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IDBI Bank Ltd.

BSE: 500116 Sector: Financials
NSE: IDBI ISIN Code: INE008A01015
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OPEN 56.00
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VOLUME 290355
52-Week high 86.50
52-Week low 50.25
P/E
Mkt Cap.(Rs cr) 12,731
Buy Price 54.00
Buy Qty 90.00
Sell Price 0.00
Sell Qty 0.00
OPEN 56.00
CLOSE 56.10
VOLUME 290355
52-Week high 86.50
52-Week low 50.25
P/E
Mkt Cap.(Rs cr) 12,731
Buy Price 54.00
Buy Qty 90.00
Sell Price 0.00
Sell Qty 0.00

IDBI Bank Ltd. (IDBI) - Auditors Report

Company auditors report

To

The Members of

IDBI Bank Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying Standalone Financial Statements of IDBI BankLimited ("the Bank") which comprise the Balance Sheet as at March 31 2017Profit and Loss Account and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter called as‘the standalone financial statements') in which are incorporated the returns of Dubaibranch for the year ended as on that date audited by the branch auditor of the Bank atDubai.

2. The audit was planned and conducted so as to cover records available at variousprocessing centres / regional offices/branches and reports generated through centralizedbanking applications at central office level. Incorporated in the said standalonefinancial statements are the returns of the Dubai branch of the Bank audited by anotherauditor whose report has been furnished to us and which was relied upon by us for ouropinion on the Standalone Financial Statements of the Bank.

Management's Responsibility for the Standalone Financial Statements

3. 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 and circulars and guidelinesissued by the Reserve bank of India (RBI) from time to time 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. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Bank and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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

4. 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 ofthe Bank in accordance with the Standards on Auditing specified under Section 143(10) ofthe Act. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand 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 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 Directors of the Bank as well as evaluating the overallpresentation of the financial statements.

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

Opinion

7. 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 Act 1949 as well as the CompaniesAct 2013 in the manner so required for Banking Companies and give a true and fair view inconformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Bank as at 31stMarch 2017;

b) in the case of the Profit and Loss Account of the loss for the year ended on thatdate; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Emphasis of Matter

8. We draw attention to Note 18(C)(2)(I) to the Financial statements without modifyingour opinion regarding surrender of special securities of Government of India (GoI) over aperiod of 11 quarters commencing from quarter ended September 30 2016 for which formalapproval from Appropriate Authorities is awaited.

Report on Other Legal and Regulatory Requirements

9. The Balance Sheet Profit and Loss Account and the Cash Flow Statement have beendrawn up in accordance with the provisions of Section 29 of the Banking Regulation Act1949 read with Section 129 of the Companies Act 2013 read with Rule 7 of the Companies(Accounts) Rules 2014.

10. As required by sub section (3) of section 30 of the Banking Regulation Act 1949we 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;

c) The returns received from the offices and branch of the Bank at Dubai have beenfound adequate for the purpose of our audit

11. As required by Section 143(3) of the Act 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 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 key operations of the Bank are completely automated and key applications areintegrated with the core banking system the audit is carried out centrally as all thenecessary records and data required for the purpose of the audit are centrally availabletherein. Therefore accounting returns are not required to be submitted by the branches inIndia and the report on the accounts of Dubai branch audited by the branch auditor u/s143(8) of the Companies Act 2013 have been sent to us and have been properly dealt with byus in preparing the report.

d) 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.

e) 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 to the extent they are not inconsistent with theaccounting policies prescribed by Reserve Bank of India.

f) On the basis of written representation received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors are disqualifiedas on March 31 2017 from being appointed as director in terms of Section 164 (2) of theCompanies Act 2013.

g) 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 A.

h) 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 has disclosed the impact of pending litigations on its financial positionin its financial statements to the extent determinable/ascertainable. - Refer Schedule18(A)(9)(c) to the standalone 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 Refer Schedule 18(A)(9)(b) to the standalone financial statements.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Bank.

iv) The disclosure required on holdings as well as dealings in Specified Bank Notesduring the period from November 08 2016 to December 30 2016 as envisaged in notificationGSR 308(E) dated March 30 2017 issued by the Ministry of Corporate Affairs is notapplicable to the Bank. Refer note 18(C)(2)(VII) to the standalone financial statements.

For Mukund M. Chitale & Co. For Chokshi & Chokshi LLP
Chartered Accountants Chartered Accountants
Firm Reg No: 106655W Firm Reg No: 101872W/ W100045
S. S. Dikshit Nikesh K. Shah
Partner Partner
M. No 041516 M. No: 153520
Place: Mumbai
Date: May 18 2017

Annexure A to the Independent Auditor's Report of even date on the Standalone FinancialStatements of IDBI Bank Limited

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

(Referred to in paragraph 11(g) of our Audit Report of even date)

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

Management's Responsibility for Internal Financial Controls

2. The Bank's Board of Directors 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" (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to bank's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Bank's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemed tobe prescribed under Section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to audit of internal financialcontrols and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. 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

6. A bank's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Bank's internal financial control over financialreporting includes those policies and procedures that (a) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Bank; (b) provide reasonable assurance that transactionsare recorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of the Bankare being made only in accordance with authorisations of management and directors of theBank; and (c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the bank's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Bank has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Bank considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Mukund M. Chitale & Co. For Chokshi & Chokshi LLP
Chartered Accountants Chartered Accountants
Firm Reg No: 106655W Firm Reg No: 101872W/ W100045
S. S. Dikshit Nikesh K. Shah
Partner Partner
M. No 041516 M. No: 153520
Place: Mumbai
Date: May 18 2017