1. We have audited the attached Balance Sheet of THE LAKSHMI VILAS
BANK LIMITED, KARUR as at 31st March 2012, the annexed Profit and Loss
Account and also the Cash Flow Statement of the bank for the year ended
on that date in which are incorporated the financial statements of the
Administrative Office, 8 Regional Offices, 10 Branches, Central
Processing Cell, Integrated Treasury, Data Centre, RTGS Cell and DP
Cell audited by us and 280 Branches, 1 Satellite Branch and 6 Service
Branches audited by Branch Auditors appointed U/s 228 (4) of the
Companies Act, 1956. There are no unaudited branches or other offices.
These financial statements are the responsibility of the Bank''s
Management. Our responsibility is to express our 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 misstatements. An Audit
includes examining on a test basis, evidence supporting the amounts and
disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the 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 & Loss account have been drawn up
in accordance with the provisions of section 29 of Banking Regulation
Act, 1949 read with section 211 of the Companies Act, 1956, in Form A &
B respective of Third Schedule to the Banking Regulation Act, 1949.
4. 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.
5. 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) In our Opinion, proper books of accounts, as required by law, have
been kept by the Bank so far as it appears from our examination of
those books and proper returns adequate for the purpose of our audit
have been received from the branches of the Bank.
(d) The Bank''s Balance sheet and profit and loss account and cash
flow statement dealt with by this report are in agreement with the
books of account and audited returns from the branches of the bank.
(e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March 2012 from being
appointed as director in terms of clause (g) of sub - section (1) of
section 274 of the Companies Act, 1956.
6. In our opinion, the balance sheet, profit and loss account and the
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 so far as they apply to banks.
7. In our opinion and to the best of our information and according to
the explanation given to us, they said accounts read with the accounting
policies followed by the bank together with the notes thereon and
subject to Note No.1(a) & (b) of schedule 18 to the accounts regarding
the effect of adjustments arising from reconciliation of inter - branch
transactions and tallying of balances in the accounts as per general
ledger with those of subsidiary ledgers, the quantum of which is not
ascertained, give the information required by the Companies Act,1956 in
the manner so required for banking Companies and on such basis, give a
true and fair view.
i) In the case of said balance sheet, of the state of affairs of the
bank as at 31st March 2012;
ii) In the case of profit & loss account, profit of the bank for the
year ended on that date; and
iii) In case of cash flow statement, of the cash flow of the bank for
the year then ended and are in conformity with the accounting
principles generally accepted in India.
For SAGAR & ASSOCIATES
FR No. 003510S
Place : Karur Partner
Date : 30th May 2012 Membership No. 029644