The Case Study - Seylan Bank

136Seylan Bank PLC Annual Report 2009INDEPENDENT AUDITORS’ REPORTTO THE SHAREHOLDERS OF SEYLAN BANK PLCReport on the Financial StatementsWe have audited the accompanying financial statements of Seylan Bank PLC (the “Company”), and theconsolidated financial statements of the Company and its subsidiaries (the “Group”) as at 31st December2009, which comprise the balance sheet as at that date, and the income statement, statement of changesin equity and cash flow statement for the year then ended, and a summary of significant accounting policiesand other explanatory notes as set out on pages 138 to 226 of this Annual Report.Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Sri Lanka Accounting Standards. This responsibility includes: designing, implementingand maintaining internal control relevant to the preparation and fair presentation of financial statementsthat are free from material misstatement, whether due to fraud or error; selecting and applying appropriateaccounting policies; and making accounting estimates that are reasonable in the circumstances.Scope of Audit and Basis of OpinionOur responsibility is to express an opinion on these financial statements based on our audit. We conductedour audit in accordance with Sri Lanka Auditing Standards. Those standards require that we plan andperform the audit to obtain reasonable assurance whether the financial statements are free from materialmisstatement.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statement presentation.We have obtained all the information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit, including specific directions/exemptions from the Central Bankof Sri Lanka as a measure of ongoing support resulting from the restructuring of the Bank. We thereforebelieve that our audit provides a reasonable basis for our opinion.