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DCB Bank Ltd.

BSE: 532772 Sector: Financials
NSE: DCBBANK ISIN Code: INE503A01015
BSE LIVE 11:42 | 28 Jun 193.75 -0.20
(-0.10%)
OPEN

192.00

HIGH

193.85

LOW

189.45

NSE 11:27 | 28 Jun 193.05 -0.80
(-0.41%)
OPEN

191.00

HIGH

193.80

LOW

189.15

OPEN 192.00
PREVIOUS CLOSE 193.95
VOLUME 50333
52-Week high 213.00
52-Week low 93.00
P/E 29.81
Mkt Cap.(Rs cr) 5,955
Buy Price 193.45
Buy Qty 156.00
Sell Price 193.75
Sell Qty 604.00
OPEN 192.00
CLOSE 193.95
VOLUME 50333
52-Week high 213.00
52-Week low 93.00
P/E 29.81
Mkt Cap.(Rs cr) 5,955
Buy Price 193.45
Buy Qty 156.00
Sell Price 193.75
Sell Qty 604.00

DCB Bank Ltd. (DCBBANK) - Auditors Report

Company auditors report

TO THE MEMBERS OF DCB BANK LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of DCB BANK LIMITED("the Bank") which comprise the Balance Sheet as at 31 March 2017 the Profitand Loss Account and the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Bank's Board of Directors is responsible for the matters stated in Section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Bank in accordance with the provisions of Section 29 ofthe Banking Regulation Act 1949 accounting principles generally accepted in Indiaincluding the Accounting Standards prescribed under Section 133 of the Act in so far asapplicable to banks and the guidelines issued by the Reserve Bank of India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Bank and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the financial statements in accordance with the Standards onAuditing 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.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgement 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 controls 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 the accounting policies used and the reasonableness of the accountingestimates made by the Bank's Directors and evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theBanking Regulation Act 1949 and the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Bank as at 31 March 2017 and its profit and its cash flows forthe year ended on that date.

Other Matter

The audit of the financial statements of the Bank for the year ended 31 March 2016 wascarried out by the previous auditors of the Bank. Our opinion on the financial statementsand our report on Other Legal and Regulatory Requirements below is not modified in respectof this matter.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act and Section 30 of the Banking RegulationAct 1949 based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit and found them tobe satisfactory.

b) In our opinion the transactions of the Bank which have come to our notice have beenwithin the powers of the Bank.

c) As explained in paragraph 2 below the financial accounting systems of the Bank arecentralised and therefore accounting returns are not required to be submitted by theBranches.

d) 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.

e) The Balance Sheet the Profit and Loss Account and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account. f) In our opinion theaforesaid financial statements comply with the Accounting Standards specified underSection 133 of the Act as applicable to banks.

g) On the basis of the written representations received from the directors as at 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as at 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

h) With respect to the adequacy of the internal financial controls over financialreporting of the Bank and the operating effectiveness of such controls refer to ourReport in "Annexure A". Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Bank's internal financial controls overfinancial reporting.

i) With respect to the other matters to be included in the Auditors' 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 has disclosed the impact of pending litigations on its financial positionin its financial statements;

ii. The Bank has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

iii. There were no amounts which were required to be transferred by the Bank to theInvestor Education and Protection Fund.

2. We report that during the course of our audit we have visited and performed selectrelevant procedures at 28 branches. Since the Bank's key operations are automated withthe key applications largely integrated to the core banking systems it does not requireits branches to submit any financial returns. Accordingly our audit is carried outcentrally at the Head Office and Central Processing Units based on the necessary recordsand data required for the purposes of the audit being made available to us.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No.117365W)
Kalpesh J. Mehta
Partner
New Delhi 14 April 2017 (Membership No. 48791)

Annexure "A" To The Independent Auditors' Report

(Referred to in paragraph 1 (h) under ‘Report on Other Legal and RegulatoryRequirements' section of the auditors' report of even date)

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

We have audited the internal financial controls over financial reporting of DCB BANKLIMITED (the "Bank") as at 31 March 2017 in conjunction with our audit ofthe financial statements of the Bank for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Bank's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Bank considering the essential components of internal control stated inthe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Bank's policies thesafeguarding 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 the BankingRegulation Act 1949 and the guidelines issued by the Reserve Bank of India.

Auditors' Responsibility

Our responsibility is to express an opinion on the Bank's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note issued by the Institute of Chartered Accountants of India and the Standardson Auditing prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal controls based on the assessed risk. Theprocedures selected depend on the auditors' 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 and appropriate toprovide a basis for our audit opinion on the Bank's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Bank's internal financial control over financial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles and other applicable regulations. A Bank's internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the Bank; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Bank are being made only in accordance withauthorisations of Management and Directors of the Bank; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Bank's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Bank has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2017 based on the internal controlover financial reporting criteria established by the Bank considering the essentialcomponents of internal control stated in the Guidance Note issued by the Institute ofChartered Accountants of India.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No.117365W)
Kalpesh J. Mehta
Partner
New Delhi 14 April 2017 (Membership No. 48791)