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City Union Bank Ltd.

BSE: 532210 Sector: Financials
NSE: CUB ISIN Code: INE491A01021
BSE 00:00 | 21 Nov 167.70 0.65
(0.39%)
OPEN

166.95

HIGH

168.45

LOW

165.50

NSE 00:00 | 21 Nov 167.85 0.15
(0.09%)
OPEN

167.70

HIGH

168.45

LOW

165.55

OPEN 166.95
PREVIOUS CLOSE 167.05
VOLUME 9528
52-Week high 207.15
52-Week low 134.36
P/E 19.28
Mkt Cap.(Rs cr) 12,274
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 166.95
CLOSE 167.05
VOLUME 9528
52-Week high 207.15
52-Week low 134.36
P/E 19.28
Mkt Cap.(Rs cr) 12,274
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

City Union Bank Ltd. (CUB) - Auditors Report

Company auditors report

CITY UNION BANK LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of City Union Bank Limited(the 'Bank') which comprise the Balance Sheet as at 31 March 2018 the Profit & LossAccount and the Cash Flow statement for the year then ended and a summary of significantaccounting policies and other explanatory information. Incorporated in these financialstatements are the return of 14 branches and office audited by us and 590 branches &offices audited by branch statutory auditors. The branch audited by us and those auditedby other auditors have been selected by the Bank in accordance with guidelines issued tothe Bank by the Reserve Bank of India.

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 provisions ofSection 29 of the Banking Regulation Act 1949 accounting principles generally accepted inIndia including the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014 in so far as they apply to the Bank andcirculars and guidelines issued by the Reserve Bank of India ("RBI") from timeto time. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Bank andfor preventing 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 adequate internal financialcontrol that were 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.

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 there under.

5. We conducted our audit of the Bank in accordance with Standards on Auditing (the"Standards") issued by the Institute of Chartered Accountants of India asspecified under Section 143 (10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatements.

6. An audit involves performing procedures to obtain audit evidence about the amountsand 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 Management as well as evaluating the overall presentation of thefinancial 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 together with the notes thereon give theinformation required by the Banking Regulation Act 1949 as well as the Companies Act2013 in the manner so required for the banking companies and give a true and fair view inconformity with accounting principles generally accepted in India of the state of affairsof the Bank as at 31 March 2018 and its profit and its cash flows for the year thenended.

Report on other legal and regulatory requirements

9. 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 Section133 of the Companies Act 2013 read with the Rule 7 of the Companies (Accounts) Rules2014.

10. As required by Sub Section (3) of Section 30 of the Banking Regulation Act1949 andthe appointment letter dated 28 August 2017 we 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; and

(c) The returns received from the offices and branches of the Bank have been foundadequate for the purpose of our audit.

11. Further as required by Section 143(3) of the Companies Act 2013 we report that;

i. 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; ii. In ouropinion proper books of account as required by law have been kept by the Bank so far asit appears from our examination of those books and proper returns adequate for thepurposes of our audit have been received from branches not visited by us;

iii. The reports on the accounts of the offices and branches audited by other branchauditors of the Bank under Section 143(8) of the Companies Act 2013 have been sent to usand have been properly dealt with by us in preparing this report;

iv. 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 and with the returnsreceived from the branches;

v. In our opinion the aforesaid financial statements comply with the AccountingStandards specified 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 Reserve Bank of India;

vi. On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

vii. 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" to this report; and

viii. 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;

a) The Bank disclosed the impact of pending litigations on its financial position inits financial statements - Refer Note 12.1 to the financial statements;

b) The Bank has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long - term contracts including derivativecontracts - Refer Note 10.1 to the financial statements; and c) There has been no delay intransferring the funds to the Investor Education and Protection Fund Account by the Bank.

d) The disclosures required on holdings as well as dealing in Specified Bank Notesduring the period from 8 November 2016 to 30 December 2016 as envisaged in notificationG.S.R. 308(E) dated 30 March 2017 issued by the Ministry of Corporate Affairs is notapplicable to the Bank.

For Sundaram & Srinivasan
Chartered Accountants
(Firm No.004207S)
P. Menakshi Sundaram
Place: Chennai Partner
Date : 24 May 2018 M. No.217914

Annexure A

To the Independent Auditors' Report of even date on the Financial Statements of CityUnion Bank Limited [Refer Para 11(vii)]

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

CITY UNION BANK LIMITED

1. We have audited the Internal Financial Controls over Financial Reporting("ICFR") of City Union Bank Limited (the "Bank") as of 31 March 2018in conjunction with our audit of the financial statements of the Bank for the year endedon that date.

Management's Responsibility for Internal Financial Controls over Financial Reporting

2. The Bank's Board of Directors is responsible for establishing and maintaininginternal financial controls based on 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("Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI''). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its Business including adherence to the 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 financial information as required under the Companies Act 2013.

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 Reportingand the Standards on Auditing as specified under

Section 143(10) of the Companies Act 2013 to the extent applicable to an Audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 financial controls over financial reporting was established andmaintained and if such controls 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 Banks' 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 (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the Bank; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Bank are beingmade only in accordance with authorizations of management and directors of the Bank; and(3) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the Bank's assets that could have a material effect onthe financial statements.

Inherent limitations of internal financial controls over financial Reporting

7. Because of inherent limitations of internal financial controls over financialreporting including the possibility of collusion 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 systems over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2018 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 Sundaram & Srinivasan
Chartered Accountants
(Firm No.004207S)
P. Menakshi Sundaram
Place: Chennai Partner
Date : 24 May 2018 M. No.217914