All Banks
All Auditors appointed by the Banks

Dear Sirs/Madam, 

Audit of Annual Accounts

           Please refer to Para 5 of Master Circular on Audit of Annual Accounts issued vide BSD Circular No. 1 of January 11, 2003, in terms of which external auditors of banks are required to submit a Special Audit Report to the State Bank based on the parameters enumerated in the Para 3 and 4 of the above referred Circular. 

2 It has been decided that, effective from the Accounting Year ended 31 st December 2004, the requirement of submission of the Special Audit Report be discontinued. However, External Auditors shall continue to look into the points given in Para 3 & 4 of the above circular during their routine annual audit of banks and include the findings thereof in the Management Letter.

3 Other instructions on the subject shall, however, remain unchanged.

          Please acknowledge receipt.