INDEPENDENT AUDITOR'S REPORT
To the Members of Development Credit Bank Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of Development Credit BankLimited ('the Bank"), which comprise the Balance Sheet as at 31 March 2013 and theProfit and Loss Account and the Cash How Statement for the year then ended and a summaryof significant accounting policies and other explanatory information.
Management's 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 theReserve Bank of India from time to time. This responsibility includes the design,implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement, 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 Chartered Accountantsof India. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free of material misstatements.
4. An audit involves performing procedures to obtain evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Bank's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by the management, aswell as evaluating the overall presentation of the financial 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 said financial statements together with the notes thereon give theinformation 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 inconformity with accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Bank as at 31March 2013;
(b) in the case of the Profit and Loss Account, of the profit of the Bank for the yearended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the Bank for the yearended on that date.
Report on Other Legal and Regulatory Requirements
7. The Balance Sheet, the Profit and Loss Account and the Cash Plow Statement have beendrawn up in accordance with the provisions of Section 29 of the Banking Regulation Act,1949 read with Section 211 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;
(c) during the course of our audit we have visited 8 branches. Since the key operationsof the Bank are completely automated with the key applications integrated to the corebanking systems, the audit is carried out centrally at the Head Office as all thenecessary records and data required 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 dealt with by this report comply with the Accounting Standards referred to insubsection (3C) of section 211 of the Companies Act, 1956, to the extent they are notinconsistent with the accounting policies prescribed by the Reserve Bank of India.
10. We further report that:
(i) the Balance Sheet and the Profit and Loss Account dealt with by this report are inagreement with the books of account;
(ii) the financial accounting systems of the Bank are centralised and, therefore,accounting returns are not 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;
(iv) on the basis of written representations received from the Directors and taken onrecord by the Board of Directors, none of the Director is disqualified as on 31 March 2013from being appointed as a Director in terms of clause (g) of sub-section (1) of Section274 of the Companies Act, 1956.
| ||For B S R & Co. |
| ||Chartered Accountants |
| ||Firm's Registration No: 101248W |
| ||N Sampath Ganesh |
|Mumbai ||Partner |
|12 April 2013 ||Membership No: 042554 |