• Board of Directors
• The Leadership Team
• Senior Management Team
• Group Management Team
• Corporate Governance
• Annual Report of The Board of Directors on the Affairs of the National Development Bank PLC
• Directors' Interests in Contracts with the National Development Bank PLC
• Board Committee Reports
• Statement of Directors’ Responsibilities for Financial Reporting
• Directors’ Statement on Internal Control Over Financial Reporting
• Chief Executive Officer’s and Group Chief Financial Officer’s Responsibility Statement
• Independent Assurance Report

Independent Assurance Report

HMAJ/SSG/TW

INDEPENDENT ASSURANCE REPORT TO THE BOARD OF DIRECTORS OF NATIONAL DEVELOPMENT BANK PLC

Introduction

We were engaged by the Board of Directors of National Development Bank PLC (‘Bank’) to provide assurance on the Directors’ Statement on Internal Control over Financial Reporting (‘Statement’) included in the Annual Report for the year ended 31 December 2016.

Management’s Responsibility

Management is responsible for the preparation and presentation of the Statement in accordance with the ‘Guidance for Directors of Banks on the Directors’ Statement on Internal Control’ issued in compliance with Section 3 (8)(ii) (b) of the Banking Act Direction No. 11 of 2007, by The Institute of Chartered Accountants of Sri Lanka.

Our Responsibilities and Compliance with SLSAE 3050

Our responsibility is to issue a report to the Board on the Statement based on the work performed. We conducted our engagement in accordance with Sri Lanka Standard on Assurance Engagements SLSAE 3050 – Assurance Report for Banks on Directors’ Statement on Internal Control issued by The Institute of Chartered Accountants of Sri Lanka.

Summary of Work Performed

We conducted our engagement to assess whether the Statement is supported by the documentation prepared by or for Directors; and appropriately reflected the process the Directors have adopted in reviewing the system of internal control over financial reporting of the Bank.

The procedures performed were limited primarily to inquiries of bank personnel and the existence of documentation on a sample basis that supported the process adopted by the Board of Directors.

SLSAE 3050 does not require us to consider whether the Statement covers all risks and controls or to form an opinion on the effectiveness of the Bank’s risk and control procedures. SLSAE 3050 also does not require us to consider whether the processes described to deal with material internal control aspects of any significant problems disclosed in the Annual Report will, in fact, remedy the problems.

Our Conclusion

Based on the procedures performed, nothing has come to our attention that causes us to believe that the Statement included in the Annual Report is inconsistent with our understanding of the process the Board of Directors has adopted in the review of the design and effectiveness of internal control over financial reporting of the Bank.

21 February 2017
Colombo