Section 41(7) in The State Bank Of India (Subsidiary Banks) Act, 1959
(7)The auditor shall make a report to the State Bank upon the annual balance-sheet and accounts of the subsidiary bank, and, in every such report, he shall state--(a)whether, in his opinion, the balance-sheet 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] [Substituted by Act 48 of 1973, Section 31, for certain words (w.e.f. 31-12-1973)] of the affairs of that subsidiary bank, and in case he has called for and explanation or information, whether it has been given and whether it is satisfactory;(b)whether or not the transactions of that subsidiary bank which have come to his notice have been within the competence of the bank;(c)whether or not the returns received from the offices and branches of that subsidiary bank have been found adequate for the purpose of his audit;(d)whether the profit and loss account shows a true balance of profit or loss for the period covered by such account; and(e)any other matter which he considers should be brought to the notice of the State Bank.[Explanation 1. [Inserted by Act 48 of 1973, Section 34 (w.e.f. 31-12-1973)]-For the purposes of this Act,--(a)the balance-sheet shall not be treated as not disclosing a true and fair view of the affairs of the subsidiary bank, and(b)the profit and loss account shall not be treated as not showing a true balance of profit or loss for the period covered by such account, merely by reason of the fact that the balance-sheet or, as the case may be, the profit and loss account, does not disclose any matters which are, by the provisions of the Banking Regulation Act, 1949, (10 of 1949.) read with the relevant provisions of this Act, not required to be disclosed.Explanation 2.-For the purposes of this Act, the accounts of the subsidiary bank shall not be deemed as having not been properly drawn up on the ground merely that they do not disclose certain matters if--(i)those matters are such as the subsidiary bank is, by virtue of any provision contained in the Banking Regulation Act, 1949 (10 of 1949.), read with the relevant provisions of this Act, or any other Act, not required to disclose, and(ii)the provisions referred to in clause (i) are specified in the balance-sheet and profit and loss account of the subsidiary bank or in the auditor's report.]
