Auditor Report of State Bank Of Mysore

Mar 31, 2015

1. We, the undersigned Auditors of State Bank of Mysore appointed under section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959, do hereby report on the Balance Sheet as at 31st March 2015, the Profit and Loss Account and Cash Flow Statement of the Bank for the year ended on that date annexed thereto.

Report on the Financial Statements

2. We have audited the accompanying financial statements of State Bank of Mysore as at 31st March, 2015, which comprise the Balance Sheet as at March 31, 2015, and Profit and Loss Account and the 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 20 branches audited by us, 507 branches including 15 Loan Processing Units audited by Statutory 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 503 branches which have not been subjected to audit. These un-audited branches account for 8.40 per cent of advances, 21.07 per cent of deposits, 28.37 per cent of interest income and 26.22 per cent of interest expenses.

Management''s responsibility for the financial Statements

3. Management is responsible for the preparation of these financial statements in accordance with The Banking Regulation Act, 1949. 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.

Auditors'' Responsibility

4. 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.

5. An audit involves performing procedures to obtain audit evidence about the amountsand 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, but not for the purpose of expressing an opinion on the effectiveness of the 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.

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

7. In our opinion, as shown by 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 affairs 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 flows for the year ended on that date.

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 2 to 6 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 generally 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 generally comply with the applicable accounting standards.

Statutory central auditorS

For BuBBer Jindal & co., Chartered Accountants FRN : 000399N

Sd/- (ca a. c. Bubber) Partner Membership No. 014980

For P. B. ViJayaraGhaVan & co., Chartered Accountants FRN : 004721S

Sd/- (ca P. B. SanthanakriShnan) Partner Membership No. 020309

For P. G. JoShi & co., Chartered Accountants FRN : 104416W

Sd/- (ca aShutoSh P. JoShi) Partner Membership No. 038193

For J. V. raManuJaM & co., Chartered Accountants FRN : 02947S

Sd/- (ca J. Vedantha raManuJaM) Partner Membership No. 022188

Place : Mumbai Date : 23rd April, 2015

---

Mar 31, 2013

1 We, the undersigned Auditors of State Bank of Mysore appointed under section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959, do hereby report on the Balance Sheet as at 31st March2013, the Profit and Loss Account and Cash Flow Statement of the Bank for the year ended on that date annexed thereto.

Report on the Financial Statements

2. We have audited the accompanying financial statements of State Bank of Mysore as at 31st March, 2013, which comprise the Balance Sheet as at March 31, 2013, and Profit and Loss Account and the 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 20 branches audited by us and 382 branches including 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 393 branches which have not been subjected to audit. These un- audited branches account for 9.09 per cent of advances, 20.89 per cent of deposits, 7.10 per cent of interest income and 18.10 per cent of interest expenses.

Management''s Responsibility for the Financial Statements

3. Management is responsible for the preparation of these financial statements in accordance with The Banking Regulation Act, 1949. 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.

Auditors'' Responsibility

4. 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.

5. 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.

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

7. We invite attention to:-

7.1 Note No 5.13 of Schedule 18 regarding charging of Rs.26.64 Crores to the Profit & Loss Account for the year towards amortization (1 /5th) of the Pension and Gratuity Liability determined by the Bank on account of Reopening of Pension Scheme and Enhancement in Gratuity limits in the year 2010-11 in terms of Circular issued by the Reserve Bank of India. Had the RBI not issued such a circular, the Profit of the year would have been higher by Rs.26.64 Crores, and the Revenue Reserve of the Bank would have been lowered by Rs.53.27 Crores pursuant to the application of the requirements of AS-15.

7.2 Note No 12 of Schedule 18 regarding adhoc provision of Rs.31 Crores towards additional employees cost that may arise on account of impending wage settlement.

7.3 Note No 7(111) of Schedule 18 regarding reconciliation of various Accounts including National and Local Clearing Accounts, Branch System Suspense Account, FCNR Account, PCFC Account, Currency Transaction Account, ATM Transactions and I BIT Account; and

7.4 Note No 4.2.2 of Schedule 18 regarding change of Accounting Policy in respect of method of charging depreciation resulting in write back of depreciation to the extent of Rs.47.33 Crores and consequent increase in tax expense (Deferred tax) of Rs.43.56 Crores has resulted in increase in Net Profit for the year by T3.77 Crores, and lower charging of Depreciation by Rs.12.28 Crores for the year under audit, resulting in increase in profit (Net of Tax) for the year by Rs.8.30 Crores. If the Bank had continued with the preamended policies, the profits (Net of Taxes) of the Bank would have been lower by Rs.12.07 Crores.

Opinion

8. In our opinion, as shown by 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 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 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.

Report on Other Legal and Regulatory Requirements

9. 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.

10. Subject to the limitations of the audit indicated in paragraph 2 to 6 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 generally 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 generally comply with the applicable accounting standards.

STATUTORY CENTRAL AUDITORS

For BHASIN RAGHAVAN & CO.

Chartered Accountants FRN - 000197N

Sd/-

(CA HARISH KAPOOR)

Partner

Membership No. 082533

For K. P. RAO & CO.

Chartered Accountants FRN - 003135S

Sd/-

(CA K. SURYA PRAKASH)

Partner

Membership No. 018857

For B. L. AJMERA & CO.

Chartered Accountants FRN - 001100C

Sd/-

(CA SANJEEV MATHUR)

Partner

Membership No. 075325

For M.K.P.S & ASSOCIATES

Chartered Accountants FRN - 302014E

Sd/-

(CA PRADIP K. LATH)

Partner

Membership No. 054130

For MAHARAJ N.R.SURESH & CO.

Chartered Accountants FRN - 001931S

Sd/-

(CA N.R.JAYADEVAN)

Partner

Membership No. 023838

For BUBBER JINDAL & CO.

Chartered Accountants FRN - 000399N

Sd/-

(CA A.C. BUBBER)

Partner

Membership No. 014980

Place: Mumbai

Date: 29th April, 2013

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Mar 31, 2012

1. We the undersigned Auditors of State Bank of Mysore appointed under section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959, do hereby report on the Balance Sheet as at 31st March 2012, the Profit and Loss Account and Cash Flow Statement of the Bank for the year ended on that date annexed thereto.

2. We have audited the attached Balance Sheet of STATE BANK OF MYSORE as at 31st March 2012, the Profit and Loss Account and the Cash Flow Statement thereto for the year ended on that date in which are incorporated:

(i) the returns of 20 branches audited by us;

(ii) the returns of 654 branches including 16 Loan Processing Units audited by other Auditors;

(iii) unaudited returns certified by the Branch Managers in respect of 63 Branches not visited by us. These unaudited branches account for 0.37% of advances, 1.04% of deposits, 0.22% of interest income and 0.72% of interest expense; and The branches audited by us and those by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. 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.

3. 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 the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

4. 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 and give the information as required to be given in terms of the provision of the State Bank of India (Subsidiary Banks) Act, 1959 and Regulations there under.

5. We invite attention to:

5.1 Note no 4.4.1 Schedulel8 regarding charging of Rs 26.64 crores to the Profit and Loss Account of the year towards amortization (1 /5th ) of the Pension and Gratuity liability determined by the Bank on account of Reopening of Pension Scheme and Enhancement in Gratuity limits in the year 2010-11,

5.2 Note No14 Schedulel 8 regarding change in Accounting Policies of the Bank:

i) in respect of accounting of Zero Coupon Bonds resulting decrease in the profit for the year of the Bank by Rs 34.87 lacs,

ii) in respect of accounting of dividend on investment in shares on accrual basis resulting in increase in profit for the year of the Bank by Rs 12.38 lacs and

iii) in respect of accounting of diminution in fair value by reducing the same from advances resulting in Advances shown in the Balance Sheet less by Rs 83.34 crores and corresponding effect on Other Liabilities to that extent, and

5.3 Note No16 Schedulel 8 regarding write back of Deferred Tax Liability provision in respect of Special Reserve resulting in increase in profit of the Bank by Rs 60.04 crores.

If the Bank had continued with the pre- amended policies/provision, the Profits of the Bank would have been lower by Rs 33.17 crores

6. Attention is also drawn to Note no.3.10 in Schedule 18 regarding reconciliation of Inter-Branch Accounts, Inter Bank Accounts, ABSOT, Branch System Suspense Account, National Local Clearing Account, I BIT, ATM transactions, System Suspense Account, FCNR Account, PCFC Account, Currency Transactions Accounts etc.

7. Subject to the limitations of the audit, indicated in paragraph 2 above, and on the basis of the aforesaid Acts and Regulations, and read with our observations in paragraph 5 and 6 above and subject to the limitations of disclosure required therein and read with the Significant Accounting Policies and Notes forming part of the Accounts;

We report that:

(a) In our opinion and to the best of our information and according to the explanations given to us and as shown by the books of the Bank.

(i) The Balance Sheet, read with the Significant Accounting Policies in Schedule 17 and Notes on Accounts in Schedule 18, 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 of the 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 Significant Accounting Policies in Schedule 17 and Notes on Accounts in Schedule 18, shows a true balance of profit for the year ended on that date, in conformity with accounting principles generally accepted in India, and

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

(b) 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.

(c) The transactions of the Bank, which have come to our notice, have been within the competence of the Bank.

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

(e) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement generally comply with the applicable Accounting Standards read with the Guidelines on Compliance with Accounting Standards by Banks, issued by the Reserve Bank of India from time to time.

STATUTORY CENTRAL AUDITORS

For BHASIN RAGHAVAN & CO.

Chartered Accountants FRN - 000197N

Sd/-

(CA S. V. RAGHAVAN)

Partner

Membership No. 014315

For K. P. RAO & CO.

Chartered Accountants FRN - 003135S

Sd/-

(CA. K. SURYA PRAKASH)

Partner

Membership No. 018857

For B. L. AJMERA & CO.

Chartered Accountants FRN - 001100C

Sd/-

(CA. SATiSH AJMERA)

Partner

Membership No. 010734

For M.K.P.S & ASSOCIATES

Chartered Accountants FRN - 302014E

Sd/-

(CA. MAHENDRA KUMAR AGRAWALA)

Partner

Membership No. 051764

For S K BASU & CO

Chartered Accountants FRN - 301026E

Sd /-

(CA. S. BASU)

Partner

Membership No. 053225

For MAHARAJ N.R.SURESH & CO.

Chartered Accountants FRN - 001931S

Sd/-

(CA.N.R.JAYADEVAN)

Partner

Membership No. 23838

Place: Mumbai

Date: 23rd April, 2012

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Mar 31, 2011

1. We, the undersigned Auditors of State Bank of Mysore appointed under section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959, do hereby report on the Balance Sheet as at 31st March 2011, the Profit and Loss Account and Cash Flow Statement of the Bank for the year ended on that date annexed thereto.

2. We have audited the attached Balance Sheet of STATE BANK OF MYSORE as at 31st March 2011, the Profit and Loss Account and the Cash Flow Statement thereto for the year ended on that date in which are incorporated:

(i) the returns of 20 branches audited by us;

(ii) the returns of 650 branches including 2 Focal point branches audited by other Auditors;

(iii) unaudited returns certified by the Branch Managers in respect of 37 Branches not visited by us. These unaudited branches account for 0.16% of advances, 0.47% of deposits, 0.09% of interest income and 0.24% of interest expenses; and

The branches audited by us and those by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. 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.

3. 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 the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

4. 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 and give the information as required to begiven in terms of the provision of the State Bank of India (Subsidiary Banks) Act, 1959 and Regulations there under.

5. Without qualifying our opinion, attention is drawn to Note No. 4.4.1 in Schedule 18 regarding deferment of pension and gratuity liability of the bank to the extent of Rs. 106.54 Crores pursuant to the exemption granted by the Reserve Bank of India to the public sector banks from the application of Accounting Standard (AS) 15, Employees Benefits vide its circular no. DBOD.BP.BC/80/21.04.012/2010-11 on Re-opening of Pension Option to Employees of Public Sector Banks and Enhancement in Gratuity Limits - Prudential Regulatory Treatment.

6. Attention is also drawn to Note No. 3.10 in Schedule 18 regarding reconciliation of Inter-Branch Accounts, Inter Bank Accounts, ABSOT, Branch System Suspense Account, National Local Clearing Account, IBIT, Forex Clearing General Account, ATM transactions , System Suspense Account, FCNR Account, PCFC Account etc.

7. Subject to the limitations of the audit, indicated in paragraph 2 above, and on the basis of the aforesaid Acts and Regulations, and read with our observations in paragraph 5 and 6 above and subject to the limitations of disclosure required therein and read with the Significant Accounting Policies and Notes forming part of the Accounts;

We report that:

(a) In our opinion and to the best of our information and according to the explanations given to us and as shown by the books of the Bank.

(i) The Balance Sheet, read with the Significant Accounting Policies in Schedule 17 and Notes on Accounts in Schedule 18, 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 of the 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 Significan accounting Policies in Schedule 17 and Notes on Accounts in Schedule 18, shows a true balance of profit for the year ended on that date, in conformity with accounting principles generally accepted in India, and

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

(b) 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.

(c) The transactions of the Bank, which have come to our notice, have been within the competence of the Bank.

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

(e) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement generaffy compfy with the applicable Accounting Standards read with the Guidelines on Compliance with Accounting Standards by Banks, issued by the Reserve Bank of India from time to time.

STATUTORY CENTRAL AUDITORS

For GROVER, LALLA & MEHTA

Chartered Accountants FRN - 002830N

Sd/-

(CA. ASHOK GROVER)

Partner

Membership No. 081784

For GOPALAIYER AND SUBRAMANIAN

Chartered Accountants FRN - 000960S

Sd/-

(CA. S. KASI VISWANATHAN)

Partner

Membership No. 026975

For RAMRAJ & CO.

Chartered Accountants FRN - 002839S

Sd/-

(CA. G. VENKATESWARA RAO)

Partner

Membership No. 024182

For K. P. RAO & CO.

Chartered Accountants FRN - 003135S

Sd/-

(CA. K. SURYA PRAKASH)

Partner

Membership No. 018857

For BHASIN RAGHAVAN & CO.

Chartered Accountants FRN - 000197N

Sd/-

(CA. S. V. RAGHAVAN)

Partner

Membership No. 014315

Place: New Delhi Date: 29th April, 2011

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Mar 31, 2010

1. We, the undersigned Auditors of State Bank of Mysore appointed under section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959, do hereby report on the Balance Sheet as at 31st March, 2010, the Profit and Loss Account and Cash Flow Statement of the Bank for the year ended on that date annexed thereto.

2. We have audited the attached Balance Sheet of STATE BANK OF MYSORE as at 31st March, 2010, the Profit and Loss Account and the Cash Flow Statement thereto for the year ended on that date in which are incorporated.

(i) the returns of 20 branches audited by us;

(ii) the returns of 627 branches, 8 Service Branches and 5 Focal Point Branches audited by other Auditors;

(iii) unaudited returns certified by the Branch Managers in respect of 29 Branches not visited by us. These unaudited branches account for 0.36% of advances, 0.56% of deposits, 0.21% of interest income and 0.33% of interest expenses; and

The branches audited by us and those by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. 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.

3. 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- statements). 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 the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

4. 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 and give the information as required to be given in terms of the provision of the State Bank of India (Subsidiary Banks) Act, 1959 and Regulations there under.

5. We invite attention to:

i. Note No. 1 in Schedule 18 regarding mismatch in buckets of BASEL - II statements.

ii. Note No. 3.4.2 regarding rescheduling/restructuring of advances.

iii. Note No. 9.2 in schedule 18 of Notes on Accounts regarding reconciliation of Inter-Branch Accounts, Inter Bank Accounts, ABSOT, Branch System Suspense Account, National Local Clearing Account, IBIT, Forex Clearing General Account, ATM Cash Balances Account, System Suspense Account, FCNR Account, PCFC Account etc.,

iv. Note No. 11 in Schedule 18 regarding Agricultural Debt Relief and Debt Waiver.

6. Subject to the limitations of the audit, indicated in paragraph 2 above, and on the basis of the aforesaid Acts and Regulations, and read with our observations in paragraph 5 above and subject also to the limitations of disclosure required therein and read with the Significant Accounting Policies and Notes forming part of the Accounts;

We report that:

(a) In our opinion and to the best of our information and according to the explanations given to us and as shown by the books of the Bank.

(i) The Balance Sheet, read with the Significant Accounting Policies in Schedule 17 and Notes on Accounts in Schedule 18, 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 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 Significant Accounting Policies in Schedule 17 and Notes on Accounts in Schedule 18, shows a true balance of profit for the year ended on that date, in conformity with accounting principles generally accepted in India, and

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

(b) 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.

(c) The transactions of the Bank, which have come to our notice, have been within the competence of the bank.

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

(e) In our opinion, the balance sheet, profit & loss account and cash flow statement generally comply with the applicable Accounting Standards read with the Guidelines on Compliance with Accounting Standards by Banks, issued by the Reserve Bank of India from time to time.

STATUTORY CENTRAL AUDITORS

For PKKG BALASUBRAMANIAM & ASSOCIATES

Chartered Accountants FRN - 001547S

Sd/-

(CA E. RAVI SARMA)

Partner

Membership No. 025792

For DHAWAN & Co.

Chartered Accountants FRN - 002864N

Sd/-

(CA DEEPAK KAPOOR)

Partner

Membership No. 072302

For GROVER, LALLA & MEHTA

Chartered Accountants FRN - 002830N

Sd/-

(CA ALOK GOYAL)

Partner

Membership No. 501529

For GOPALAIYER AND SUBRAMANIAN

Chartered Accountants FRN - 000960S Sd/-

(CA V.S. GANESAN)

Partner

Membership No. 024641

For RAMRAJ & CO.

Chartered Accountants FRN - 002839S

Sd/-

(CA P. KARUNAKARA NAIDU)

Partner

Membership No. 210603

Place: Mumbai

Date: 20th April, 2010