To the Members of DCB Bank Limited
(formerly known as Development Credit Bank Limited)
Report on the Financial Statements
1. We have audited the accompanying financial statements of DCB Bank Limited(formerly known as Development Credit Bank Limited) (the Bank), whichcomprise the Balance Sheet as at 31 March 2014, the Profit and Loss Account and the CashFlow Statement for the year then ended, a summary of significant accounting policies andother explanatory information.
Managements Responsibility for the Financial Statements
2. Management is responsible for preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theBank in accordance with provisions of Section 29 of the Banking Regulation Act, 1949 readwith Section 211 of the Companies Act, 1956 and circulars and guidelines issued by ReserveBank of India from time to time. This responsibility includes the design, implementationand maintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit of the Bank including its branches in accordance withStandards on Auditing (the Standards) issued by the Institute of CharteredAccountants of India. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatements.
4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditors 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 Banks preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Banks internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management, as well as evaluating the overall presentation of thefinancial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
6. In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the BankingRegulation Act, 1949 as well as the Companies Act, 1956, in the manner so required forbanking companies and give a true and fair view in conformity with accounting principlesgenerally accepted in India: (a) in the case of the Balance Sheet, of the state of affairsof the Bank as at 31 March 2014; (b) in the case of the Profit and Loss Account, of theprofit of the Bank for the year ended on that date; and (c) in the case of the Cash FlowStatement, of the cash flows of the Bank 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 accordancewith the provisions of Section 29 of the Banking Regulation Act, 1949 read with Section211 of the Companies Act, 1956.
8. We report that:
(a) we have obtained all the information and explanations which, to the best of ourknowledge and belief, were necessary for the purpose of our audit and have found them tobe satisfactory;
(b) the transactions of the Bank, which have come to our notice, have been within thepowers of the Bank; and
(c) during the course of our audit we have visited 13 branches. Since the keyoperations of the Bank are automated with the key applications integrated to the corebanking systems, the audit is carried out centrally as all the necessary records and datarequired for the purposes of our audit are available therein.
9. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act, 1956, to the extent they are not inconsistent with theaccounting policies prescribed by Reserve Bank of India.
10. We further report that:
(i) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealtwith by this report are in agreement with the books of account;
(ii) the financial accounting systems of the Bank are centralised and, therefore,returns are not necessary to be submitted by the branches;
(iii) in our opinion, proper books of account as required by law have been kept by theBank so far as appears from our examination of those books; and
(iv) on the basis of written representations received from the Directors and taken onrecord by the Board of Directors, none of the Directors is disqualified as on 31 March2014 from being appointed as a Director in terms of clause (g) of sub-section (1) ofSection 274 of the Companies Act, 1956.
| ||For B S R & Co. LLP |
| ||Chartered Accountants |
| ||Firms Registration No: 101248W |
| ||Akeel Master |
|Mumbai ||Partner |
|15 April 2014 ||Membership No: 046768 |