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separate engagement letter for conducting such audit and should be read in conjunction with this letter.) 2. Management’s ResponsibilityOur assignment will be conducted on the basis that the Management and, where appropriate, those charged with governance of the Bank (Audit Committee/Board) acknowledge and understand that they have the responsibility: (a) For the preparation of financial statements that give a true and fair view in accordance with the applicable Financial Reporting Framework. This includes: Compliance with the applicable provisions of the Act; Proper maintenance of accounts and other matters connected therewith; Preparation of financial statements on a going concern basis; Preparation of annual accounts in accordance with third schedule to the Banking Regulation Act, 1949, the applicable Accounting Standards and providing proper explanation relating to any material departures from those Accounting Standards; Selection of accounting policies and applying them consistently and making judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and true balance of profit or loss of the Bank for that period; Taking proper care and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of assets of the Bank and preventing and detecting frauds and other irregularities; Laying down internal financial controls to be followed by the Bank and
Exposure Draft of Guidance Note on Audit of Banks (Revised 2021) 257 that such internal financial controls are adequate and were operating effectively; and Devising proper systems to ensure compliance with the provisions of all applicable laws including compliance with the relevant directions/ circulars of the Reserve Bank of India, including for those aspects which have been specifically listed for verification/ certification by us in your aforementioned letter and that such systems were adequate and operating effectively. (b) Identifying and informing us of financial transactions or matters that may have an adverse effect on the functioning of the Bank. (c) Identifying and informing us as to whether any director is disqualified as on March 31, 20YY from being appointed as a director in terms of Section 164(2) of the Companies Act, 2013. This should be supported by written representations received from the directors as on March 31, 20YY and taken on record by the Board of Directors. (d) Informing me / us of facts that may affect the financial statements, of which Management may become aware during the period from the date of my / our report to the date the financial statements are issued.