INDEPENDENT AUDITORS' REPORT
The Members of CITY UNION BANK LIMITED
Report on the Standalone Financial Results
1. We have audited the accompanying standalone annual financial statements of CityUnion Bank Limited ('the Bank') which comprise the Balance Sheet as at 31 March 2017the Profit & Loss Account and the Cash Flow statement for the year then ended and asummary of significant accounting policies and notes to the standalone financialstatements.
Management's Responsibility for the Standalone Financial Statements
2. The Bank's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the "Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Bank in accordance with theprovisions of Section 29 of the Banking Regulation Act 1949 accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 in so far as theyapply to the Bank and the guidelines issued by the Reserve Bank of India. 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.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of Chartered Accountantsof India as specified under Section 143 (10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor 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.
5. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements together with the notes thereongive the information required by the Banking Regulation Act1949 as well as the CompaniesAct 2013 in the manner so required for the Banking Companies and give a true and fairview of the state of affairs of the Bank as at 31 March 2017 its profit and its cashflows for the year ended on that date.
Report on other legal and regulatory requirements
6. The Balance Sheet and the Profit & Loss Account have been drawn up in accordancewith the provisions of Section 29 of the Banking Regulation Act 1949 read with Section133 of the Companies Act 2013 read with the Rule 7 of the Companies (Accounts) Rules2014.
7. As required sub section (3) of Section 30 of the Banking Regulation Act1949 and theappointment letter dt. 26 August 2016 we report that;
(a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit and have found them tobe satisfactory;
(b) The transactions of the Bank which have come to our notice have been within thepowers of the Bank; and
(c) The financial results incorporate the relevant returns of 5 branches / offices ofthe Bank audited by us and 548 branches / offices audited by the other auditors speciallyappointed for this purpose.
8. Further as required by Section 143(3) of the Companies Act 2013 we further reportthat;
(a) We have sought and obtained all the information and explanations which to the bestof 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 been kept by theBank so far as it appears from our examination of those books;
(c) The Balance Sheet the Profit & Loss Account and the Cash Flow Statement dealtwith by this report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
(e) On the basis of the written representations received from the Directors as on 31March
2017 taken on record by the Board of Directors none of the Directors is disqualifiedas on 31 March 2017 from being appointed as a Director in terms of Section 164 (2) of theAct;
(f) with respect to the adequacy of the internal financial controls over financialreporting of the Bank and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 1" to this report; and
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us;
i. The Bank disclosed the impact of pending litigations on its financial position inits standalone financial statements - Refer Note 12.1 to the standalone financialstatements;
ii. The Bank has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long-term contracts including derivativecontracts - Refer Note 10.1 to the standalone financial statements; and
iii. There has been no delay in transferring the funds to the Investor Education andProtection Fund Account by the Bank.
| ||For M/s. P. Chandrasekar |
| ||Chartered Accountants |
| ||(Firm No. 000580 S) |
| ||P. Chandrasekaran |
|Place: Chennai ||Partner |
|Date : 29 May 2017 ||M.No. : 26037 |