RAVI SARMA & CO., #67-1-31A, First Floor

CHARTERED ACCOUNTANTS “VARANASI VILLA”

Ashok Nagar , KAKINADA -533 003

Mobile : +91 98482 89180

E-mail: vravisarma@yahoo.com


INDEPENDENT AUDITOR’S REPORT


To


The Members,

The Kakinada Cooperative Town Bank Ltd., Kakinada.


We have audited the financial statements of THE KAKINADA COOPERATIVE TOWN BANK LTD., which comprise the Balance Sheet as at 31st March 2022, the Profit and Loss Account and Statement of Cash flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies. The returns of 18 Branches at the Bank and H.O. are incorporated in these financial statements.


In our opinion, the accompanying financial statements give a true and fair view of the financial position of the entity as at 31st March 2022, and of its financial performance and its cash flows for the year then ended, in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).


Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the entity in accordance with the Code of Ethics issued by ICAI and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We have considered the Independent Branch Audit Reports relating to 14 Branches and we have relied upon the findings if any made by the respective Branch Statutory Auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Responsibilities of Management and those charged with Governance for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the state of affairs, results of operations and cash flows of the entity in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, management is responsible for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.


Those charged with governance are responsible for overseeing the entity’s financial reporting process.


Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Contd … 2

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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 Society’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 the accounting policies used and the reasonableness of the accounting estimate made by the management, as well as evaluating the overall presentation of the financial statements.


Report on other Legal and Regulatory Requirements:


The Balance Sheet and the Profit and Loss have been drawn up in Forms A and B respectively of the Third Schedule of the Banking Regulation Act, 1949 and provisions of the A.P. Cooperative Societies Act 1964 and the A.P. Cooperative Societies Rules 1964.


We report that;


  1. We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit and have found to be satisfactory.


  2. In our opinion, proper books of account 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/offices.

  3. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

  4. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account and the returns.

  5. The Accounting Standards adopted by the Bank are consistent with those laid down by accounting principles generally accepted in in India so far as applicable to Banks.


We further report that for the year under Audit, the Bank has been awarded “A” classification.


AS PER OUR REPORT OF EVEN DATE


for RAVI SARMA & CO.,

Chartered Accountants


Place: Kakinada. (Sd/-)


Date :11.06.2022 (CA. V. Ravi Sarma)

Partner

M.No. 026923

FRN: 015606 S UDIN:22026923AKTHSE4479