1. We, the undersigned Auditors of State Bank of Mysore appointed under
section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959,
do hereby report on the Balance Sheet as at 31st March, 2010, the
Profit and Loss Account and Cash Flow Statement of the Bank for the
year ended on that date annexed thereto.
2. We have audited the attached Balance Sheet of STATE BANK OF MYSORE
as at 31st March, 2010, the Profit and Loss Account and the Cash Flow
Statement thereto for the year ended on that date in which are
(i) the returns of 20 branches audited by us;
(ii) the returns of 627 branches, 8 Service Branches and 5 Focal Point
Branches audited by other Auditors;
(iii) unaudited returns certified by the Branch Managers in respect of
29 Branches not visited by us. These unaudited branches account for
0.36% of advances, 0.56% of deposits, 0.21% of interest income and
0.33% of interest expenses; and
The branches audited by us and those by other auditors have been
selected by the Bank in accordance with the guidelines issued to the
Bank by the Reserve Bank of India. 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.
3. We conducted our audit in accordance with the 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 mis- statements). 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 the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
4. The Balance Sheet and the Profit and Loss Account have been drawn up
in Forms A and B respectively of the third Schedule to the Banking
Regulation Act, 1949 and give the information as required to be given
in terms of the provision of the State Bank of India (Subsidiary Banks)
Act, 1959 and Regulations there under.
5. We invite attention to:
i. Note No. 1 in Schedule 18 regarding mismatch in buckets of BASEL -
ii. Note No. 3.4.2 regarding rescheduling/restructuring of advances.
iii. Note No. 9.2 in schedule 18 of Notes on Accounts regarding
reconciliation of Inter-Branch Accounts, Inter Bank Accounts, ABSOT,
Branch System Suspense Account, National Local Clearing Account, IBIT,
Forex Clearing General Account, ATM Cash Balances Account, System
Suspense Account, FCNR Account, PCFC Account etc.,
iv. Note No. 11 in Schedule 18 regarding Agricultural Debt Relief and
6. Subject to the limitations of the audit, indicated in paragraph 2
above, and on the basis of the aforesaid Acts and Regulations, and read
with our observations in paragraph 5 above and subject also to the
limitations of disclosure required therein and read with the
Significant Accounting Policies and Notes forming part of the Accounts;
We report that:
(a) In our opinion and to the best of our information and according to
the explanations given to us and as shown by the books of the Bank.
(i) The Balance Sheet, read with the Significant Accounting Policies in
Schedule 17 and Notes on Accounts in Schedule 18, is a full and fair
Balance Sheet containing all the necessary particulars, and is properly
drawn up so as to exhibit a true and fair view of the state of affairs
of the Bank as at 31st March, 2010, in conformity with accounting
principles generally accepted in India;
(ii) The Profit and Loss Account, read with the Significant Accounting
Policies in Schedule 17 and Notes on Accounts in Schedule 18, shows a
true balance of profit for the year ended on that date, in conformity
with accounting principles generally accepted in India, and
(iii) The Cash Flow Statement gives a true and fair view of the cash
flows for the year ended on that date.
(b) 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.
(c) The transactions of the Bank, which have come to our notice, have
been within the competence of the bank.
(d) The returns received from the branches and offices of the Bank
generally have been found adequate for the purpose of our audit.
(e) In our opinion, the balance sheet, profit & loss account and cash
flow statement generally comply with the applicable Accounting
Standards read with the Guidelines on Compliance with Accounting
Standards by Banks, issued by the Reserve Bank of India from time to
STATUTORY CENTRAL AUDITORS
For PKKG BALASUBRAMANIAM & ASSOCIATES
Chartered Accountants FRN - 001547S
(CA E. RAVI SARMA)
Membership No. 025792
For DHAWAN & Co.
Chartered Accountants FRN - 002864N
(CA DEEPAK KAPOOR)
Membership No. 072302
For GROVER, LALLA & MEHTA
Chartered Accountants FRN - 002830N
(CA ALOK GOYAL)
Membership No. 501529
For GOPALAIYER AND
Chartered Accountants FRN - 000960S
(CA V.S. GANESAN)
Membership No. 024641
For RAMRAJ & CO.
Chartered Accountants FRN - 002839S
(CA P. KARUNAKARA NAIDU)
Membership No. 210603
Date: 20th April, 2010