered into during theÂ current year, on a sampleÂ basis, to understand theÂ relevant investment termsÂ and identify any conditionsÂ that were relevant to theÂ valuation of financialÂ instruments.

For the selected sample of investments, tested theÂ accuracy, completenessÂ and compliance with theÂ RBI guidelines andÂ directives by re-performingÂ valuation for each categoryÂ of the security. SamplesÂ were selected in such a wayÂ that all the categories ofÂ investments (based onÂ nature of security) wereÂ covered. Carried out on testÂ check basis independentÂ valuation exercise ofÂ unquoted investments onÂ the basis of prescribedÂ procedures in terms of theÂ RBI guidelines.

Assessed and evaluated the process of identification ofÂ NPIs and correspondingÂ reversal of income andÂ creation of provision.Â Carried out substantiveÂ audit procedures toÂ recompute independentlyÂ the provision to beÂ maintained andÂ depreciation to be withÂ provided in accordance theÂ RBI guidelines andÂ directives of the RBI,Â selected samples from theÂ investments in eachÂ category and tested forÂ NPIs as per the RBIÂ guidelines and recomputedÂ the provision to be inÂ maintained accordanceÂ with the RBI Circular forÂ those selected sample ofÂ NPIs.

Sr.

Key Audit Matters

How our Audit procedures addressedÂ the Key Audit Matters

Verified Investment portfolio on sample basisÂ and performed variousÂ substantive analyticalÂ procedures inÂ determination of Income,Â gain / loss on sale andÂ tested the controlsÂ implemented by the BankÂ in recognizing the profit /Â loss to profit and lossÂ account.

Reviewed the reports of the internal audits, concurrentÂ audits etc. conducted byÂ the bank.

Ensured that adequate disclosures have beenÂ made by way of Notes toÂ the financial statements asÂ mandated by the RBIÂ guidelines.

Information Technology Systems and ControlÂ Framework:

The Bank's key business objective is determinedÂ evaluated, controlled,Â monitored, implementedÂ through complex ITÂ architecture to support highÂ volume of businessÂ operation by automationÂ and application which areÂ significant towards BankingÂ business and plays a majorÂ role as a backbone inÂ achieving the BusinessÂ Objective.

The Bank's financial accounting process inÂ respect of recognition ofÂ Income, classification ofÂ Assets through IRAC NormsÂ and evaluating theÂ performance of the Bank andÂ producing the desiredÂ output through variousÂ application and other ITÂ general controls to ensureÂ the required businessÂ Output and helps us to arriveÂ at the Audit conclusion toÂ ensure quality performanceÂ Financial & AccountingÂ Processes.

Information Technology forms an integral part ofÂ operating requirements ofÂ the Bank by way of variousÂ applications, general,Â software controls andÂ requires understanding ofÂ various systems andÂ procedures in evaluatingÂ the Risk based andÂ business centricÂ requirements of the Bank.

We have reviewed the various IT policies andÂ procedures including userÂ management, changeÂ management, systemÂ security, incidentÂ management, physical andÂ environment security,Â standard operatingÂ procedures, Segregation ofÂ duty, BCP, DRP, serviceÂ level agreements, securityÂ policies to ensure thatÂ these are in line withÂ business requirements ofÂ the Bank and to complyÂ with government and RBIÂ regulations.

We have adopted various techniques such as enquiry,Â review of documentation,Â record, reports,Â observation, and reÂ performance of variousÂ application controls byÂ taking adequate samples ofÂ instances for our test. WeÂ have also tested validationÂ checks using negativeÂ testing technique.

Sr.

Key Audit Matters

How our Audit procedures addressedÂ the Key Audit Matters

We have identified various application and controlÂ framework inÂ implementing variousÂ products and schemesÂ which covers majority ofÂ Bank's business and henceÂ we consider InformationÂ Technology Systems andÂ Control as a Key AuditÂ Matter.

We have tested various compensating controls andÂ performed alternateÂ procedures which wereÂ necessary and gathered aÂ comprehensiveÂ understanding of ITÂ applications landscapeÂ implemented by the Bank.Â It was followed by processÂ understanding mapping ofÂ application to the sameÂ and understandingÂ financial risk posed byÂ people, process andÂ technology.

We have also assessed areas including passwordÂ policies, securityÂ configuration, systemÂ interface controls overÂ changes to applicationsÂ and databases and thatÂ business users and controlsÂ to ensure that developersÂ and production support didÂ not have access to changeÂ applications, the operatingÂ systems or databases in theÂ production environment toÂ ensure proper segregationÂ of duties is in place as perÂ the SOP.

We have tested certain critical aspects of cyberÂ security on networkÂ security managementÂ mechanism, operationalÂ security of key informationÂ infrastructure, data andÂ client informationÂ management, monitoringÂ and emergencyÂ management throughÂ certain data drill conductedÂ by the Management andÂ scrutinised by us andÂ comparing the requiredÂ results.

We have verified the testing report carried outÂ by the Management on riskÂ of implementation ofÂ security control in a moreÂ holistic, comprehensiveÂ way, ensuring that allÂ business decisions areÂ based on proper RiskÂ assessment andÂ management consideringÂ the overall effect ofÂ uncertainties on the Bank'sÂ Objective.

Sr.

Key Audit Matters

How our Audit procedures addressedÂ the Key Audit Matters

Provisions and Contingent Liability:

Assessment of Provisions and Contingent Liability inÂ respect of certain litigationsÂ on various claims filed byÂ other parties notÂ acknowledged as debtÂ (Note No. 10 of ScheduleÂ 17 and Note No. 16 ofÂ Schedule 18)

There is high level of judgement required inÂ estimating the level ofÂ provisioning. The Bank'sÂ assessment is supported byÂ the facts of matter, theirÂ own judgement, pastÂ experience, and adviceÂ from legal andÂ independent expertsÂ wherever consideredÂ necessary. Accordingly,Â unexpected adverseÂ outcomes may significantlyÂ impact the Bank's reportedÂ profit and state of affairsÂ presented in Balance Sheet.

We determined the above area as a Key Audit MatterÂ in view of associatedÂ uncertainty relating toÂ outcome of these mattersÂ which requires applicationÂ of judgement inÂ interpretation of Law.

We have obtained an understanding of InternalÂ Controls relevant to theÂ audit in order to design ourÂ audit procedures that areÂ appropriate in theÂ circumstances.

Understanding the current status of the litigations / taxÂ assessments, examiningÂ recent orders andÂ communications receivedÂ from various tax authoritiesÂ / judicial forums and followÂ up actions thereon;

Evaluated the merit of the subject matter underÂ consideration withÂ reference to the groundsÂ presented therein andÂ available independent legalÂ / tax advice includingÂ opinion of experts. ReviewÂ and analysis of evaluationÂ of the contentions of theÂ Bank through discussions,Â collection of details of theÂ subject matter underÂ consideration, the likelyÂ outcome and consequentÂ potential outflows on thoseÂ issues.

Verified the disclosures related to significantÂ litigations and taxationÂ matters.

Accordingly, our audit was focused on analysing theÂ facts of subject matterÂ under consideration andÂ judgements /Â interpretation of lawÂ involved.

Information other than the Standalone Financial Statements and Auditors' Report thereon

5) The Bank's Board of Directors is responsible for otherÂ information. The other information comprises theÂ information other than Standalone FinancialÂ Statements and our Auditors' Report thereon and theÂ Pillar III disclosure under the Basel III disclosure.

Our opinion on the Standalone Financial Statements does not cover the other information and Pillar 3Â disclosure under the Basel III Disclosure and we do notÂ express any form of assurance conclusion thereon

In connection with our Audit of the Standalone Financial Statements, our responsibility is to read theÂ other information and, in doing so, consider whetherÂ the other information is materially inconsistent with theÂ Standalone Financial Statements or our knowledgeÂ obtained during the course of audit or otherwiseÂ appears to be materially misstated.

When we read the other information and based on the work we perform, if we conclude that there is a materialÂ misstatement therein, we are required to report thatÂ fact to those charged with governance. We haveÂ nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone FinancialÂ Statements

6) Â Â Â The Bank's Board of Directors is responsible withÂ respect to the preparation of these StandaloneÂ Financial Statements that give a true and fair view of theÂ financial position, financial performance and cash flowsÂ of the Bank in accordance with the accountingÂ principles generally accepted in India, including theÂ Accounting Standards issued by ICAI, and provisions ofÂ Section 29 of the Banking Regulation Act, 1949 andÂ circulars and guidelines issued by the Reserve Bank ofÂ India ('RBI') from time to time. This responsibility alsoÂ includes maintenance of adequate accounting recordsÂ in accordance with the provisions of the Act forÂ safeguarding of the assets of the Bank and forÂ preventing and detecting frauds and otherÂ irregularities; selection and application of appropriateÂ accounting policies; making judgments and estimatesÂ that are reasonable and prudent; and design,Â implementation and maintenance of adequate internalÂ financial controls, that were operating effectively forÂ ensuring the accuracy and completeness of theÂ accounting records, relevant to the preparation andÂ presentation of the standalone financial statementsÂ that give a true and fair view and are free from materialÂ misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Bank'sÂ ability to continue as a going concern, disclosing, asÂ applicable, matters related to going concern and usingÂ the going concern basis of accounting unlessÂ management either intends to liquidate the Bank or toÂ cease operations, or has no realistic alternative but toÂ do so.

The Board of Directors is also responsible for overseeing the Bank's Financial Reporting process.

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

7) Â Â Â Our objectives are to obtain reasonable assuranceÂ about whether the financial statements as a whole areÂ free from material misstatement, whether due to fraudÂ or error, and to issue an auditors' report that includesÂ our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordanceÂ with SAs will always detect a material misstatementÂ when it exists. Misstatements can arise from fraud orÂ error and are considered material if, individually or inÂ the aggregate, they could reasonably be expected toÂ influence the economic decisions of users taken on theÂ basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professionalÂ skepticism throughout the audit. We also:

â¢ Â Â Â Identify and assess the risks of material misstatementÂ of the Standalone Financial Statements, whether due toÂ fraud or error, design and perform audit proceduresÂ responsive to those risks, and obtain audit evidenceÂ that is sufficient and appropriate to provide a basis forÂ our opinion. The risk of not detecting a materialÂ misstatement resulting from fraud is higher than forÂ one resulting from error, as fraud may involve collusion,Â forgery, intentional omissions, misrepresentations, orÂ the override of internal control.

â¢ Â Â Â Obtain an understanding of Internal Control relevantÂ to the Audit in order to design Audit procedures thatÂ are appropriate in the circumstances.

â¢ Â Â Â Evaluate the appropriateness of accounting policiesÂ used and the reasonableness of accounting estimatesÂ and related disclosures made by management.

â¢ Â Â Â Conclude on the appropriateness of management'sÂ use of the going concern basis of accounting and,Â based on the audit evidence obtained, whether aÂ material uncertainty exists related to events orÂ conditions that may cast significant doubt on theÂ bank's ability to continue as a going concern. If weÂ conclude that a material uncertainty exists, we areÂ required to draw attention in our auditors' report to theÂ related disclosures in the Standalone FinancialÂ Statements or, if such disclosures are inadequate, toÂ modify our opinion. Our conclusions are based on theÂ audit evidence obtained up to the date of our auditors'Â report. However, future events or conditions may causeÂ the bank to cease to continue as a going concern.

â¢ Evaluate the overall presentation, structure and content of the Financial Statements, including theÂ disclosures, and whether the Financial StatementsÂ represent the underlying transactions and events in aÂ manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or inÂ aggregate, makes it probable that the economicÂ decisions of a reasonably knowledgeable user ofÂ Standalone Financial Statements may be influenced.Â We consider quantitative materiality and qualitativeÂ factors in (i) planning the scope of our Audit work andÂ evaluating the results of our work; and (ii) to evaluateÂ the effect of identified misstatements in the StandaloneÂ Financial Statements.

We communicate with those charged with governance regarding, among other matters, the planned scopeÂ and timing of the audit and significant audit findings,Â including any significant deficiencies in internal controlÂ that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethicalÂ requirements regarding independence, and toÂ communicate with them all relationships and otherÂ matters that may reasonably be thought to bear on ourÂ independence, and where applicable, relatedÂ safeguards.

From the matters communicated with those charged with governance, we determine those matters that wereÂ of most significance in the audit of the FinancialÂ Statements of the current period and are therefore theÂ key audit matters.

We describe these matters in our auditors' report unless law or regulation precludes public disclosureÂ about the matter or when, in extremely rareÂ circumstances, we determine that a matter should notÂ be communicated in our report because the adverseÂ consequences of doing so would reasonably beÂ expected to outweigh the public interest benefits ofÂ such communication.

Other Matters

8) We did not audit the financial statements /Â information of 524 branches included in the StandaloneÂ Financial Statements of the Bank whose FinancialÂ Statements / Financial Information reflect totalÂ advances of Rs. 56896.06 crores as at March 31, 2024Â and total revenue of Rs. 5781.46 crores for the yearÂ ended on that date, as considered in the StandaloneÂ Financial Statements. These branches cover 27.94% ofÂ advances, 43.14% of deposits and 39.74% ofÂ non-performing assets as at March 31, 2024 andÂ 24.61% revenue for the year ended March 31,2024.

The Financial Statements / Information of these branches have been audited by the Branch AuditorsÂ whose reports have been furnished to us, and ourÂ opinion in so far as it relates to the amounts andÂ disclosures included in respect of branches, is basedÂ 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

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

Subject to the limitations of the audit indicated in paragraphs 6 to 8 above and as required by sub sectionÂ 3 of section 30 of the Banking Regulation Act, 1949, andÂ subject also to the limitations of disclosure requiredÂ therein, we report that:

a) We have obtained all the information andÂ explanations which, to the best of our knowledge andÂ belief, were necessary for the purposes of our audit andÂ have found them to be satisfactory.

b) Â Â Â The transactions of the Bank, which have come to ourÂ notice, have been within the powers of the Bank; and

c) Â Â Â The returns received from the offices and branches ofÂ the Bank have been found adequate for the purposes ofÂ our audit.

10) As required by letter no. DOS.ARG. No.6270/08.91.001/2019- 20 dated March 17, 2020 onÂ "Appointment of Statutory Central Auditors (SCAs) inÂ Public Sector Banks - Reporting obligations for SCAsÂ from FY 2019-20", read with subsequentÂ communications dated May 19, 2020 issued by the RBI,Â we further report on the matters specified in paragraphÂ 2 of the aforesaid letter as under:

a) In our opinion, the aforesaid Standalone FinancialÂ Statements comply with the Accounting StandardsÂ issued by ICAI, to the extent they are not inconsistentÂ with the accounting policies prescribed by the RBI.

b) Â Â Â There are no observations or comments on financialÂ transactions or matters which have any adverse effectÂ on the functioning of the bank.

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

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

e) Â Â Â Our audit report on the adequacy and operatingÂ effectiveness of the Bank's internal financial controlsÂ over financial reporting is given in Annexure A to thisÂ report. Our report expresses an unmodified opinion onÂ the Bank's internal financial controls over financialÂ reporting with reference to the Standalone FinancialÂ Statements as at March 31,2024.

11) We further report that:

a) in our opinion, proper books of account as requiredÂ by law have been kept by the Bank so far as it appearsÂ from our examination of those books and properÂ returns adequate for the purposes of our audit haveÂ been received from branches not visited by us;

b) Â Â Â the Balance Sheet, the Profit and Loss Account andÂ the Statement of Cash Flows dealt with by this reportÂ are in agreement with the books of accounts and withÂ the returns received from the branches not visited byÂ us;

c) Â Â Â the reports on the accounts of the branch officesÂ audited by branch auditors of the Bank under sectionÂ 29 of the Banking Regulation Act, 1949 have been sentÂ to us and have been properly dealt with by us inÂ preparing this report; and

d) Â Â Â in our opinion, the Balance Sheet, the Profit and LossÂ Account and the Statement of Cash Flows comply withÂ the applicable accounting standards, to the extent theyÂ are not inconsistent with the accounting policiesÂ prescribed by RBI.

Mar 31, 2023

Report on Audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying standalone financial statements of Bank of Maharashtra, which comprise the Balance Sheet as at 31^st March 2023, the Profit and Loss Account and the Statement of Cash Flows for the year then ended, and notes to financial statements including a summary of significant accounting policies and other explanatory information in which are included the returns for the year ended on that date of the Head Office, 42 Zonal Offices and 20 branches and one Treasury and International Banking Division audited by us, and 576 branches audited by Statutory Branch Auditors of the Bank.

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, the Profit and Loss Account and the Statement of Cash Flows are the returns from 1627 branches which have not been subjected to audit. These unaudited branches account for 22.94% of advances, 44.89% of deposits, 15.91% of interest income and 43.56% interest expenses.

b. the Profit and Loss Account, read with the notes thereon shows a true balance of profit for the year ended 31 ^stMarch, 2023 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 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 Institute of Chartered Accountants of India 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 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 (âRBIâ) 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

3. We draw attention to Note No. 4(h) in Schedule 18 of the Financial Statements where Bank continues to hold COVID-19 related provision of Rs. 1200 Crore as contingency provision as on 31^st March 2023.

Our Opinion is not modified in respect of this matter.

Key Audit Matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the year ended March 31 2023. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters prescribed below to be the key audit matters to be communicated in our report.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Classification of Advances, Provisioning and other relevant compliance of RBI Guidelines:

(Refer Note No. 4 of Schedule 17 of Significant Accounting Policy to the Standalone Financial Statements)

The Bank''s portfolio comprises of Net Advances of Rs. 171220.67 Crores as at March 31,2023 comprising of wholesale and retail banking. As required by IRAC Norms, guidelines issued by RBI and other circulars, notification and directives issued by RBI, the Bank has classified Advances and has made appropriate provisions in accordance with such guidelines.

Income from Advances constitutes 63.18% of Total Income. The provision in respect of Non-Performing Asset is Rs. 2253.10 Crores which constitutes 14.46% of the total expenditure.

The carrying value of these advances (net of provisions) may be materially misstated if, either individually or in aggregate the IRAC Norms, are not properly followed. The Bank has significant Credit Risk Exposure to a large number of borrowers across a wide range of borrowers, products, industries and

We have tested the design and operating effectiveness of the Key controls of the system, application, process over approval, recording, monitoring, and recovery of loans, overdue and stressed accounts, identification of NPA, Provision for NPA including verification of valuation reports of experts for primary and collateral securities based on the understanding of the prudential guidelines and overall organisational IT framework of the Bank and its communication through various circulars and reports.

We have evaluated the Internal Controls over sanctioning, monitoring the process and account for system overrides or bypasses to controls of advances, supervisory framework such as Internal Audit, Credit Audit, Concurrent Audit, Systems Audit, as well as Internal Check, effectiveness of such framework as per the policies and procedures of the bank and in compliance with prudential guidelines.

We have tested samples of Performing Assets and assessed the application of IRAC Norms, as prescribed by RBI, individually to ensure compliance of the same. Also reviewed approval of sanctions against Bank''s credit Policy and performance of Credit Assessments and controls.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

there is a high degree of complexity, uncertainty, judgement involved in recoverability of Advances, estimation of provisions thereon and identification of accounts to be written off. If such prudential guidelines are not followed by the Bank the profit for the year and the net advances position will be materially mis-stated. Hence, we consider this as a Key Audit Matter.

Examined early warning signal reports, other exceptional reports generated by the Bank for the purpose of identifying potential NPA and steps taken for monitoring of such accounts including red flagged accounts to overcome assessed risks and ensure effective implementation of risk management and related controls.

We have adopted a framework of carrying out detailed verification of corporate wholesale (including Consortium, Pool Buyout and other large borrowers) by way of review of collateral documents including valuation reports, due diligence report, servicing Agreement, deed of assignment, JLA and External Credit rating reports to assess and focus on larger exposures of the Bank and mitigating the areas of emerging risk. We have discussed with the Senior Management and performed our own assessment including internal and external macroeconomic factors and testing the timelines and the accuracy of risk assessment and risk grading against the Bank''s lending policies, IRAC Norms and in accordance with Government Policies.

We have examined the Retail advances portfolio of the Bank on sampling basis to ensure effective monitoring and implementation of IRAC norms including income recognition, provisioning for such loans. The Bank has adopted Loan Life Cycle Management System for retail loans which effectively monitors, controls, the retail portfolio of the Bank and is tested for its effective implementation and performance. We have also tested the completeness and accuracy of the data from the underlying source systems, tested the automated calculation and evaluated the bank''s oversight of the portfolio.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

We have examined the adequacy and appropriateness of disclosures against the relevant RBI requirements relating to NPA and applicable Accounting Standards required to be made in accordance with Banking Regulation Act and RBI Circulars.

We have also placed reliance on the Audit reports of the other Statutory Branch Auditors, with whom we have made specific communications.

Classification and Valuation of Investments:

(Refer Note No. 3 of Schedule 17 of Significant Accounting policies to the Standalone Financial Statements)

Investments are classified into Held for Trading (HFT), Available for Sale (AFS) and Held to Maturity (HTM) categories at the time of purchase. Investments intended to be held till maturity are classified as HTM Investments. Classification of Investments, valuation and provisioning thereof are based on RBI guidelines.

Impact of Impairment assessment is having overall significance to the financial results of the Bank.

Interest Income from Investment of the Bank comprises 23.47% of the total income. In view of these significant points including assessment of non performing Investments and provisions we have identified this aspect as a Key Audit Matter.

We have tested the design, implementation, and operating effectiveness of management''s key internal controls of the Bank towards classification, valuation process, independent price verification, including the Bank''s review and approval of the estimates and assumptions used for the valuation including key authorisation and data input controls.

We have examined the investment agreement / term sheet entered during the current year, on a sample basis, to understand the relevant investment terms and identify any conditions that were relevant to the valuation of financial instruments.

Our Audit approach towards Investment Portfolio of the bank is based on compliance and requirements of RBI circulars and directives in relation to valuation, classification, identification of Non-Performing Investments, Provision for Investments and relevant policies and procedures adopted by the Bank including effective implementation of Internal control system and related process.

We tested accuracy and completeness of adoption of RBI guidelines and directions by reperforming valuations for each category of the securities. Various sampling techniques were adopted to ensure coverage of risk weighted Investments based on the nature of security and were tested for its carrying value in the Financial Statements of the Bank.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

We have verified the non performing investments of the bank by the method of independent verification of provisions and depreciation in accordance with RBI guidelines and confirmed the compliance of such guidelines. We have reviewed the application / conversion of interest / principal towards a separate List of Investments and checking whether these Investments are classified as NPI. The samples selected for the same covers the majority categories of Investments to cover the material impact on the income of the Bank.

We have verified Investment portfolio of AFS and HFT on sample basis and performed various substantive analytical procedures in determination of Income, gain / loss on sale and tracked the controls implemented by the Bank through credit / debit in the profit and loss account.

We have tested the portfolio of HTM and made detailed verification of transaction of purchase / sale of such HTM and controls implemented by the TIBD in recognizing the profit / loss to profit and loss account and subsequent appropriation to Capital Reserve Account.

We have examined the adequacy and appropriateness of depreciation and Impairment of each category of Investment and recomputed the provision to be maintained in accordance with the RBI Guidelines and ensured that adequate disclosures have been made in Notes to Accounts.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Information Technology Systems and Control Framework:

The Bank''s key business objective is determined evaluated, controlled, monitored, implemented through complex IT architecture to support high volume of business operation by automation and application which are significant towards Banking business and plays a major role as a backbone in achieving the Business Objective.

The Bank''s financial accounting process in respect of recognition of Income, classification of Assets through IRAC Norms and evaluating the performance of the Bank and producing the desired output through various application and other IT general controls to ensure the required business Output and helps us to arrive at the Audit conclusion to ensure quality performance Financial & Accounting Processes.

Information Technology forms an integral part of operating requirements of the Bank by way of various applications, general, software controls and requires understanding of various systems and procedures in evaluating the Risk based and business centric requirements of the Bank.

We have reviewed the various IT policies and procedures including user management, change management, system security, incident management, physical and environment security, standard operating procedures, Segregation of duty, BCP, DRP, service level agreements, security policies to ensure these are in line with business requirements of the Bank and to comply with government and RBI regulations.

We have adopted various techniques such as enquiry, review of documentation, record, reports, observation, and re performance of various application controls by taking adequate samples of instances for our test. We have also tested validation checks using negative testing technique.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

We have identified various application and control framework in implementing various products and schemes which covers majority of Bank''s business and hence we consider Information Technology Systems and Control as a Key Audit Matter.

We have tested various compensating controls and performed alternate procedures which were necessary and gathered a comprehensive understanding of IT applications landscape implemented by the Bank. It was followed by process understanding mapping of application to the same and understanding financial risk posed by people, process and technology.

We have also assessed areas including password policies, security configuration, system interface controls over changes to applications and databases and that business users and controls to ensure that developers and production support did not have access to change applications, the operating systems or databases in the production environment to ensure proper segregation of duties is in place as per the SOP.

We have tested certain critical aspects of cyber security on network security management mechanism, operational security of key information infrastructure, data and client information management, monitoring and emergency management. through certain data drill conducted by the Management and scrutinised by us and comparing the required results.

We have also assessed the requirement of the implementation of Business Continuity Plan initiated by the Bank due to impact of COVID -19 pandemic and ensured sustainability and growth under COVID -19 circumstances.

We have verified the testing report carried out by the Management on risk of implementation of security control in a more holistic, comprehensive way, ensuring that all business decisions are based on proper Risk assessment and management considering the overall effect of uncertainties on the Bank''s Objective.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Provisions and Contingent Liability:

We determined the above area as a Key Audit Matter in view of associated uncertainty relating to outcome of these matters which requires application of judgement in interpretation of Law.

We have obtained an understanding of Internal Controls relevant to the audit in order to design our audit procedures that are appropriate in the circumstances.

Verified the disclosures related to significant litigations and taxation matters.

Accordingly, our audit was focused on analysing the facts of subject matter under consideration and judgements / interpretation of law involved.

Information other than the Standalone Financial Statements and Auditorsâ Report thereon

5. The Bank''s Board of Directors is responsible for other information. The other information comprises the information other than Standalone Financial Statements and our Auditors'' Report thereon and the Pillar III disclosure under the Basel III disclosure.

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 during the course of audit or otherwise appears to be materially misstated.

When we read the other information and based on the work we perform, if we conclude that there is a material misstatement therein, we are required to report that fact to those charged with governance.

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 ICAI, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBI'') from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

The Board of Directors is also responsible for overseeing the Bank''s Financial Reporting process.

Auditorsâ Responsibilities for the Audit of the Standalone

Financial Statements

7. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors'' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

â¢ Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

â¢ Obtain an understanding of Internal Control relevant to the Audit in order to design Audit procedures that are appropriate in the circumstances.

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

â¢ 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 auditors'' report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors'' report. However, future events or conditions may cause the bank to cease to continue as a going concern.

â¢ Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters.

Other Matters

8. We did not audit the financial statements / information of 576 branches included in the Standalone Financial Statements of the Bank whose Financial Statements / Financial Information reflect total advances of Rs. 63295.49 crores as at March 31,2023 and total revenue of Rs. 5151.98 crores for the year ended on that date, as considered in the Standalone Financial Statements. These branches cover 32.49% of advances, 44.35% of deposits and 39.64% of non-performing assets as at March 31, 2023 and 28.34% revenue for the year ended March 31, 2023. The Financial Statements / Information of these branches 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

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

Subject to the limitations of the audit indicated in paragraphs 6 to 8 above and as required by sub section 3 of section 30 of the Banking Regulation Act, 1949, 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 âAppointment of Statutory Central Auditors (SCAs) in Public Sector Banks - Reporting obligations for SCAs from FY 2019-20â, read with subsequent communications 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 the 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 is given in Annexure A to this report. Our report expresses an unmodified opinion on the Bank''s internal financial controls over financial reporting with reference to the Standalone Financial Statements as at March 31,2023.

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 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 accounts 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 RBI.

Mar 31, 2022

The President of India and Members ofâBANK OF MAHARASHTRAâ

Opinion

1. We have audited the accompanying standalone financial statements of Bank of Maharashtra, which comprise the Balance Sheet as at 31^st March 2022, the Profit and Loss Account and the Statement of Cash Flows for the year then ended, and notes to financial statements including a summary of significant accounting policies and other explanatory information in which are included the returns for the year ended on that date of the Head Office, 40 Zonal Offices and 20 branches and 1 Treasury and International Banking Division audited by us, and 778 branches audited by Statutory Branch Auditors of the Bank. 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, the Profit and Loss Account and the Statement of Cash Flows are the returns from 1239 branches which have not been subjected to audit. These unaudited branches account for 14.52% of advances, 32.61% of deposits, 9.09% of interest income and 37.31% 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 gives a true and fair view of the state of affairs of the Bank as at 31^stMarch, 2022;

b. the Profit and Loss Account, read with the notes thereon shows a true balance of profit for the year ended 31^st March, 2022 and

c. the Cash Flow Statement gives a true and fair view of the cash flows for the year ended 31^st March, 2022.

Basis for Opinion

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

3. A) We draw attention to Note no. 4(h) in Schedule 18 of the Financial Statements which explains the extent to which COVID-19 pandemic will impact the Bank''s operations and financial results are dependent on future developments, which are highly uncertain. The Bank is continuously monitoring the economic conditions and any impact on the Bank''s Operations and financial results is uncertain.

B) We draw attention to Note no. 17 in Schedule 18 of the Financial Statements wherein the Board of the Bank has proposed dividend of Rs. 0.50 paise per equity share (Face Value of Rs. 10/- per share) for the Financial Year 2021-22 vide its Board Meeting dated May, 25 2022 subject to requisite approval from Shareholders. Consequent to proposed dividend, the Financial Statements have been revised as required by the statute. Our Audit procedures are restricted solely to the amendment to the Financial Statements in accordance with SA 560 issued by the ICAI.

Our Opinion is not modified in respect of this matter.

Key Audit Matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters prescribed below to be the key audit matters to be communicated in our report.

Sl.

No.

Key Audit Matters

How our audit procedures addressed the Key Audit Matters

Classification of Advances, Provisioning and other relevant compliance of RBI Guidelines:

(Refer Note No. 4 of Schedule 17 of Significant Accounting Policies to the Standalone Financial Statements)

The Bank''s portfolio comprises of NetAdvances of Rs.131170.44 Crores as at 31^st March, 2022 comprising of wholesale and retail banking. As required by IRAC Norms, guidelines issued by RBI and other circulars, notification and directives issued by RBI, the Bank has classified Advances and has made appropriate provisions in accordance with such guidelines.

We have evaluated the Internal Controls over sanctioning, monitoring the process and account for system overrides or bypasses to controls of

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Income from Advances constitutes 52.52% of Total Income. The provision in respect of Non-performing Asset is Rs. 2578.48 Crores which constitutes 17.76% of the total expenditure.

The carrying value of these advances (net of provisions) may be materially misstated if, either individually or in aggregate the IRAC Norms, are not properly followed.

The Bank has significant Credit Risk Exposure to a large number of borrowers across a wide range of borrowers, products, industries and there is a high degree of complexity, uncertainty, judgement involved in recoverability of Advances, estimation of provisions thereon and identification of accounts to be written off. If such prudential guidelines are not followed by the Bank the profit for the year and the net advances position will be materially mis-stated. Hence, we consider this as a Key Audit Matter.

advances, supervisory framework such as Internal Audit, Credit Audit, Concurrent Audit, Systems Audit, as well as Internal Check, effectiveness of such framework as per the policies and procedures of the bank and in compliance with prudential guidelines.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

grading against the Bank''s lending policies, IRAC Norms and in accordance with Government Policies.

We have reviewed the Bank''s process for granting moratorium and restructuring to borrowers as per the Regulatory Package announced by RBI. We tested the completeness and accuracy of data used for computing general provisions in line with regulatory package issued by RBI. With respect to additional provision made by the Bank on account of the impact of COVID 19 pandemic, we broadly reviewed the underlying assumptions and estimates used by the management for the same but as the extent of impact is dependent on future developments which are highly uncertain, we primarily relied on those assumptions and estimates, which are subject matter of periodic review by the Bank. Also we have relied on the compilation of the data of the restructured accounts at Head office based on the schedules audited by the statutory branch auditors.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

We have also placed reliance on the Audit reports of the other Statutory Branch Auditors, with whom we have made specific communications.

Classification and Valuation of Investments:

(Refer Note No. 3 of Schedule 17 of Significant Accounting policies to the Standalone Financial Statements)

Impact of Impairment assessment is having overall significance to the financial results of the Bank.

We have tested the design, implementation and operating effectiveness of management''s key internal controls of the Bank towards classification, valuation process, independent price verification, including the Bank''s review and approval of the estimates and assumptions used for the valuation including key authorisation and data input controls.

We have examined the investment agreement / term sheet entered into during the current year, on a sample basis, to understand the relevant investment terms and identify any conditions that were relevant to the valuation of financial instruments.

Our Audit approach towards Investment Portfolio of the bank is based on compliance and requirements of RBI circulars and directives in relation to valuation, classification, identification of Non Performing Investments, Provision for Investments and relevant policies and procedures adopted by the Bank including effective implementation of Internal control system and related process.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Interest Income from Investment of the Bank comprises 27.98% of the total income in view of these significant points including assessment of non performing Investments and provisions we have identified this aspect as a Key Audit Matter.

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Information Technology Systems and Control Framework:

We have tested various compensating controls and performed alternate procedures which were necessary and gathered a comprehensive

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

understanding of IT applications landscape implemented by the Bank. It was followed by process understanding mapping of application to the same and understanding financial risk posed by people, process and technology.

We have verified the testing report carried out by the Management on risk of implementation of security control in a more holistic, comprehensive way,

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

ensuring that all business decisions are based on proper Risk assessment and management considering the overall effect of uncertainties on the Bank''s Objective.

Provisions and Contingent Liability:

We determined the above area as a Key Audit Matter in view of associated uncertainty relating to outcome of these matters which requires application of judgement in interpretation of Law.

We have obtained an understanding of Internal Controls relevant to the audit in order to design our audit procedures that are appropriate in the circumstances.

Verified the disclosures related to significant litigations and taxation matters.

Accordingly, our audit was focused on analysing the facts of subject matter under consideration and judgements / interpretation of law involved.

Information other than the Standalone Financial Statements and Auditorsâ Report thereon

Sl.

No.

Key Audit Matters

How our Audit procedures addressed the Key Audit Matters

Modified Audit Procedures carried out in light of COVID-19 outbreak:

In view of the COVID-19 pandemic, lockdown and travel restrictions imposed by Central / State Government / Local Authorities at some of the branches and Zones during the period of our audit, the Bank too facilitated carrying out audit remotely. In some cases, audit could not be conducted by visiting the premises of some of the Branches and Zonal offices of the bank. As some of the auditors could not obtain audit evidence in person / physically and personal interactions with the officials at the Branches and Zonal offices, accordingly our Audit procedures were modified to carry out the Audit remotely.

We have identified such modified Audit Procedure as Key Audit Matter.

Due to the COVID-19 Pandemic, we carried out modified audit procedures to obtain reasonable assurance to form an audit opinion. To carry out modified audit procedure, the Bank has made available to us a customized intranet portals hosted on Bank''s network enabling us to access reports and documents we sought necessary for the purpose of Audit.

Our modified audit procedure included;

1. Conducted verification of necessary records / documents / CBS and other application software electronically through remote access / emails in respect of some of the Branches / zones of the Bank wherever physical access was prohibited due to COVID-19.

2. Obtained and carried out verification of scanned copies of documents, deeds, certificates, and other related records.

3. Made enquiries to obtain necessary audit evidence through video conferencing, dialogues, and discussions over phone calls / conference calls, emails, and similar communication channels.

4. Resolved our audit observations telephonically / through email instead of a face-to-face interaction with the designated officials.

5. The Bank''s Board of Directors are responsible for other information. The other information comprises the information other than Standalone Financial Statements and our Auditors'' Report thereon and the Pillar III disclosure under the Basel III disclosure. Our opinion on the Standalone Financial Statements does not cover the other information and Pillar 3 disclosure under the Basel III Disclosure 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 matters to ''Those charged with Governance''.

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 ICAI, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (âRBI'') 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 financial statements, management is 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 the Board of Directors either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors are also responsible for overseeing the Bank''s Financial Reporting process.

Auditorsâ Responsibilities for the Audit of the 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 Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

^ 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 auditors'' report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors'' report. However, future events or conditions may cause the bank to cease to continue as a going concern.

^ Evaluate the overall presentation, structure and content of the 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 Financial Statements of the current period and are therefore the key audit matters.

Other Matter

8. We did not audit the financial statements / information of 778 branches included in the Standalone Financial Statements of the Bank whose Financial Statements / Financial Information reflect total advances of Rs. 60536.11 crores as at March 31,2022 and total revenue of Rs. 4778.90 crores for the year ended on that date, as considered in the Standalone Financial Statements. The Financial Statements / Information of these branches have been audited by the Statutory Branch Auditors whose reports have been furnished to us, and in our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the report of such Statutory Branch Auditors. Further we did not audit the Financial Statements of 1239 branches included in the Standalone Financial Statements of the Bank whose Financial Statements reflect total advances of Rs. 19043.09 Crores as at March 31,2022 and total revenue of Rs.

1630.65 Crores for the year ended on that date as considered in the Standalone Financial Statements have been drawn by the management.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

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

10. Subject to the limitations of the audit indicated in paragraphs 6 to 9 above and as required by sub section 3 of section 30 of the Banking Regulation Act, 1949, 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.

11. As required by letter no. DOS.ARG.No.6270/08.91.001/2019-20 dated March 17, 2020 on âAppointment of Statutory Central Auditors (SCAs) in Public Sector Banks - Reporting obligations for SCAs from FY 2019-20â, 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:

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 sub-section (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.

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;

As per our report of even date attached.

kfiit Cimimi jt[f a

S^li>3iijSÂ»i: 108846[v sf^,3ii,i^-000560mil

mvO ciKiici)ij mivOlUlKiTkJij

for M/s. Rodi Dabir & Co. For M/s. S Bhandari & Co.

FRN:108846w FRN-000560C

Chartered Accountants Chartered Accountants

mftq 3iisii*i Â«rait mUq ni*iiii mjicb

Yllifloij YlliTlOlj

w. 121073 mtom^liil nr. 417124

!j[3nFsvT: 22121073AJNYE07811 ^[311^: 22417124AJNXPD4889

CA Aashish Badge CA Pramiti Pareek

Partner Partner

Membership No: 121073 Membership No: 417124

UDIN - 22121073AJNYE07811 UDIN - 22417124AJNXPD4889

Place : Pune

Date : 25^th May, 2022

Mar 31, 2019

The Members of Bank of Maharashtra

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the standalone financial statements of Bank of Maharashtra (âthe Bankâ), which comprise the Balance Sheet as at March 31, 2019, and the Statement of Profit and Loss and Statement of Cash Flows for the year then ended, and notes to the 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 and International Banking Division audited by us, 1283 branches audited by statutory branch auditors of the Bank. 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 573 branches which have not been subjected to audit. These unaudited branches account for 8.85% of advances.

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 (âthe Actâ),the requirements of the Reserve Bank of India, in the manner so required for Bank and give a true and fair view in conformity with the accounting principles generally accepted in India including accounting standards issued by The Institute of Chartered Accountants of India, of the state of affairs of the Bank as at March 31, 2019, and its loss and its cash flow for the year ended on that date.

Basis for opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAâs) issued by The Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the Auditorâs 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 the provisions 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.

Key Audit Matters

4. 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.

The Key Audit Matters in relation to audit of the Bank and description of auditorâs response are as follows:-

Key Audit Matter

Audit Procedure followed to address the Key Audit Matter

1. Compliance of guidelines of Reserve Bank of India on Income Recognition, Assets classification and Provisioning Norms on advances. Refer Note No. 4 of Schedule 17 Significant Accounting Policies.

The Income from Advances constitutes 52.97% of total income.

The provision in respect of NonPerforming asset is Rs.7,227

crores which constitutes 42.06% of the expenditure.

The Loans and Advances to borrowers constitutes 50.24% of total assets of the bank. These

advances are governed by Income Recognition and Asset Classification and Provisioning Framework (IRAC) issued by Reserve Bank of India.

Reserve Bank of India has issued these prudential guidelines from time to time by way of master circulars and subsequent notifications. Under the guidelines, income recognition, and provisioning in respect of a credit facility are based on its status of classification as performing or nonperforming. A credit facility becomes non-performing âwhen it ceases to generate income for a bankâ. Detailed guidelines have been laid down for determining the status of different kinds of credit facilities (term loans, cash credits and overdrafts, bills purchased and discounted, and other credit facilities) which are mandatory for bank for the purpose of recognition of income, classification of advances and provisioning thereof. The Bank classifies its advances on these norms which are also explained in the Note No. 4 of Schedule 17 Significant Accounting Policies.

Considering the nature of transactions, its magnitude, as well as regulatory requirements which include estimation, judgment and valuation of securities on materiality basis, audit of Income on Advances and Provisions thereof required significant efforts. The profit/ Loss for the year and the net advances position will be materially misstated if the prudential guidelines are not followed by the bank. Hence we have considered this as Key Audit Matter.

We have performed following substantive audit

procedures:-

- We have Understood and Tested design and operative effectiveness of the system for identification of NonPerforming Assets and its further classification. This involved understanding of the prudential guidelines and incorporating the same in the overall organisational and IT framework of the bank and its communication through various internal circulars and reports.

- We have evaluated Internal Controls over sanctioning and monitoring of advances, delegation of powers. Critically evaluated monitoring/ supervisory framework such as credit audit, concurrent audit and systems audit as well as internal check and balances and effectiveness of such framework for the purpose of compliance of prudential guidelines.

- We have done sample testing of financial as well as non-financial factors for identification of non-performing assets by observing conduct of the accounts, using standardised reports as well as running structured queries on the data sample especially to the branches allotted to us.

- Performed Sample verification of interest reversals and unrecovered Charges on identification of Non-Performing Asset.

- Communicated and made aware to Branch auditors, about IRAC related norms, process and verification guidelines while conducting the audit at branches.

- Ensured completeness and verification of Memorandum of Changes passed by Branch Auditors.

- Deliberated and critically assessed the security valuation, probability of recovery for the purpose of provisioning in sample cases.

- Understood and tested correctness on sample advances for Classification of Non-Performing Assets by the system in to Substandard, Doubtful, Loss as per extant prudential guidelines.

- Verified provisions on the non-performing assets based on IRAC classification at the rates adopted as per accounting policy.

2. Compliance of Investments of the Bank as per the guidelines issued by Reserve Bank of India. Investment form major share of the business of the bank we have considered this aspect as Key Audit Matter	We have performed following substantive audit procedures:- - Obtained list of investments as at reporting period from Bank and ascertained the completeness of the same by reconciling with the holding status in the SGL/ RBI holding statement, Demat statement etc. as applicable.
Valuation methodology adopted by the Bank.	- Checked the carrying amount of investments and ensured that the same is calculated on a consistent basis as per RBI guidelines. This is normally calculated by the Bankâs E-treasury system; hence on test basis we checked the calculation for ensuring accuracy. - In case wherever quotes were available, checked the source of capturing market price/ fair value as at reporting date. In case quotes are not available, checked the calculation for fair value as at the reporting date to ensure compliance with RBI guidelines.
Non-Performing Investments and provisions made thereon.	- Identified Non Performing Investments (NPI) based on RBI guidelines and reviewed the calculation of provision for depreciation thereon by the Bank. - Reviewed that the depreciation on NPI has not been set-off against the appreciation in respect of other performing securities. - Obtained a separate list of investments as a result of conversion of interest/ principal and checking whether these investments have been classified as NPI, if the loanâs classification is NPA on implementation of the restructuring scheme.
Computation of Gain or Loss on sale of investments.	- Examined whether the profit or loss on sale of investments has been computed properly and consistently on similar basis. - In case of Held to Maturity (HTM) investments, we test checked whether the Net Profit on sale of investments in this category was first taken to the Profit & Loss Account, and thereafter appropriated to the âCapital Reserve Accountâ net of taxes and proportionate transferred to Statutory Reserve, whereas Net Loss was recognized in the Profit & Loss Account. - In case of Available for Sale (AFS) and Held for Trading (HFT) investments, on a test check basis, reconciled the method of computation of such gain or loss on sale of investments and checked whether the same was appropriately debited/ credited in the profit and loss statements.

3. Evaluation of uncertain tax Liabilities (Contingent). Refer Schedule 12 forming part of financial statement.

Considering itâs probable impact on Profitability / Loss, we have considered this as Key Audit Matters.

We have performed following substantive

audit procedures:-

- Obtained details of completed tax assessments and demands up to the year ended March 31, 2019 from management.

- We performed our internal procedures to analyse the managementâs underlying assumptions in estimating the tax provision and the possible outcome of the disputes.

- We also considered legal precedence, referred to various case laws and other rulings in evaluating managementâs position on these uncertain tax litigations.

- Additionally, we considered the impact of latest information in respect of uncertain tax positions as on March 31, 2019 to evaluate whether any change was required to managementâs position on these uncertainties.

4. Evaluation of Information Technology (IT) Department.

Monitoring IT Controls and procedures with regard to its policies and governance to reduce frauds and to increase credit worthiness and compliance with RBI Guidelines.

We have considered evaluation of IT department as a key audit matter since operational and financial processes of the bank are largely dependent on its IT systems. Lapses, failures/ incorrect output, if any, of such systems may result in material misstatement in the Financial Statements.

We have performed following substantive

audit procedures:-

- We have carried out our audit procedures in accordance with standards on auditing, guidelines towards implementation of IT policies and procedures followed by the bank in order to have effective monitoring, control and evaluate the IT applications and controls to ensure effective implementation of IT policies and procedures.

- We have reviewed the framework which ensure Strict monitoring and implementation of controls to ensure overall organisational objective is achieved.

- We have manually verified select cases and satisfied about the accuracy of the reports with the manual calculations for validating the output generated by the system.

Information other than the Financial Statements and Auditorâs Report Thereon

5. The Bankâs Board of Directors is responsible for the other information. The other information comprises the information included in the Management report and Chairmanâs Statement but does not include the financial statements and auditorâs 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. If based on the work we performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regards.

Responsibilities of Management and Those Charged with Governance for the standalone Financial statements

6. The Bankâs 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 financial statements, the Board of Directors is responsible for assessing the Bankâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors are also responsible for overseeing the Bankâs financial reporting process.

Auditorâs responsibilities for the Audit of the Financial statements

7. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs 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 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 managementâs 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 Bankâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieve fair presentation.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters.

We describe these matters in our auditorâs 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.

Emphasis of Matter

8. Without qualifying our opinion, we draw attention to Note No.18 of Schedule 18 Notes on Accounts regarding MSME borrowers, Note No.4 of Schedule 18 Notes to Accounts regarding provisioning on NPA as well as Standard Assets, Note No. 19 of Schedule 18 Notes on Accounts regarding provisioning of ILFS group accounts and Note No.10.11 of Schedule 18 Notes on Accounts regarding recognition of Deferred Tax Assets.

other Matter

9. We did not audit the financial statements of 1283 branches included in the standalone financial statements of the Bank whose financial statements reflect total assets of Rs.1,28,438.71 crores as at 31^st March 2019 and total revenue of Rs.6,589.28 crores for the year ended on that date, as considered in the standalone financial statements have been audited by the statutory branch auditors whose reports have been furnished to us, and our opinion in so far it relates to the amounts and disclosures included in respect of branhes, is based solely on the report of such statutory branch auditors. Further we did not audit the financial statements of 573 branches inculded in the standalone financial statement if the Bank whose financial statements reflect total assets of Rs.31,000.83 crores as at 31^st March, 2019 and total revenue of Rs.1,776.73 cores for the year ended on that date, as considered in the Standalone financial statements have been drawn by the management.

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, 7 and 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:

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 accounts.

d) in our opinion, the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows comply with the applicable accounting standards issued by Institute of Chartered Accountants of India, to the extent they are not inconsistent with the accounting policies prescribed by RBI.

for p parikh & Associates for M D Gujrati & Co For p G Bhagwat For K Gopal rao & Co.

FRN: 107564W FRN: 005301N FRN: 101118W FRN: 000956S

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

CA Jitesh Jain CA Manohar das Gujrati CA Nachiket deo CA K Gopal rao

Parther Parther Parther Parther

Membership No: 114920 Membership No. 081552 Membership No. 117695 Membership No. 018230

Place : Pune

Date : 29^th April, 2019

Mar 31, 2018

1. Report on Financial Statements:

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2018 which comprise the Balance Sheet as at 31st March 2018 Profit and Loss Account and the cash Flow Statement for the year ended and a summary of significant accounting policies and Notes on Accounts. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Division, audited by us and 956 branches audited by branch auditors & 38 branches by concurrent 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 & Loss account and the return from 875 branches which have not been subjected to audit. These unaudited branches account for 3.10 % per cent of the advances, 23.91 % per cent of deposits, 13.05 % per cent of interest income and 22.93 % per cent of interest expenses.

2. Managementâs responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. 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.

3. Auditorsâ Responsibility:

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 requirement 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 procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditorsâ judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entityâs preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entityâs 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.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that:

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 the affairs of the Bank as at 31st March 2018 in conformity with accounting principles generally accepted in India.

b. Profit and loss Account, read with the 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.

7. Emphasis of Matter:

Note number 10.11 in Schedule 18 of Notes to Accounts to the Financial Statements regarding recognition of Deferred Tax Assets on account of accumulated losses amounting to Rs. 1152.96 crore.

8. Report on Other Legal and Regulatory Requirements:

The Balance Sheet and the Profit and Loss Account have been drawn up in forms âAâ and âBâ respectively of the third Schedule to the Banking Regulation Act 1949.

9. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act 1970, and also subject to the limitations of disclosure required therein we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

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

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

10. We further report that;

a) The Balance Sheet and Profit and Loss account dealt with by this report are in agreement with the books of account and returns;

b) 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;

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

for KOTHARI & Co for P Parikh & Associates for M. D. Gujrati & Co

FRN - 301178E for CMRS & Associates,LLP FRN - 107564W FRN: 005301N

Chartered Accountants FRN: 101678 W/W100068 Chartered Accountants Chartered Accountants

Chartered Accountants

CA Amitav Kothari CA Maheshwar M. Marathe CA Ashok B. Rajagiri CA Manohar Das Gujrati

Parther Parther Parther Parther

Membership No: 016639 Membership No. 212175 Membership No. 046070 Membership No. 081552

Place : Pune

Date : 04^th May, 2018

Mar 31, 2017

To,

Members of Bank of Maharashtra

1. Report on Financial Statements:

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31⁵¹ March 2017 which comprise the Balance Sheet as at 31^st March 2017 Profit and Loss Account and the Cash Flow Statement for the year ended and a summary of significant accounting policies and Notes on Accounts. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Division, audited by us and 962 branches audited by branch auditors & 19 branches by concurrent 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 & Loss account and the return from 938 branches which have not been subjected to audit. These unaudited branches account for 6.03% per cent of the advances, 23.83 % per cent of deposits, 8.51% per cent of interest income and 22.12 % per cent of interest expenses.

2. Managementâs responsibility for the Financial Statements: Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. 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.

3. Auditorsâ Responsibility:

4. An audit involves performing procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors'' judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that:

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 the affairs of the Bank as at 31st March 2017 in conformity with accounting principles generally accepted in India.

b. Profit and loss Account, read with the 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.

7. Emphasis of Matter:

(a) Note number 4.13.1 in schedule 18 in respect of classification of restructured advances under CDR/non CDR mechanism.

(b) Note number 10.10 in Schedule 18 of Notes to Accounts to the Financial Statements regarding recognition of Deferred Tax Assets on account of provisions for Bad and Doubtful Debts (NPA) amounting to Rs. 761.25 crores.

8. Report on Other Legal and Regulatory Requirements:

The Balance Sheet and the Profit and Loss Account have been drawn up in forms âAâ and âBâ respectively of the third Schedule to the Banking Regulation Act 1949.

9. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act 1970/1980, and also subject to the limitations of disclosure required therein we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b. The transactions of the bank which have come to our notice have been within the powers of the Bank.

c. The returns received from the offices and branches of the Bank have been found adequate for the purpose of our audit.

10. We further report that;

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

b. 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;

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

for KOTHARI & C

^{FRN - 301178E} for CMRS & Associates,LLP

Chartered Accountants FRN: 101678 W/ W100068

Chartered Accountants

64601 212175

CA Manaswy Kothari CA Maheshwar M Marathe

Parther Parther

Membership No. 64601 Membership No. 212175

Mar 31, 2016

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2016 which comprise the Balance Sheet as at 31st March 2016 profit and Loss Account and the cash Flow Statement for the year ended and a summary of signifcant accounting policies and Notes on Accounts. Incorporated in these financial statements the return of 20 branches, and also Treasury & International Banking Division, audited by us and 903 branches audited by branch auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and profit & Loss account and the return from 962 branches which have not been subjected to audit. These unaudited branches account for 8.55 % of the advances, 25% of deposits, 7.43% of interest income and 22.99% of interest expenses.

2. Management''s responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. 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.

3. Auditors''Responsibility:

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 requirement 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 procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors''judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that:

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 the affairs of the Bank as at 31st March 2016 in conformity with accounting principles generally accepted in India.

b. profit and loss Account, read with the notes thereon shows a true balance of profit/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 fows for the year ended on that date.

7. Report on Other Legal and Regulatory Requirements:

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.

8. Subject to the limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer of Undertaking) Act 1970/1980, and also subject to the limitations of disclosure required therein we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b. The transactions of the bank which have come to our notice have been within the powers of the Bank.

c. The returns received from the offces and branches of the Bank have been found adequate for the purpose of our audit.

9. We further report that;

a. The Balance Sheet and profit and Loss account dealt with by this report are in agreement with the books of account and returns;

b. The reports on the accounts of the branch offces 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;

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

For Parakh & Co. For A R Sulakhe & Co. For Kothari & Co. For C M R S & Associates, LLP

FRN: 001475C FRN:110540W FRN - 301178E FRN:101678W/ W100068

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

CA Thalendra Sharma CA J V Dhongde CA Amitav Kothari C A Maheshwar M Marathe

Partner Partner Partner Partner

Membership No:079236 Membership No:37290 Membership No:016639 Membership No:212175

Place : Pune

Date : 12th May, 2016

Mar 31, 2015

We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2015 which comprise the Balance Sheet as at 31st March 2015 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 the return of 20 branches, and also Treasury & International Banking Branch, audited by us and 916 branches audited by branch auditors and 70 branches under concurrent audit for reporting under Long Form Audit Report (LFAR).

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the return from 980 branches which have not been subjected to audit. These unaudited branches account for 8.45 per cent of the advances, 24.69 per cent of deposits, 6.53 per cent of interest income and 21.14 per cent of interest expenses.

2. Management''s responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. This respons bility 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.

3. Auditors'' Responsibility:

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 requirement 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 procedure to obtain audit evidence about the amount and disclosures in the financial statements. The procedure selected depends on the auditors'' judgment, including the assessment of the risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances but not for the purpose of exercising an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our Audit opinion.

6. Opinion:

In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us, we hereby report that :

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 the affairs of the Bank as at 31st March 2015 in conformity with accounting principles generally accepted in India.

b) Profit and loss Account, read with the notes thereon shows a true balance of profit/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.

7. Emphasis of Matter:

Without qualifying, we draw attention to note 11 in Schedule 18 to the Balance Sheet where in respect of loans & advances detected and classified as fraud during the quarter ended March 31, 2015, provision is claimed to have been made in terms of circular of RBI No.BP.BC.83/21.04.048/2014-15 dated April 1, 2015.

8. Report on Other Legal and Regulatory Requirements:

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 limitation of the audit indicated in paragraph 1 to 5 above and as required by Banking Companies (Acquisition and Transfer Of Undertaking) Act 1970/1980, and also subject to the limitations of disclosure required therein we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory.

b) The transaction of the bank which have come to our notice have been within the powers of the Bank except for the matter referred to in note no 9.6 of schedule 18.

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

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

For G Basu & Co. For Singh Ray Mishra & Co. For Parakh & Co. For A R Sulakhe & Co,

FRN: 301174E FRN: 318121E FRN: 001475C FRN:110540W

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

CA S Lahiri CA K K Singh CA Thalendra Sharma CA J V Dhongde

Partner Partner Partner Partner

Membership No:51717 Membership No:052939 Membership No. 079236 Membership No:37290

Place : Pune

Date : 14th May, 2015

Mar 31, 2014

1. We have audited the accompanying Financial Statements of Bank of Maharashtra as at 31st March 2014 which comprise the Balance Sheet as at 31st March 2014, 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 21 branches, including Treasury ACY- International Banking Branch, audited by us and 823 branches audited by branch auditors and 51 branches under concurrent audit for reporting under Long Form Audit Report (LFAR). The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 994 branches which have not been subjected to audit. These unaudited branches account for 8.67 per cent of advances, 19.73 per cent of deposits, 5.67 per cent of interest income and 15.38 per cent of interest expenses.

Management''s Responsibility for the Financial Statements:

2. Management is responsible for the preparation of these Financial Statements in accordance with the Banking Regulation Act 1949, complying with Reserve Bank of India Guidelines issued from time to time. 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.

Auditors'' Responsibility:

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'' judgement, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''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 in the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence, we have obtained is sufficient and appropriate to provide a basis for our Audit opinion.

Opinion:

6. In our opinion, as shown by books of bank, and to the best of our information and according to the explanation given to us,

(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 state of affairs of the Bank as at 31st March 2014 in conformity with accounting principles generally accepted in India ADs-

(b) Profit and Loss Account, read with the notes thereon shows a true balance of profit/loss, in conformity with accounting principles generally accepted in India, for the year covered by the account ADs- 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 the note 10.4D in Schedule 18 which describes deferment of pension and gratuity liability of the bank to the extent of Rs. 102.48 Crore pursuant to the exemption granted by the Reserve Bank of India to the Public Sector Banks from application of the Accounting Standard 15 (Revised) - Employees Benefit vide its circular DBOD.BPBC/80/21.04.018/2010-11 of February 2011 on reopening of pension option to employees of Public Sector Banks and Enhancement in Gratuity limits - Prudential Regulatory Treatment.

Had the said circular not been issued, the ACI- Profit before Tax ACI- of the bank would have been lower by Rs. 102.48 Crore pursuant to the application of the requirements of AS 15 (Revised), the consequential effect of which has not been ascertained on the other related components of the financial statements.

Report on Other Legal and Regulatory Requirements:

8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms ACI-A ACI- and ACI-B ACI- 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, 1970/1980, 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 purpose of the audit and have found them to be satisfactory.

b. The transactions of the bank which have come to our notice have been within the powers of the Bank.

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

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

For G Basu ACY- Co. For Singh Ray Mishra ACY- Co.

FRN301174E FRN 318121E

Chartered Accountants Chartered Accountants

CA S. Lahiri CA Jiten K. Mishra

Partner Partner

Membership No. : 051717 Membership No. : 052796

Mar 31, 2013

1. We have audited the accompanying Financial Statements of BANK OF MAHARASHTRA as at 31st March, 2013 which comprise the Balance Sheet as at March 31, 2013, Profit and Loss Account and the Cash Flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of 20 branches & audited by us and 711 branches audited by branch auditors. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 997 branches which have not been subjected to audit. These unaudited branches account for 10.51 per cent of advances, 25.06 per cent of dposits, 14.19 per cent of interest income and 12.54 per cent of interest expenses.

Management''s Responsibility for the Financial Statements -

2. Management is responsible for the preparation of these Financial Statements in accordance with Banking Regulation Act, complying with Reserve Bank of India Guidelines from time to time. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.

Auditors Responsibility -

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with 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 misstatements.

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 risk of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. 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 our 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 accordeing to the explanation given to us,

(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 state of affairs of the Bank as at 31st March 2013 conformity with accounting principles generally accepted in India;

(b) Profit and Loss Account, read with the notes thereon shows a true balance of profit/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 Matters -

7. We draw attention to the note 10.4D in Schedule 18 which describes deferment of pension and gratuity liability of the bank to the extent of Rs. 204.94 crore pursuant to the exemption granted by the Reserve Bank of India to the Public Sector Banks from application of the Accounting Standard 15 (Revised) - Employees Benefit vide its circular DBOD.BP.BC/80/21.04.018/2010-11 of February 2011 on reporting of pension option to employees of Public Sector Banks and Enhancement in Gratuity limits - '' Prudential Regulatory Treatment.

Had the said circular not been issued, the "Profit before Tax" of the bank would have been lower by Rs. 204.94 crore pursuant to the application of the requirements of AS 15 (Revised), the consequential effect of which has not been ascertained on the other related components of the financial statements.

Report on Other Legal & Regulatory Requirements

8. The Balance Sheet and Profit & 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 audit indicated in paragraph 1 to 5 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 the audit and have found them to be satisfactory.

b. The transactions of the Bank, which have come to my/our notice have been within the powers of the Bank.

c. The returns received from the offices and branches of the Bank have been found adequate for the purpose of our audit.

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

For N. Kumar Chhabra & Co For DSP & Associates For Kirtane & Pandit

Chartered Accountants Chartered Accountants Chartered Accountants

FRN 000837N FRN 006791N FRN 105215W

CA Ashish Chhabra CA Arvind Singhal CA Sandeep D.Welling

Partner Partner Partner

Membership No. 507083 Membership No. 084939 Membership No 044576

For J.C. Bhalla & Co For G. Basu & Co For Singh Ray Mishra & Co

Chartered Accountants Chartered Accountants Chartered Accountants

FRN 001111N FRN 301174E FRN 318121E

CA Rajesh Sethi CA Manoj Kumar Das CA Saunak Ray

Partner Partner Partner

Membership No. 085669 Membership No. 013783 Membership No. 053815

Place : Pune

Dated : 29th April 2013

Mar 31, 2012

1. We have audited the accompanying financial statements of BANK OF MAHARASHTRA as at 31st March, 2012 which comprise the Balance Sheet as at March 31, 2012, and 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 20 branches & The Treasury & International Banking Branch (TIBB) audited by us and 1203 branches audited by Branch Auditors.

The branches audited by us and those audited by other auditors, as informed to us, have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Statement of Profit & Loss are the returns from 22.97% branches which have not been subjected to audit but certified by the management. These unaudited branches account for 1.67% of advances, 5.95% of deposits, and 1.12% of interest income and 5.21% of interest expenses.

Management's Responsibility for the Financial Statements -

2. Management is responsible for the preparation of these financial statements in accordance with Banking Regulation Act, 1949. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.

Auditors Responsibility -

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with 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 misstatements.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on auditor's judgment, including the assessment of the risk 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 Banking Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. 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 our audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matters -

6. Without qualifying our opinion, we draw attention to -

Note No. 10.4D in Schedule 18 which describes deferment of pension and gratuity liability of the bank to the extent of Rs 307.42 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 15 (Revised) - Employees Benefit vide its Circular DBOD. BP.BC/80/21.04.018/2010-11 of 9th February, 2011 on Reopening of pension Option to Employees of Public Sector Bank and Enhancement in Gratuity limits - Prudential Regulatory Treatment.

Had the said Circular not been issued, the profit before tax of the Bank would have been lower by Rs 307.42 crores pursuant to application of the requirements of AS 15 (Revised), the consequential effect of which has not been ascertained on other related components of the financial statements.

Opinion -

7. We have observed that -

a) the effect of adjustments that may arise from the ongoing reconciliation of certain assets/liabilities, clearing differences, inter branch accounts/inter branch transfer of fixed assets and charge of depreciation on fixed assets, (as stated in Note No. 9.3 of Schedule 18 annexed to the Balance Sheet), the consequential impact thereof on the accounts is not ascertainable; and

b) the Bank is following the policy of recognizing the income from commission, locker rent etc. on cash basis during the year, instead of accrual basis as stated in Para no. 6.1 Schedule 17 Significant Accounting Policies which are not in conformity with the Accounting Standard 9 Revenue Recognition, issued by The Institute of Chartered Accountants of India. The impact thereof on the accounts is not ascertainable.

Subject to our observations above, in our opinion as shown by the books of the bank, and to the best of our information and according to the explanations given to us:

i. The balance sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of the state of affairs of the Bank as at 31st March, 2012 in conformity with accounting principles generally accepted in India;

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

iii. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Report on Other Legal & Regulatory Requirements

8. The Balance Sheet and Profit & 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 audit indicated in paragraph 1 to 5 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.

c. The returns received from the offices and branches of the Bank have been found adequate for the purpose of our audit.

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

For Ray & Co. For Jodh Joshi And Co For JCR & Co. For N.Kumar Chhabra & Co. FRN : 313124E FRN : 104317W FRN : 105270W FRN : 000837N Chartered Chartered Chartered Chartered Accountants Accountants Accountants Accountants

For DSP & Associates For Kirtane & Pandit FRN:006791 FRN: 105215 Charactor Charactor Accounts Accounts

Sumit Sikdar Aparna P. S. Sankaran Jashvant Raval Navtej Kumar Partner Partner Partner Partner Membership Membership Membership Membership No.120622 No.:113982 No.:012926 No.:080426

Atul Jain Shared Bhagwat Partner Partner Membership Membership No.:080496 No.:008072

Mar 31, 2011

1. We have audited the accompanying financial statements of BANK OF MAHARASHTRA as at 31st March 2011 which comprise the Balance Sheet as at March 31, 2011, and 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 20 branches & The Treasury & International Banking Branch (TIBB) audited by us and 1298 branches audited by Branch Auditors.

The branches audited by us and those audited by other auditors, as informed to us, have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the statements of Profit & Loss are the returns from 14.13% branches which have not been subjected to audit but certified by the management. These unaudited branches account for 1.49% of advances, 2.17% of deposits, and 0.67% of interest income and 2.16% of interest expenses.

Managements Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements in accordance with Banking Regulation Act. 1949. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.

Auditors Responsibility -

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with 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 misstatements.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on auditorÃs judgment, including the assessment of the risk 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 companyÃs preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. 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 our audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matters

6. Without qualifying our opinion, we draw attention to

a) Note No. 4.2 in Schedule 18 regarding change in accounting policy of provisioning in respect of secured sub-standard assets, due to which net profit (net of tax) for the year is lower by Rs. 18.86 crore with a consequential effect on assets and liabilities of the bank.

b) Note No. 10.3 in Schedule 18 which describes deferment of pension and gratuity liability of the bank to the extent of Rs. 409.90 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 15 - Employees Benefit vide its Circular DBOD.BP.BC/80/21.04.018/2010-11 of 9th February, 2011 on Reopening of pension Option to Employees of Public Sector Bank and Enhancement in Gratuity limits Ã Prudential Regulatory Treatment.

Had the said Circular not been issued, the Ãprofit before taxÃ of the Bank would have been lower by Rs. 409.90 crores pursuant to application of the requirements of AS 15, the consequential effect of which has not been ascertained on other related components of the financial statements.

Opinion

7. We have observed that-

a) Note No. 9.5.4 in Schedule 18 regarding excess charging of depreciation in earlier years on Electrical Equipments, the impact of which is not yet ascertained.

b) The effect of adjustments that may arise from the on going reconciliation of certain assets/liabilities. clearing differences, inter branch accounts/inter branch transfer of fixed assets and charge of depreciation on fixed assets, (as stated in Note No. 9.3 of Schedule 18 annexed to the Balance Sheet), the consequential impact thereof on the accounts is not ascertainable;

c) The Bank is following the policy of recognizing the income from commission, locket rent etc. on cash basis during the year, instead of accrual basis as stated in para no. 6.1 Schedule 17 Significant Accounting Policies which are not in conformity with the ÃAccounting Standard 9 Revenue Recognition, issued by The Institute of Chartered Accountants of IndiaÃ; and

Subject to our observations above, in our opinion as shown by the books of the bank, and to the best of our information and according to the explanations given to us:

i. The balance sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of the state of affairs of the Bank as at 31st March, 2011 in conformity with accounting principles generally accepted in India;

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

iii. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Report on Other Legal & Regulatory Requirements

8. The Balance Sheet and Profit & Loss Account have been drawn up in Forms ÃAÃ and ÃBÃ respectively of the Third Schedule to the Banking Regulation Act, 1949.

9 Subject to the limitation of audit indicated in paragraph 1 to 5 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 explanation which to the the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

b. The transaction of the Bank, which have come to our notice, have been within the powers of the Bank.

c. The returns received from the officers and branches of the Bank have been found adequate for the purpose of our audit.

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

For B. Chhawchharia & Co. For Ray & Co. FRN: 305123E FRN: 313124E Chartered Accountants Chartered Accountants

For Jodh Joshi For JCR & Co. FRN: 104317W FRN :105270W Chartered Accountants Chartered Accountants

For N.Kumar Chhabra For DSP & Associates And Co & Co. FRN : 000837N FRN: 006791N Chartered Accountants Chartered Accountants

(S. K. Chhawchharia) (Subrata Roy) (Partner) (Partner) Membership No.: 008482 Membership No.:051205

(Makarand Joshi) (Amit Tanpure) (Partner) (Partner) Membership No : 047196 Membership No : 129055

(Navtej Kumar) (Sanjay Jain) (Partner) (Partner) Membership No : 080496 Membership No : 084906

Place: Pune

Dated: 30th April 2011

Mar 31, 2010

1. We have audited the attached Balance Sheet of BANK OF MAHARASHTRA as at 31st March 2010 and also the Profit and Loss Account and the Cash Flow statement annexed thereto for the year ended on that date, in which are incorporated the returns of 20 branches audited by us and 1224 branches audited by Branch Auditors.

The branches audited by us and those audited by other auditors, as informed to us, have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit & Loss Account are the returns from 14.32% branches which have not been subjected to audit but certified by the management. These unaudited branches account for 1.53% of advances, 3.03% of deposits, and 0.76% of interest income and 0.60% 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 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 prepared, in all material respects are in accordance with the identified financial reporting framework and 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 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 Profit & Loss Account have been drawn up in Form A and B respectively of the Third Schedule to the Banking Regulation Act, 1949.

4 Without qualifying our opinion, attention is drawn to - Pursuant to exercising of the option during the period, as per the Circular No: DBOD.No.BP.BC.26/ 21.04.048/ 2008-09 dated 30th July 2008 issued by Reserve Bank of India, to treat the eligible accounts under Debt Relief Scheme, which otherwise would have slipped to NPA to the extent of Rs. 124.87 crores being the outstanding balance as on 31.03.2010, which hitherto were classified as per IRAC norms during the previous financial year, as performing assets, by making provision of Rs. 10.66 crore for loss in Present Value terms, consequent thereto, the net profit (net of taxes) and reserves of the bank as on that date would have been decreased by Rs. 12.56 crores;

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

i) the effect of adjustments that may arise from the on going reconciliation of certain assets/liabilities, clearing differences, inter branch accounts/inter branch transfer of fixed assets, (as stated In Note No. 9.3 of Schedule 18 annexed to the Balance Sheet), the consequential impact thereof on the accounts is not ascertainable;

ii) the Bank is following the policy of recognizing the income from commission, locker rent etc. on cash basis during the year, instead of accrual basis as stated in para no. 6.1 Schedule 17 Significant Accounting Policies which are not in conformity with the Accounting Standard 9 Revenue Recognition, issued by The Institute of Chartered Accountants of India; and

iii) inherent bugs noticed in the software system, used by the bank as stated in Note No: 9.4 of Schedule 18 annexed to the Balance Sheet, the impact thereof on the on the accounts is not ascertainable;

We report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory.

b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank,

c. The returns received from the offices and branches of the Bank have been found adequate for the purpose of our audit.

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

7 In our opinion, as shown by books of Bank, and to the best of our information and according to the explanations given to us:

i. The Balance Sheet, read with the notes thereon and Statement of Significant Accounting Policies is a full and fair Balance Sheet containing all the necessary particulars and is properly drawn up so as to exhibit a true and fair view of the state of affairs of the Bank as at 31st March 2010 in conformity with accounting principles generally accepted in India;

ii. the Profit & Loss Account, read with the notes thereon and Statement of Significant Accounting Policies shows a true Balance of Profit, in conformity with accounting principles generally accepted in India, for the year ended 31st March 2010; and

iii the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

For Wahi & Gupta For V.C. Gautam&Co. For B. Chhawchharia & Co. For Ray & Co. For Jodh Joshi and Co.

FRN2263N FRN 365 N FRN 305123E FRN 313124E FRN 104317W

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

(K. P. WAHI) (VISHNU GAUTAM) (S.K. CHHAWCHHARIA) (SUBRATAROY) (YASH K VERMA)

Partner Partner Partner Partner Partner

Membership No.: 16164 Membership No. 16257 Membership No 8482 Membership No. 051205 Membership No. 105954

Place : Pune

Date ; April 30, 2010

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article