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IDFC Bank Ltd.

BSE: 539437 Sector: Financials
NSE: IDFCBANK ISIN Code: INE092T01019
BSE LIVE 15:59 | 26 Sep 57.20 0.65
(1.15%)
OPEN

56.55

HIGH

57.50

LOW

56.35

NSE 15:59 | 26 Sep 57.15 0.55
(0.97%)
OPEN

56.60

HIGH

57.50

LOW

56.30

OPEN 56.55
PREVIOUS CLOSE 56.55
VOLUME 425067
52-Week high 83.45
52-Week low 52.70
P/E 16.30
Mkt Cap.(Rs cr) 19,459
Buy Price 57.20
Buy Qty 316.00
Sell Price 0.00
Sell Qty 0.00
OPEN 56.55
CLOSE 56.55
VOLUME 425067
52-Week high 83.45
52-Week low 52.70
P/E 16.30
Mkt Cap.(Rs cr) 19,459
Buy Price 57.20
Buy Qty 316.00
Sell Price 0.00
Sell Qty 0.00

IDFC Bank Ltd. (IDFCBANK) - Auditors Report

Company auditors report

TO THE MEMBERS OF IDFC BANK LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of IDFCBANK LIMITED ("the Bank") which comprise the Balance Sheet as at March 312017 the Profit and Loss Account the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone FinancialStatements

The Bank's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Bank in accordancewith the provisions of Section 29 of the Banking Regulation Act 1949 accountingprinciples generally accepted in India including the Accounting Standards prescribedunder Section 133 of the Act in so far as applicable to banks and the guidelines issuedby the Reserve Bank of India.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theBank and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that are operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.

In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone financial statements. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlsrelevant to the Bank's preparation of the standalone financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Bank'sDirectors and evaluating the overall presentation of the standalone financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Banking Regulation Act 1949 and the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Bank as at March 31 2017 andits profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note 1 of Schedule 18 of the standalone financialstatements the Bank commenced its Banking operations on October 1 2015 post receipt offinal banking license by the RBI. Accordingly figures for the previous year/period is notcomparable since Banking operations were carried only for the period October 2015 to March2016. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act and Section 30 of theBanking Regulation Act 1949 based on our audit we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit and found them to be 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 financialaccounting systems of the Bank are centralised and therefore accounting returns are notrequired to be submitted by the Branches.

d) 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. e) The BalanceSheet the Profit and Loss Account and the Cash Flow Statement dealt with by this Reportare in agreement with the books of account. f) In our opinion the aforesaid standalonefinancial statements comply with the Accounting Standards specified under Section 133 ofthe Act as applicable to banks. g) On the basis of the written representations receivedfrom the directors as at March 31 2017 taken on record by the Board of Directors none ofthe directors is disqualified as at March 31 2017 from being appointed as a director interms of Section 164 (2) of the Act. h) With respect to the adequacy of the internalfinancial controls over financial reporting of the Bank and the operating effectiveness ofsuch controls refer to our Report in "Annexure A". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Bank's internalfinancial controls over financial reporting. i) With respect to the other matters to beincluded in the Auditors' Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us: i. The Bank has disclosed the impact of pendinglitigations on its financial position in its standalone financial statements; ii. The Bankhas made provision as required under the applicable law or accounting standards formaterial foreseeable losses if any on long-term contracts including derivativecontracts; iii. There were no amounts which were required to be transferred by the Bankto the Investor Education and Protection Fund. iv. The disclosure with respect to theholdings or dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E)dated November 8 2016 of the Ministry of Finance during the period from November 8 2016to December 30 2016 as required under amendment to Schedule III to the Companies Act2013 is not applicable as the financial statements of the Bank are prepared under section29 and third schedule of the Banking Regulation Act 1949.

2. We report that during the course of our audit we have visited andperformed select relevant procedures at 16 branches. Since the Bank's key operationsare automated with the key applications largely integrated to the core banking systemsit does not require its branches to submit any financial returns. Accordingly our auditis carried out centrally at the Head Office based on the necessary records and datarequired 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
(Membership No. 48791)
Place : Mumbai
Date : April 25 2017

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 (h) under ‘Report on Other Legal andRegulatory Requirements' section of the auditors' report of even date) Report onthe Internal Financial Controls Over Financial Reporting under Clause (I) of Sub-section 3of Section 143 of the Companies Act 2013 (the "Act")

We have audited the internal financial controls over financialreporting of IDFC BANK LIMITED (the "Bank") as at March 31 2017 inconjunction with our audit of the standalone financial statements of the Bank for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Bank's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Bank considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theBank's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013the Banking Regulation 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 internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note issued by the Institute of Chartered Accountants ofIndia and the Standards on Auditing prescribed under Section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively 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 controls based on the assessed risk.The procedures selected depend on the auditors' judgement including the assessmentof the risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Bank's internal financialcontrols system 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 and other applicable regulations. ABank's internal financial control over financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of the Bank;(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Bank are being made only inaccordance with authorisations of Management and Directors of the Bank; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the Bank's assets that could have a material effect on thefinancial 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 financialcontrols 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 to the best of our information and according to theexplanations given to us 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 issued by theInstitute of Chartered Accountants of India.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No.117365W)
Kalpesh J. Mehta
Partner
(Membership No. 48791)
Place : Mumbai
Date : April 25 2017