1. We have audited the accompanying financial statements of The Karur
Vysya Bank Limited as at 31st March 2012, which comprise the Balance
Sheet as at 31st March 2012, the Profit & Loss Account and the Cash
Flow Statement for the year then ended, significant Accounting Policies
and other explanatory information. Incorporated in these financial
statements are the returns of 6 branches/offices audited by us and 488
branches/offices audited by Branch Auditors. The Branches audited by us
and those audited by other auditors have been selected by the Bank in
accordance with the guidelines issued by the Reserve Bank of India.
Management''s responsibility for the Financial Statements:
2. Management is responsible for the preparation of these financial
statements in accordance with the Banking Regulation Act, 1949. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation of the financial
statements that are free from material misstatements, whether due to
fraud or error.
3. 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgement, including the
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
bank''s 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
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with the
accounting policies and notes thereon, give the information required by
the Banking Regulation Act, 1949 as well as the Companies Act, 1956, in
the manner so required for the banking companies and give a true and
fair view in conformity with the accounting principles generally
accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
bank as at 31st March, 2012;
(ii) in the case of the Profit & Loss Account, of the profits for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of cash flows for the
year ended on that date.
Report on other Legal and Regulatory requirements:
7. The Balance Sheet and the Profit & Loss Account 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;
8. Subject to the limitations of the audit indicated in paragraph 1 to
5 above, 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. the transactions of the Bank, which have come to our notice, have
been within the powers of the Bank.
c. the returns received from the Offices and Branches of the Bank have
been found adequate for the purposes of our audit.
9. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
10. We further report that:
(i) the Balance Sheet and Profit and Loss account dealt with by this
report are in agreement with the books of accounts and returns;
(ii) in our opinion, proper books of accounts as required by law have
been kept by the bank so far as appears from our examination of those
(iii) the reports on the accounts of the branches audited by branch
auditors have been dealt with in preparing our report in the manner
considered necessary by us;
(iv) on the basis of the written representation received from the
directors and taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2012 from being appointed as
a director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
For M/s. R. K. Kumar & Co.
Firm Reg No. 001595S
Place: Karur (C.R. Sundararajan)
Date: 25th May 2012. Partner