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DCB Bank Ltd.

BSE: 532772 Sector: Financials
NSE: DCBBANK ISIN Code: INE503A01015
BSE LIVE 15:41 | 02 Dec 109.10 0.60
(0.55%)
OPEN

108.20

HIGH

109.90

LOW

106.70

NSE LIVE 15:50 | 02 Dec 109.30 0.45
(0.41%)
OPEN

107.50

HIGH

110.00

LOW

107.15

OPEN 108.20
PREVIOUS CLOSE 108.50
VOLUME 98331
52-Week high 132.70
52-Week low 68.50
P/E 15.07
Mkt Cap.(Rs cr) 3109.79
Buy Price 109.25
Buy Qty 73.00
Sell Price 0.00
Sell Qty 0.00
OPEN 108.20
CLOSE 108.50
VOLUME 98331
52-Week high 132.70
52-Week low 68.50
P/E 15.07
Mkt Cap.(Rs cr) 3109.79
Buy Price 109.25
Buy Qty 73.00
Sell Price 0.00
Sell Qty 0.00

DCB Bank Ltd. (DCBBANK) - Auditors Report

Company auditors report

To the Members of DCB Bank Limited

Report on the Financial Statements

1. We have audited the accompanying fi nancial statements of DCB Bank Limited(‘the Bank') which comprise the Balance Sheet as at 31 March 2016 the Profi t andLoss Account the Cash Flow Statement for the year then ended a summary of signifi cantaccounting policies and other explanatory information.

Management's Responsibility for the 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 fi nancial statements that give a true and fair view of the fi nancial position financial performance and cash fl ows of the Bank in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specifi edunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 andprovisions of Section 29 of the Banking Regulation Act 1949 and circulars and guidelinesissued by Reserve Bank of India from time to time.

3. 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 judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of internal fi nancial controlsthat operate effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the fi nancial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

4. Our responsibility is to express an opinion on these fi nancial statements based onour audit. We have taken into account the applicable 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 ofthe Bank including its branches in accordance with Standards on Auditing (‘theStandards') specifi ed 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 fi nancial statements are free of material misstatements.

5. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the fi nancial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefi nancial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal controls relevant to the Bank's preparation of the financial statements that give a true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Bank's Directors as well as evaluating the overall presentation of thefi nancial statements.

6. We believe that the audit evidence we have obtained is suffi cient and appropriateto provide a basis for our audit opinion.

Opinion

7. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid fi nancial statements give the information required by theBanking Regulation Act 1949 as well as the Companies Act 2013 in the manner so requiredfor banking companies and give a true and fair view in conformity with accountingprinciples generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Bank as at 31March 2016;

(b) in the case of the Profi t and Loss Account of the profi t of the Bank for theyear ended on that date; and

(c) in the case of the Cash Flow Statement of the cash fl ows of the Bank for the yearended on that date.

Report on Other Legal and Regulatory Requirements

8. The Balance Sheet and the Profi t and Loss Account have been drawn up in accordancewith the provisions of Section 29 of the Banking Regulation Act 1949 and Section 133 ofthe Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014.

9. As required by Sub section (3) of Section 30 of the Banking Regulation Act 1949 wereport 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) during the course of our audit we have visited 31 branches. Since the keyoperations of the Bank are automated with the key applications integrated to the corebanking systems the audit is carried out centrally as all the necessary records and datarequired for the purposes of our audit are available therein.

10. Further as required by Section 143(3) of the Companies Act 2013 we furtherreport that:

(i) we have sought and obtained all the information and explanation which to the bestof our knowledge and belief were necessary for the purpose of our audit;

(ii) in our opinion proper books of account as required by law have been kept by theBank so far as appears from our examination of those books;

(iii) since the key operations of the Bank are automated with the key applicationsintegrated to the core banking systems the audit is carried out centrally and at theprocessing centers as all the necessary records and data required for the purposes of ouraudit are available therein. However during the course of our audit we have visited 31branches;

(iv) the Balance Sheet the Profi t and Loss Account and the Cash Flow Statement dealtwith by this report are in agreement with the books of account;

(v) in our opinion the aforesaid fi nancial statements comply with the AccountingStandards specifi ed under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 to the extent they are not inconsistent with the accountingpolicies prescribed by the Reserve Bank of India;

(vi) on the basis of written representations received from the Directors as on 31 March2016 taken on record by the Board of Directors none of the Directors are disqualifi ed ason 31 March 2016 from being appointed as a Director in terms of Section 164 (2) of theAct;

(vii) with respect to the adequacy of the internal fi nancial controls over fi nancialreporting of the Bank and the operating effectiveness of such controls refer to ourseparate report in "Annexure A" (viii)with respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us:

(a) the Bank has disclosed the impact of pending litigations on its fi nancial positionin its fi nancial statements - Refer Note 17 to the fi nancial statements;

(b) 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 -Refer Note 18 to the fi nancial statements;

(c) there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Bank.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W-100022
Akeel Master
Hyderabad Partner
15 April 2016 Membership No: 046768

Annexure A to the Independent Auditor's Report of even date on fi nancial statements ofDCB Bank Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

1. We have audited the internal fi nancial controls over fi nancial reporting of DCBBank Limited (‘the Bank') as of 31 March 2016 in conjunction with our audit of financial statements of the Bank for the year ended on that date.

Management's Responsibility for the Internal Financial Controls

2. The Bank's management is responsible for establishing and maintaining internal financial controls based on the internal control over fi nancial 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 issuedby the Institute of Chartered Accountants of India (‘ICAI').

3. These responsibilities include the design implementation and maintenance ofadequate internal fi nancial controls that were operating effectively for ensuring theorderly and effi cient conduct of its business including adherence to 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 fi nancial information as required under the Act.

Auditor's Responsibility

4. Our responsibility is to express an opinion on the Bank's internal fi nancialcontrols over fi nancial reporting based on our audit. We conducted our audit inaccordance with the Standards on Auditing deemed to be prescribed under Section 143(10) ofthe Act and the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (‘the Guidance Note') to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and bothissued by the ICAI.

5. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal fi nancial controls over fi nancial reporting were established andmaintained and if such controls operated effectively in all material respects.

6. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal fi nancial controls system over fi nancial reporting and their operatingeffectiveness. Our audit of internal fi nancial controls over fi nancial reportingincluded obtaining an understanding of internal fi nancial controls over fi nancialreporting 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 fi nancial statements whether due to fraud orerror.

7. We believe that the audit evidence we have obtained is suffi cient and appropriateto provide a basis for our audit opinion on the Bank's internal fi nancial controls systemover fi nancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

8. An entity's internal fi nancial control over fi nancial reporting is a processdesigned to provide reasonable assurance regarding the reliability of fi nancial reportingand the preparation of fi nancial statements for external purposes in accordance withgenerally accepted accounting principles. An entity's internal fi nancial control over financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly refl ect thetransactions and dispositions of the assets of the entity; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of fi nancialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the entity are being made only in accordance with authorisations ofmanagement and directors of the entity; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theentity's assets that could have a material effect on the fi nancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

9. Because of the inherent limitations of internal fi nancial controls over fi nancialreporting 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 fi nancial controls over fi nancialreporting to future periods are subject to the risk that the internal fi nancial controlover fi nancial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

10. In our opinion the Bank has in all material respects an adequate internal financial controls system over fi nancial reporting and such internal fi nancial controlsover fi nancial reporting were operating effectively as at 31 March 2016 based on theinternal control over fi nancial reporting criteria established by the Bank consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W-100022
Akeel Master
Hyderabad Partner
15 April 2016 Membership No: 046768

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