Management Representation Letter

M/s. Dhariwal & Sreenivas

Chartered Accountants Date: 06/04/2021
No 10, Old No144 First Floor,
South Park Road,
Opp:Seshadripuram College,
Nehrunagar,
Bangalore – 560 020

Dear Sirs,

Sub:BRANCH STATUTORY AUDIT FOR THE YEAR ENDED 31STMARCH, 2021

This representation letter is provided in connection with your audit of the financial statements
of RAH, MARGAO Branch of Canara Bank, for the year ended March 31, 2021, for the
purpose of expressing an opinion as to whether the financial statements give a true and fair
view of the state of affairs of RAH, MARGAO branch of Canara Bank as of March 31, 2021,
and of the results of operations for the year then ended. We acknowledge our responsibility
for preparation of financial statements, in accordance with the financial reporting framework
applicable to the Bank, including the regulatory requirements of the Reserve Bank of India.

We confirm, to the best of our knowledge and belief, the following representations:

1. ACCOUNTING POLICIES

1.1. The accounting policies are in accordance with the accounting standards and other
recognized accounting practices and policies generally accepted in India.

1.2. The accounting policies, as approved by the board of directors of the Bank, have been
duly followed. There are no changes in the accounting policies followed by the branch
during the current year.

2. ASSETS

2.1 All the assets owned by the bank and transferred to the branch and such other asset/s,
as has/ have been acquired by the branch, has/have been duly accounted for, and
none of the assets is encumbered.

2.2 Fixed assets held by branches have been properly accounted and have been physically
verified at the year end. No discrepancies have been noticed on such verification.
Depreciation on these assets has been adequately provided as per the policy of the
bank.

2.3 In respect of assets other than fixed assets, the same have not been impaired and do not
have a value lower than realizable value.
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 2.4 The branch is operating from a leased premises and there is no dispute with respect to
the tenancy and lease charges.

2.5 The Branch has not got any notice from the landlord for evacuation or redevelopment
of the premises which may possibly necessitate shifting the branch premises in the near
future.

2.6 The additions during the year are recorded at cost and include all capital expenditure
to fixed assets, but do not include expenditure properly chargeable to revenue. No
material amounts representing additions or improvements of a capital nature are
charged to expense accounts.

2.7 The fixed assets do not include cost and accumulated depreciation relating to items
sold, scrapped, demolished or destroyed. The identification marking of the fixed assets
at the branch has not been done due to regular renovation.

2.8 The net book value represents all the fixed assets owned by the Branch wherever
situated.

3. CAPITAL COMMITMENTS

At the balance sheet date, outstanding commitments for capital expenditure have been
duly depicted in the financial statements.

If no, at the balance sheet date, there were no outstanding commitments for capital
expenditure.

4. CASH AND BANK BALANCES

The cash balance as on March 31, 2021 is Rs. 0 (NIL), and has been verified by us. Internal
guidelines on periodic cash verification have been duly followed.

Fake notes received by the Bank have been duly impounded and relevant guidelines of
RBI thereon have been complied.

Effective Dual custody of Cash has been maintained at all times during the financial year.

5. OTHER CURRENT ASSETS

In the opinion of the management, other current assets have a value on realization in the
ordinary course of the branch's business, which is at least equal to the amount at which
they are stated in the balance sheet.

6. LIABILITIES

The branch has recorded all known and anticipated liabilities in the financial statements.

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7. CONTINGENT LIABILITIES

7.1 The branch has fully disclosed in the notes to the financial statements;

(a) guarantees that we have given to third parties;

(b) Letters of Credits (Local/ Import);

(c) Letters of Comfort (Local/ Import);

(d) Deferred Payment Credits/ Guarantees (Local/ Import); and

(e) Other contingent liabilities.

7.2 Other than for advances, there are no matters involving the branch in any claims in
litigation, arbitration or other disputes, in which there may be some financial
implications, including for staff claims, branch rentals, municipal taxes, local levies,
etc., except for those which have been appropriately included under contingent
liabilities.

7.3 None of the contingent liabilities disclosed are likely to result in a loss, requiring
adjustment of assets or liabilities or provisions in the books of accounts.

7.4 Frivolous claims from Customers / third parties have not been included in Contingent
liabilities.

7.5 No cases/ legal disputes are pending against the branch/ lodged by the branch, for
which no liability has accrued/ is likely to accrue in the future.

8. PROVISIONS FOR CLAIMS AND LOSSES

8.1 Provision has been made in the accounts for all known losses and claims of material
amounts.

8.2 There have been no events subsequent to the balance sheet date, that require
adjustment of, or disclosure in, the financial statements or notes thereto.

8.3 Provisioning for NPA, annual Bonus/ Exgratia, Pension contribution, provision for
standard assets, Gratuity and other expenses are considered at Head Office.

8.4 We have made available to you all the following latest reports on the accounts of our
branch, and compliance by the branch on the observations contained therein:

a) Previous year’s branch audit report;

b) Internal inspection reports;

c) Report on any other Inspection Audit that has been conducted in the course of the
year, relevant to the financial year 2017-18.

8.5 Apart from the above, the branch has not received any show cause notice, inspection
advice, etc., from the Government of India, Reserve Bank of India or any other
monitoring or regulatory authority of India that could have a material effect on the
financial statements of the branch during the year.

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9. BALANCING OF BOOKS

The books of the accounts are computerised and hence the subsidiary records are
automatically balanced with the relevant control records. In the case of manual sub-
ledgers maintained, we confirm that they duly match with the general ledger balances.

10. OVERDUE/MATURED TERM DEPOSITS

All overdue/ matured term deposits are held as matured term deposits.

11. ADVANCES

11.1In respect of all the advances against tangible securities, the branch holds evidence of
existence and market value of the relevant securities as at the year-end.

11.2AII the borrowers' account have been categorized according to the prevalent RBI
norms applicable for the year, into Standard, Sub-standard, Doubtful or Loss assets,
with special emphasis on Non-Performing Assets (NPA).

11.3We have examined the accounts and applied the norms borrower-wise and not
account-wise for categorizing the accounts.

11.4The classification of advances made as at the end of the previous year has not been
changed to a better classification except as informed and included in MOC

11.5No income has been adjusted/ recorded to revenue, contrary to the norms of income
recognition notified by the Reserve Bank of India; and particularly where the chances
of recovery/ realisablity of the income are remote.

11.6No income has been recorded on Non-Performing Accounts other than on actual
realisation.

11.7Processing and upfront fees is charged and recovered as per the internal norms and
waiver or deviation, if any, is done after proper authorization.

12. OUTSTANDING IN SUSPENSE/ SUNDRY ACCOUNT

The year–wise/ entry–wise break up of amounts outstanding in Sundry deposits/ Sundry

assets, as on March 31, 2017 has already been submitted to you along with explanation of
the nature of the amounts in brief, and supporting evidences relating to the existence of
such amounts in the aforesaid accounts.

13. INTEREST PROVISIONS

13.1Interest provision has been made on deposits etc. in accordance with the latest
instruction of the Head Office by data centre.

13.2 Any amount recorded as income up to the year-end, which remains unrecovered or
not realizable, has been reversed from any of the income heads or has been debited to
any expenditure head during the year.

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 13.3The accounting treatment as regards reversal, if any of interest/ other income recorded
up to the previous year end; and the amount reversed during the year under audit i.e.
income of earlier years de-recognized during the year has been made in accordance
with the prevalent RBI norms of Income Recognition.

13.4The interest provision for Head Office Interest shall be made at the Head Office.

14. LONG FORM AUDIT REPORT–BRANCH RESPONSE TO THE QUESTIONNAIRE

In connection with the Long Form Audit Report, complete information (including all
updated Internal Circulars issued till date, Receipt & disposal of Complaints & grievances)
as regards each item in the questionnaire, has been made available to you in order to
enable you to verify the same for the purpose of your audit.

15. OTHER CERTIFICATION

Duly authenticated, information along with necessary source documents as regards other
matters which, as per the bank’s letter of appointment, require certification, has been made
available to you.

16. STATIONERY

Stock of unused stationery like security papers, cheque books, demand draft book, etc.
have been produced for your physical verification Item wise quantity details of stationary
not maintained.

17. INFORMATION PROVIDED

17.1We have provided you with:

a) Access to all information of which we are aware that is relevant to the

preparation of the financial statements such as records, documentation and
other matters;

b) Additional information that you have requested from us for the purpose of the
audit; and

c) Unrestricted access to persons within the entity from whom you determined it
necessary to obtain audit evidence.

17.2All transactions have been recorded in the accounting records and are reflected in the
financial statements.

17.3We have disclosed to you the results of our assessment of the risk that the financial
statements may be materially misstated as a result of fraud.

17.4We have disclosed to you all information in relation to fraud or suspected fraud that
we are aware of and that affects the entity and involves:

a) Management;

b) Employees who have significant roles in internal control; or

c) Others where the fraud could have a material effect on the financial statements.

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 17.5We have disclosed to you all information in relation to allegations of fraud, or
suspected fraud, affecting the entity’s financial statements communicated by
employees, former employees, analysts, regulators or others.

17.6We have disclosed to you all known instances of non-compliance or suspected non-
compliance with laws and regulations whose effects should be considered when
preparing financial statements.

17.7We have disclosed to you the identity of the entity’s related parties and all the related
party relationships and transactions of which we are aware.

17.8 Any other matters that the auditor may consider necessary.

18. GENERAL

18.1There is no enquiry going on or concluded during the year by the Central Bureau of
Investigation (CBI), or any other vigilance or investigating agency, on the branch or on
its employees and no cases of frauds or of misappropriation of assets of the branch
have come to the notice of the Management during the year, other than for amounts for
which provisions have already been made in the books of accounts.

18.2The bank has moved from ASSCROM (Asset classification software) to Finacle version
10 (Core Banking Solution). The bank has completely taken care of the
migration/transition of data. However the branch has not performed any Information
system (IT) Audit of the Core Banking Solution (CBS).

18.3The provision for non–performing assets, depreciation, provision for income tax,
provision for bonus, gratuity, etc., is made at the Head Office. Therefore, the same has
not been provided in the branch accounts.

18.4FIMMDA guidelines have been followed, wherever applicable.

18.5The branch has complied with all aspects of contractual agreements, that could have a
material effect on the financial statements in the event of non– compliance. There has
been no non–compliance with requirements of regulating authorities, that could have a
material effect on the financial statements in the event of non–compliance.

18.6There have been no irregularities involving management or employees who have a

significant role in the system of internal control that could have a material effect on the
financial statements.

18.7The financial statements are free of material mis-statements, including omissions.

18.8The branch promptly responds to any communication from the Head Office in respect of
Inter Branch Reconciliation and there are no unresponded/ uncomplied
communications as at the year end. There have been no items of double response in the
Head Office Account. There are no old/ large outstanding transaction/ entries as at
year-end which remained unexplained in the accounts relatable to inter-branch
adjustments.

18.9 The branch has not recovered any amount in respect of schemes formulated by Deposit
Insurance and Credit Guarantee Corporation and thus no amount has been remitted to
the said Corporation.

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 18.10There has been no transfer of accounts received from other branches during the year.

18.11Precautions have been taken by the branch to prevent fraud through entries in the
suspense account and proper verification is done of large and long outstanding entries

18.12The irregularities pointed out by the inspectors/auditors are being rectified timely.

18.13There is a formal method of incorporating changes in the standard software used by

various branches/offices and the senior management approves the same as per bank’s
policy and procedure laid down by higher authorities.

18.14The staff Housing loan documents are not available at the branch & remains with the
respective regional offices/branches where the staff respective members were posted at
the time of sanction/disbursement.

18.15The other particulars required have already been given to you and particulars and other
representations made to you from time to time are true and correct in all respects.

Thanking you
Yours faithfully,

For and on behalf of Canara Bank

RAH, MARGAO
Branch Manager

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