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IDBI Bank Ltd Auditor Reports

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Jul 4, 2025|12:00:00 AM

IDBI Bank Ltd Share Price Auditors Report

To

the Members of

IDBI Bank Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of IDBI Bank Limited (‘the Bank), which comprise the Balance Sheet as at March 31.2025, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 from time to time, 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

31.2025, and its profit, and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (‘SAs) specified under Section 143 (10) of the Act. Our responsibilities under those Standards 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 (‘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 obtained by us, is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters (KAM) 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 How KAM was addressed in our audit
Recognition and Measurement of Deferred Tax Asset
Please refer to Note 18(B)(8) of the Standalone Financial Statements. The Bank has recognised a net deferred tax asset of Rs.5,982 Crores as of March 31st, 2025, after a net reversal of Rs.2,978 Crores during the year. The recognition of deferred tax involves judgement regarding the likelihood of realisation of these assets, particularly whether there will be sufficient taxable profits in future periods that will support the recognition of these assets. Given the degree of judgement involved in considering these deferred tax assets as recoverable or otherwise, we consider this to be a Key Audit Matter. Our audit procedures involved gaining an understanding of the applicable tax laws and relevant regulations applicable to the Bank. Our audit procedures included:
• Evaluation of policies used for recognition and measurement of deferred tax assets in accordance with AS 22 Accounting for Taxes on Income;
• Assessment of the probability of the availability of profits based on assumptions and other parameters used by the Management against which the Bank will be able to use this deferred tax asset in the future, with reference to forecast as noted by the Audit Committee of the Board of Directors.
• Assessed the method for determining the Deferred Tax Asset with reference to applicable tax rates and tested the arithmetical accuracy.
Income Recognition and Asset Classification of Advances (IRAC) and provisioning as per regulatory norms
Please Refer to Schedule 9, read with relevant Notes to the Standalone Financial Statements, and Asset Quality in respect of movement of NonPerforming Assets (NPAs) and related provisions. Our audit approach included testing the design and operating effectiveness of internal controls and substantive audit procedures in respect of asset classification and provisioning pertaining to advances. In particular:
As required under prudential norms issued by the Reserve Bank of India (RBI) in respect of asset classification and provisioning pertaining to advances, and relevant circulars, notifications and directions issued by the RBI which were collectively considered by the Bank till March 31, 2025, the Bank classifies advances into performing and non-performing advances (NPA), which consists of Standard, Sub-standard, Doubtful and Loss categories and makes appropriate provisions. • Evaluated the Banks internal control system in adhering to the relevant RBI guidelines regarding income recognition, asset classifcation and provisioning pertaining to advances;
The Classification, Provisioning and Write off of Advances, is a Key Audit Matter as the Bank has significant credit risk exposure to a large number of borrowers across various sectors, products, industries and geographies. There is a high degree of complexity, uncertainty and judgment involved in recoverability of advances, the nature of transactions and estimation of provisions thereon and identification of accounts to be written off. The Bank applies both quantitative as well as qualitative factors prescribed by the regulations. • Tested key IT systems/ applications used and their design and implementation as well as operational effectiveness of relevant controls, in relation to asset classification (standard, substandard, doubtful and loss) with reference to their days-past-due (DPD) status (including consideration of nonfinancial parameters of NPA, sufficiency of credits in working capital loans, restructuring guidelines, the Regulatory Package and Resolution framework) and provisioning pertaining to advances;
Considering the nature of the transactions, regulatory requirements, existing business environment, estimation / judgment involved in assessing the financial condition of borrowers as well as valuation of securities, we have determined this as Key Audit Matter. • 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;
• Reviewed account statements and other related information of the borrowers selected based on quantitative and qualitative risk factors.
• We have also carried out visits to branches / offices and examination of documentation and other records.
• For the selected nonperforming 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;
• Tested the Banks processes for making provision on advances for compliance with RBI regulations and internally laid down policies for provisioning;
• Undertaken the walkthrough for the automated E-NPA system and tested the core functionality for selected samples considering the audit universe.
• Validated the parameters used to calculate collective provisions with reference to IRAC norms and the Regulatory Package;
• Tested provision created for fraud accounts as at March 31, 2025 as per the RBI circular;
• Re-performed the calculation of provisions, for a sample of retail and corporate portfolios, as part of our substantive audit procedures, to determine the accuracy of the same; (Collective for standard portfolio and case specific for non performing portfolio).
• Discussed with the management of the Bank on sectors where there is perceived credit risk and the steps taken by management to mitigate the risks pertaining to identified stress sectors
• Assessed the adequacy of disclosures against the RBI Guidelines
Information Technology (IT) financial reporting Systems and Controls over
The Banks key financial accounting and reporting processes are highly dependent on Core Banking, IRAC, Treasury Solutions and other supporting software and hardware controls. There exists a risk that gaps in the IT control environment could result in the financial accounting and reporting records being materially misstated. Hence the IT controls are required to ensure that applications process data as expected and that changes are made in an appropriate manner. The Banks IT control framework includes automated, semiautomated 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. Our Audit procedures with respect to this matter included:
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. Such controls provide assurance on the integrity and completeness of data processed through various IT applications which are used for the preparation of financial reports. For testing the IT general controls (ITGC), application controls (ITAC) and IT dependent manual controls.
• We have planned, designed and carried out the desired audit procedures and sample checks, taking into consideration the IT systems of the Bank.
• Obtained a comprehensive understanding of IT applications landscape implemented at the Bank. It was followed by process understanding, mapping of applications to the same and understanding financial risks posed by people- process and technology.
• The key IT Testing procedures includes various parameters such as Completeness, Validity, Identification/ Authentication, Authorization, Integrity and Accountability. 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.
• In ITGC testing, on sample basis, we reviewed control areas such as User Access Management, Change Management, and other aspect of IT operational controls. This includes testing that request for access to systems were reviewed and authorised. We have also reviewed system of recording the audit trials on a sample basis and also reviewed the reports obtained by the bank on the Audit trial system for critical applications.
• For ITAC, we carried out on sample basis, compliance tests of system functionality in order to assess the accuracy of system calculations.
• In addition to the above, the design and operating effectiveness of certain automated controls, that were considered as key internal system controls over financial reporting were tested. Using various techniques such as inquiry, review of documentation / record / reports
• In addition, we have also relied on IS audit conducted by internal audit department of the Bank.
Transition to Revised RBI Guidelines for
Investment Portfolio
Please refer to Schedule 8 read with relevant Note 18(A)(3)(g) relating to transition to new RBI Circular related to Investments. Our audit procedure involved gaining an understanding of the approach adopted by the Bank for transition to the new RBI Circular.
The Bank has made investments in Government Securities, Bonds, Debentures, Shares, Security Receipts, and other approved securities. With effect from April 01, 2024, the Bank has adopted the revised guidelines issued by RBI for classification, valuation and operation of investment portfolio and accordingly, re-classified its investment portfolio. Valuation of investments, classification, identification of non-performing investments and provisioning related to investments are critical functions. • We have reviewed the internal note of the Bank, duly approved by the Board, describing the approach for transition to the new RBI Circular;
Derivatives are valued through models with external inputs. The derivatives portfolio of the Bank primarily includes transactions which are executed on behalf of its clients (and are covered on a back-to-back basis) and transactions to hedge the Banks interest rate and foreign currency risk. • Carried out inquiry with the management to understand the approach adopted by the Bank for transition to the new RBI Circular;
The Bank has also classified its derivatives portfolio based on the fair value hierarchy as Level 1, Level 2 and Level 3. • Reviewed the rationale considered for classification of each category of the securities;
We have identified the transition to the revised RBI Guidelines for Classification, Valuation and Operation of Investment Portfolio and derivatives as the Key Audit Matter considering its high degree of complexity and judgements involved. • Evaluated and understood the Banks internal control system to comply with the relevant RBI guidelines regarding valuation, identification of NPIs, provisioning / depreciation related to investments;
• Review of relevant document / records / reports;
• Perused minutes of the Board and its Committee meetings regarding transition to the new RBI Circular;
• Reviewed compliance with the relevant RBI Circulars;
• Reviewed the Accounting Policy of the Bank;
• Independently verified valuation of investments of the Bank as on March 31,2025;
• Reviewed, on test- check basis, price considered for valuation of derivatives to understand reasonableness of the valuation methodologies used by the Bank;
• Assessed the appropriateness of the related disclosures in the financial statements for transition to the new RBI Circular.

Information other than the standalone financial statements and Auditors Report thereon

The Banks management and Board of Directors are responsible for preparation of Other Information. The other information comprises the Management Discussion and Analysis, Business Responsibility and Sustainability Report, Directors Report forming part of the Annual Report, Corporate Governance Report but does not include the Standalone Financial Statements, Consolidated Financial Statements and our auditors report thereon. The other information 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 Financial Statements

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 recognition and measurement principles laid down in Accounting Standards specified under Section 133 of the Act read with Companies (Accounting Standards) Rules, 2021 as amended, in so far as they apply to banks, 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.

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 skepticism throughout the audit. We also:

• 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 obtain audit evidence that is sufficient 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 standalone financial statements in place and the operating 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 doubt on the Banks ability 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 audit findings, including any significant deficiencies in internal control 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.

Other Matter

The Standalone Financial Statements for the year ended March 31, 2024, have been audited by the predecessor auditors, whose report dated May 4, 2024 had expressed an unmodified opinion. The above report has been furnished to us by the management and has been relied upon by us for the purpose of our audit of the Standalone Financial Statements.

Our opinion is not modified in respect of this matter.

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 read with Companies (Accounting Standard) Rules, 2021, as amended, issued thereunder.

2) As required by sub-section (3) of Section 30 of the Banking Regulation Act, 1949, 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 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) The financial accounting systems of the Bank are centralized and therefore, accounting returns for the purpose of preparing financial statements are not required to be submitted by the branches. Our audit has been carried out centrally as the necessary records and data required for the purpose of our audit are centrally made available. Further, during the course of our audit, we have visited 37 domestic branches and a GIFT City IBU, Gandhinagar branch (Overseas) which, in aggregate, comprise of 36% of the gross advances of the Bank, to examine the records maintained at such branches for the purpose of our audit, in compliance with the extant RBI Circular.

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 Flow statement 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 on March 31, 2025 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025 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, 2025 on its financial position in its standalone financial statements - Refer Note No. 18(B) (12)(C) read with Note 12 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. 18(B) (12)(B) 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 31,2025.

(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. 18(C)(VII)), no funds have been advanced 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) or provide 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. 18(C)(VII)) 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) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(iii) Based on such audit procedures that have been 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) As stated in Note 18(B)(7)(B) to the Standalone Financial Statements:

• During the year, the final dividend declared and paid by the Bank is in compliance with section 123 of the Act.

• The Bank has not declared any interim dividend during the year.

• The Board of Directors of the Bank have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.

(f) Based on our examination which included test checks, the Bank has used accounting software for maintaining its books of account which, as applicable, have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with. Additionally, the audit trail has been preserved by the Bank as per the statutory requirements for record retention.

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.

Annexure A to the Independent Auditors Report of even date on the standalone financial statements of IDBI Bank Limited for the year ended March 31, 2025

(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 IDBI Bank Limited on the standalone financial statements for the year ended March 31, 2025)

Report on the Internal Financial Controls with reference to the aforesaid standalone financial statements under Clause (i) of Sub-section 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 IDBI Bank Limited ("the Bank") as of March 31, 2025 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 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 include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct 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 with reference to standalone financial statements. 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 standalone 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 standalone 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 is sufficient and appropriate to provide a basis for our audit opinion on the Banks internal financial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to Standalone 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 standalone financial statements 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 Standalone 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, 2025, based on the internal control with reference to standalone financial statements 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 issued by the Institute of Chartered Accountants of India.

For Chokshi & Chokshi LLP For Suri & Co.
- Chartered Accountants Chartered Accountants
FRN - 101872W / W100045) FRN - 004283S)
#.
Rakesh Jain Natarajan V.
Partner Partner
No. 042364 No. 223118
UDIN: 25042364BMOIQW8080 UDIN: 25223118BMJLEA1719
Place: Mumbai
Date : April 28, 2025

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