Merchant Bank of Sri Lanka & Finance : Audited Financial Statements of the Company and the Group for the year ended 31.12.2021

H.* n! ,udir ,ddrcssrd thc l{N,udit n,tc.

. lhe incorpomlion of fo^urd looknre inlbmation rc ellecr

anriciparcd tntuc cxlcmal iic1o6. i.cLudin! udsnens

onsoins impacr ol covlD 19, bolh in lhe mulriple econotoic scenlrios md the probabilil_v scighring dctcmrnred lor e.ch

ll sr_sl.ms and controh relcvut

A signincant pan of lhe Coopary s fi.an.i.l rcponins prccess is pLnnoilr reliant on nrulriplc IT sysrems with luromarcd Foceses dd intc.nal conrols. Funher. key n.ancial natm.m discl.$trcs arc prcparcd usi.g dara and rcFons scnerared by lT srstems that !E conpiled and lomulared snh thi L$ of

Accordnr-qly. IT systems a.d rclated intenral cont.ls .ver nmncial repoanrs Nas considereJ

Lsscsscd whdlrr judEmcnls. csrnnaies and assnnprions usetl by the ManrsEm.nr i'r Lnc undcrlrins mcthodoloey and lhe tu ahllenent olen rr_ s er raronlble ll lcnnB includcd cvalualirs dle relsnuhlene$ ol lo rd-looknrg inlbmdlion used. .conoDri. sccnarios considered. and p(babilir! $eieh nEasieNdtoc.chol-lhosesoenartus.

I N$e!.il,hp .dpin..v.fnF r.lr.d lifxi.l, n,.menl

LLnd.nrc r se1otrr ilr !rcs i.5 I l. l l. l:i afd l0l

undeshndinr ol lhe inrernal control ol lhc pilcesscs relaline ro li.mcial

I iderlined and tes checled Elevanl coDrrol5ol-Ley

IT systems relaled to the Comrrn)'s lj.hcial

I ino1vcd my inlcmal spcci.lizcd rcsources tl cvaluare the desi-un and opemdr! elleclivenessol lT contnh, iocLuding those relared r. user access and

I also obrained ,n unde6randine, primdily lluoueh i.ql4. .l de clber secunty rhks af.crinr the Conpa! and thc actions lakcn b addrs these rhks runher. I cnecked cbar-qes il a.y h c bccn made to secuity nronllorins procddlEs, gilcn the increase use ol fthotc Rorkins a.ccss inchdnrg thc Conlpan! n.nn.ring on icmorc orki.g actirities