Section 41(7) in The State Bank Of India Act, 1955
(7)The auditors shall make a report to the Central Government upon the annual balance sheet and accounts, and in every such report they shall state-(a)whether, in their opinion, the balance sheet is a full and fair balance sheet containing all the necessary particulars and properly drawn up so as to exhibit a true and fair view of the affairs of the State Bank, and in case they have called for any explanation or information, whether it has been given and whether it is satisfactory;(b)whether or not the transactions of the State Bank which have come to their notice have been within the powers of the State Bank;(c)whether or not the returns received from the offices and branches of the State Bank have been found adequate for the purpose of their 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 they consider should be brought to the notice of the shareholders or the Central Government, as the case may be.Explanation 1.-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 State 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 State 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 State 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 State Bank or in the auditors' report.
