Auditor Report of State Bank of Travancore

Mar 31, 2015

We, the undersigned auditors of State Bank of Travancore, appointed under Section 41 (1) of the State Bank of India (Subsidiary Banks) Act, 1959 do hereby report that:

1. We have audited the accompanying fnancial statements of State Bank of Travancore as at 31st March, 2015, which comprise the Balance Sheet as at March 31, 2015, profit and Loss Account, Cash Flow Statement for the year then ended, Principal Accounting Policies and Notes to Accounts. Incorporated in these fnancial statements are the returns of Zonal Ofces, various departments of Head Ofce and 20 branches audited by us and 785 branches and 10 Centralised Loan Processing Units audited by 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 and the profit and Loss Account are the returns from 342 branches which have not been subjected to audit. These unaudited branches account for 4.37% of Advances, 5.34% of Deposits, 2.66% of interest income and 4.17% of interest expenses of the Bank.

Management''s responsibility for the fnancial statements

2. Management is responsible for the preparation of these fnancial statements in accordance with the applicable laws of India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the fnancial statements that are free from material mis-statement whether due to fraud or error.

Auditor''s responsibility

3. Our responsibility is to express an opinion on these fnancial 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 fnancial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial statements. The procedures selected depend on the auditor''s judgment, including the

assessment of the risks of material mis-statement of the fnancial 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 fnancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the efectiveness of the bank''s internal control. 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 fnancial statements.

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

Opinion

6. 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:

i. 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 state of afairs of the Bank as at 31st March, 2015 in conformity with accounting principles generally accepted in India.

ii. The profit and Loss account, read with the notes thereon shows a true balance of profit in conformity with accounting principles generally accepted in India for the year covered by the account; and

iii. The Cash Flow Statement gives a true and fair view of the Cash fows for the year ended on that date.

Report on Other Legal and Regulatory requirements

7. The Balance Sheet and the profit and Loss Account have been drawn up in the Forms "A" and "B" respectively of the Third Schedule to the Banking Regulation Act, 1949.

8. Subject to the limitations of the audit indicated in Paragraph 1 to 5 above and as required by the State Bank of India (Subsidiary Banks) Act, 1959 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 ofces and branches of the Bank have been found adequate for the purpose of our audit.

d. The reports on accounts of the branches audited by branch auditors have been dealt with in preparing our report in the manner considered necessary by us.

9. In our opinion, the Balance Sheet, profit and Loss account and Cash Flow Statement comply with the applicable Accounting Standards.

For Kumar Vijay Gupta & Co. For G.Venugopal Kamath & Co. Chartered Accountants Chartered Accountants

Mahesh Kumar Goyal V.Vinod Kamath Partner Partner Membership No.088958 Membership No.022234 FRN: 007814N FRN: 004674S

For Gopalaiyer and Subramanian For Babu A. Kallivayalil & Co. Chartered Accountants Chartered Accountants

S.Sundar E.V.Thomas Partner Partner Membership No.202725 Membership No.003679 FRN: 000960S FRN: 005374S

Mumbai 05th May, 2015

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Mar 31, 2014

1. We have audited the accompanying financial statements of State Bank of Travancore as at 31st March 2014, which comprise the Balance Sheet as at March 31, 2014, Profit and Loss Account, Cash Flow statement for the year then ended. Principal Accounting Policies and Notes to Accounts. Incorporated in these financial statements are the returns of Zonal Offices, various departments of Head Office and 20 branches audited by us and 752 Branches and 8 Centralised Loan Processing Units audited by 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 and the Profit and Loss Account are the returns from 337 branches which have not been subjected to audit. These unaudited branches account for 4.22% of Advances, 5.03% of Deposits, 352% of interest Income and 3.75% of Interest expenses of the Bank.

Management''s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements in accordance with the applicable laws of India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation 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 auditors'' 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, but not for the purpose of expressing an opinion on the effectiveness of the Bank''s internal control. 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. 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:

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 state of affairs of the Bank as at 31st March, 2014 in conformity with accounting principles generally accepted in India;

The Profit and Loss Account, read with the notes thereon shows a true balance of profit in conformity with accounting principles generally accepted in India for the year covered by the account; and the Cash Flow Statement gives a true and fair view of the Cash flows for the year ended on that date.

Emphasis of Matter

7. We draw attention to Note 9.4.1 to the financial statement, which describes deferment of Pension and Gratuity liability of the Bank to the extent of Rs.134.38 crores 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, Employee Benefits vide its circular No. DBOD.BP.BC.80/21.04.018/2010-11 dated Feb 9,2011 on Re-opening of pension option to employees of Public Sector Banks and enhancement in Gratuity limits - Prudential Regulatory Treatment.

Report on Other Legal and Regulatory Requirements

8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms "A'' and Irrespectively of the Third Schedule to the Banking Regulation Act, 1949.

9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and as required by the State Bank of India (Subsidiary Banks) Act, 1959 and subject a so 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 have been found adequate for the purpose of our audit.

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

For Abraham & Jose For COao& Co For RGN Price & Co For Kumar Vijay Gupta & Co

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

Mukesh K.P B Suryanarayana Reddy R M Veeramani Mahesh Kumar Goyal

Partner Partner Partner Partner

Membership No: 214773 Membership No: 021071 Membership No: 023933 Membership No: 088958

FRN:000010S FRN:003124S FRN:002785S FRN:07814N

Bengaluru, 25th April, 2014

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Mar 31, 2013

We, the undersigned auditors of State Bank of Travancore, appointed under section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959 do hereby report that:

1. We have audited the accompanying financial statements of State Bank of Travancore as at 31st March 2013, which comprise the Balance Sheet as at March 3 1, 2013, Profit and Loss Account, Cash Flow Statement for the year then ended, Principal Accounting Policies and Notes to Accounts. Incorporated in these financial statements are the returns of Zonal Offices, various departments of Head Office and 20 branches audited by us and 660 branches and 8 Centralized Loan Processing units audited by 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 and the Profit and Loss Account are the returns from 333 branches which have not been subjected to audit. These unaudited branches account for4.64 percent of advances, 5.94 percent of deposits, 4.53 per cent of interest income and 5.46 per cent of interest expenses ofthe bank.

Management''s Responsibility forthe Financial Statements

2. Management is responsible for the preparation of these financial statements in accordance with applicable laws of India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whetherdue to fraud or error.

Auditors'' 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 auditors'' judgment, including the assessment of the risks of material misstatement ofthe 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, as shown by the books ofthe Bank and to the best of our information and according to the explanations given to us:

i) 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 state of affairs of the Bank as at 31 st March, 2013 in conformity with accounting principles generally accepted in India;

ii) The Profit and Loss Account, read with the notes thereon shows a true balance of profit in conformity with accounting principles generally accepted in India for the year covered by the account; and

iii) the Cash Flow Statement gives a true and fair view ofthe cash flows forthe year ended on that date.

Emphasis of Matter

7. We draw attention to Note 9.4.1 to the financial statement, which describes deferment of pension and gratuity liability of the bank to the extent of Rs.268.76 crores pursuant to the exemption granted by the Reserve Bank of India to the public sector banks from application ofthe provisions of Accounting Standard (AS) 15, Employee Benefits vide its circular no. DBOD. BRBC/80/21.04.018/2010-1 I dated Feb 9,201 I on Re-opening of pension option to employees of Public Sector Banks and enhancement in gratuity limits - Prudential Regulatory Treatment.

Report on Other Legal and Regulatory Requirements

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

9. Subject to the limitations of the audit indicated in paragraph I to 5 above and as required by the State Bank of India (Subsidiary Banks) Act, 1959 and subject also to the limitations ofdisdosure 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 withinthe powers ofthe Bank.

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

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

For Jagdish Chand & Co For B.VRao & Co For Sridhar & Co

Chartered Accountants Chartered Accountants Chartered Accountants

Praveen Kumar Jain B.VRao I.Jayasindhu

Partner Partner Partner

Membership No: 085629 Membership No: 019138 Membership No: 205660

FRN: 000129N FRN: 003118S FRN: 003978S

For Abraham & Jose For G.K.Rao & Co For RGN Price & Co

Chartered Accountants Chartered Accountants Chartered Accountants

Jose Pottokaran Suryanarayana Reddy.B PM.Veeramani

Partner Partner Partner

Membership No: 012056 Membership No: 021071 Membership No: 023933

FRN: 00001OS FRN: 003124S FRN: 002785S

Dated : 26th April 2013

Place : Mumbai

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Mar 31, 2012

We, the undersigned auditors of State Bank of Travancore, appointed under section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959 do hereby report that:

1. We have audited the accompanying financial statements of State Bank of Travancore as at 31st March 2012, which comprise the Balance Sheet as at March 31, 2012, Profit and Loss Account and the Cash Flow Statement for the year then ended, and the Principal Accounting Policies and other explanatory information. Incorporated in these financial statements are the returns of Zonal Offices, various departments of Head Office and 20 branches audited by us and 727 branches and 9 Central Loan Processing Units audited by 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 and the Profit and Loss Account are the returns from 130 branches which have not been subjected to audit. These unaudited branches account for 1.27 percent of advances, 2.43 percent of deposits, 0.55 per cent of interest income and 1.07 per cent of interest expenses.

2. Management is responsible for the preparation of these financial statements in accordance with the applicable laws of India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

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

6. Without qualifying our opinion, we draw attention to

i) Note 9.4.1 to the financial statements, which describes deferment of pension and gratuity liability of the bank to the extent of Rs. 403.15 crores 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, Employee Benefits vide its circular no. DBOD. BP.BC/80/21.04.018/2010-11 dated Feb 9, 2011 on Re-opening of pension option to employees of Public Sector Banks and enhancement in gratuity limits - Prudential Regulatory Treatment; and

ii) Note No.11 regarding status of Reconciliation of various items.

7. In our opinion, as shown by the books of Bank, and to the best of our information and according to the explanations given to us:

i) 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 state of affairs of the Bank as at 31st March 2012 in conformity with accounting principles generally accepted in India;

ii) the Profit and Loss Account, read with the notes thereon shows a true balance of profit in conformity with accounting principles generally accepted in India, for the year covered by the account; and

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

8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms "A" and B respectively of the Third Schedule to the Banking Regulation Act, 1949.

9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and as required by the State Bank of India (Subsidiary Banks) Act, 1959, 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.

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

10.In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable Accounting Standards. For Sridhar & Co For Jagdish Chand &Co For B.V. Rao & Co Chartered Accountants Chartered Accountants Chartered Accountants

R.Srinivasan J.C.Gupta B.A.S.P. Ranga

Partner Partner Partner

Membership No. 200969 Membership No. 006107 Membership No. 022649

FRN: 003978S FRN: 000129N FRN: 003118S



For Abraham & Jose For G K Rao & Co. For RGN Price & Co.

Chartered Accountants Chartered Accountants Chartered Accountant s Paulson Thengumpallil Suryanarayana Reddy.B P.M.Veeramani

Partner Partner Partner

Membership No. 208694 Membership No. 021071 Membership No. 023933

FRN: 000010 S FRN: 003124S FRN: 00278SS

Mumbai, 27th April 2012

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Mar 31, 2011

We, the undersigned auditors of State Bank of Travancore, appointed under section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959 do hereby report that:

1. We have audited the accompanying financial statements of State Bank of Travancore as at 31st March 2011, which comprise the Balance Sheet as at March 31, 2011, Profit and Loss Account and the Cash Flow Statement for the year then ended, and the Principal Accounting Policies and other explanatory information. Incorporated in these financial statements are the returns of Zonal Offices, various departments of Head Office and 20 branches audited by us and 705 branches audited by 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 and the Profit and Loss Account are the returns from 64 branches which have not been subjected to audit. These unaudited branches account for 0.36 percent of advances, 0.67 percent of deposits, 0.09 per cent of interest income and 0.20 per cent of interest expenses.

2. Management is responsible for the preparation of these financial statements in accordance with the applicable laws of India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

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

6. Without qualifying our opinion, we draw attention to

i) Note 9.4.1 to the financial statements, which describes deferment of pension and gratuity liability of the bank in respect of continuing employes to the extent of Rs. 537.53 lakhs 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, Employee Benefits vide its circular no. DBOD. BP.BC/80/21.04.018/2010-11 dated Feb 9, 2011 on Re-opening of pension option to employees of Public Sector Banks and enhancement in gratuity limits – Prudential Regulatory Treatment; and

ii) Note No.11 regarding status of Reconciliation of various items.

7. In our opinion, as shown by the books of Bank, and to the best of our information and according to the explanations given to us:

i) 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 state of affairs of the Bank as at 31st March 2011 in conformity with accounting principles generally accepted in India;

ii) the Profit and Loss Account, read with the notes thereon shows a true balance of profit in conformity with accounting principles generally accepted in India, for the year covered by the account; and

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

8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms "A" and "B" respectively of the Third Schedule to the Banking Regulation Act, 1949.

9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and as required by the State Bank of India (Subsidiary Banks) Act, 1959, 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.

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

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

For Saha Ganguli & Associates For Ramanatham & Rao For Jain & Jain Chartered Accountants Chartered Accountants Chartered Accountants Samir Kumar Saha C. Kameswara Rao Niranjan M Jain Partner Partner Partner Membership No. 051392 Membership No. 024363 Membership No. 101360 FRN: 302191 E FRN: 002934 S FRN: 103869 W

For Jagadish Chand & Co. For B V Rao & Co. For Sridhar & Co. Chartered Accountants Chartered Accountants Chartered Accountants

Praveen Kumar Jain A R Unni R Sridhar Partner Partner Partner Membership No. 085629 Membership No. 007447 Membership No. 026343 FRN: 000129 N FRN: 003118 S FRN: 003978 S

Mumbai, 27th April 2011

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Mar 31, 2010

We, the undersigned auditors of State Bank of Travancore, appointed under section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959 do hereby report that:

1. We have audited the attached Balance Sheet of State Bank of Travancore as at 31st March 2010 and also the Profit and Loss Account and the Cash Flow Statement annexed thereto for the year ended on that date, in which are incorporated the returns of Zonal Offices, various departments of Head Office and 20 branches audited by us and 689 branches audited by 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 and the Profit and Loss Account are the returns from 37 branches duly certified by the Branch Managers, which have not been subjected to audit. These unaudited branches account for 0.06 per cent of advances, 0.28 per cent of deposits, 0.01 per cent of interest income and 0.03 per cent of interest expense. 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 mis- statement(s). 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 Form ‘A’ and ‘B’ respectively of the Third Schedule to the Banking Regulation Act, 1949.

4. Reference is invited to Note No. 11, Schedule-18 regarding status of Reconcilation of various items.

5. Subject to the limitations of the audit indicated in paragraph 1 above and as required by the State Bank of India (Subsidiary Banks) Act, 1959 and Regulations 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.

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

6. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable accounting standards.

7. In our opinion, as shown by the books of Bank, and to the best of our information and according to the explanations given to us:

i) The Balance Sheet read with the 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 the state of affairs of the Bank as at 31st March 2010 in conformity with accounting principles generally accepted in India.

ii) The Profit and Loss Account, read with the Accounting Policies and Notes there on shows a true balance of profit in conformity with accounting principles generally accepted in India, for the year covered by the account, and

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

For Prem Gupta & Company For Sodani & Company

Chartered Accountants Chartered Accountants Anil Kumar Gupta Rajesh Sodani

Partner Partner

Membership No. 082847 Membership No. 77005

FRN No. 000425 N FRN 000880 C

For Saha Ganguli & Associates For Ramanatham & Rao For Jain & Jain Chartered Accountants Chartered Accountants Chartered Accountants

Samir Kumar Saha C. Kameswara Rao Niranjan M. Jain

Partner Partner Partner

Membership No. 051392 Membership No. 24363 Membership No. 101360

FRN 302191 E FRN 002934 S FRN 103869 W

Kozhikode, 23rd April 2010