You are here » Home » Companies » Company Overview » Kotak Mahindra Bank Ltd

Kotak Mahindra Bank Ltd.

BSE: 500247 Sector: Financials
NSE: KOTAKBANK ISIN Code: INE237A01028
BSE 12:07 | 13 Dec 1248.50 12.10
(0.98%)
OPEN

1254.90

HIGH

1254.90

LOW

1230.00

NSE 11:59 | 13 Dec 1247.30 10.15
(0.82%)
OPEN

1240.00

HIGH

1253.80

LOW

1228.60

OPEN 1254.90
PREVIOUS CLOSE 1236.40
VOLUME 179464
52-Week high 1424.00
52-Week low 992.50
P/E 54.83
Mkt Cap.(Rs cr) 238,131
Buy Price 1247.85
Buy Qty 105.00
Sell Price 1248.60
Sell Qty 168.00
OPEN 1254.90
CLOSE 1236.40
VOLUME 179464
52-Week high 1424.00
52-Week low 992.50
P/E 54.83
Mkt Cap.(Rs cr) 238,131
Buy Price 1247.85
Buy Qty 105.00
Sell Price 1248.60
Sell Qty 168.00

Kotak Mahindra Bank Ltd. (KOTAKBANK) - Auditors Report

Company auditors report

To the Members of Kotak Mahindra Bank Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Kotak MahindraBank Limited (the" Bank") which comprise the Balance Sheet as at March 312018 the Profit and Loss Account and the Cash Flow statement for the year then ended anda summary of significant accounting policies and notes to the financial statements.

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 theprovisions of Section 29 of the Banking Regulation Act 1949 accounting principlesgenerally accepted in India including the Companies (Accounting Standards) Rules 2006(as amended) specified under section 133 of the Act read with the Companies (Accounts)Rules 2014 in so far as they apply to the Bank and the guidelines issued by the ReserveBank of India. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theBank and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

3. 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 inaccordance with the Standards on Auditing issued by the Institute of Chartered Accountantsof India as specified under section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

4. 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 Bank's Directors as well as evaluating the overall presentation ofthe financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

Opinion

5. In our opinion and to the best of our information and according to the explanationsgiven to us the standalone 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 the accounting principles generally accepted in India of the state ofaffairs of the Bank as at March 31 2018 its profit and its cash flows for the year endedon that date.

Report on Other Legal and Regulatory Requirements

6. 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 theCompanies (Accounting Standards) Rules 2006 (as amended) specified under section 133 ofthe Act read with the Companies (Accounts) Rules 2014.

7. As required sub section (3) of section 30 of the Banking Regulation Act 1949 andthe appointment letter dated June 22 2017 we report that: (a) We have obtained all theinformation and explanations which to the best of our knowledge and belief werenecessary for the purpose of our audit and have found them to be satisfactory; (b) Thetransactions of the Bank which have come to our notice have been within the powers ofthe Bank; and (c) The financial accounting systems of the Bank are centralised andtherefore accounting returns for the purpose of preparing financial statements are notrequired to be submitted by the branches; we have visited 134 branches for the purpose ofour audit.

8. Further as required by section 143(3) of the Companies Act 2013 we further reportthat:

(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 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; (c) The Balance Sheet the Profit and LossAccount and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account; (d) In our opinion the aforesaid standalone financial statements complywith the Companies (Accounting Standards) Rules 2006 (as amended) specified under section133 of the Act read with the Companies (Accounts) Rules 2014; (e) On the basis ofwritten representations received from the directors as on March 31 2018 taken on recordby the Board of Directors none of the directors is disqualified as on March 31 2018 frombeing appointed as a director in terms of Section 164 (2) of the Act; (f) With respect tothe adequacy of the internal financial controls over financial reporting of the Bank andthe operating effectiveness of such controls refer to our separate Report in"Annexure 1" to this report; and (g) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us: i. The Bank has disclosed the impact of pendinglitigations on its financial position in its financial statements – Refer Schedule12.I Schedule 17 - Note 13 and Schedule 18B - Note 15 to the financial statements; ii.The Bank has made provision as required under the applicable law or accounting standardsfor material foreseeable losses if any on long-term contracts including derivativecontracts – Refer Schedule 17-Note 13 and Schedule 18B - Note 11 to the financialstatements; and iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Bank.

For S.R. Batliboi & CO. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Viren H. Mehta

Partner

Membership Number: 048749

Place of Signature: Mumbai

Date: 30 April 2018

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF KOTAK MAHINDRA BANK LIMITED

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

To the Members of Kotak Mahindra Bank Limited

We have audited the internal financial controls over financial reporting of KotakMahindra Bank Limited (the "Bank") as of March 31 2018 in conjunction with ouraudit of the standalone financial statements of the Bank for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Bank's Management is responsible for establishing and maintaining internalfinancial controls based on the 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 issuedby the Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Bank's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Bank's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company'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 company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

In our opinion the Bank has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2018 based on the internalcontrol 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 S.R. Batliboi & CO. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Viren H. Mehta

Partner

Membership Number: 048749

Place of Signature: Mumbai

Date: 30 April 2018