1.  We have audited the attached balance sheet of Development Credit
 Bank Limited (the Bank) as at 31 March 2011 and also the profit and
 loss account and cash flow statement for the year ended on that date
 annexed thereto. 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 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
 financial statements are free of material misstatement. An audit
 includes examining, on a test basis, evidence supporting the amounts
 and disclosures in the financial 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 profit and loss account are drawn up in
 conformity with Forms A and B (revised) of the Third Schedule to the
 Banking Requisition Act, 1949, read with Section 211 of the Companies
 Act, 1956 (the Companies Act).
 
 4.  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 purposes of our
 audit and have found them to be satisfactory;
 
 b) In our opinion, the transactions of the Bank which have come to our
 notice have been within its powers;
 
 c) 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
 and proper returns adequate for the purposes of our audit have been
 received from branches not visited by us;
 
 d) The balance sheet, profit and loss account and cash flow statement
 dealt with by this report are in agreement with the books of account;
 
 e) In our opinion, the balance sheet, profit and loss account and cash
 flow statement dealt with by this report comply with the accounting
 standards referred to the sub-section (3C) of Section 211 of the
 Companies Act, read with guidelines issued by the Reserve Bank of India
 in so far as they apply to the Bank;
 
 f) On the basis of written representations received from the directors
 as on 31 March 2011, and taken on record by the Board of Directors, we
 report that none of the directors is disqualified from being appointed
 as a director in terms of clause (g) of sub- section (1) of Section 274
 of the Companies Act, 1956;
 
 g) In our opinion and to the best of our information and according to
 the explanations given to us, the said accounts give the information
 required by 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;
 
 i.  In case of the balance sheet, of the state of the affairs of the
 Bank as at 31 March 2011;
 
 ii.  In case of the profit and loss account, of the profit for the year
 ended on that date; and
 
 iii.  In case of the cash flow statement, of the cash flows for the
 year ended on that date.
 
 For S.R. Batliboi & Co.
 
 Firm Registration Number : 301003E
 Chartered Accountants
 
 per Surekha Gracias
 
 Partner
 
 Membership No. : 105488
 
 Mumbai
 
 Date: April 13, 2011