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Axis Bank Ltd.

BSE: 532215 Sector: Financials
NSE: AXISBANK ISIN Code: INE238A01034
BSE LIVE 15:57 | 27 Jul 524.70 -4.15
(-0.78%)
OPEN

531.20

HIGH

535.00

LOW

521.80

NSE 15:59 | 27 Jul 524.65 -4.20
(-0.79%)
OPEN

532.40

HIGH

534.95

LOW

522.00

OPEN 531.20
PREVIOUS CLOSE 528.85
VOLUME 403070
52-Week high 638.00
52-Week low 424.60
P/E 36.67
Mkt Cap.(Rs cr) 125,781
Buy Price 0.00
Buy Qty 0.00
Sell Price 524.70
Sell Qty 449.00
OPEN 531.20
CLOSE 528.85
VOLUME 403070
52-Week high 638.00
52-Week low 424.60
P/E 36.67
Mkt Cap.(Rs cr) 125,781
Buy Price 0.00
Buy Qty 0.00
Sell Price 524.70
Sell Qty 449.00

Axis Bank Ltd. (AXISBANK) - Auditors Report

Company auditors report

To the Members of Axis Bank Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements ofAxis Bank Limited (the "Bank") which comprise the Balance Sheet as at 31 March2017 the Profit and Loss Account and Cash Flow Statement for the year then ended and asummary of significant accounting policies and notes to the financial statements.

Management's Responsibility for the Financial Statements

The Bank's Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 (the "Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Bank in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 and the Companies (Accounting Standards) Amendment Rules 2016 provision ofsection 29 of the Banking Regulation Act 1949 and the circulars guidelines anddirections issued by Reserve Bank of India ("RBI") from time to time. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Bank and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder. Weconducted our audit in accordance with the Standards on Auditing issued by the Instituteof Chartered Accountants of India as specified under Section 143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Bank's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Bank's Directors as well as evaluating the overall presentation ofthe financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements together with thenotes give the information required by the Banking Regulation Act 1949 as well as theAct in the manner so required for banking companies and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Bank as at 31 March 2017 its profit and its profit and cash flows forthe year ended on that date.

Report on Other Legal and Regulatory Requirements

1. The Balance Sheet and the Profit and Loss Account have been drawn upin accordance with the provisions of Section 29 of the Banking Regulation Act 1949 readwith Section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts)Rules 2014 and the Companies (Accounting Standards) Amendment Rules 2016.

2. As required sub section (3) of section 30 of the Banking RegulationAct 1949 we report that:

(a) We have obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purpose of our audit and havefound them to be satisfactory;

(b) The transactions of the Bank which have come to our notice havebeen within the powers of the Bank; and

(c) The financial accounting systems of the Bank are centralised andtherefore accounting returns for the purpose of preparing financial statements are notrequired to be submitted by the branches; we have visited 220 branches for the purpose ofour audit.

3. Further as required by section 143 (3) of the Companies Act 2013we further report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of account as required by law have beenkept by the Bank so far as it appears from our examination of those books;

(c) The Balance Sheet Profit and Loss Account and Cash Flow Statementdealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014 and the Companies (Accounting Standards)Amendment Rules 2016;

(e) On the basis of written representations received from the directorsas on 31 March 2017 and taken on record by the Board of Directors none of the directorsis disqualified as on 31 March 2017 from being appointed as a director in terms ofsection 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Bank and the operating effectiveness of such controlsrefer to our separate Report in "Annexure 1" to this report;

(g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Bank has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Schedule 12.I and18.1.2.15 (a) to the standalone financial statements;

ii. The Bank has made provision as required under the applicable lawor accounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts - Refer Note 18.1.2.15 (b) to the standalone financialstatements;

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Bank;

iv. As per books of accounts of the Bank and represented by themanagement the disclosure requirement as envisaged in Notification G.S.R 308(E) dated 30March 2017 is not applicable to the Bank - Refer Note 18.1.2.16 to the standalonefinancial statements.

For S.R. Batliboi & CO. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Viren H. Mehta

Partner

Membership Number: 048749

Place of Signature: Mumbai

Date: 26 April 2017

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF AXIS BANK LIMITED

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

To the Members of Axis Bank Limited

We have audited the internal financial controls over financialreporting of Axis Bank Limited ("the Bank") as of 31 March 2017 in conjunctionwith our audit of the standalone financial statements of the Bank for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Bank's Management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Bank considering the essential components of internal controlstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (the "GuidanceNote"). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the Bank's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013; in so far asthey apply to the Bank and the Guidelines issued by the Reserve Bank of India.

Auditor's Responsibility

Our responsibility is to express an opinion on the Bank's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Bank's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Bank's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Bank; (2) provide reasonable assurancethat transactions are recorded as necessary to permit preparation of financial statementsin accordance with generally accepted accounting principles and that receipts andexpenditures of the Bank are being made only in accordance with authorisations ofmanagement and directors of the Bank; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theBank's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Bank has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2017 basedon the internal control over financial reporting criteria established by the Bankconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For S.R. Batliboi & CO. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Viren H. Mehta

Partner

Membership Number: 048749

Place of Signature: Mumbai

Date: 26 April 2017