Bank of Rajasthan Ltd merged Auditor Reports

THE BANK OF RAJASTHAN LIMITED ANNUAL REPORT 2009-2010 AUDITORS REPORT TO THE SHAREHOLDERS OF THE BANK OF RAJASTHAN LIMITED 1. We have audited the attached Balance Sheet of THE BANK OF RAJASTHAN LIMITED as at 31(st) March 2010, Profit & Loss Account and Cash Flow Statement for the year ended on that date annexed thereto, in which are incorporated the returns of 11 branches audited by us and 452 branches audited by other Branch Auditors. 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. 2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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 have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 211 of the Companies Act, 1956 to the extent applicable. 4. We report that : (i) 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 found them to be satisfactory. (ii) The transactions of the Bank which have come to our notice have been within the powers of the Bank. (iii) In our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books. Proper returns generally adequate for the purpose of our audit have been received from the branches of the Bank. 5. We further report that: (i) The Balance Sheet, Profit & Cash Flow Statement dealt with by this report are in agreement with the books of account and the branch returns; (ii) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 in so far as they apply to Banking Companies as mentioned in Schedule 17; (iii) On the basis of written representations received by the Bank from the directors which is taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31(st) March 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. (iv) As per information and explanations given to us the Central Government has, till date, not prescribed any cess payable under Section 441A of the Companies Act, 1956. (v) In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet and Profit and Loss Account read with the Significant Accounting Policies stated in Schedule 17 and Notes to Accounts stated in Schedule 18 and subject to: i. Note. No. 12.2 of Schedule 18, Notes to accounts, regarding provision for employee benefits, where due to variations in base data and actuarial assumptions and its significant impact on valuation, the loss has been overstated by Rs. 149.58 crores. and; ii. Note. No. 12.3 of Schedule 18, Notes to Accounts, a sum of Rs.31.50 crores reflected as an asset though not realisable. Accordingly, the sum of Rs.31.50 crores and the corresponding Deferred Tax Asset is overstated to the extent of Rs.10.46 crores; and read with iii. Note No.13 of Schedule 18, Notes to Accounts, regarding possible provisioning arising out of the special audit which cannot be presently quantified and; iv. Note No.40 of Schedule 18, Notes to Accounts, regarding proposed merger of the Bank and consequent preparation of financial statements under the going concern assumption; give the information required by the Banking Regulation Act, 1949 and the Companies Act, 1956 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: (a) in the case of the Balance Sheet, of the state of affairs of the Bank as at 31(st) March 2010; (b) in the case of the Profit & Loss Account, of the Loss for the year ended on that date; and (c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date; For Gokhale & Sathe Chartered Accountants Firm Regn. No. 103264W Rahul P. Joglekar Partner Membership No.: 129389 Place : Mumbai. Date : 28(th) May 2010.