AUDITORS REPORT TO STATE BANK OF INDIA

1. We, the undersigned Auditors of State Bank of Hyderabad, appointed under

Section 41(1) of the State Bank of India (Subsidiary Banks) Act, 199, do hereby
report on the Ba!ance Sheet as at "1st #arch, $%%9 and the &rofit ' (oss
Account and )ash *!o+ state,ent of the Bank for the year ended on that date-

2- We ha.e audited the attached Ba!ance Sheet of the State Bank of Hyderabad as
at "1st #arch, $%%9 and a!so the &rofit ' (oss Account and )ash *!o+
state,ent of the Bank for the year ended on that date anne/ed thereto in +hich
are incorporated the returns of $% branches audited by us, 9" branches audited
by other auditors and unaudited returns in respect of 01 branches as certified by
the #anage,ent- Such unaudited branches account for %-12 of ad.ances,
1-%%2 of deposits, %-102 of interest inco,e and %-4$2 of interest e/penses-
3he branches audited by us and by other auditors ha.e been se!ected by the
Bank in accordance +ith the guide!ines issued by the 4eser.e Bank of India-
3hese financia! state,ents are the responsibi!ity of the Bank5s ,anage,ent-
6ur responsibi!ity is to e/press an opinion on these financia! state,ents based
on our audit- We conducted our audit in accordance +ith the auditing standards
genera!!y accepted in India- 3hose standards re7uire that +e p!an and perfor,
the audit to obtain reasonab!e assurance about +hether the financia! state,ents
are free of ,ateria! ,isstate,ent- An audit inc!udes e/a,ining, on a test basis,
e.idence supporting the a,ounts and disc!osures in the financia! state,ents-
An audit a!so inc!udes assessing the accounting princip!es used and significant
esti,ates ,ade by the ,anage,ent, as +e!! as e.a!uating the o.era!! financia!
state,ent presentation- We be!ie.e that our audit pro.ides a reasonab!e basis
for our opinion-
3- 3he Ba!ance Sheet and &rofit ' (oss Account ha.e been dra+n up in *or, 8A9
and 8B9 respecti.e!y of the 3hird Schedu!e to the Banking 4egu!ation Act, 1949
and they gi.e infor,ation as re7uired to be gi.en in accordance +ith the
pro.isions of State Bank of India (Subsidiary Banks) Act, 199 and 4egu!ations
fra,ed there under-
4. Sub:ect to the !i,itations of the audit indicated in paragraph $ abo.e and as
re7uired by the Banking )o,panies (Ac7uisition and 3ransfer of ;ndertaking)
Act, 190% and a!so sub:ect to the !i,itations of disc!osures re7uired therein and
further sub:ect to <ote <o 1% of the <otes on Accounts in Schedu!e=1> as
regards the unascertained effect on accounts of outstanding ite,s under
reconci!iation?

a) in our opinion and to the best of our infor,ation and the e/p!anations
gi.en to us and as sho+n by the Books of the Bank,

(i) the Ba!ance Sheet read +ith the &rincipa! Accounting &o!icies and <otes
thereon is a fu!! and fair Ba!ance Sheet containing a!! the particu!ars and
is proper!y dra+n up so as to e/hibit a true and fair .ie+ of the affairs of
the Bank as at "1st #arch, $%%9,

(ii) the &rofit and (oss Account read +ith the &rincipa! Accounting &o!icies
and <otes thereon sho+s a true ba!ance of profit for the year ended on
that date,
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(iii) the )ash *!o+ State,ent read +ith the &rincipa! Accounting &o!icies and
<otes thereon gi.es a true and fair .ie+ of the )ash *!o+s for the year
ended on that date, and

b) +here +e ha.e ca!!ed for any e/p!anation or infor,ation, such e/p!anation and
infor,ation ha.e been gi.en to us and ha.e been found satisfactory-
c) the transactions of the Bank, +hich ha.e co,e to our notice, ha.e been +ithin
the po+ers of the Bank-

d) the returns recei.ed fro, the offices and branches of the Bank ha.e been found
ade7uate for the purpose of our audit-
for @apoor3andon ' )o-, for Ainesh #ehta ' )o-, for Sreedhar Suresh '
4a:agopa!an,
)hartered Accountants )hartered Accountants )hartered Accountants
(4a:esh &arasra,ka) (Hiren #ehta) (S- Subra,ania,)
&artner &artner &artner
#e, <o %0419$ #e, <o %9%00$ #e, <o %$4""
for & B Coshi ' )o-, for )handra Bupta ' Associates for @ ) @hanna ' )o-
)hartered Accountants )hartered Accountants )hartered Accountants
(Ashutosh &- Coshi) (S- )- Bupta) (@- Ba!asubra,anian)
&artner &artner &artner
#e, <o %">19" #e, <o %1"41 #e, <o %$%%>$
Place : MUMBAI
Date D 27.04.2009
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