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Karur Vysya Bank Ltd.

BSE: 590003 Sector: Financials
NSE: KARURVYSYA ISIN Code: INE036D01028
BSE 00:00 | 26 Sep 81.65 -0.40
(-0.49%)
OPEN

82.20

HIGH

83.15

LOW

81.30

NSE 00:00 | 26 Sep 81.35 -1.05
(-1.27%)
OPEN

82.40

HIGH

83.30

LOW

81.10

OPEN 82.20
PREVIOUS CLOSE 82.05
VOLUME 74112
52-Week high 127.27
52-Week low 81.20
P/E 26.77
Mkt Cap.(Rs cr) 6,526
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 82.20
CLOSE 82.05
VOLUME 74112
52-Week high 127.27
52-Week low 81.20
P/E 26.77
Mkt Cap.(Rs cr) 6,526
Buy Price 0.00
Buy Qty 0.00
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 Standalone Financial Statements

1. We have audited the standalone accompanying financial statements of The Karur VysyaBank Limited ('the Bank') which comprise the Balance Sheet as at 31st March 2018 theProfit and Loss Account the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information. Incorporated in theseFinancial Statements are the returns of 5 branches and 1 office audited by us 848branches / offices audited by Statutory Branch Auditors.

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Bank in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 and provisions of Section 29 of the Banking Regulation Act 1949 and circularsand guidelines issued by the Reserve Bank of India (‘RBI') from time to time. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Bank and for preventingand detecting 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

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our 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 Actand other applicable authoritative pronouncements issued by the Institute of CharteredAccountants of India. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material 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 of affairs of the Bank as at 31st March2018

b. In case of the Profit and Loss Account of the profit for the year ended on thatdate; and

c. In case of the Cash Flow Statement of cash flows for the year ended on that date.

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 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 branches of the Bank have been foundadequate for the purpose of our audit.

11. Further as required by Section 143(3) of the Act we further 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 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 and proper returns adequatefor the purpose of our audit have been received from branches not visited by us.

iii. the reports on the accounts of the branch offices audited by branch auditors ofthe Bank under Section 143(8) of the Companies Act 2013 have been sent to us and havebeen 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 not visited by us.

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 RBI;

vi. on the basis of written representations received from the directors as on 31stMarch 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"; 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 has disclosed the impact of pending litigations on its financial positionin its financial 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; and

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

LALITHA RAMESWARAN

Partner

Membership No. 207867

Place: Karur Date: 25th May 2018

Annexure A to the Independent Auditor's Report of even

date on the Financial Statements of The Karur Vysya Bank

Limited

Report on the Internal Financial Controls under Clause (i)

of Sub-section 3 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 2018 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 implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence toBank's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(‘the Act').

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 by theICAI 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 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 of records that in reasonable detail accurately andfairly 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

c. provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting to future periods are subject to therisk that the internal financial control over financial reporting may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures 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 2018 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

LALITHA RAMESWARAN

Partner

Membership No. 207867

Place: Karur Date: 25th May 2018