Yeejle kes je<^Heefle keer mesJee ceW uesKee Hejer#ekeeW keer efjHees& REPORT OF THE AUDITORS TO THE PRESIDENT

OF INDIA
nceves osvee yeQke kes 31 ceee&, 2008 kes mebueive legueve-He$e leLee Gmekes meeLe
mebueive Gmeer leejerKe kees meceeHle DeJeefOe kes ueeYe-neefve uesKeeW kee uesKee-Hejer#eCe
efkeee nw, efpemeceW nceejs eje uesKee Hejeref#ele 20 MeeKeeSb leLee 20 #es$eere keeee&ueeeW
keer efJeJejefCeeeb Yeer Meeefceue nQ, Deve uesKee Hejer#ekeeW eje uesKee Hejeref#ele 740
MeeKeeSb Deewj 301 MeeKeeSb efpevekeer uesKee Hejer#ee veneR ngF& nw. nceejs eje leLee
Deve uesKee Hejer#ekeeW eje uesKee-Hejeref#ele MeeKeeDeeW kee eeve Yeejleere efj]peJe&
yeQke eje yeQke kees efoS ieS efoMee efveoxMeeW kes Devegmeej efkeee ieee nw. Fve iewj uesKee
Hejeref#ele MeeKeeDeeW kes Deefece kegue DeefeceeW kes, 2.45%, peceejeefMeeeb kegue
peceejeefMeeeW kes, 12.51%, yeepeiele Deee kegue yeepeiele Deee kes, 1.84%
Deewj yeepeiele Jee kegue yeepeiele Jee kes, 11.44% nesles nQ. nceves legueve He$e
kes meeLe Gmeer leejerKe kees meceeHle Je<e& kes efueS vekeoer eJeen efJeJejCe keer Yeer uesKee
Hejer#ee keer nw. Fve efJeeere efJeJejCeeW kes efueS yeQke eyebOeve efpeccesoej nw. nceeje
oeefelJe DeHeveer uesKee Hejer#ee kes DeeOeej Hej Fve efJeeere efJeJejCeeW Hej DeHevee cele
Jekele kejvee nw.

1. We have audited the attached Balance Sheet of Dena

Bank as at 31st March, 2008 and the Profit and Loss Account
annexed thereto for the year ended on that date, in which are
incorporated the returns of 20 branches and 20 Regional
Offices audited by us, 740 branches audited by other auditors
and 301 branches which were not subject to audit. 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. The
unaudited branches account for 2.45% of advances, 12.51%
of deposits, 1.84% of interest income and 11.44% of interest
expenses. We have also audited the cash flow statement
annexed to the balance sheet for the year ended on that date.
These financial statements are the responsibility of the banks
management. Our responsibility is to express our opinion on
these financial statements based on our audit.

1.

2. nceves DeHeveer uesKeeHejer#ee Yeejle ceW meeceeveleee mJeerke=le uesKeeHejer#ee ceeveob[eW

kes Devegmeej keer nw. Fve ceeveob[eW keer DeHes#ee nw efke nce uesKeeHejer#ee keer eespevee SJeb
Gmekee keeee&vJeeve Fme ekeej kejW efke Gmes Ssmee egefkeleegkele DeeMJeemeve eeHle nes
efke es efJeeere efJeJejCe efkemeer meejegkele metevee mes jefnle vener nQ. uesKeeHejer#ee ceW
vecetvee DeeOeej Hej OevejeefMeeeW Deewj efJeeere efJeJejCeeW kes ekeve kes meceLe&ve ceW
mee#eeW kee Hejer#eCe Meeefceue neslee nw. uesKeeHejer#ee ceW eegkele uesKeebkeve efmeebleeW
Deewj eyebOeve eje efkeS iees cenlJeHetCe& DevegceeveeW kes Deekeueve kes meeLe-meeLe mecee
He mes efJeeere efJeJejCeeW kes emlegleve kee cetueebkeve Yeer Meeefceue neslee nw. nceW
efJeMJeeme nw efke nceejer uesKeeHejer#ee nceejs Fme cele kee egefkele egkele DeeOeej GHeueyOe
kejeleer nw.

2. We conducted our audit in accordance with the auditing

standards generally accepted in India. These standards
require that we plan and perform the audit to obtain
reasonable assurance as to whether the financial statements
are free of material mis-statements. 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 statements presentation. We
believe that our audit provides a reasonable basis for our
opinion.

legueve-He$e Deewj ueeYe Je neefve uesKee yeQefkebie efJeefveeceve DeefOeefveece, 1949

keer leermejer Devegmeteer kes eceMe Hee@ce& ``ke'' Deewj ``Ke'' ceW leweej efkeS
ieS nQ.
4. THej Hewje 1 Deewj 2 ceW efveefo&< uesKeeHejer#ee keer meerceeDeeW kes DeOeerve Deewj
yeQefkebie kebHeveer (GHeeceeW kee Depe&ve Deewj DeblejCe) DeefOeefveece, 1970/1980
eje DeHesef#ele Deewj GmeceW eLee ekeve keer meerceeDeeW keer DeHes#ee kes DeOeerve nce
efjHees& kejles nQ efke

3. 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.

3.

(i)

4. Subject to the limitations of the audit indicated in

paragraphs 1 & 2 above, and as required by the Banking
Companies (Acquisition and Transfer of Undertakings) Act,
1970/1980 and subject to the limitation of disclosures required
therein, we report that:

uesKee keer efHHeefCeeeW keer Devegmeteer 18 keer efHHeCeer mebKee 18.1 ceW efkeS ieS
GuuesKe kes Devegmeej

(i)

ke) Devlej MeeKee uesKeeW keer eefJeef<eeW kee eejbefYeke efceueeve 28 HejJejer
2008 leke kej efueee ieee nw Deewj Gvekes meceeeespeve keer eefeee
peejer nw.
Ke) Deveg<ebieer yeefneeW/jefpemjeW kes meblegueve leLee Gvekes eOeeve yener mes
meceeOeeve kee keee& kegske MeeKeeDeeW ceW peejer nw.

As referred to in Note No. 18.1 of Schedule 18 of Notes

to Accounts: (a) Initial matching of entries in Inter-Branch Accounts
has been done up to 28th February, 2008 and the
process of reconciliation is in progress,
(b) Balancing of subsidiary ledgers/registers and
reconciliation with general ledgers is in progress at
some branches,

ie) Yegieleeve kes efueS ose ceebie [^eHeeW, efyevee metevee Deoe efkeS ieS [^eHeeW,
Geble KeeleeW, ueeYeebMe yeepe JeejbeW, Deoe efkees ieS JeeHemeer DeeosMeeW,
meceeMeesOeve, meceeeespeve mesJee MeeKee SJeb meceeMeesOeve ceW Yeeie uesves
Jeeueer MeeKeeDeeW kes yeere meceeOeeve leLee Yeejleere efj]peJe& yeQke leLee
Deve yeQkeeW keer peceejeefMeeeW kes KeeleeW ceW yekeeee eefJeef<eeb nQ, efpevekee
meceeOeeve/meceeeespeve keee& peejer nw.

(c) There are outstanding entries in the accounts of

demand drafts payable, drafts paid ex-advice,
suspense accounts, dividend/interest warrants,
refund
orders
paid,
clearing
adjustments,
reconciliation between the service branches and
participating branches in respect of clearing,
balances with Reserve Bank of India and other
banks which are in the process of reconciliation/
balancing/adjustments.

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Yeejle kes je<^Heefle keer mesJee ceW uesKee Hejer#ekeeW keer efjHees& REPORT OF THE AUDITORS TO THE PRESIDENT OF INDIA

(ii)

5.
(i)

GHeeg&kele leLee Deve ekeveeW/DevegHeeleeW Hej Yeer Fvekes eYeeJe kee Helee veneR
ueieeee ieee nw.
uesKee Devegmeteer 17 kes Hewje 17.6(ke), 17.6(Ke) leLee 17.6(ie) ceW eLeeJeefCe&le
kegske Deee/Jee GHeee DeeOeej kes mLeeve Hej vekeo DeeOeej Hej oMee&S
ieS nQ, pees efke Yeejleere meveoer uesKeekeej mebmLeeve (DeeF&meerSDeeF&) eje
peejer ``jepemJe DeefYeefveOee&jCe''mes mebbyebefOele uesKeebkeve ceeveke 9 kes Devegmeej
veneR nw. GHeeg&kele leLee Deve ekeveeW/DevegHeeleeW Hej Yeer Fvekes eYeeJe kee
Helee veneR ueieeee ieee nw.

Impact of the above, as also on the other disclosures /

ratios is not ascertained.

nce Deeies efjHees& kejles nQ efke

uesKee efHHeefCeeeW SJeb GmeceW GefuueefKele DevegmetefeeeW kes meeLe Heefle GHejeskele
4(i) mes (ii) ceW oer ieF& nceejer efHHeefCeeeW keer Mele& Hej leLee nceejer jee ceW Deewj
nceejer meJeeXece metevee kes DeeOeej Hej leLee nceW efoS ieS mHe<erkejCe kes
Devegmeej SJeb yeQke keer yeefneeW ceW eLee eoefMe&le
(ke) cenlJeHetCe& uesKee veerefleeeW Deewj Gve Hej oer ieF& efHHeefCeeeW kes meeLe
Heefle legueve He$e DeHeves DeeJeMeke yeewjeW kes meeLe HetCe& Deewj mener nQw
leLee Fmes Ssmes Gefele He mes leweej efkeee ieee nw efke Gmemes 31 ceee&
2008 kees yeQke kes keee&keueeHeeW kee mener Deewj mHe< efe$e GHeefmLele
nes mekes.
(Ke) cenlJeHetCe& uesKee veerefleeeW Deewj Gvemes mebyebefOele efHHeefCeeeW kes meeLe
Heefle ueeYe neefve uesKee 31 ceee& 2008 kees meceeHle Je<e& kes ueeYe kes
JeemleefJeke DeefleMes<e kees oMee&lee nw.

(ii)

Certain income/expenditure have been accounted for on

cash basis instead of accrual basis as mentioned in Para
17.6(a), 17.6(b) and 17.6(c) of Schedule 17 to the
Accounts, the same being not in accordance with the
Accounting Standard-9 Revenue Recognition issued by
The Institute of Chartered Accountants of India (ICAI).
The impact of the same, as also on the other disclosures
/ ratios is not ascertained.

5.

We further report that:

(i)

Subject to our comments in paragraphs 4(i) to (ii) above,

read with the Notes to Accounts and Schedules
mentioned therein, 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:
(a) The Balance Sheet read with the Significant
Accounting Policies and the Notes thereon is a full
and fair Balance Sheet containing the necessary
particulars and it is properly drawn up so as to
exhibit a true and fair view of the affairs of the Bank
as at 31st March 2008.
(b) The Profit and Loss Account read with the
Significant Accounting Policies and the Notes
thereon shows a true balance of profit for the year
ended 31st March 2008.

(ie) vekeoer eJeen efJeJejCe 31 ceee& 2008 kees meceeHle Je<e& keer vekeoer eJeen
keer JeemleefJeke efmLeefle oMee&lee nw.
(ii)

(iii)

(c) The Cash Flow Statement gives the true and fair
view of the cash flows for the year ended 31st
March 2008.

nceejer meJeeXece peevekeejer SJeb efJeMJeeme kes Devegmeej nceejer uesKee Hejer#ee kes
eeespeve nsleg nceves meYeer DeeJeMeke meteveeSb SJeb mHe<erkejCe eeHle efkeS nQ
Deewj GvnW meblees<epeveke Heeee nw.

(ii)

yeQke kes mebJeJenej, pees nceejer peevekeejer ceW DeeS nQ, yeQke kes DeefOekeej #es$e
ceW nQ.

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
them to be satisfactory.

(iii) The transactions of the bank, which have come to our

notice, have been within the powers of the bank.

ke=les ve=Hesv SC[ keb.

meveoer uesKeekeej

ke=les Deej. kes. oerHeke SC[ keb. ke=les yeer. iegHlee SC[ keb.
meveoer uesKeekeej
meveoer uesKeekeej

ke=les Heer HeeefjKe SC[ SmeesefmeSdme

meveoer uesKeekeej

ke=les pewve eewIejer SC[ keb.

meveoer uesKeekeej

FOR NRIPENDRA & CO.

Chartered Accountants

FOR R. K. DEEPAK & CO.

Chartered Accountants

FOR B. GUPTA & CO.

Chartered Accountants

FOR P. PARIKH & ASSOCIATES

Chartered Accountants

For JAIN CHOWDHARY & CO.

Chartered Accountants

Sve. kes. iegHlee

oerHeke iegHlee

oerHebkej mejkeej

Heer. Sve. HeeefjKe

Sme. meer. pewve

N. K. Gupta

Deepak Gupta

Dipankar Sircar

P. N. Parikh

S. C. Jain

Yeeieeroej Partner
(Sce. veb. 10657)

Yeeieeroej Partner
(Sce. veb. 82153)

Yeeieeroej Partner
(Sce. veb. 73514)

Yeeieeroej Partner
(Sce. veb. 4770)

Yeeieeroej Partner
(Sce. veb. 14871)

mLeeve cegbyeF&, efoveebke 30 Deewue, 2008

Place : Mumbai, Date : 30th April, 2008

94