mumbai dist central co op bank ltd Auditors report

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To

The Members of Mumbai District Central Co-Operative Bank Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Mumbai District Central Co-Operative Bank Limited, (hereinafter referred to as the "Bank"), which comprises the Balance Sheet as at March 31st, 2014 and the Profit and Loss Account and Cash Flow statement for the year ended, incorporating returns of branches and head office and a summary of significant accounting policies and other explanatory information.

Managements responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Bank in accordance with the Accounting Standards issued by Institute of Chartered Accountants of India (ICAI) and generally accepted accounting principles in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, includingthe assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments; the auditor considers internal control relevant to the Companys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Qualified Opinion

1. Provision for leave encashment at the year end is made on the basis of management estimates instead of actuarial valuation. Due to non compliance, profit for the year is overstated by Rs.17.77 crores and also liabilities are shown less to that extent.

Further, relevant disclosures are not made in the notes to the financial statements. This constitutes a non compliance of the requirements of Para 51 and Para 120 of Accounting Standard 15 (Revised)"Employee Benefits".

2. For the purposes of calculation of profit or loss on sale of a part of the holding of an individual investment, the lowest cost of the security in the total holding of the individual investment is considered as the carrying amount.

This resulted in non compliance of Para 22 of "Accounting for Investments" issued by ICAI. The impact of such non compliance on the profit for the year is not ascertainable.

The consequential financial effects arising out of paragraph 1 & 2 above, on other components of financial statements like provision for taxation, deferred taxation, transfer to reserves, earning per share, capital adequacy and net worth has not been ascertained

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion Paragraph, the financial statements give the information required by the Maharashtra Co-Operative Societies Act 1960 (hereinafter referred to as the "Act"), in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted n India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

(b) in the case of the Profit and Loss Account, of the profit 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.

Report on Other Legal and Regulatory Requirements

1) Further to our comments and observations in long Form Audit Report, 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 competence of the bank c) In our opinion, proper books of account as required by law have been kept by the bank so far as it is appears from our examination of those books and proper return adequate for the purpose of our audit have been received from branches of the Bank

c) the Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account and are drawn up in conformity with provisions of the Act and directives issued by NABARD.

d) Except for the effects of the matter described in the Basis for Qualified Opinion, in our opinion, the Balance Sheet & Profit and Loss Account comply with the Accounting Standards issued by ICAI.

FOR A. R. SULAKHE & CO

CHARTERED ACCOUNTANTS

FRN:-110540W

Sd/-

HEMLATHA SWAMINATHAN

PARTNER

M. NO. 45867

Place: - MUMBAI

Date: -May 05, 2014