yes bank ltd Auditors report

To the Members of YES BANK Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of YES BANK Limited (‘the Bank), which comprise the Balance Sheet as at March 31, 2023, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and notes to the standalone financialstatements, accounting including a summary of the significant policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid and standalone financial statements give the information required by the section 29 of the Banking Regulation Act, 1949 as well as the Companies Act, 2013 (the ‘Act) and circulars and guidelines issued by the Reserve Bank of India, 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, including the Accounting Standards prescribed under section 133 of the Act, read with Companies (Accounting Standards) Rules, 2021 as amended to the extent applicable, of the state of affairs of the Bank as at March 31, 2023, and its profit, and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (‘SAs) specified under Section 143 (10) of the Act. Our responsibilities under those SAs are further described in the ‘Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Bank in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (‘the ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act, and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained,is to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the standalone financial statements of the current year. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:

Key Audit Matters	Auditors Response
Income Recognition and Asset Classification of Advances and Investments (IRAC) and Provisioning as per regulatory norms
Please refer to schedule 8 and schedule 9, read with relevant Notes relating to provisions and contingencies, disclosures with regard to Non Performing Investments (NPI) and Asset Quality in respect of movement of Non-Performing Assets (NPAs) and related provisions respectively.	Our audit approach included testing the design, operating effectiveness of internal controls and substantive audit procedures in respect of income recognition, asset classification and provisioning pertaining to investments and advances. In particular:
As required under prudential norms issued by the Reserve Bank of India (RBI) in respect of income recognition, asset classification and provisioning pertaining to investments as well as those pertaining to advances, “Resolution framework for Covid-19 related Stress” (the “Resolution Framework”) issued by the RBI on August 06, 2020 and May 05, 2021 and relevant other circulars, notifications and directives issued by the RBI which were collectively considered by the Bank till March 31, 2023, classifies advances into performing and non-performing advances (NPA) which consists of Standard, Sub-standard, Doubtful and Loss and makes appropriate provisions.	We have evaluated the Banks internal control system in adhering to the relevant RBI guidelines regarding income recognition, asset classification and provisioning pertaining to investments and advances;
	We have tested key IT systems/ applications used and their design and implementation as well as operational effectiveness of relevant controls, including involvement of manual process and manual controls in relation to income recognition, asset classification viz., standard, sub-standard, doubtful and loss with reference to their days-past-due (DPD) status (including consideration of non-financial parameters of NPA, including sufficiency of credits in working capital loans, restructuring guidelines, the Regulatory Package and Resolution framework) and provisioning pertaining to investments and advances;
Income Recognition and Asset Classification of Advances and Investments (IRAC) and Provisioning as per regulatory norms
The Bank, as per its governing framework, made the performing and non-performing advances provisions based on Managements assessment of the degree of impairment of the advances subject to and guided by minimum provisioning levels prescribed under RBI guidelines.	We have test checked advances to examine the validity of the recorded amounts, loan documentation, examined the statement of accounts, indicators of impairment, impairment provision for non-performing assets, and compliance with income recognition, asset classification and provisioning pertaining to advances in terms of applicable RBI guidelines;
The Classification,Provisioning and Write offof Advances including Investments is a Key Audit Matter as the Bank risk exposure to a large number of hassignificant borrowers across various sectors, products, industries and geographies and there is a high degree of complexity, uncertainty and judgment involved in recoverability of advances, nature of transactions and estimation of provisions thereon and identification of accounts to be written off.	We have selected restructured accounts on sample basis and tested their compliance with relevant RBI guidelines;
	For the selected non-performing advances, we assessed Managements forecast and inputs of recoverable cash flows, borrowers audited financial statements, valuation of underlying security and collaterals, estimation of recoverable amounts on default and other sources of repayment;
	Reviewed Banks policy including Standard Operating Procedures with respect to implementation of Regulatory package and Resolution framework (‘guidelines) and tested samples to ascertain the implementation of those guidelines by the Bank.
	Provisions for advances:
	Tested the Banks processes for making provision on advances for compliance with RBI regulations and internally laid down policies for provisioning;
	Tested the completeness and accuracy of data transferred from underlying source systems used for computing collective provision;
	We had undertaken the walkthrough for the automated E-NPA system and tested the core functionality for selected samples considering the audit universe.
	Validated theparameters used to calculate collective provisions with reference to IRAC norms, and Regulatory Package;
	Tested provision created for fraud accounts as at March 31, 2023 as per the RBI circular;
	Re-performed, for a sample of retail and corporate portfolios, as part of our substantive audit procedures the calculation of provisions, to determine the accuracy of the same; (Collective for standard portfolio and case specific for non performing portfolio)
	Assessed the adequacy of disclosures against the RBI Guidelines
Key Audit Matter on Sale of Stressed Loans to Asset Reconstruction Company
Please refer to Note No. 17.5.12 relating to Sale of Stressed Loans. As mentioned therein pursuant to the conclusion of the Swiss Challenge process, the Board of Directors of the Bank, at their meeting held on September 20, 2022, approved JC Flowers Asset Reconstruction Private Ltd. (‘JCF ARC) for sale of identifiedstressed loans of the Bank aggregating up to Rs 480,000 million as at March 31, 2022.	Our Audit procedures with respect to this matter inter-alia involved an understanding of sale of stressed loan portfolio by the Bank to JCF ARC keeping in view the requirements as per Master Direction - Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 dated September 24, 2021 (‘Master Directions), as amended on December 05, 2022. Our substantive audit procedures includes:
The gross value of exposures transferred to JCF ARC was Rs 437,158 million, which included exposures worth Rs 151,981 millionearlierwritten-offby the Bank. The net book value (‘NBV) of exposures in the Banks books as on the date of assignment was Rs 49,818 million and the final consideration received was Rs 80,459 million under 15:85 cash and security receipts structure.	Inquiry with the senior management to understand the structure of the transaction
	Perusal of various documents viz. term sheet, agreements, trust deeds, confirmations received / executed by the Bank
	Review of relevant internal/external documents / records / reports
Key Audit Matter on Sale of Stressed Loans to Asset Reconstruction Company
The Bank has also acquired 9.9% equity shareholding in JCF ARC and applied to RBI for increase of stake in JCF ARC from 9.9% to up to 19.9%.	Perusal of noting made in minutes of Board & its Committees with respect to sale of loan portfolio to JCF ARC
We have identified this transaction as a Key Audit Matter considering its materiality with reference to gross book value of the stressed assets transferred and complexity.	Reviews of compliance with the aforesaid Master Directions with respect to transfer of loan exposure inter-alia basis check-list prepared by the Bank
	List of Corporate Loans identified by the Bank for sale to ARC vis-a-vis allocation of these accounts amongst various trusts of JCF ARC
	Procedure for pool identification in case of the retail loan portfolio sold to ARC
	Accounting for the transfer of loan exposure, its provisioning and receipt of Cash and Security Receipts
	Valuation of Security Receipts at reporting dates, keeping in view the clarification sought by the Bank from RBI
	Assessed the adequacy of disclosures as per RBI Guidelines
IT Systems and Controls over financial reporting
The Banks key financial accounting and reporting processes are highly dependent on Core Banking and Treasury Solutions and other supporting software and hardware controls. The volume of transactions processed and recorded is huge. Moreover, a transaction may be required to be recorded across multiple applications depending upon the process and each application has different rules and a different set of user access and authority matrix. These applications are interlinked using different technologies so that data transfer happens in real time or at a particular time of the day; in batches or at a transaction level and in an automated manner or manually. The Core Banking Solution (CBS) itself has many interfaces, such that there exists a risk that gaps in the IT control environment could result in the financial accounting and reporting records being materially misstated. The Bank has a process for identifying the applications where the controls are embedded. It also has a process to ensure that systems, processes and controls remain relevant and updated. The Banks IT control framework includes automated, semi-automated and manual controls designed to address identified risks. IT controls are stated in Entity Level Controls (ELC), IT General Controls (ITGC) and IT Application Controls (ITAC). Such controls contribute to risk mitigation of erroneous output data.	We have planned, designed and carried out the desired audit procedures and sample checks, taking into consideration the IT systems of the Bank. As part of our IT controls testing, we have tested ITGC as well as ITAC for selected critical applications. The focus of testing of ITGCs was based on the various parameters such as Completeness, Validity, Identification/ Authentication, Authorization, Integrity and Accountability. On the other hand, focus of testing automated controls from applications was whether the controls prevent or detect unauthorized transactions and support financial objectives including completeness, accuracy, authorization and validity of transactions. The procedures adopted by us are, in our opinion, adequate to provide reasonable assurance on the adequacy of IT controls in place. The areas for improvement as and when noticed are communicated for suitable actions to the Bank as part of our audit. The corrective steps / alternate controls deployed by the Bank are tested on sample basis.
	In ITGC testing, on sample basis, we reviewed control areas such as User Management, Change Management, Systems Security, Cyber Security, Interface Testing, deployment of new applications, Incident Management, Physical & Environmental Security, Backup and Restoration, Business Continuity and Disaster Recovery, Service Level Agreement.
	For ITAC, we carried out on sample basis, compliance tests of system functionality in order to assess the accuracy of system calculations. We also carried out procedures such as validations and limit checks on data entered into applications, approvals, process dependencies, restriction on time period in which transactions may be recorded and GL mapping for financial accounting.
	We tested the control environment using various techniques such as inquiry, walkthroughs in live environment, testing in UAT environment, review of documentation / record / reports, observation and re-performance. We had taken adequate samples of instances for our tests considering the audit universe.
IT Systems and Controls over financial reporting
We have identified IT Controls Framework as a Key Audit Matter as the Banks business is highly dependent on technology, the IT environment is complex and the design and operating effectiveness of IT controls have a direct impact on its financial reporting process. Review of these controls allows us to provide assurance on the integrity and completeness of data processed through various IT applications which are used for the preparation of financial reports.	Wherever deviations were noted either the same were explained to our satisfaction or we tested compensating controls and performed alternate procedures, where necessary, to draw comfort.
	In addition, we have also relied on IS audit conducted by internal audit department, and also the testing of Internal Financial Control conducted by the Operational Risk Management department of the Bank.
Recognition and Measurement of Deferred Tax Asset
The Bank has recognized a net deferred tax asset of Rs 89,412 million as at March 31, 2023, including net decrease of Rs 2,431 million during the year.	Our audit procedures involved gaining an understanding of the applicable tax laws and relevant regulations applicable to the Bank. We performed the following audit procedures as part of our controls testing:
Besides objective estimation, recognition and measurement of deferred tax asset is based on the judgment and numerous estimates regarding the availability and visibility of profits in the future and also considering probable impact of Covid-19 pandemic.	Evaluation of the policies used for recognition and measurement of deferred tax assets in accordance with AS 22 Accounting for Taxes on Income;
The amount of deferred tax assets recognized presumes availability and forecasting of profits over an extended period of time thus increasing uncertainty and the inherent risk of inappropriate recognition of the said asset.	Assessed the probability of the availability of future taxable profits based on assumptions and other parameters used by the Management including the probable impact of Covid-19 pandemic against which the Bank will be able to use this deferred tax asset in the future with reference to forecast as noted by the Board of Directors while adopting the standalone financial statements.
	Assessed the method for determining the Deferred Tax Asset with reference to applicable tax rates and tested the arithmetical accuracy.

Information other than the standalone financial statements and Auditors Report thereon

The Banks management and Board of Directors are responsible for the Other Information. The other information comprises the Management Discussion and Analysis, Directors Report, including Annexures to Directors Report and the Pillar 3 Disclosures under the New Capital Adequacy Framework (Basel III disclosures) (collectively called as “Other Information”) but does not include the standalone financial statements and our auditors report thereon. The Annual Report is expected to be made available to us after the date of this auditors report.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the Other Information identified above when it becomes available and, in doing so, consider whether the Other Information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Standalone FinancialStatements

The Banks management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation and presentation of these standalone 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 accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act read with Companies (Accounting Standards) Rules, 2021 as amended to the extent applicable, provisions of Section 29 of the Banking Regulation Act, 1949 and the circulars and guidelines issued by Reserve Bank of India (‘RBI) from time to time, as applicable to the Bank. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act and the RBI Guidelines 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 design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Management and Board of Directors are responsible for assessing the Banks ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so. doubt on the Banks ability Those Board of Directors are also responsible for overseeing the Banks financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional audit findings, skepticism throughout the audit.Wealso: deficiencies in internal

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtainauditevidencethatissufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the bank has adequate internal financial controls with reference to financial statements in place effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the standalone financial statements made by the Management and Board of Directors.

Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors Report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors Report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant including any significant that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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 and Section 133 of the Act and relevant rules issued thereunder.

2) As required by sub-section (3) of Section 30 of the Banking Regulation Act, 1949, 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) since the key operations of the Bank are automated with the key applications integrated to the core banking systems, the audit is carried out centrally as all the necessary records and data required for the purposes of our audit are available therein. Nevertheless, during the course of our audit we have visited 56 branches to examine the records maintained at such branches for the purpose of our audit.

3) As required by Section 143(3) of the Act, 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 purposes 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 standalone balance sheet, the standalone profit and loss account, and the standalone cash flowstatement dealt with by this Report are in agreement with the books of account; (d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Accounting Standard) Rules, 2021, as amended, to the extent they are not inconsistent with the accounting policies prescribed by RBI;

(e) on the basis of the written representations received from the directors as at March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as at March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act; and

(f) with respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Bank and the operating effectiveness of such controls, refer to our separate Report in ‘Annexure A.

4) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:

(a) the Bank has disclosed the impact of pending litigations as at March 31, 2023 on its financial position in its standalone financial statements - Refer Note No. 17.5.11 and 17.5.78 to the standalone financial statements;

(b) the Bank has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note No. 17.5.75 read with Note No. 17.5.19 to the standalone financial statements;

(c) there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank during the year ended March 31, 2023 - Refer Note No. 17.5.64 to the standalone financial statements.

(d) (i) The management of the Bank has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to accounts (Refer Note No. 17.5.36), no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Bank to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Bank (‘Ultimate Beneficiaries) any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(ii) The management of the Bank has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to accounts (Refer Note No. 17.5.36) no funds have been received by the Bank from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, the Bank shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries) guarantee, security or the like on behalf of the Ultimate Beneficiaries; and (iii) Based on such audit procedures that were considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) above contain any material misstatement.

(e) No dividend has been declared or paid during the year by the Bank.

(f) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of accounts using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 01, 2023; and accordingly, reporting under Rule 11

(g) of Companies (Audit and Auditors) Rule, 2014 is not applicable for the orprovide financial year ended March 31, 2023.

5) With respect to the matter to be included in the Auditors Report under section 197(16) of the Act; the Bank is a banking company as defined under Banking Regulation Act, 1949. Accordingly, the requirements prescribed under Section 197 of the Companies Act, 2013 (the ‘act) do not apply by virtue of Section 35B(2A) of the Banking Regulation Act, 1949.

For M P Chitale & Co.	For Chokshi & Chokshi LLP
Chartered Accountants	Chartered Accountants
(Firm Regn. No. 101851W)	(Firm Regn. No. 101872W / W100045)
Anagha Thatte	Vineet Saxena
Partner	Partner or provide any
(Membership No. 105525)	(Membership No. 100770)
UDIN: 23105525BGVABA7826	UDIN: 23100770BGXLGO1368
Place: Mumbai	Place: Mumbai
Date: April 22, 2023	Date: April 22, 2023

Annexure A to the Independent Auditors Report

of even date on the standalone financial statements of YES BANK Limited for the year ended March 31, 2023

(Referred to in paragraph 3(f) under ‘Report on Other Legal and Regulatory Requirements in the Independent Auditors Report of even date to the members of YES BANK Limited on the standalone financial statements for the year ended March 31, 2023)

Report on the Internal Financial Controls with reference to the aforesaid standalone financial statements under Clause (i) of Subsection 3 of Section 143 of the Companies Act,

2013 (“the Act”)

We have audited the internal financial controls with reference to standalone financial statements of YES BANK Limited (“the Bank”) as at March 31, 2023 in conjunction with our audit of the standalone financial statements of the Bank for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Banks management and Board of Directors are responsible for establishing and maintaining internal financial controls with reference to standalone financial statements the 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 (‘the Guidance Note) issued by the Institute of Chartered Accountants of India (‘the ICAI). These responsibilities sufficient and appropriate to include the design, implementation and maintenance of adequate internal financial controls that were operating conducteffectively of its business, including adherence to the Banks 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 (“the Act”).

Auditors Responsibility

Our responsibility is to express an opinion on the Banks internal financial controls with reference to standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing (‘the Standards), issued by the ICAI and deemed to be, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls over financial reporting, both issued by the ICAI. 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 with reference to financial statements were established and maintained and whether 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of internal financial controls with reference to standalone financial statements, 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 auditors judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained provide a basis for our is audit opinion on the Banks internal financial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

A Banks internal financial controls with reference to standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A Banks internal financial control with reference to financial statement 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 Bank; 2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Bank are being made only in accordance with authorisations of management and directors of the Bank; and 3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Banks assets that could have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to standalone financial statements, 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 with reference to standalone financial statements to future periods are subject to the risk that the internal financial control with reference to standalone financial statement 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 maintained, in all material respects, an adequate internal financial controls with reference to standalone financial statements and such internal financial controls were operating effectively as at March 31, 2023, with reference to financial statements criteria established by the Bank considering the essential components of internal control stated in the Guidance Note.

For M P Chitale & Co.	For Chokshi & Chokshi LLP
Chartered Accountants	Chartered Accountants
(Firm Regn. No. 101851W)	(Firm Regn. No. 101872W / W100045)
Anagha Thatte	Vineet Saxena
Partner	Partner
(Membership No. 105525)	(Membership No. 100770)
UDIN: 23105525BGVABA7826	UDIN: 23100770BGXLGO1368
Place: Mumbai	Place: Mumbai
Date: April 22, 2023	Date: April 22, 2023