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Auditor Report of Central Bank of India

Mar 31, 2025

1. We have audited the accompanying Standalone
Financial Statements of Central Bank Of India (âthe
Bank''), which comprise the Balance Sheet as at 31^stMarch 2025, the Profit and Loss Account and the Cash
Flows Statement for the year then ended, and Notes to
Standalone Financial Statements including a summary
of significant accounting policies and other explanatory
information in which are included the returns for the year
ended on that date of the Head Office, 13 Zones and

i. Top 20 Branches, 1 Specialized Integrated Treasury
Branch and other Central Office Departments
audited by us

ii. 1549 branches and other offices audited by
respective Statutory 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,
the Profit and Loss Account and the Cash Flows
Statement are the returns from 2976 branches which
have not been subjected to audit. These unaudited
branches account for 24.22 per cent of advances, 43.27
per cent of deposits, 18.15 per cent of interest income
and 38.16 per cent of interest expenses.

2. In our opinion and to the best of our information
and according to the explanations given to us, the
aforesaid Standalone Financial Statements give the
information required by the Banking Regulation Act,
1949 (hereinafter referred to as âthe Actâ) in the manner
so required for the Bank and are in conformity with

accounting principles generally accepted in India and:

a) the Balance Sheet, read with the notes thereon
is a full and fair Balance Sheet containing all the
necessary particulars, is properly drawn up so as to
exhibit a true and fair view of the state of affairs of
the Bank as at 31^st March, 2025;

b) the Profit and Loss Account, read with the notes
thereon shows a true balance of profit for the year
ended on that date; and

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

Basis for Opinion

3. We conducted our audit in accordance with the Standards
on Auditing (âSAsâ) issued by the Institute of Chartered
Accountants of India (âICAIâ). Our responsibilities under
those Standards are further described in the âAuditor''s
Responsibilities for the Audit of the Standalone Financial
Statementsâ 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,
prepared in accordance with the accounting principles
generally accepted in India, including the applicable
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 on the
Standalone Financial Statements.

Emphasis of Matter

4. We draw attention to:

Refer Schedule 18 - Note no. 15 (h)(iii) of the Statement
regarding deferred tax, wherein on the basis of tax

review made by the Bank''s management with respect
to the possible tax benefits arising out of the timing
difference, the net deferred tax asset of ''3,145.57 crore
is recognised as on 31^st March 2025 (''4,294.57 crore
as on 31^st March 2024).

Our opinion is not modified in respect of this matter.

Key Audit Matters

5. Key audit matters are those matters that, in our

professional judgment, were of most significance in
our audit of the Standalone Financial Statements for
the year ended 31^st March 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 described below to be the key audit matters to
be communicated in our report.

Key Audit Matters	How the matter was addressed in our Audit
1. Identification and provisioning of non-performing	Our audit approach included assessment of the
advances made in accordance with the prudential	design, operating effectiveness of key internal controls
norms prescribed by Reserve Bank of India on Income	over approval, recording and monitoring of loans and
recognition, Asset Classification and provisioning	substantive audit procedures in respect of income
pertaining to Advances (refer Schedule 9 read with Note	recognition, asset classification and provisioning
3 of Schedule 17 to the Standalone Financial Statements)	pertaining to advances.
Advances comprise substantial portion of the Bank''s	In particular:
total assets. Identification of non-performing advances	â¢ We have evaluated and understood the Bank''s
(NPAs) is carried out, based on system identification, by	internal control system in adhering to the relevant
the Core Banking Solution (CBS) software in operation	RBI guidelines regarding income recognition, asset
based on the various controls and logic embedded	classification and provisioning pertaining to advances.
therein.	â¢ We assessed and evaluated the process of
Provisions in respect of such NPAs and restructured	identification of NPAs, and corresponding reversal of
advances are made based on management''s assessment	income and creation of provision.
of the degree of impairment of the advances subject to	â¢ We have analyzed and understood key IT systems/
and guided by the minimum provisioning levels prescribed	applications used operational effectiveness of
under RBI guidelines, prescribed from time to time. The	relevant controls including involvement of manual
provisions on NPAs are also based on the valuation of	process and manual controls in relation to income
the security available. In case of restructured accounts,	recognition, asset classification and provisioning
provision is made in accordance with the RBI guidelines.	pertaining to advances.
We identified NPA identification and provision on	In order to ensure the effectiveness of the operation of
loans and advances as a key audit matter because of	the key controls and compliance to the directions of the
the significant efforts involved by the management in	RBI, we have verified whether both CBS system and
identifying NPAs based on the RBI Guidelines, the level	the management have:
of management judgement involved in determining the	â¢ timely recognized the depletion in the value of
provision (including the provisions on assets which are not classified as NPAs), the valuation of security of	available security.
the NPAs and on account of the significance of these	â¢ made adequate provisioning based on such time-
estimates to the Standalone Financial Statements of the	to-time monitoring and identification of asset
Bank. In the event of any improper application of the	classification including accounts which meet the
prudential norms or consideration of incorrect value of	criteria for asset classification benefit in accordance
security, the carrying value of the advances could be	with the Reserve Bank of India COVID-19 Regulatory
materially misstated either individually or collectively.	Package.

Key Audit Matters	How the matter was addressed in our Audit
	â¢ We have reviewed on test check basis the reports of the Concurrent Audits, Internal Inspections, Regulatory audits, Revenue Audits etc. to ascertain whether the advances are having any shortcomings or adverse features, requiring additional audit procedures. â¢ We placed reliance upon the Independent Auditor''s Report of the respective Branch Auditors with respect to income recognition, asset classification and provisioning as well as Memorandum of changes suggested both at the branches and at Head Office.
2. Investments	Our audit approach towards Investments with reference
Investment portfolio of the Bank comprises of investments	to the RBI circulars/ directives included the review and
in government securities, bonds, debentures, shares,	testing of the design, operating effectiveness of internal
security receipts and other approved securities which	controls and substantive audit procedures in relation to
are classified under three categories, Held to Maturity,	valuation, classification, identification of Non-Performing
Available for Sale and Fair Value through Profit and Loss.	Investments, provisioning/ depreciation related to
Investments comprise a substantial portion of the Bank''s	Investments. In particular:
total assets.	â¢ We assessed and understood the system and
Valuation of Investments, identification of Non-Performing	internal control as laid down by the Bank to comply
Investments (NPI) and the corresponding non-	with relevant RBI guidelines regarding valuation,
recognition of income and provision thereon, is carried	classification, identification of Non- Performing
out in accordance with the relevant circulars / guidelines	Investments, Provisioning and depreciation on
/ directions of RBI. (refer Schedule 8 read with Note 5 of	Investments.
Schedule 17 to the Standalone Financial Statements).	â¢ Tested accuracy and compliance for selected
The valuation of each type of aforesaid security is to	sample of investments with the RBI Master circulars
be carried out as per the methodology prescribed in	and directions by re-performing valuation for each
the circulars and directives issued by the RBI which	category of security in accordance with the RBI
involves collection of data/ information from various	guidelines.
sources such as FBIL rates, rates quoted on BSE/ NSE,	â¢ We assessed and evaluated the process of
financial statements of unlisted companies, NAV in case	identification of NPIs, and corresponding reversal of
of security receipts etc.	income and creation of provision.
As per the RBI directions, there are certain investments	â¢ We carried out substantive audit procedures to re-
that are valued at market price however certain	compute independently the provision to be created
investments are based on the valuation methodologies that include statistical models with inherent assumptions,	and depreciation to be provided.
assessment of price for valuation based on financial	â¢ We assessed that the standalone financial statement
statements etc. The price discovered for the valuation	disclosures appropriately reflected the Bank''s
of these Investments is only a fair assessment of the	exposure to investments valuation risks with reference
Investments. Hence, the valuation of Investments requires special attention and further in view of the significance of the amount of Investments in the financial statements, the same has been considered as Key Audit Matter in our audit.	to the requirements of the prevailing accounting standards and the RBI guidelines.

Key Audit Matters	How the matter was addressed in our Audit
3. Information technology (IT) systems used in financial reporting process . The Bank''s operational and financial reporting processes are dependent on IT systems run through Core Banking Solutions (CBS) and other integrated software with automated processes and controls large volume of transactions.	We conducted an assessment and identified key IT applications, database and operating systems that are relevant to our audit and have identified CBS and Treasury System primarily as relevant for financial reporting. For the key IT systems pertaining to CBS and treasury operations used to prepare accounting and financial information, our areas of audit focus included Access Security (including controls over privileged access),
. The process and controls are to ensure appropriate user	application change controls, database management
access and management processes in use.	and network operations. In particular:
. The Bank has an in-house Department of Information & technology (DIT) run under the supervision of the top management and with the support of expert consulting agencies, for maintaining IT services.	â¢ We obtained an understanding of the Bank''s IT control environment and key changes during the audit period that may be relevant to the audit.
. Accordingly, our audit was focused on key IT systems and controls due to the pervasive Impact on the Standalone Financial Statements and the same has been considered as Key Audit Matter in our audit.	â¢ We tested the design, implementation and operating effectiveness of the Bank''s General IT controls over the key IT systems that are critical to financial reporting including obtaining reports from independent experts. This included evaluation of
	Bank''s controls to evaluate segregation of duties and access rights being provisioned / modified based on duly approved requests, access for exit cases being revoked in a timely manner.
	â¢ We also tested key automated and manual business
	cycle controls and logic for system generated reports relevant to the audit; including testing of compensating controls or performed alternate procedures to assess whether there were any unaddressed IT risks that would materially impact the Standalone Financial Statements, information other than the standalone Financial Statements and Auditors'' Report thereon.

Key Audit Matters	How the matter was addressed in our Audit
4. Provisions, Contingent Liabilities and Claims:	We have obtained an understanding of Internal Controls
Assessment of Provisions and Contingent Liability in respect of certain litigations on various claims filed by	relevant to the audit in order to design our audit procedures that are appropriate in the circumstances.
other parties not acknowledged as debt (Note No. 14 of Schedule 17 and Note No. 15(l)(i) of Schedule 18).	We broadly reviewed the underlying assumptions and estimates used by the management for provisioning
There is high level of judgement required in estimating	but as the extent of impact is dependent on future
the level of provisioning. The Bank''s assessment is	developments which are highly uncertain, we primarily
supported by the facts of matter, their own judgement,	relied on those assumptions and estimates, which are
past experience, and advice from legal and independent experts wherever considered necessary. Accordingly,	subject matter of periodic review by the Bank.
unexpected adverse outcomes may significantly impact	We have relied upon the management note and legal
the Bank''s reported profit and state of affairs presented	opinions obtained by the bank regarding the claims and
in Balance Sheet.	tax litigations and involved our internal team to review
Contingent Liability is a possible obligation, outcome of which is contingent upon occurrence or non-occurrence of one or more uncertain future events. In the judgement of the management, such claims and litigations including tax demands against the bank would not eventually lead to a liability.	the nature of such litigations and claims, their current status, sustainability, examining recent orders and/or communication received from various tax authorities/ judicial forums and follow up actions thereon and likelihood of claims/litigations materializing into eventual liability upon final resolution, from the available records and developments to date.
However, unexpected adverse outcomes may significantly impact the Bank''s reported financial results which is uncertain/ unascertainable at this stage.
Considering the uncertainty relating to the outcome of these matters which requires application of judgment in interpretation of law, this has been determined as a key Audit Matter.

Information other than the Standalone Financial

Statements and Auditorsâ report thereon

6. The Bank''s Board of Directors is responsible for the
Other Information. The Other Information comprises the
Corporate Governance Report, the Directors'' Report
including annexures, Dividend Distribution Policy of
Bank, Business Responsibility and Sustainability Report,
Management Discussion and Analysis, Key Financial
indicators and other Shareholder information, but does
not include the Standalone Financial Statements and our
auditor''s report thereon. The above Other Information is
expected to be made available to us after the date of this
audit report.

Our opinion on the Standalone Financial Statements
does not cover the Other Information and the Pillar 3
disclosures under Capital Adequacy Framework (Basel
III disclosures) and we do not and will not express any
form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the Other
Information identified above and, in doing so, consider
whether the Other Information is materially inconsistent
with the Standalone Financial Statements, or our
knowledge obtained in the audit or otherwise appears to
be materially misstated.

When we read the Other Information, if we conclude
that there is material misstatement therein, we are
required to communicate the matter to Those Charged
With Governance (TCWG) and take appropriate actions
necessitated by the circumstances and as per the
applicable laws and regulations.

Responsibilities of Management and Those
Charged With Governance for the Standalone
Financial Statements

7. The Bank''s Board of Directors is responsible with
respect to the preparation of these Standalone Financial

Statements that give a true and fair view of the financial
position, financial performance and cash flows of the Bank
in accordance with the accounting principles generally
accepted in India, including the applicable Accounting
Standards, 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
(âRBI guidelinesâ) and judicial pronouncements. 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.

Auditorsâ Responsibilities for the Audit of the

Standalone Financial Statements

8. Our objectives are to obtain reasonable assurance
about whether the Standalone Financial Statements as
a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditors'' report that
includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material
if, individually or in 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. We are also
responsible for expressing our opinion on whether the
Bank has adequate Internal Financial Controls with
reference to financial statements in place and the
operating effectiveness of such controls.

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

Conclude on the appropriateness of management''s use
of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may
cast significant doubt on the Bank''s ability to continue
as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention
in our auditor''s report to the related disclosures in the
Standalone Financial Statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our auditor''s report. However, future events or
conditions may cause the Bank to cease to continue as
a going concern.

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

Materiality is the magnitude of the misstatements in
the Standalone Financial Statements that, individually
or aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the

Standalone Financial Statements may be influenced. We
consider quantitative materiality and qualitative factors
in (i) planning of the scope of our audit work and in
evaluating the results of our work; and (ii) to evaluate the
effect of any identified misstatement in the Standalone
Financial Statements.

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

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

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

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

Other Matters

9. We did not audit the financial statements/ information
of 1549 branches and other offices included in the
Standalone Financial Statements of the Bank whose
financial statements / financial information reflect total
assets of ''2,40,864.28 crore as at 31^st March 2025 and
total revenue of ''9,532.38 crore for the year ended on
that date, as considered in the Standalone Financial
Statements. These branches cover 34.73 per cent of
advances, 52.10 per cent of deposits and 21.71 per
cent of non-performing assets as at 31^st March 2025
and 24.12 per cent of revenue for the year ended on
that date. The financial statements/ information of these
branches have been audited by the statutory 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 statutory branch auditors.

10. In the conduct of our audit, we have taken note of
the unaudited returns in respect of 2976 branches
certified by the respective branch''s management whose
financial statements/ information reflect total assets of
''1,85,324.53 crore as at 31^st March 2025 and total
revenue of ''7,705.53 crore for the year ended on that
date. These unaudited branches cover 24.22 per cent
of advances, 43.27 per cent of deposits and 15.30 per
cent of non-performing assets as on 31^st March 2025
and 19.50 per cent of revenue for the year then ended.

Our opinion is not modified in respect of the above
matters.

Report on Other Legal and Regulatory

Requirements

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

12. Subject to the limitations of the audit indicated in
paragraphs 6 to 10 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.

13. 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:

a) In our opinion, the aforesaid Standalone Financial
Statements comply with the applicable Accounting
Standards issued by ICAI, to the extent they are not
inconsistent with the accounting policies prescribed
by RBI.

b) There are no observations or comments on financial
transactions or matters which have any adverse
effect on the functioning of the Bank.

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

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

e) Our audit report on the adequacy and operating
effectiveness of the Bank''s internal financial controls
over financial reporting as required by the RBI
Letter No. DOS. ARG. No. 6270/ 08.91.001/2019-
20 dated March 17, 2020 (as amended) is given in
Annexure A to this report. Our report expresses an
unmodified opinion on the Bank''s internal financial
controls over financial reporting with reference
to the Standalone Financial Statements as at
31^st March 2025.

14. 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 Cash Flow Statement dealt with by this report
are in agreement with the books of account and
with the returns received from the branches not
visited by us.

c) the reports on the accounts of the branch offices
audited by branch auditors of the Bank under
section 29 of the Banking Regulation Act, 1949
have been sent to us and have been properly dealt
with by us in preparing this report; and

d) In our opinion, the Balance Sheet, the Profit and
Loss Account and the Cash Flow Statement comply
with the applicable accounting standards, to the
extent they are not inconsistent with the accounting
policies prescribed by RBI.

For A.R. & CO. For A D B & COMPANY For AMIT RAY & CO.

Chartered Accountants Chartered Accountants Chartered Accountants

FR. No. 002744C FR. No. 005593C FR. No. 000483C

(CA ANIL GAUR) (CA SHIKHAR CHAND JAIN) (CA JITENDRA PANDEY)

PARTNER PARTNER PARTNER

M. No. 17546 M. No. 074411 M. No. 177655

UDIN 25017546BMGYSV4771 UDIN 25074411BMTDAW2253 UDIN 25177655BMMHCV6685

For JAIN PARAS BILALA & CO.

Chartered Accountants
F.R. No. 011046C

(CA PARAS BILALA)

PARTNER

Place: Mumbai M. No. 400917

Date: April 28, 2025 UDIN 25400917BMIFJY8274

Mar 31, 2024

The Members of Central Bank of India Mumbai

Report on Audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying standalone financial statements of Central Bank Of India (âthe Bank''), which comprise the Standalone Balance Sheet as at 31^st March 2024, the Standalone Profit and Loss Account and the Standalone Cash Flow Statement for the year then ended, and notes to Standalone Financial Statements including a summary of significant accounting policies and other explanatory information in which are included the returns for the year ended on that date of the Head Office, 12 Zones and

i. 1 Specialized Integrated Treasury Branch audited by us

ii. 20 branches audited by us

iii. 1356 branches audited by respective statutory 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 Standalone Balance Sheet, the Standalone Profit and Loss Account and the Standalone Cash Flow Statement are the returns from 3124 branches which have not been subjected to audit. These unaudited branches account for 27.74 per cent of advances, 47.37 per cent of deposits, 31.70 per cent of interest income and 44.95 per cent 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 (hereinafter referred to as âthe Actâ) in the manner so required for the Bank and are in conformity with

accounting principles generally accepted in India and:

a) the Standalone 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 31^st March, 2024;

b) the Standalone Profit and Loss Account, read with the notes thereon shows a true balance of profit for the year ended on that date; and

c) the Standalone 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 (âSAsâ) issued by the Institute of Chartered Accountants of India (âICAIâ). Our responsibilities under those Standards are further described in the âAuditors'' Responsibilities for the Audit of the Standalone Financial Statementsâ 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 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 on the standalone financial statements.

Emphasis of Matter

3. We draw attention to:

a) Note no. 15 (f)(iv) of the Statement regarding deferred tax, wherein on the basis of tax review made by the Bank''s management with respect to the possible tax benefits arising out of the timing

difference, the net deferred tax asset of '' 4,294.57 crore is recognised as on 31^st March 2024 ('' 5,798.90 crore as on 31^st March 2023).

Our opinion is not modified in respect of these matters.

Key Audit Matters

4. Key audit matters are those matters that, in our be communicated in our report.

professional judgment, were of most significance in our audit of the standalone financial statements for the year ended 31st March 2024. 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 described below to be the key audit matters to

Key Audit Matters	Auditors'' response
1. Identification and provisioning of non-	Our audit approach included assessment of the design,
performing advances made in accordance with the prudential norms prescribed by Reserve Bank of India on Income recognition, Asset Classification and provisioning pertaining to Advances (refer Schedule 9 read with Note 3 of Schedule 17 to the standalone financial statements)	operating effectiveness of key internal controls over approval, recording and monitoring of loans and substantive audit procedures in respect of income recognition, asset classification and provisioning pertaining to advances. In particular:
Advances comprise substantial portion of the	â¢ We have evaluated and understood the Bank''s
Bank''s total assets. Identification of non-performing	internal control system in adhering to the relevant
advances (NPAs) is carried out, based on system	RBI guidelines regarding income recognition, asset
identification, by the Core Banking Solution (CBS)	classification and provisioning pertaining to advances.
software in operation based on the various controls	â¢ We assessed and evaluated the process of
and logic embedded therein.	identification of NPAs, and corresponding reversal of
Provisions in respect of such NPAs and restructured advances are made based on management''s assessment of the degree of impairment of the advances subject to and guided by the minimum provisioning levels prescribed under RBI guidelines, prescribed from time to time. The provisions on NPAs are also based on the valuation of the security available. In case of restructured accounts, provision is made in accordance with the RBI guidelines. We identified NPA identification and provision on loans and advances as a key audit matter because of	income and creation of provision. â¢ We have analyzed and understood key IT systems/ applications used operational effectiveness of relevant controls including involvement of manual process and manual controls in relation to income recognition, asset classification and provisioning pertaining to advances. In order to ensure the effectiveness of the operation of the key controls and compliance to the directions of the RBI, we have verified whether both CBS system and the
the significant efforts involved by the management	management have:
in identifying NPAs based on the RBI Guidelines, the level of management judgement involved in determining the provision (including the provisions	â¢ timely recognized the depletion in the value of available security.
on assets which are not classified as NPAs), the	â¢ made adequate provisioning based on such time-
valuation of security of the NPAs and on account of	to-time monitoring and identification of asset
the significance of these estimates to the standalone	classification including accounts which meet the
financial statements of the Bank.	criteria for asset classification benefit in accordance with the Reserve Bank of India COVID-19 Regulatory Package.
	â¢ We placed reliance upon the Independent Auditor''s
	Report of the respective Branch Auditors with respect to income recognition, asset classification and provisioning as well as Memorandum of changes suggested both at the branches and at Head Office.

Key Audit Matters	Auditors'' response
2. Investments
Investment portfolio of the Bank comprises of	Our audit approach towards Investments with reference
investments in government securities, bonds,	to the RBI circulars/ directives included the review and
debentures, shares, security receipts and other	testing of the design, operating effectiveness of internal
approved securities which are classified under three	controls and substantive audit procedures in relation to
categories, Held to Maturity, Available for Sale and	valuation, classification, identification of Non-Performing
Held for Trading. Investments comprise a substantial	Investments, provisioning/ depreciation related to
portion of the Bank''s total assets.	Investments. In particular:
Valuation of Investments, identification of Non-
Performing Investments (NPI) and the corresponding	â¢ We assessed and understood the system and
non-recognition of income and provision thereon, is	internal control as laid down by the Bank to comply
carried out in accordance with the relevant circulars /	with relevant RBI guidelines regarding valuation,
guidelines / directions of RBI. (refer Schedule 8 read	classification, identification of Non- Performing
with Note 5 of Schedule 17 to the standalone financial	Investments, Provisioning and depreciation on
statements)	Investments.
The valuation of each type of aforesaid security is to	â¢ Tested accuracy and compliance for selected
be carried out as per the methodology prescribed in	sample of investments with the RBI Master circulars
the circulars and directives issued by the RBI which	and directions by re-performing valuation for each
involves collection of data/ information from various	category of security in accordance with the RBI
sources such as FBIL rates, rates quoted on BSE/	guidelines.
NSE, financial statements of unlisted companies,	â¢ We assessed and evaluated the process of
NAV in case of security receipts etc.	identification of NPIs, and corresponding reversal of
As per the RBI directions, there are certain	income and creation of provision.
investments that are valued at market price however	â¢ We carried out substantive audit procedures to re-
certain investments are based on the valuation	compute independently the provision to be created
methodologies that include statistical models with	and depreciation to be provided.
inherent assumptions, assessment of price for	â¢ We assessed that the standalone financial statement
valuation based on financial statements etc. The price	disclosures appropriately reflected the Bank''s
discovered for the valuation of these Investments is	exposure to investments valuation risks with reference
only a fair assessment of the Investments.	to the requirements of the prevailing accounting
Hence, the valuation of Investments requires special attention and further in view of the significance of the amount of Investments in the financial statements, the same has been considered as Key Audit Matter in our audit	standards and the RBI guidelines.

Key Audit Matters	Auditors'' response
3. Information technology (IT) systems used in	We conducted an assessment and identified key IT
financial reporting process The Bank''s operational and financial reporting processes are dependent on IT systems run through Core Banking Solutions (CBS) and other integrated software with automated processes and controls large volume of transactions.	applications, database and operating systems that are relevant to our audit and have identified CBS and Treasury System primarily as relevant for financial reporting. For the key IT systems pertaining to CBS and treasury operations used to prepare accounting and financial information, our areas of audit focus included Access Security (including controls over privileged access), application change
The process and controls are to ensure appropriate	controls, database management and network operations.
user access and management processes in use.	In particular:
The Bank has an in-house Department of Information & technology (DIT) run under the supervision of the	â¢ We obtained an understanding of the Bank''s IT control
top management and with the support of expert	environment and key changes during the audit period
consulting agencies, for maintaining IT services.	that may be relevant to the audit.
Accordingly, our audit was focused on key IT systems	â¢ We tested the design, implementation and operating
and controls due to the pervasive Impact on the	effectiveness of the Bank''s General IT controls over
standalone financial statements and the same has	the key IT systems that are critical to financial reporting
been considered as Key Audit Matter in our audit.	including obtaining reports from independent experts. This included evaluation of Bank''s controls to evaluate segregation of duties and access rights being provisioned / modified based on duly approved requests, access for exit cases being revoked in a timely manner.
	â¢ We also tested key automated and manual business
	cycle controls and logic for system generated reports relevant to the audit; including testing of compensating controls or performed alternate procedures to assess whether there were any unaddressed IT risks that would materially impact the standalone financial statements, information other than the standalone Financial Statements and Auditors'' Report thereon.
4. Provisions, Contingent Liabilities and Claims:	We have obtained an understanding of Internal Controls
Assessment of Provisions and Contingent Liability in	relevant to the audit in order to design our audit procedures
respect of certain litigations on various claims filed by other parties not acknowledged as debt (Note No. 13	that are appropriate in the circumstances.
of Schedule 17 and Note No. 15(h) of Schedule 18).	We broadly reviewed the underlying assumptions and estimates used by the management for provisioning but as
There is high level of judgement required in estimating the level of provisioning. The Bank''s assessment is	the extent of impact is dependent on future developments which are highly uncertain, we primarily relied on those
supported by the facts of matter, their own judgement,	assumptions and estimates, which are subject matter of
past experience, and advice from legal and independent experts wherever considered necessary.	periodic review by the Bank.
Accordingly, unexpected adverse outcomes may significantly impact the Bank''s reported profit and state of affairs presented in Balance Sheet.	We have relied upon the management note and legal opinions obtained by the bank regarding the claims and tax litigations and involved our internal team to review
Contingent Liability is a possible obligation, outcome	the nature of such litigations and claims, their current
of which is contingent upon occurrence or non-	status, sustainability, examining recent orders and/or
occurrence of one or more uncertain future events. In	communication received from various tax authorities/
the judgement of the management, such claims and	judicial forums and follow up actions thereon and
litigations including tax demands against the bank	likelihood of claims/litigations materializing into eventual
would not eventually lead to a liability.	liability upon final resolution, from the available records
However, unexpected adverse outcomes may significantly impact the Bank''s reported financial results which is uncertain/ unascertainable at this stage.	and developments to date.
Considering the uncertainty relating to the outcome of these matters which requires application of judgment in interpretation of law, this has been determined as a key Audit Matter.

Information other than the Standalone Financial

Statements and Auditors'' report thereon

5. The Bank''s Board of Directors is responsible for the other information. The other information comprises the Corporate Governance Report, which we obtained at the time of issuance of this auditors'' report, and the Directors'' Report including annexures, Business Responsibility, Dividend Distribution Policy and Sustainability Report 2023-24 and Management Discussion and Analysis which is expected to be made available to us after that date but does not include the standalone financial statements and our auditor''s report thereon.

Our opinion on the standalone financial statements does not cover the other information and the Pillar 3 disclosures under Capital Adequacy Framework (Basel III disclosures) and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date prior to the date of 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 regard.

When we read the Directors'' Report including annexures, and Management Discussion and Analysis, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance and determine the actions under the applicable laws and regulations.

Responsibilities of Management and Those Charged

With Governance for the Standalone Financial

Statements

6. The Bank''s Board of Directors is responsible with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the applicable Accounting Standards, 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 (âRBI guidelinesâ) and judicial pronouncements. 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.

Auditors'' responsibilities for the audit of the standalone financial statements

7. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 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 auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

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

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

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

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

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

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

Other Matters

8. We did not audit the financial statements/ information of 1356 branches included in the standalone financial statements of the Bank whose financial statements / financial information reflect total assets of '' 2,07,912 crore as at 31^st March 2024 and total revenue of '' 8,313 crore for the year ended on that date, as considered in the standalone financial statements. These branches cover 30.08 per cent of advances, 48.99 per cent of deposits and 16.02 per cent of non-performing assets as at 31^st March 2024 and 38.33 per cent of revenue for the year ended on that date. 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.

9. In the conduct of our audit, we have taken note of the unaudited returns in respect of 3124 branches certified by the respective branch''s management whose financial statements/ information reflect total assets of '' 1,13,873 crore as at 31^st March 2024 and total revenue of '' 7,632 crore for the year ended on that date. These unaudited branches cover 27.74 per cent of advances, 47.37 per cent of deposits and 15.82 per cent of non-performing assets as on 31^st March 2024 and 35.19 per cent of revenue for the year then ended.

Our opinion is not modified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

10. The standalone Balance sheet and the standalone 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 5 to 9 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein, we report that:

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

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

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

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:

a) In our opinion, the aforesaid standalone financial statements comply with the applicable Accounting Standards issued by ICAI, to the extent they are not inconsistent with the accounting policies prescribed by RBI.

b) There are no observations or comments on financial transactions or matters which have any adverse effect on the functioning of the Bank.

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

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

20 dated March 17, 2020 (as amended) is given in Annexure A to this report. Our report expresses an unmodified opinion on the Bank''s internal financial controls over financial reporting with reference to the standalone financial statements as at 31^stMarch 2024.

12. We further report that:

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

b) the standalone Balance Sheet, the standalone Profit and Loss Account and the Standalone Cash Flow Statement dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us.

c) the reports on the accounts of the branch offices audited by branch auditors of the Bank under section 29 of the Banking Regulation Act, 1949 have been sent to us and have been properly dealt with by us in preparing this report; and

d) In our opinion, the Standalone Balance Sheet, the Standalone Profit and Loss Account and the Standalone Cash Flow Statement comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI.

FOR KISHORE & KISHORE FOR A.R. & CO.

CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS

F.R. No. 000291N FR. No.002744C

CA P.R. KARANTH CA PAWAN GOEL

PARTNER PARTNER

M. No.018808 M.No.072209

UDIN: 24018808BKDZIJ2220 UDIN: 24072209BKFDGL6298

For ADB & COMPANY

CHARTERED ACCOUNTANTS F.R. No. 005593C

CA BANKIM SHUKLA

PARTNER M. No. 074272

UDIN: 24074272BKEHFU9660

Place : Mumbai Date : 30.04.2024

Mar 31, 2023

Report on Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of Central Bank Of India (âthe Bank''), which comprise the Standalone Balance Sheet as at 31st March 2023, the Standalone Profit and Loss Account and the Standalone Cash Flow Statement for the year then ended, and notes to Standalone Financial Statements including a summary of significant accounting policies and other explanatory information in which are included the returns for the year ended on that date of the Head Office, 12 Zones and

i. 1 Specialized Integrated Treasury Branch audited by us

ii. 20 branches audited by us

iii. 1507 branches audited by respective statutory 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 Standalone Balance Sheet, the Standalone Profit and Loss Account and the Standalone Cash Flow Statement are the returns from 2966 branches which have not been subjected to audit. These unaudited branches account for 24.65 per cent of advances, 44.21 per cent of deposits, 29.45 per cent of interest income and 42.05 per cent of interest expenses.

b) the Standalone Profit and Loss Account, read with the notes thereon shows a true balance of profit for the year ended on that date; and

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

Basis for Opinion

Emphasis of Matter

3. We draw attention to:

a) Note no. 14 (h) of the Statement regarding amortization of additional liability on revision of family pension amounting to '' 821.95 crore. The Bank has charged an amount of '' 164.40 crore to

the Profit and Loss Account for the year ended 31st March 2023 and the balance unamortised expense of '' 113.03 crore has been carried forward pursuant to RBI circular no. RBI/2021-22/105 DORACC. REC.57/21.04.018/2021-22 dt.4th October,2021.

b) Note no. 15 (g) of the Statement regarding deferred tax, wherein on the basis of tax review made by the Bank''s management with respect to the possible tax benefits arising out of the timing difference, the net deferred tax asset of '' 5798.91 crore is recognised as on 31st March 2023(? 6862.05 crore as on 31st March 2022).

c) Note no. 15 (a) of the Statement regarding accounting of Performance Link Incentive to employees on accrual basis during the year which was being done on cash basis in earlier years resulting in decrease of profit by '' 104.24 crore.

d) Note No. 4 (h) of the Statement, which describes the uncertainties due to the COVID-19 pandemic and management''s evaluation of impact on the Bank''s financial performance which will depend on future developments, which are uncertain.

Our opinion is not modified in respect of these matters.

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 for the year ended 31st March 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 described below to be the key audit matters to be communicated in our report.

Key Audit Matters	Auditors'' response
1. Identification and provisioning of non-	Our audit approach included assessment of the design,
performing advances made in accordance with the prudential norms prescribed by Reserve Bank of India on Income recognition, Asset Classification and provisioning pertaining to Advances (refer Schedule 9 read with Note 2 of Schedule 17 to the standalone financial statements)	operating effectiveness of key internal controls over approval, recording and monitoring of loans and substantive audit procedures in respect of income recognition, asset classification and provisioning pertaining to advances. In particular:
Advances comprise substantial portion of the	â¢ We have evaluated and understood the Bank''s
Bank''s total assets. Identification of non-performing	internal control system in adhering to the relevant
advances (NPAs) is carried out, based on system	RBI guidelines regarding income recognition, asset
identification, by the Core Banking Solution (CBS)	classification and provisioning pertaining to advances.
software in operation based on the various controls	â¢ We assessed and evaluated the process of
and logic embedded therein.	identification of NPAs, and corresponding reversal of
Provisions in respect of such NPAs and restructured advances are made based on management''s assessment of the degree of impairment of the advances subject to and guided by the minimum provisioning levels prescribed under RBI guidelines, prescribed from time to time. The provisions on NPAs are also based on the valuation of the security available. In case of restructured accounts, provision is made in accordance with the RBI guidelines. We	income and creation of provision. â¢ We have analyzed and understood key IT systems/ applications used operational effectiveness of relevant controls including involvement of manual process and manual controls in relation to income recognition, asset classification and provisioning pertaining to advances. In order to ensure the effectiveness of the
identified NPA identification and provision on loans	operation of the key controls and compliance to the
and advances as a key audit matter because of	directions of the RBI, we have verified whether both CBS
the significant efforts involved by the management	system and the management have:
in identifying NPAs based on the RBI Guidelines, the level of management judgement involved in determining the provision (including the provisions	â¢ timely recognized the depletion in the value of available security.
on assets which are not classified as NPAs), the	â¢ made adequate provisioning based on such time-
valuation of security of the NPAs and on account of	to-time monitoring and identification of asset
the significance of these estimates to the standalone	classification including accounts which meet the
financial statements of the Bank.	criteria for asset classification benefit in accordance
	with the Reserve Bank of India COVID-19 Regulatory Package.

Key Audit Matters	Auditors'' response
â¢ We placed reliance upon the Independent Auditor''s Report of the respective Branch Auditors with respect to income recognition, asset classification and provisioning as well as Memorandum of changes suggested both at the branches and at Head Office.

2. Investments

Investment portfolio of the Bank comprises of investments in government securities, bonds, debentures, shares, security receipts and other approved securities which are classified under three categories, Held to Maturity, Available for Sale and Held for Trading. Investments comprise a substantial portion of the Bank''s total assets.

Valuation of Investments, identification of Non-Performing Investments (NPI) and the corresponding non-recognition of income and provision thereon, is carried out in accordance with the relevant circulars / guidelines / directions of RBI. (refer Schedule 8 read with Note 5 of Schedule 17 to the standalone financial statements)

The valuation of each type of aforesaid security is to be carried out as per the methodology prescribed in the circulars and directives issued by the RBI which involves collection of data/ information from various sources such as FBIL rates, rates quoted on BSE/ NSE, financial statements of unlisted companies, NAV in case of security receipts etc.

As per the RBI directions, there are certain investments that are valued at market price however certain investments are based on the valuation methodologies that include statistical models with inherent assumptions, assessment of price for valuation based on financial statements etc. The price discovered for the valuation of these Investments is only a fair assessment of the Investments.

Hence, the valuation of Investments requires special attention and further in view of the significance of the amount of Investments in the financial statements, the same has been considered as Key Audit Matter in our audit.

Our audit approach towards Investments with reference to the RBI circulars/ directives included the review and testing of the design, operating effectiveness of internal controls and substantive audit procedures in relation to valuation, classification, identification of Non-Performing Investments, provisioning/ depreciation related to Investments. In particular:

â¢ We assessed and understood the system and

internal control as laid down by the Bank to comply with relevant RBI guidelines regarding valuation, classification, identification of Non- Performing Investments, Provisioning and depreciation on Investments.

â¢ Tested accuracy and compliance for selected sample of investments with the RBI Master circulars and directions by re-performing valuation for each category of security in accordance with the RBI guidelines.

â¢ We assessed and evaluated the process of

identification of NPIs, and corresponding reversal of income and creation of provision.

â¢ We carried out substantive audit procedures to recompute independently the provision to be created and depreciation to be provided.

â¢ We assessed that the standalone financial statement disclosures appropriately reflected the Bank''s exposure to investments valuation risks with reference to the requirements of the prevailing accounting standards and the RBI guidelines.

Key Audit Matters	Auditors'' response
3. Information technology (IT) systems used in financial reporting process The Bank''s operational and financial reporting processes are dependent on IT systems run through Core Banking Solutions (CBS) and other integrated software with automated processes and controls large volume of transactions. The process and controls are to ensure appropriate user access and management processes in use.	We conducted an assessment and identified key IT applications, database and operating systems that are relevant to our audit and have identified CBS and Treasury System primarily as relevant for financial reporting. For the key IT systems pertaining to CBS and treasury operations used to prepare accounting and financial information, our areas of audit focus included Access Security (including controls over privileged access), application change controls, database management and network operations. In particular:
The Bank has an in-house Department of Information & technology (DIT) run under the supervision of the top management and with the support of expert consulting agencies, for maintaining It services.	â¢ We obtained an understanding of the Bank''s IT control environment and key changes during the audit period that may be relevant to the audit.
Accordingly, our audit was focused on key IT systems and controls due to the pervasive Impact on the standalone financial statements and the same has been considered as Key Audit Matter in our audit.	â¢ We tested the design, implementation and operating effectiveness of the Bank''s General IT controls over the key IT systems that are critical to financial reporting including obtaining reports from independent experts. This included evaluation of Bank''s controls to evaluate segregation of duties and access rights being provisioned / modified based on duly approved requests, access for exit cases being revoked in a timely manner.
	â¢ We also tested key automated and manual business cycle controls and logic for system generated reports relevant to the audit; including testing of compensating controls or performed alternate procedures to assess whether there were any unaddressed IT risks that would materially impact the standalone financial statements, information other than the standalone Financial Statements and Auditors'' Report thereon.

4. Provisions, Contingent Liabilities and Claims:

Assessment of Provisions and Contingent Liability in respect of certain litigations on various claims filed by other parties not acknowledged as debt (Note No. 13 of Schedule 17 and Note No. 15. i. 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.

Contingent Liability is a possible obligation, outcome of which is contingent upon occurrence or nonoccurrence of one or more uncertain future events. In the judgement of the management, such claims and litigations including tax demands against the bank would not eventually lead to a liability.

However, unexpected adverse outcomes may significantly impact the Bank''s reported financial results which is uncertain/ unascertainable at this stage.

Considering the uncertainty relating to the outcome of these matters which requires application of judgment in interpretation of law, this has been determined as a key Audit Matter.

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.

We broadly reviewed the underlying assumptions and estimates used by the management for provisioning 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.

We have relied upon the management note and legal opinions obtained by the bank regarding the claims and tax litigations and involved our internal team to review the nature of such litigations and claims, their current status, sustainability, examining recent orders and/or communication received from various tax authorities/ judicial forums and follow up actions thereon and likelihood of claims/litigations materializing into eventual liability upon final resolution, from the available records and developments to date.

Information other than the Standalone Financial

Statements and Auditors'' report thereon

5. The Bank''s Board of Directors is responsible for the other information. The other information comprises the Corporate Governance Report, which we obtained at the time of issuance of this auditors'' report, and the Directors'' Report including annexures, and Management Discussion and Analysis which is expected to be made available to us after that date but does not include the standalone financial statements and our auditor''s report thereon.

If, based on the work we have performed on the other information that we obtained prior to the date of 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 regard.

Responsibilities of Management and Those Charged

With Governance for the Standalone Financial

Statements

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.