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Syndicate Bank.

BSE: 532276 Sector: Financials
NSE: SYNDIBANK ISIN Code: INE667A01018
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VOLUME 42414
52-Week high 46.60
52-Week low 21.20
P/E
Mkt Cap.(Rs cr) 5,971
Buy Price 22.25
Buy Qty 1.00
Sell Price 22.50
Sell Qty 90.00
OPEN 22.00
CLOSE 22.25
VOLUME 42414
52-Week high 46.60
52-Week low 21.20
P/E
Mkt Cap.(Rs cr) 5,971
Buy Price 22.25
Buy Qty 1.00
Sell Price 22.50
Sell Qty 90.00

Syndicate Bank. (SYNDIBANK) - Auditors Report

Company auditors report

To

The President of India/ Members

Report on audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Syndicate Bank (‘theBank') which comprise the Balance Sheet as at 31 March 2019 the Profit and Loss Accountand the Statement of Cash Flows for the year then ended and notes to financial statementsincluding a summary of significant accounting policies and other explanatory informationin which are included returns for the year ended on that date of 20 branches audited by usand 2268 branches audited by statutory branch auditors including 1 foreign branch. Thebranches audited by us and those audited by other auditors have been selected by the Bankin accordance with the guidelines issued to the Bank by the Reserve Bank of India. Alsoincluded in the Balance Sheet the Profit and Loss Account and Statement of Cash Flows arethe returns from 1744 branches which have not been subjected to audit. These unauditedbranches account for 0.92 per cent of advances 25.92 per cent of deposits 6.30 per centof interest income and 18.63 per cent of interest expenses.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Banking Regulation Act 1949 in the manner so required for bank and are inconformity with accounting principles generally accepted in India and give: a) true andfair view in case of the Balance sheet of the state of affairs of the Bank as at 31stMarch 2019; b) true balance of loss in case of Profit and Loss Account for the year endedon that date; and c) true and fair view in case of statement of cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) issued byInstitute of Chartered Accountants of India (ICAI). Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements sectionof our report. We are independent of the Bank in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India togetherwith ethical requirements that are relevant to our audit of the financial statements andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the code of ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatement as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters. We have determined the matters described below to be the keyaudit matters to be communicated in our report.

Sr. No. Key Audit Matter Auditors' Response
1. Income Asset Classification Provisioning Recognition We have assessed the process & adopted by the bank to ensure compliance with Prudential of norms on Income Recognition
The recognition income on accrual and Asset Classification (IRAC) basis on Advances and issued by the Reserve Bank
Investments Classification of are in accordance with of the extant Prudential substantive testing as under :- norms on Income India. Our audit approach of Advances/Investments consisted testing of the design and Provisioning thereof and operating effectiveness the internal controls and
Recognition and Asset Classification (IRAC) issued by the Reserve Bank of India. Application of these norms involve certain degree of judgment. Evaluating the design of internal controls relating to implementation of Prudential norms on IRAC. Testing relevant IT Controls on sample basis.
Refer Notes 5 & 8 to Schedule 17 of Review of various audit/ inspection reports made available to us in the relevant areas.
Standalone Financial Statements Placing reliance on the opinions of experts on legal matters titles valuation and other aspects of securities charged to the bank. Review of files of the borrowers selected on sample basis and operations of such accounts.
Performing relevant analytical procedures.
Test Checking of Interest application levying of other charges commission etc.
2. Contingent Liabilities We have carried out the validation of the information provided by the management by performing the following procedures :-
The contingent liability as defined in AS 29– Provisions Contingent Liabilities and Contingent
Assets requires assessment of probable outcomes and cash flows. The identification and quantification of contingent liabilities require estimation and judgment by the management. Refer Schedule 12 of Standalone Financial Statements Evaluating reasonableness of the underlying assumptions.
Examining the relevant documents on record.
Relying on relevant external evidence available including legal opinion relevant judicial precedents and industry practices.
Getting management confirmation where-ever necessary.
3. IT Systems & Control
Preparation of financial statements is highly dependent on Core Banking Solution and other supporting software and hardware controls. We have planned designed and carried out the desired audit procedures and sample checks which in our opinion are adequate to provide reasonable assurance on
Appropriate IT Controls are required to ensure that these IT applications process data as expected and changes are made in an appropriate manner. Such controls contribute to mitigating the expected risk of erroneous output data. Audit outcome is dependent on the extant IT controls and systems. the adequacy of IT controls in place. In addition we have relied on IS and other related audit reports and obtained inputs from IS experts in selected areas.

Information other than the Standalone financial statement & auditors thereon

The Bank's Board of Directors is responsible for the preparation of other information.The other information comprises the information included in the Management Discussion andAnalysis Board Report's including annexures to Board Report. Corporate Governance andShareholders Information but does not include the standalone financial statement and ourauditors' report thereon. Our opinion on standalone financial statements does not coverthe other information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of standalone financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those charged with Governance for the StandaloneFinancial Statements

The Bank's Board of Directors is responsible with respect to the preparation of thesestandalone 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 issued by ICAIand provisions of Section 29 of the Banking Regulation Act 1949 and circulars andguidelines 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. In preparing the financial statements management is responsible for assessing theBank's ability to continue as a going concern disclosing as applicable matters relatedto going concern and using the going concern basis of accounting unless management eitherintends to liquidate the Bank or to cease operations or has no realistic alternative butto do so.

Auditors' Responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

??Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

??Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the bank'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditors'report. However future events or conditions may cause the bank to cease to continue as agoing concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matter

We did not audit the financial statements / information of 2268 branches included inthe standalone financial statements of the Bank whose financial statements/ financialinformation reflect total assets of `276768 crore as at 31st March 2019 and totalrevenue of `16196 crore for the year ended on that date as considered in the standalonefinancial statements. The financial statements / information of these branches have beenaudited by the branch auditors whose reports have been furnished to us and in our opinionin so far as it relates to the amounts and disclosures included in respect of branches isbased solely on the report of such branch auditors.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

The Balance Sheet and the Profit and Loss Account have been drawn up in accordance withSection 29 of the Banking Regulation Act 1949; Subject to the limitations of the auditindicated in above and as required by the Banking Companies (Acquisition and Transfer ofUndertakings) Act 1970/1980 and subject also to the limitations of disclosure requiredtherein 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;

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

We further report that:

a) 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 purposes of our audit have been received from branches not visited by us;

b) the Balance Sheet the Profit and Loss Account and the Statement of Cash Flows dealtwith by this report are in agreement with the books of account and with the returnsreceived from the branches not visited by us;

c) the reports on the accounts of the branch offices audited by branch auditors of theBank under Section 29 of the Banking Regulation Act 1949 have been sent to us and havebeen properly dealt with by us in preparing this report; and d) In our opinion theBalance Sheet the Profit and Loss Account and the Statement of Cash Flows comply with theapplicable accounting standards to the extent they are not inconsistent with theaccounting policies prescribed by RBI.

For M/s VAITHISVARAN & CO LLP For M/s J S UBEROI & CO. For M/s S GHOSE & CO
Chartered Accountants Chartered Accountants LLP
Chartered Accountants FRN : 111107W FRN : 302184E/E300007
FRN : 004494S/S200037
S GANESAN HARISH BHONEJA BITOL KUMAR SARKAR
Partner Partner Partner
Membership No. 019530 Membership No. 045814 Membership No. 015774
For M/s K K SONI & CO For M/s FADNIS & GUPTE
Chartered Accountants Chartered Accountants
FRN : 00947N FRN : 006600C
SANT SUJAT SONI MANOJ FADNIS
Partner Partner
Membership No. 094227 Membership No. 072707
Place : Bengaluru
Date : 10.05.2019