Equity Bank Group: Annual Report 2011

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Equity Bank Group: Annual Report 2011

EQUITY BANK LIMITED AND SUBSIDIARIES

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2011

EQUITY BANK LIMITED AND SUBSIDIARIES

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2011

Report of the Independent Auditors to

the Members of Equity Bank Limited

40 Statement of Directors’ Responsibilities

41

The Kenyan Companies Act requires the directors to prepare financial statements for each financial year which gives

a true and fair view of the state of affairs of the Bank and its subsidiaries (the group) as at the end of the financial

year and of the operating results of the Group and the Bank for that year. It also requires the directors to ensure the

Group and the Bank keeps proper accounting records which disclose, with reasonable accuracy, the financial position

of the Group and the Bank.

They are also responsible for designing, implementing and maintaining internal controls relevant to the preparation

and fair presentation of financial statements that are free of material misstatements, whether due to fraud or error,

selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the

circumstances. The directors are also responsible for safeguarding the assets of the Group and the Bank.

The directors accept responsibility for the annual financial statements, which have been prepared using appropriate

accounting policies supported by reasonable and prudent judgements and estimates, in conformity with International

Financial Reporting Standards and in the manner required by the Kenyan Companies Act. The directors are of the

opinion that the financial statements give a true and fair view of the state of the financial affairs of the Group and the

Bank and of the operating results of the Group and the Bank.

The directors further accept responsibility for the maintenance of accounting records which may be relied upon in the

preparation of financial statements, as well as adequate systems of internal control.

Nothing has come to the attention of the directors to indicate that the Group and the Bank will not remain a going

concern for at least the next twelve months from the date of this statement.

Director:

________________________________

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Equity Bank Limited and subsidiaries, (the Group) which

comprise the consolidated statement of financial position as at 31st December 2011, consolidated income statement,

consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated

statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory

information as set out on pages 42 to 107.

DIRECTORS’ RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The directors of the Bank and the Group are responsible for the preparation and fair presentation of these financial

statements in accordance with International Financial Reporting Standards and in the manner required by the Kenyan

Companies Act and for such internal control as the directors determine is necessary to enable the preparation of

financial statements that are free of material misstatements, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an independent opinion on these financial statements based on our audit. We

conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply

with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial

statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditors’ judgment, 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 controls relevant to the entity’s preparation and fair presentation of the financial

statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors,

as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Director:

Secretary

_________________________________

_________________________________

Date: 7th March 2012

OPINION

In our opinion, the financial statements presents fairly, in all material respects, the financial position of Equity

Bank Limited and subsidiaries as at 31 December 2011 and of its financial performance and cash flows for the year

then ended in accordance with International Financial Reporting Standards and the requirements of the Kenyan

Companies Act.

REPORT ON OTHER LEGAL REQUIREMENTS

As required by the Kenyan Companies Act, we report to you, based on our audit, that:

i) we have obtained all the information and explanations which, to the best of our knowledge and belief, were

considered necessary for the purposes of our audit;

ii) in our opinion, proper books of account have been kept by the Bank and the Group, so far as appears from our

examination of those books; and

iii) the Bank and the group’s consolidated statement of financial position, consolidated income statement and

consolidated statement of comprehensive income are in agreement with the books of account.

Nairobi

8th March 2012

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