You are here » Home » Companies » Company Overview » Karur Vysya Bank Ltd

Karur Vysya Bank Ltd.

BSE: 590003 Sector: Financials
NSE: KARURVYSYA ISIN Code: INE036D01028
BSE LIVE 15:54 | 17 Nov 120.40 2.35
(1.99%)
OPEN

121.50

HIGH

121.50

LOW

119.05

NSE 15:50 | 17 Nov 120.10 2.45
(2.08%)
OPEN

119.00

HIGH

121.65

LOW

119.00

OPEN 121.50
PREVIOUS CLOSE 118.05
VOLUME 94863
52-Week high 150.20
52-Week low 74.54
P/E 15.38
Mkt Cap.(Rs cr) 8,559
Buy Price 120.40
Buy Qty 392.00
Sell Price 0.00
Sell Qty 0.00
OPEN 121.50
CLOSE 118.05
VOLUME 94863
52-Week high 150.20
52-Week low 74.54
P/E 15.38
Mkt Cap.(Rs cr) 8,559
Buy Price 120.40
Buy Qty 392.00
Sell Price 0.00
Sell Qty 0.00

Karur Vysya Bank Ltd. (KARURVYSYA) - Auditors Report

Company auditors report

To the Members of The Karur vysya Bank Limited report on the Financial Statements

1. We have audited the accompanying financial statements of The Karur Vysya BankLimited (‘the Bank') which comprise the Balance Sheet as at 31st March 2017 theProfit and Loss Account the Cash Flow Statement for the year then policiesended and asummary of significant and other explanatory information. Incorporated in these FinancialStatements are the returns of 5 branches and 1 office audited by us 766 branches /offices audited

Branch Auditors.

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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Bank in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 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 the Reserve Bank of India (‘RBI') from time to time. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Bank and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

5. We conducted our audit of the Bank including its branches in accordance withStandards on Auditing (‘the Standards') 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 financial statements are free ofmaterial misstatements.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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.

7. 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

8. 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 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 case of the Balance Sheet of the state ofaffairs of the Bank as at 31st March 2017; b. In case of the Profit and Loss Account ofthe profit for the year ended on that date; and c. In case of the Cash Flow Statement ofcash flows for the year ended on that date.

Emphasis of Matter

9. We draw attention to Note on the Financial Statements regarding unamortized loss ofRs. 185.07 Crore on sale of advances to Asset Reconstruction Companies during theFinancial Year 2015-16. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. The Balance Sheet and the Profit and Loss Account have been drawn up in accordancewith the provisions of Section

29 of the Banking Regulation Act 1949 read with Section

133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules2014.

11. 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 havebeen within the powers of the Bank; (c) the returns received from the offices and branchesof the Bank have been found adequate for the purposes of our audit.

12. Further as required by section 143(3) of the Act we further report that: i. wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit; ii. in our opinionproper books of account as required by law have been kept by the Bank so far as it appearsfrom our examination of those books and proper returns adequate for the purposes of ouraudit have been received from branches not visited by us; iii. the reports on the accountsof the branch offices audited by branch auditors of the Bank under section 143(8) of theCompanies Act 2013 have been sent to us and have been properly dealt with by us inpreparing this report; iv. The Balance Sheet the Profit and Loss Account and the CashFlow Statement dealt with by this report are in agreement with the books of account andwith the returns received from the branches not visited by us; v. in our opinion theaforesaid financial statements comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 to theextent they are not inconsistent with the accounting policies prescribed by RBI; vi. onthe basis of written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act; vii. with respect to the adequacy of the internal financial controlsover financial reporting of the Bank and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A"; and viii. with respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: a. the Bank has disclosed theimpact of pending litigations on its financial position in its financial statements b. theBank has made provision as required under the applicable law or accounting standards formaterial foreseeable losses if any on long-term contracts including derivative contractsand c. there has been no delay in transferring amounts required to be transferred to theInvestor Education and

Protection Fund by the Bank.

For Abarna & Ananthan
Chartered Accountants
Firm Registration No. 000003S
S. Ananthan
Place: karur Partner
Date: 18-05-2017 Membership No. 26379

Annexure A to the independent Auditor's report of even date on the Financial Statementsof the Karur Vysya

Bank Limited report on the nternal Financiali controls under clause (i) of Sub-section3 of Section 143 of the companies Act 2013

1. We have audited the internal financial controls over financial reporting of TheKarur Vysya Bank Limited (‘the Bank') as at 31st March 2017 in conjunction with ouraudit of the 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 (‘the Guidance Note') issued by the Institute of Chartered Accountants ofIndia (‘the ICAI')".

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 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 (‘theAct').

Auditor's 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 (‘the Standards') issued bythe ICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by the ICAI. 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 was 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or

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 financial reporting includes those policiesand procedures that a. pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of the bank;b. 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 authorizations of management and directors of the bank; and providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the Bank's assets that could have a material effect on thefinancial 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 31st March 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 the ICAI.

For Abarna & Ananthan
Chartered Accountants
Firm Registration No. 000003S
S. Ananthan
Place: karur Partner
Date: 18-05-2017 Membership No. 26379