Home  »  Company  »  Dhanlaxmi Bank  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Dhanlaxmi Bank Ltd.

Mar 31, 2016

To

The Members of Dhanlaxmi Bank Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Dhanlaxmi Bank Limited (“the Bank”), which comprise the Balance Sheet as at 31 March, 2016, the Profit and Loss Account and the Cash Flow statement for the year then ended, and a summary of significant accounting policies and notes to the financial statements. Incorporated in these financial statements are the returns of ten branches/offices and Treasury division audited by us, 269 branches/ offices audited by branch auditors.

Management''s Responsibility for the Financial Statements

The Bank''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (the “Act”) with respect to the preparation of these 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 provisions of Section 29 of the Banking Regulation Act, 1949 and accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014, in so far as they apply to the Bank and the guidelines issued by the Reserve Bank of India. 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 the design, implementation and maintenance of adequate internal financial control 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.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We have conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under section 143(10) of the Act. 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.

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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Bank''s preparation of the financial statements that give a true and fair view 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 the Bank''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements together with the Principal Accounting Policies and Notes appended thereto give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 2013, in the manner so required for the banking companies and give a true and fair view of the state of affairs of the Bank as at 31 March 2016, its loss and its cash flows for the year ended on that date.

Emphasis of Matter:

We draw attention to the following matters in the Notes to the financial statements:

(i) Note No. 6 (iv) of the financial statements regarding deferment of shortfall arising from the sale of certain Non Performing Assets during the year ended March 31, 2016 in terms of RBI Master Circular DBR.No. BPBC 2/21.04.048/2015-16 on prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to advances dated 1st July 2015 and the unamortized balance as at 31st March 2016 amounting to Rs. 10.97 Crores.

(ii) Note no. 23 of the financial statements regarding retention of Deferred Tax Asset amounting to Rs.37.06 Crores.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

2. As required sub section (3) of section 30 of the Banking Regulation Act, 1949 and the appointment letter dated October 6, 2015, 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 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 purpose of our audit. We have conducted audit of ten branches/offices and Treasury division in connection with our Central Statutory audit.

3. Further, as required by section 143(3) of the Companies Act, 2013, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) 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;

(c) The reports on the accounts of the branch offices audited by branch auditors of the Bank under section 143(8) of the Companies Act, 2013 have been sent to us and have been properly dealt with by us in preparing this report;

(d) 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;

(e) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(f) On the basis of written representations received from the directors as on 31 March, 2016 taken on record by the Board of Directors, none of the directors are disqualified as on 31 March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act;

(g) With respect to the adequacy of the internal financial controls over financial reporting of the Bank and the operating effectiveness of such controls, refer to our separate Report in ”Annexure1” to this report; and

(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Bank has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 36 to the financial statements;

ii. The Bank has made provision, as required under the applicable law or accounting standards, for material foreseeable losses on long-term contracts including derivative contracts - Refer Note 37 to the financial statements; and

iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Bank.

Annexure 1 to The Independent Auditor''s Report of even date on the Financial Statements of Dhanlaxmi Bank Limited

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (“the Act”)

To the Members of Dhanlaxmi Bank Limited

We have audited the internal financial controls over financial reporting of Dhanlaxmi Bank Limited (“the Bank”) as of 31 March 2016 in conjunction with our audit of the financial statements of the Bank for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Bank''s Management is responsible for establishing and maintaining internal financial controls 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 (the “Guidance Note”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Bank''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor''s Responsibility

Our responsibility is to express an opinion on the Bank''s internal financial controls over financial reporting based on our audit. We have conducted our audit in accordance with the Guidance Note and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting.

Concept of Internal Financial Controls Over Financial Reporting

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Bank has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, 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.

For K. Venkatachalam Aiyer & Co.

Chartered Accountants

Firm Registration Number: 004610S

K. Narayanan

Partner

Membership Number: 7024

Place : Thrissur

Date : May 30, 2016


Mar 31, 2013

Report on the Financial Statements

1. We have audited the accompanying financial statements of Dhanlaxmi Bank Ltd. as at 31st March, 2013, which comprise the Balance Sheet as at March 31, 2013, and Profit and Loss Account and 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 10 Branches, Dhanam Retail Centralised Solutions and Treasury Division, auditied by us, 148 Branches audited by other branch auditors. Also incorporated in the Balance Sheet and Profit and Loss Account are the returns of 116 branches which have not been subjected to audit. The unaudited branches account for 12% of advances, 13% of deposits, 5% of interest income and 10% of interest expense. The branches audited by us and those audited by other auditors have been selected by Bank.

Management''s Responsibility for the Financial Statements

2. Management of the Bank is responsible for the preparation of these financial statements that give true and fair view of the financial position and financial performance of the Bank in accordance with Banking Regulation Act, 1949 and 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 and presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditor''s 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 auditor''s judgment, including the assessment of the risks 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 the Bank''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. The financial information as at and for the year ended 31st March 2013 of 148 branches has been audited by other auditors whose reports have been furnished to us and our opinion is based solely on the reports of such other auditors.

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

Opinion

7. Without qualifying our opinion, we draw attention to Note No. 19 of the Schedule 18 to the financial statements, regarding deferment of pension liability and gratuity liability of the Bank, pursuant to the exemption granted by the Reserve Bank of India to the public sector banks from application of the provisions of Accounting Standard (AS) 15, Employees Benefits vide circular no. DBOD.BRBC/80/21.04.018/2010-11, dated 09-02-2011 on "Re-opening of Pension Option to the employees of Public Sector Banks and Enhancement in Gratuity Limits - Prudential Regulatory Treatment". Accordingly, out of the unamortized amount of Rs. 15.32 crore as on 01.04.2012, the Bank has amortized Rs. 3.15 crore for Pension and Rs. 1.96 crore for Gratuity being proportionate amount for the year ended March 31, 2013 and balance amount to be amortized in future periods for Pension is Rs. 6.29 crore and for Gratuity is Rs. 3.92 crore.

8. 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, we report that:

(i) the Balance Sheet read with the significant accounting policies and 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, in conformity with accounting principles generally accepted in India;

(ii) the Profit and Loss Account, read with the significant accounting policies and notes thereon, shows a true balance of profit, in conformity with accounting principles generally accepted in India, for the year covered by accounts, 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 and Regulatory Requirements

9. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms ''A'' & ''B'', respectively, of the third Schedule to the Banking Regulation Act, 1949.

10. Subject to the limitations of the auditi indicated in paragraphs 1 to 6 above and as required by the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 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 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, as supplemented with the information furnished by the Management, have been found adequate for the purposes of our audit.

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

For Sagar & Associates

Chartered Accountants

Firm Registration No.: 003510S

Sd/-

V. Vidyasagar Babu

Partner

Membership No.: 27357

Place : Kochi

Date : May 17, 2013


Mar 31, 2012

1. We have audited the attached Balance Sheet of Dhanlaxmi Bank Limited (the 'Bank') as at 31st March, 2012 the annexed Profit and Loss Account and the Cash Flow Statement for the year ended on that date, in which are incorporated the audited returns of 19 branches and treasury division audited by us, 107 branches audited by the Branch Auditors and 161 branches on which we carried out limited review procedures. 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 the 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 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 the Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949, read with Section 211 (1), (2) and (3C) of the Companies Act, 1956.

4. The financial information as at and for the year ended 31st March, 2012 of 107 branches has been audited by other auditors whose reports have been furnished to us and our opinion is based solely on the reports of such other auditors.

5. On the basis of our audit and having regard to the reports received by us from the auditors of the branches audited by other auditors and based on limited review procedures carried out by us on certain branches as mentioned above, 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 our audit and have found them to be satisfactory;

b. in our opinion, 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.

6. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting principles generally accepted in India including Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956, in so far as they apply to the Bank and are not inconsistent with the accounting policies prescribed by the Reserve Bank of India.

7. We further report that:

a. 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 returns;

b. in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books;

c. on the basis of the written representations received from the Directors, as on 31 March, 2012, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March, 2012 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.

8. In our opinion and to the best of our information and according to the explanations given to us, and on consideration of reports submitted by the auditors of the branches not audited by us, and based on limited review procedures carried out by us on the financial reporting of certain branches as mentioned under paragraph 1 above, since the total assets of such branches as at 31st March, 2012 and total revenue/net cash flows for the year then ended are not very significant to the total assets of the Bank as at 31st March, 2012 and total revenue/net cash flows of the Bank for the year then ended, respectively, the said financial statements read together with the Significant Accounting Policies and the Notes in Schedule 17 and 18 respectively, give the information required by the Companies Act, 1956, in the manner so required for banking companies and the guidelines issued by the Reserve Bank of India from time to time, give a true and fair view in conformity with the accounting principles generally accepted in India;

a. in the case of Balance sheet, of the state of affairs of the Bank as at 31st March, 2012;

b. in the case of Profit and Loss Account, of the loss for the year ended on that date; and

c. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

For Walker, Chandiok & Co. For Sharp & Tannan

Chartered Accountants Chartered Accountants

Firm Registration No.: 001076N Firm Registration No.: 109982W

Sd/- Sd/-

per Khushroo B. Panthaky Edwin P Augustine

Partner Partner

Membership No.: F-42423 Membership No.: 043385

Place : Mumbai Place : Mumbai

Date : 30th May, 2012 Date : 30th May, 2012


Mar 31, 2011

1. We have audited the attached Balance Sheet of Dhanlaxmi Bank Limited (the Bank) (formerly The Dhanalakshmi Bank Limited) as at 31 March 2011 the annexed Profit and Loss Account and the Cash Flow Statement for the year ended on that date, in which are incorporated the audited returns of 19 branches and treasury division audited by us, 104 branches audited by the Branch Auditors and 149 branches on which we carried out limited review procedures. These financial statements are the responsibility of the Banks management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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 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 the Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949, read with Section 211 of the Companies Act, 1956.

4. The financial information as at and for the year ended 31 March 2011 of 104 branches has been audited by other auditors whose reports have been furnished to us and our opinion is based solely on the reports of such other auditors.

5. On the basis of our audit and having regard to the reports received by us from the auditors of the branches audited by other auditors and based on limited review procedures carried out by us on certain branches as mentioned above, 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 our audit and have found them to be satisfactory;

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

6. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting principles generally accepted in India including Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956, in so far as they apply to the Bank and are not inconsistent with the accounting policies prescribed by the Reserve Bank of India.

7. We further report that:

a. 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;

b. in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books;

c. based on information and explanations given to us, the Central Government has, till date, not prescribed any cess payable under Section 441A of the Companies Act, 1956;

d. on the basis of the written representations received from the Directors as at 31 March 2011, and taken on record by the Board of Directors, none of the directors is disqualified as at 31 March 2011 from being appointed as a director in terms of Section 274(1 )(g) of the Companies Act, 1956;

8. In our opinion and to the best of our information and according to the explanations given to us, and on consideration of reports submitted by the auditors of the branches not audited by us, and based on limited review procedures carried out by us on the financial reporting of certain branches as mentioned under paragraph 1 above, since the total assets of such branches as at 31 March 2011 and total revenue/net cash flows for the year then ended are not very significant to the total assets of the Bank as at 31 March 2011 and total revenue/net cash flows of the Bank for the year then ended, respectively, the said financial statements, together with the notes thereon and attached thereto give the information required by the Banking Regulation Act, 1949, as well as the Companies Act, 1956, in the manner so required for banking companies, and give a true and fair view in conformity with the accounting principles generally accepted in India;

a. in the case of Balance sheet, of the state of affairs of the Bank as at 31 March 2011;

b. in the case of Profit and Loss Account, of the profit for the year ended on that date; and

c. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

For Walker, Chandiok & Co Sharp and Tannan Chartered Accountants Chartered Accountants Firm Registration No.: 001076N Firm Registration No.: 109982W

per Khushroo B. Panthaky Edwin P. Augustine Partner Partner Membership No.: F-42423 Membership No.: 043385

Place: Mumbai Place: Mumbai Date: April 23, 2011 Date : April 23, 2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of The Dhanalakshmi Bank Limited, Thrissur as at 31 March 2010 the annexed Profit and Loss Account and the Cash Flow Statement for the year ended on that date, in which are incorporated the audited returns of 11 branches and treasury division audited by us and 227 Branches audited by the Branch Auditors. These financial statements are the responsibility of the Banks management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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 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 the Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949, read with Section 211 of the Companies Act, 1956.

4. On the basis of our audit and having regard to the reports received by us from the auditors of the branches audited by other auditors, which have been considered by us for issuing our opinion, 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 our audit and have found them to be satisfactory;

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

5. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting principles generally accepted in India including Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956, in so far as they apply to the Bank and are not inconsistent with the accounting policies prescribed by the Reserve Bank of India.

6. We further report that:

a. 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;

b. in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books;

c. based on information and explanations given to us the Central Government has till date, not prescribed any cess payable under Section 441A of the Companies Act, 1956;

d. on the basis of the written representations received from the Directors as at 31 March 2010, and taken on record by the Board of Directors none of the directors is disqualified as at 31 March 2010 from being appointed as a director in terms of Section 274(1) (g) of the Companies Act, 1956;

7. In our opinion and to the best of our information and according to the explanations given to us, and on consideration of reports submitted by the auditors of the branches not audited by us the said financial statement together with the notes thereon and attached thereto give the information required by the Banking Regulation Act, 1949, as well as the Companies Act, 1956, in the manner so required for banking companies give a true and fair view in conformity with the accounting principles generally accepted in India;

a. in the case of Balance sheet, of the state of affairs of the Bank as at 31 March 2010;

b. in the case of Profit and Loss Account, of the profit for the year ended on that date; and

c. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date

For Walker, Chandiok & Co For Shah Gupta & Co

Chartered Accountants Chartered Accountants

Firm Registration No: 001076N Firm Registration No: 109574W

Find IFSC