This representation letter is provided in connection with your audit of the financial statements of Siripuram Junction (06846), Vishakhapatnam Branch of State Bank of India, for the year ended March 31, 2024, for the purpose of expressing an opinion as to whether the financial statements give a true and fair view of the state of affairs of Siripuram Junction (06846), Vishakhapatnam Branch of State Bank of India, as of March 31, 2024, and of the results of operations for the year then ended. We acknowledge our responsibility for preparation of financial statements, in accordance with the financial reporting framework applicable to the Bank, including the regulatory requirements of the Reserve Bank of India.
We confirm, to the best of our knowledge and belief, the following representations:
1. Accounting Policies
The accounting policies, as approved by the board of directors of the Bank, have been duly followed. There are no changes in the accounting policies followed by the branch during the current year.
2. Assets
2.1 All the assets owned by the bank and transferred to the branch and such other asset/s, as has/ have been acquired by the branch, has/have been duly accounted for, and none of the assets is encumbered.
2.2 Fixed assets held by branches have been properly accounted from the date the asset is purchased and put to use and have been physically verified with entries in the books of accounts and the fixed assets register, at the year end. No discrepancies have been noticed on such verification. Depreciation on these assets has been adequately provided as per the policy of the bank.
2.3 In respect of assets other than fixed assets, the same have not been impaired and do not have a value lower than realizable value.
2.4 The branch is operating from a leased premise and there is no dispute with respect to the tenancy and lease charges.
2.5 The Branch has not got any notice from the landlord for evacuation or redevelopment of the premises which may possibly necessitate shifting the branch premises in the near future.
3. Capital Commitments On branch letterhead
At the balance sheet date, outstanding commitments for capital expenditure have been duly depicted in the financial statements.
4. Cash and Bank Balances
The cash balance (including cash in ATM) as on March 31, 20234 is Rs.122,90,414/-, and has been verified by us. Internal guidelines on periodic cash verification have been duly followed.
Fake notes received by the Bank have been duly impounded and relevant guidelines of RBI thereon have been complied.
Effective Dual custody of Cash has been maintained at all times during the financial year.
5. Liabilities and Deposits
a) The branch has adequate monitoring and control process over dormant or in- operative accounts and re-activation of accounts is carried as per the approved process. b) The Branch has provided interest expenses as per approved interest rate applicable from time to time and credited to respective deposits/interest accrued till the date of Balance Sheet for all the category of deposits. c) The Branch has charged interest from saving accounts wherein there is Debit Balance or in case of overdraft facility or any other specific circumstances. d) The Branch has deducted TDS on all interest credited/accrued for deposits as per the requirements of Income Tax Act, 1961, as applicable. e) All matured and unclaimed term deposits are classified as Demand Deposits. Further, interest has been accrued basis Savings Accounts interest rate on such unclaimed deposits. f) All savings and current accounts having debit balances are shown as Advances. g) The branch has recorded all known and anticipated liabilities in the financial statements. Liabilities on account of GST have been correctly recorded.
6. Contingent Liabilities
6.1 The branch has fully disclosed in the notes to the financial statements;
(a) guarantees that we have given to third parties;
(b) Letters of Credits (Local/ Import); (c) Letters of Comfort (Local/ Import); (d) Deferred Payment Credits/ Guarantees (Local/ Import); and (e) Other contingent liabilities.
6.2 Other than for advances, there are no matters involving the branch in any claims in litigation, arbitration or other disputes, in which there may be some financial On branch letterhead
implications, including for staff claims, branch rentals, municipal taxes, local levies, etc., except for those which have been appropriately included under contingent liabilities.
6.3 None of the contingent liabilities disclosed and other than provided for are likely to result in a further loss, requiring adjustment of assets or liabilities or provisions in the books of accounts.
6.4 Frivolous claims from Customers / third parties have not been included in Contingent liabilities.
6.5 There are no other claims on banks not acknowledged as debt, other than those disclosed in the financial returns.
7. Provisions for Claims and Losses
Provision has been made in the accounts for all known losses and claims of material amounts.
8. Balancing of Books
The books of the accounts are computerised and hence the subsidiary records are automatically balanced with the relevant control records. In the case of manual sub- ledgers maintained, we confirm that they duly match with the general ledger balances.
9. Overdue/Matured Term Deposits
All overdue/ matured term deposits are held as matured term deposits.
10. Advances
In respect of the Advances and income thereon, the income recognition and asset classification norms prescribed by the Reserve Bank of India have been complied with.
11. Outstanding in Suspense/ Sundry Account
The year–wise/ entry–wise break up of amounts outstanding in Sundry deposits/
Sundry assets, as on March 31, 2024 has already been submitted to you along with explanation of the nature of the amounts in brief, and supporting evidences relating to the existence of such amounts in the aforesaid accounts.
12. Interest Provisions
Interest provision has been made on deposits, etc., in accordance with the extant instructions of the Head Office.
The interest provision for Head Office Interest shall be made at the Head Office. On branch letterhead
13. Internal Financial Control over Financial Reporting
13.1 All material transactions pertaining to the Branch have been accurately and timely recorded in the accounting records and are properly being reflected in the financial statements.
13.2 Internal control system designed by the Bank’s head office, which is required to be operated at the Branch has been meticulously followed particularly with respect to granting fund based as well non fund based credit facilities, acceptance of deposits, purchase of fixed assets, computation and accounting of those income and expenditure which is required to be computed and/or accounted by the Branch, preparation of annual closing returns including the financial statements and the closure process of financial statements to the extent the same is required to be carried out at the Branch. No material or significant weakness was observed in operations of internal control system designed by the Bank’s Head office and all such internal controls were operating effectively throughout the year. Further, there is no failure to correct any major weakness in internal control system.
13.3 We are responsible for establishing and maintaining adequate and effective internal financial controls, except to the extent such internal control are centrally designed and maintained, based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’) and the preparation and presentation of the financial statements as set out in the terms of the audit engagement dated April 8, 2024 and, in particular, the assertions to you on the internal financial controls in accordance with the criteria mentioned above.
13.4 We have performed an evaluation and made an assessment of the adequacy and effectiveness of the Branch's internal financial controls based on the criteria mentioned in Paragraph 13.3 above for the year ended March 31, 2024. Those evaluations do not include the procedures performed by you during the audit of internal financial controls over financial reporting as part of the basis for our assessment of the effectiveness of internal financial controls.
14. Long Form Audit Report–Branch Response to the Questionnaire
In connection with the Long Form Audit Report, complete information (including all updated Internal Circulars issued till date, Receipt & disposal of Complaints & grievances) as regards each item in the questionnaire, has been made available to you in order to enable you to verify the same for the purpose of your audit.
15. Other Certification
Duly authenticated, information along with necessary source documents as regards
other matters which, as per the bank’s letter of appointment, require certification, has been made available to you. On branch letterhead
16. On Demonetization is deleted as not applicable this year.
17. Information Provided
• We have provided you with:
o Access to all information of which we are aware that is relevant to the preparation of the financial statements such as records, documentation, updated internal policies and circulars and other matters; o Additional information that you have requested from us for the purpose of the audit; and o Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. • All transactions have been recorded in the accounting records and are reflected in the financial statements. • We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. • We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves: o Management; o Employees who have significant roles in internal control; or o Others where the fraud could have a material effect on the financial statements. • We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the entity’s financial statements communicated by employees, former employees, analysts, regulators or others. • We have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. • We have disclosed to you the identity of the entity’s related parties and all the related party relationships and transactions of which we are aware. • Any other matters that the auditor may consider necessary.
18. General
There is no enquiry going on or concluded during the year by the Central Bureau of Investigation (CBI), or any other vigilance or investigating agency, on the branch or on its employees and no cases of frauds or of misappropriation of assets of the branch have come to the notice of the Management during the year, other than for amounts for which provisions have already been made in the books of accounts.
19. There have been no events subsequent to the balance sheet date, that require adjustment of, or disclosure in, the financial statements or notes thereto.
20. We have made available to you all the following latest reports on the accounts of our branch, and updated compliance by the branch on the observations contained therein: a. Previous year’s branch audit report and LFAR; b. Internal inspection reports; On branch letterhead
c. Report on any other Inspection, audit that has been conducted in the course of the year
21. Apart from the, what has been disclosed, the branch has not received any show cause notice, inspection advice, etc., from the Government of India, Reserve Bank of India or any other monitoring or regulatory authority of India that could have a material effect on the financial statements of the branch during the year.
22. The provision for non–performing assets, depreciation, provision for income tax, provision for bonus, gratuity, etc., is made at the Head Office. Therefore, the same has not been provided in the branch accounts. The branch has correctly deducted Tax at source and paid the same on time to the relevant authorities.
23. FIMMDA guidelines have been followed, wherever applicable.
24. The branch has complied with all aspects of contractual agreements, that could have a material effect on the financial statements in the event of non– compliance. There has not been non–compliance with requirements of regulating authorities, that could have a material effect on the financial statements in the event of non–compliance.
25. The other particulars required, have already been given to you, and particulars and other representations made to you from time to time are true and correct in all respects.
Thanking you,
Yours faithfully For & on behalf of Siripuram Junction (06846), Vishakhapatnam Branch of State Bank of India,
