KARNATAKA BANK LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO
THE SHAREHOLDERS OF
KARNATAKA BANK LIMITED
Report on the Financial Statements:
1. We have audited the accompanying financial statements of The Karnataka
Bank Limited as at 31st March 2012, which comprises the Balance Sheet as at
31st March 2012; the statement of Profit and Loss Account and the Cash Flow
Statement for the year then ended; and a summary of significant Accounting
Policies and other explanatory information. Incorporated in these financial
statements are the returns of 23 branches/5 offices audited by us and 480
branches/20 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
Auditor`s Responsibility:
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 material misstatements.
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 judgment, 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.
Opinion:
6. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read 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 and 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 and 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; and
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 and 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 books; and
(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 Vishnu Daya & Co. For R.K. Kumar & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No.: 008456S Firm Reg. No.: 001595S
Sd/- Sd/-
Guruprasad B.R. Ashok
Partner Partner
M.No. 219250 M.No. 023313
Place: Mangalore
Date : May 18, 2012. |