Mar 31, 2019
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of ICICI Bank Limited (âthe Bankâ), which comprise the Balance Sheet as at 31 March 2019, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information. Incorporated in these standalone financial statements are the returns of the international branches for the year ended 31 March 2019. The branches in Dubai, South Africa, and New York have been audited by the respective local auditors.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the section 29 of the Banking Regulation Act, 1949, as well as the Companies Act, 2013 (âActâ) and circulars and guidelines issued by the Reserve Bank of India, in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 (as amended), of the state of affairs of the Bank as at 31 March 2019, and its profit and its cash flows for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditorâs Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Bank, in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ), together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
a. Information Technology (âITâ) systems and controls impacting financial reporting (Refer chapter âKey risks impacting the Bankâs businessâ under the Integrated Report of the Annual Report) |
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Key Audit Matter |
How our audit addressed the key audit matter |
The IT environment of the Bank is complex and involves a large number of independent and interdependent IT systems used in the operations of the Bank for processing and recording a large volume of transactions at numerous locations. As a result, there is a high degree of reliance and dependency on such IT systems for the financial reporting process of the Bank. Appropriate IT general controls and application controls are required to ensure that such IT systems are able to process the data, as required, completely, accurately and consistently for reliable financial reporting. The accuracy and reliability of the financial reporting process depends on the IT systems and the related control environment, including: - IT general controls over user access management and change management across applications, networks, database, and operating systems; - IT automated application controls. Due to the importance of the impact of the IT systems and related control environment on the Bankâs financial reporting process, we have identified testing of such IT systems and related control environment as a key audit matter for the current year audit. |
In assessing the integrity of the IT systems, we involved our IT experts to obtain an understanding of the IT infrastructure and IT systems relevant to the Bankâs financial reporting process for evaluation and testing of IT general controls and IT automated controls existing in such IT systems. Access rights were tested over applications, operating systems, networks, and databases, which are relied upon for financial reporting. We also assessed the operating effectiveness of controls over granting, removal and periodical review of access rights. We further tested segregation of duties, including preventive controls to ensure that access to change applications, the operating system or databases in the production environment were granted only to authorized personnel. Other areas that were assessed under the IT control environment, included password policies, security configurations, and controls around change management. We also evaluated the design and tested the operating effectiveness of key automated controls within various business processes. This included testing the integrity of system interfaces, the completeness and accuracy of data feeds, and automated calculations. |
b. Identification and provisioning for non-performing assets (âNPAsâ) As at 31 March 2019, the Bank reported total loans and advances (net of provisions) of Rs. 5,866,466 million (2018: Rs. 5,123,953 million), gross NPAs of Rs. 456,760 million (2018: Rs. 532,402 million), and provision for non-performing assets of Rs. 322,263 million (2018: 254,166 million). The provision coverage ratio as at 31 March 2019 is 70.6% (2018: 47.7%). (Refer schedules 9, 18.18 and 18.21) |
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Key Audit Matter |
How our audit addressed the key audit matter |
The identification of NPAs and provisioning for advances is made in accordance with the extant RBI regulations or host country regulations, in the case of international branches. Based on our risk assessment, the following are significant in assessment of the NPA provisions: - Recognition of defaults, in accordance with the criteria set out in the RBI Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances (IRAC norms) or in accordance with the host country regulations, as applicable. Further, the Bank is also required to apply its judgement to determine the identification of NPAs by applying certain qualitative aspects; - The measurement of provision under RBI guidelines is dependent on the ageing of overdue balances, secured/ unsecured status of advances, stress and liquidity concerns in certain sectors, and valuation of collateral. The provision on NPAs at certain overseas branches requires estimation of amounts and timing of expected future cash flows and exit values. Considering the significance of the above matter to the financial statements, the heightened regulatory inspections, and significant auditor attention required, we have identified this as a key audit matter for the current year audit. |
We tested the design and operating effectiveness of key controls, including IT based controls, focusing on the following: - Identification and classification of NPAs in line with RBI IRAC norms and certain qualitative aspects; - Periodic internal reviews of asset quality; - Assessment of adequacy of NPA provisions; and - Periodic valuation of collateral for NPAs. To test the identification of loans with default events and other triggers, we selected a sample of performing loans and independently assessed as to whether there was a need to classify such loans as NPAs. With respect to provisions recognised towards NPAs, we selected samples based on high risk industry sectors, such as shipping, rigs, power, mining, and oil and gas exploration. For the samples selected, we reperformed the provision calculations and compared our outcome to that prepared by the management and challenged various assumptions and judgements which were used by the management. We assessed the appropriateness and adequacy of disclosures against the relevant accounting standards and RBI requirements relating to NPAs. |
c. Provisions for litigation and taxation and contingent liabilities As at 31 March 2019, the Bank has reported the following: (Rs. in millions) |
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Particulars |
Included under contingent liabilities |
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At 31.03.2019 |
At 31.03.2018 |
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Legal cases |
1,096 |
647 |
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Taxes |
53,913 |
62,013 |
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(Refer schedules 12, 18.40 and 18.41) |
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Key Audit Matter |
How our audit addressed the key audit matter |
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As at 31 March 2019, the Bank has ongoing legal and tax cases with varied degrees of complexities. This indicates that a significant degree of management judgement is involved in determining the appropriateness of provisions and related disclosures. Significant management judgement is needed in determining whether an obligation exists and whether a provision should be recognised as at the reporting date, in accordance with the accounting criteria set under Accounting Standard 29 - Provisions, Contingent Liabilities and Contingent Assets (âAS 29â), or whether it needs to be disclosed as a contingent liability. Further, significant judgements are also involved in measuring such obligations, the most significant of which are: - Assessment of liability: Judgement is involved in the determination of whether an outflow in respect of identified material matters are probable and can be estimated reliably; - Adequacy of provisions: The appropriateness of assumptions and judgements used in the estimation of significant provisions; and - Adequacy of disclosures of provision for liabilities and charges, and contingent liabilities. Considering the significance of the above matter to the financial statements, and significant auditor attention required to test such estimates, we have identified this as a key audit matter for current year audit. |
Our audit procedures included, but were not limited to, the following: We tested the design and operating effectiveness of the Bankâs key controls over the estimation, monitoring and disclosure of provisions and contingent liabilities. For significant legal matters, we sought external confirmations and also reviewed the confirmations obtained by the management from external legal counsels and corroborated with managementâs documented conclusions on the assessment of outstanding litigations against the Bank. In respect of taxation matters, we involved our tax specialists to gain an understanding of the current status of the outstanding tax litigations, including understanding of various orders / notices received by the Bank and the managementâs grounds of appeals before the relevant appellate authorities, and critically evaluated the managementâs assessment of the likelihood of the liability devolving upon the Bank, in accordance with the principles of AS 29. For the significant provisions made, we understood, assessed and challenged the adequacy of provisions recognised by the management. We also reviewed the historical accuracy of the provisions recognised to determine the efficacy of the process of estimation by the management. Further, we assessed whether the disclosures related to significant litigations and taxation matters were fairly presented. |
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d. Valuation of derivatives (Rs. in millions) |
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Particulars |
Included under |
At 31.03.2019 |
At 31.03.2018 |
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Notional value of derivatives |
Contingent liabilities |
17,566,162 |
11,336,607 |
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(Refer schedules 12 and 18.15) |
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Key Audit Matter |
How our audit addressed the key audit matter |
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Derivatives are valued through models with external inputs. The derivatives portfolio of the Bank primarily includes transactions which are carried out on behalf of its clients (and are covered on a back-to-back basis) and transactions to hedge the Bankâs interest and foreign currency risk. A significant degree of management judgement is involved in the application of valuation techniques through which the value of the Bankâs derivatives is determined. The financial statement risk arises particularly with respect to complex valuation models, parameters, and inputs that are used in determining fair values. Considering the significance of the above matter to the financial statements, significant management estimates and judgements, and auditor attention required to test such estimates and judgements, we have identified this as a key audit matter for current year audit. |
Our audit procedures included, but were not limited to, the following: We included our valuation experts as a part of our audit team to obtain an understanding, evaluate the design, and test the operating effectiveness of the key controls over the valuation processes, including: - i ndependent price verification performed by a management expert; and - model governance and validation. On a sample basis, our valuation experts performed an independent reassessment of the valuation of derivatives, to ensure compliance with the relevant RBI regulations, reasonableness of the valuation methodology and the inputs used. We also challenged the appropriateness of significant models and methodologies used in valuation. |
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Information other than the Standalone Financial Statements and Auditorâs Report thereon
The Bankâs Board of Directors are responsible for the other information. The other information comprises the information included in the Managementâs Discussion and Analysis, Directorsâ Report, including annexures to the Directorsâ Report, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
6. The Bankâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act read with rule 7 of the Companies (Accounts) Rules, 2014 (as amended) and provisions of section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by Reserve Bank of India (âRBIâ) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
7. In preparing the financial statements, management is responsible for assessing the Bankâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
8. The Board of Directors is also responsible for overseeing the Bankâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
9. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
10. As part of an audit in accordance with Standards on Auditing, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for explaining our opinion on whether the Bank has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bankâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the 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 auditorâs report. However, future events or conditions may cause the Bank to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
11. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
12. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
13. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
14. We did not audit the financial statements of 3 international branches included in the standalone financial statements of the Bank whose financial statements reflects total assets of Rs. 657,940 million as at 31 March 2019, and total revenue and net cash outflows of Rs. 22,507 million and Rs. 5,168 million respectively for the year ended on that date, as considered in the standalone financial statements. The financial statements of these branches have been audited by the branch auditors whose reports have been furnished to us by the management, and our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.
Our opinion on the standalone financial statements is not modified in respect of the above matter.
15. The financial statements of the Bank for the year ended 31 March 2018 were audited by the predecessor auditors, who have expressed an unmodified opinion on those financial statements vide their audit report dated 7 May 2018.
Report on Other Legal and Regulatory Requirements
16. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with the provisions of section 29 of the Banking Regulation Act, 1949 and section 133 of the Act read with rule 7 of the Companies (Rules), 2014 (as amended).
17. As required by sub-section (3) of section 30 of the Banking Regulation Act, 1949, we report that:
a) we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit and have found them to be satisfactory;
b) the transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and
c) since the key operations of the Bank are automated with the key applications integrated to the core banking system, the audit is carried out centrally as all the necessary records and data required for the purposes of our audit are available therein. However, during the course of our audit, we have visited 102 branches to examine the records maintained at such branches for the purpose of our audit. Further, as stated above, returns from branches were received duly audited by other auditors and were found adequate for the purpose of our audit.
18. With respect to the matter to be included in the Auditorâs Report under section 197(16) of the Act, we report that since the Bank is a banking company, as defined under Banking Regulation Act, 1949, the reporting under section 197(16) in relation to whether the remuneration paid by the Bank is in accordance with the provisions of sections 197 of the Act and whether any excess remuneration has been paid in accordance with the aforesaid section, is not applicable.
19. Further, as required by section 143 (3) of the Act, we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) in our opinion, proper books of account as required by law have been kept by the Bank, so far as it appears from our examination of those books and proper returns, adequate for the purposes of our audit, have been received from the branches not audited by us;
c) the reports on the accounts of the branch offices of the Bank audited under section 143(8) of the Act by the branch auditors of the Bank have been sent to us and have been properly dealt with by us in preparing this report;
d) the standalone financial statements dealt with by this report are in agreement with the books of account and with the returns received from the international branches not audited by us;
e) in our opinion, the aforesaid standalone financial statements comply with Accounting Standards prescribed under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 (as amended), to the extent they are not inconsistent with the accounting policies prescribed by RBI;
f) on the basis of the written representations received from the directors as on 31 March 2019 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2019 from being appointed as a director in terms of section 164(2) of the Act;
g) we have also audited the internal financial controls over financial reporting (IFCoFR) of the Bank as on 31 March 2019 in conjunction with our audit of the standalone financial statements of the Bank for the year ended on that date and our report dated 06 May 2019 as per Annexure A expressed an unmodified opinion;
h) with respect to the other matters to be included in the Auditorâs Report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. the Bank, as detailed in schedule 18.40 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2019;
ii. the Bank, as detailed in schedule 18.40 to the standalone financial statements, has made provision as at 31 March 2019, as required under the applicable law or Accounting Standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank during the year ended 31 March 2019;
iv. the disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8 November 2016 to 30 December 2016, which are not relevant to these standalone financial statements. Hence, reporting under this clause is not applicable.
Independent Auditorâs Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. In conjunction with our audit of the standalone financial statements of ICICI Bank Limited (âthe Bankâ) as at and for the year ended 31 March 2019, we have audited the internal financial controls over financial reporting (âIFCoFRâ) of the Bank as at that date.
Managementâs Responsibility for Internal Financial Controls
2. The Bankâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Bankâs business, including adherence to the Bankâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on the Bankâs IFCoFR based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (âICAIâ) and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (âthe Guidance Noteâ) issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate IFCoFR were established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR includes obtaining an understanding of IFCoFR, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material 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 to provide a basis for our audit opinion on the Bankâs IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
6. An enitityâs IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. An entityâs IFCoFR include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the entity are being made only in accordance with authorisations of management and directors of the entity; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the entityâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Owing to the inherent limitations of IFCoFR, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the IFCoFR to future periods are subject to the risk that the IFCoFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Bank has, in all material respects, adequate internal financial controls over financial reporting and such controls were operating effectively as at 31 March 2019, based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For Walker Chandiok & Co LLP
Chartered Accountants
Firmâs Registration No.: 001076N/N500013
Khushroo B. Panthaky
Place: Mumbai Partner
Date: 06 May 2019 Membership No.: 042423
Mar 31, 2018
INDEPENDENT AUDITORS'' REPORT
To the members of ICICI Bank Limited
Report on the audit of standalone financial statements
We have audited the accompanying standalone financial statements of ICICI Bank Limited (the ''Bank''), which comprise the Balance Sheet as at 31 March 2018, the Profit and Loss Account, the Cash Flow Statement for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information in which are incorporated the returns for the year ended on that date audited by the branch auditors of the Bank''s branches at Singapore, Bahrain, Hong Kong, Dubai, Qatar, China, South Africa, New York and Sri Lanka.
Management''s responsibility for the standalone financial statements
The Bank''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the ''Act'') with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit / loss and cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards prescribed under Section 133 of the Act, provisions of Section 29 of the Banking Regulation Act, 1949 and the circulars, guidelines and directions issued by Reserve Bank of India (''RBI'') from time to time.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Bank''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
Auditor''s responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of standalone financial statements of the Bank including its branches in accordance with the Standards 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 the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank''s preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Bank''s Directors, as well as evaluating the overall presentation of the standalone financial statements.
We are also responsible to conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor''s report. However, future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their report referred to in the Other Matter paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Banking Regulation Act, 1949 as well as the Act in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Bank as at 31 March 2018, and its profit and its cash flows for the year ended on that date.
Other matter
We did not audit the financial statements of Singapore, Bahrain, Hong Kong, Dubai, Qatar, China, South Africa, New York and Sri Lanka branches included in the standalone financial statements of the Bank, whose financial statements reflect total assets of Rs. 1,352,287 million as at 31 March 2018, total revenues of Rs. 53,427 million for the year ended 31 March 2018 and net cash inflow amounting to Rs. 53,283 million for the year ended 31 March 2018. The financial statements of these branches have been audited by other auditors, duly qualified to act as auditors in the country of incorporation of the said branches, whose reports have been furnished to us by Management of the Bank and our opinion, in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such other 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 with the provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 133 of the Act.
As required by sub-section (3) of Section 30 of the Banking Regulation Act, 1949, we report that:
(a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit and have found them to be satisfactory;
(b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and
(c) Since the key operations of the Bank are automated with the key applications integrated to the core banking systems, the audit is carried out centrally as all the necessary records and data required for the purposes of our audit are available therein. However, during the course of our audit we have visited 106 branches. As stated above, returns from branches were received duly audited by other auditors and were found adequate for the purpose of our audit.
Further, as required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
(b) I n our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us;
(c) The reports on the accounts of the branch offices of the Bank audited under Section 143 (8) of the Act by the branch auditors have been sent to us and have been properly dealt with by us in preparing this report;
(d) The Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us;
(e) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, to the extent they are not inconsistent with the accounting policies prescribed by RBI;
(f) On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
(g) With respect to the adequacy of the internal financial controls with reference to the standalone financial statements of the Bank and the operating effectiveness of such controls, refer to our separate Report in ''Annexure A''; and
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Bank has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 40 to the standalone financial statements;
(ii) The Bank has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 40 to the standalone financial statements;
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank; and
(iv) The disclosures required on holdings as well as dealing in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016 as envisaged in notification G.S.R. 308(E) dated 30 March 2017 issued by the Ministry of Corporate Affairs is not applicable to the Bank.
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 ICICI Bank Limited (the ''Bank'') as at 31 March 2018 in conjunction with our audit of the standalone 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 maintaining internal financial controls based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the ''Guidance Note'') issued by the Institute of Chartered Accountants of India (the ''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Bank''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and timely preparation 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 financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing (the ''Standards''), issued by the ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matter paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Bank''s internal financial controls system over financial reporting.
Meaning of internal financial controls over financial reporting
6. A bank''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A bank''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the bank; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the bank are being made only in accordance with authorizations of management and directors of the bank; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the bank''s assets that could have a material 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Bank has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
Other matter
9. Our aforesaid report under Section 143 (3) (i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting insofar as it relates to overseas branches, is based on the corresponding reports of the branch auditors. Our opinion is not modified in respect of this matter.
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Mumbai Partner
7 May 2018 Membership No:113156
Mar 31, 2017
INDEPENDENT AUDITORS'' REPORT
To The Members of
ICICI Bank Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of ICICI Bank Limited (the ''Bank''), which comprise the Balance Sheet as at 31 March 2017, the Profit and Loss Account and the Cash Flow Statement for the year then ended, a summary of the significant accounting policies and other explanatory information in which are incorporated the returns of the Singapore, Bahrain, Hong Kong, Dubai, Qatar, China, South Africa, New York and Sri Lanka branches of the Bank, audited by the branch auditors.
Management''s Responsibility for the Standalone Financial Statements
2. The Bank''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the ''Act'') with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, provisions of Section 29 of the Banking Regulation Act, 1949 and the circulars, guidelines and directions issued by Reserve Bank of India (''RBI'') from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
5. We conducted our audit of the Bank including its branches in accordance with the Standards 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 the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Bank''s Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their report referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Banking Regulation Act, 1949 as well as the relevant requirements of the Act, in the manner so required for banking companies and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Bank as at 31 March 2017, and its profit and its cash flows for the year then ended.
Other Matters
9. We did not audit the financial statements of Singapore, Bahrain, Hong Kong, Dubai, Qatar, China, South Africa, New York and Sri Lanka branches of the Bank, whose financial statements reflect total assets of '' 1,407,430 million as at 31 March 2017, total revenues of '' 65,406 million for the year ended 31 March 2017 and net cash outflows amounting to '' 58,032 million for the year ended 31 March 2017. These financial statements have been audited by other auditors, duly qualified to act as auditors in the country of incorporation of the said branches, whose reports have been furnished to us by Management of the Bank and our opinion, in so far as it relates to such branches is based solely on the reports of the other auditors. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. The Balance Sheet and Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the Banking Regulation Act, 1949 read with Section 133 of the Act read with the Rule 7 of the Companies (Accounts) Rules, 2014.
11. As required by sub section (3) of Section 30 of the Banking Regulation Act, 1949, we report that:
(a) we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit and have found them to be satisfactory;
(b) the transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and
(c) since the key operations of the Bank are automated with the key applications integrated to the core banking systems, the audit is carried out centrally as all the necessary records and data required for the purposes of our audit are available therein. However, during the course of our audit we have visited 100 branches. As stated above, returns from nine foreign branches were received duly audited by other auditors and were found adequate for the purposes of our audit.
12. Further, as required by Section 143 (3) of the Act, we further report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the foreign branches not visited by us;
(c) the reports on the accounts of the foreign branch offices audited by the respective branch auditors of the Bank under Section 143 (8) of the Act have been sent to us and have been properly dealt with by us in preparing this report;
(d) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account and with the returns received from the foreign branches not visited by us;
(e) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards 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 accounting policies prescribed by RBI;
(f) on the basis of the written representations received from the directors as on 31 March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 from being appointed as a director in terms of Section 164 (2) of the Act;
(g) with respect to the adequacy of the internal financial controls over financial reporting of the Bank and the operating effectiveness of such controls, refer to our separate Report in ''Annexure A'';
(h) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) the Bank has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 41 to the financial statements;
(ii) the Bank has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 41 to the financial statements;
(iii) there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank; and
(iv) the disclosure required on holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016 as envisaged in notification G.S.R. 308(E) dated 30 March 2017 issued by the Ministry of Corporate Affairs is not applicable to the Bank. Refer Note 56 to the financial statements.
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 ICICI Bank Limited (the ''Bank'') as at 31 March 2017 in conjunction with our audit of the standalone 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 maintaining internal financial controls based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the ''Guidance Note'') issued by the Institute of Chartered Accountants of India (the ''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Bank''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and timely preparation 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 financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing (the ''Standards''), issued by the ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Bank''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A bank''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A bank''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the bank; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the bank are being made only in accordance with authorizations of management and directors of the bank; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the bank''s assets that could have a material 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Bank has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at
31 March 2017, based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
Other Matters
9. Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting insofar as it relates to overseas branches, is based on the corresponding reports of the branch auditors. Our opinion is not modified in respect of this matter.
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No.: 101248W/W-100022
Venkataramanan Vishwanath
Mumbai Partner
3 May 2017 Membership No.: 113156
Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
ICICI Bank Limited (''the Bank''), which comprise the Balance Sheet as at
31 March 2015, the Profit and Loss Account, the Cash Flow Statement for
the year then ended, a summary of significant accounting policies and
other explanatory information in which are incorporated the returns of
the Singapore, Bahrain, Hong Kong, Dubai, Qatar and Sri Lanka branches
of the Bank, audited by branch auditors.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
2. The Bank''s Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 (''the Act'') with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Bank in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under section 133 of the Act read with Rule 7 of the
Companies (Accounts) Rules, 2014, provisions of Section 29 of the
Banking Regulation Act, 1949 and the Reserve Bank of India''s (''RBI'')
circulars, guidelines and directions. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Bank and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies, making judgments
and estimates that are reasonable and prudent; and the design,
implementation and maintenance of internal financial controls, that
were operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and presentation
of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
AUDITOR''S RESPONSIBILITY
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
applicable provisions of the Companies Act, 2013, Banking Regulation
Act, 1949 and circulars and guidelines issued by the RBI from time to
time, the accounting and auditing standards and matters which are
required to be included in the audit report under the aforesaid
provisions. We conducted our audit in accordance with Standards 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 the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatements.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Bank''s preparation of the financial statements that give a true and
fair view in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
whether the Bank has in place an adequate internal financial controls
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Bank''s Directors, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
OPINION
6. I n our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone financial
statements give the information required by the Banking Regulation Act,
1949 as well as the relevant requirements of the Companies Act, 2013,
in the manner so required for banking companies and give a true and
fair view in conformity with accounting principles generally accepted
in India (including the Accounting Standards specified 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
the RBI''s circulars, guidelines as well as matter referred to under
emphasis of matter paragraph below) of the state of affairs of the
Company as at 31 March 2015, and its profit and its cash flows for the
year ended on that date.
EMPHASIS OF MATTER
7. We draw attention to note 25 to the standalone financial statements,
which provides details with regard to the creation of provision
relating to Funded Interest Term Loan through the utilization of
reserves, as permitted by the RBI vide letter dated 6 January 2015. Our
opinion is not modified in respect of this matter.
OTHER MATTERS
8. We did not audit the financial statements of the Singapore, Bahrain,
Hong Kong, Dubai, Qatar and Sri Lanka branches of the Bank, whose
financial statements reflect total assets of Rs. 1,48,083 crores as at 31
March 2015, total revenues of Rs. 7,088 crores for the year ended 31
March 2015 and net cash outflows amounting to Rs. 11,534 crores for the
year ended 31 March 2015. These financial statements have been audited
by other auditors, duly qualified to act as auditors in the country of
incorporation of the said branches, whose reports have been furnished
to us by the Management and our opinion, in so far as it relates to
such branches is based solely on the reports of the other auditors. Our
opinion is not modified in respect of this matter.
9. The standalone financial statements of the Bank for the year ended
31 March 2014 were audited by another auditor who expressed an
unmodified opinion on those statements on 25 April 2014.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
10. The Balance Sheet and the Profit and Loss Account have been drawn
up in accordance with the provisions of Section 29 of the Banking
Regulation Act, 1949 read with Section 129 of the Companies Act, 2013.
11. As required sub section (3) of section 30 of the Banking Regulation
Act, 1949, we report that:
(a) we have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit and have found them to be satisfactory;
(b) the transactions of the Bank, which have come to our notice, have
been within the powers of the Bank; and
(c) since the key operations of the Bank are automated with the key
applications integrated to the core banking systems, the audit is
carried out centrally as all the necessary records and data required
for the purposes of our audit are available therein. However, during
the course of our audit we have visited 97 branches. As stated above,
returns from six foreign branches were received duly audited by other
auditors and were found adequate for the purposes of our audit.
12. Further, as required by section 143(3) of the Companies Act, 2013,
we further report that:
(i) we have sought and obtained all the information and explanation
which to the best of 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 the Bank so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the foreign branches not visited by us.
(iii) the reports on the accounts of the foreign branch offices audited
by the respective branch auditors of the Bank under section 143(8) of
the Companies Act, 2013 have been sent to us and have been properly
dealt with by us in preparing this report.
(iv) t he Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the returns received from the foreign branches not
visited by us;
(v) i n our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards 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 accounting policies
prescribed by the RBI and to the extent of the direction given by the
RBI in respect to the matter dealt with in the Emphasis of Matter
paragraph above;
(vi) on the basis of written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(vii) with respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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 position in its financial statements - Refer note 38 to the
standalone financial statements;
b) the Bank has made provision, as required under the applicable law or
accounting standards, for material foreseeable losses, if any, on
long-term contracts including derivative contracts - Refer note 38 to
the standalone financial statements;
c) there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Bank.
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Mumbai Partner
27 April 2015 Membership No: 113156
Mar 31, 2013
1. We have audited the attached Balance Sheet of ICICI Bank Limited
(the ''Bank'') as at 31 March 2013 and also the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Incorporated in the said financial statements are the returns of the
Singapore, Bahrain, Hong Kong, Dubai, Qatar, Sri Lanka and New York-USA
branches of the Bank, audited by other auditors.
Management''s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Bank in accordance with
accounting principles generally accepted in India, including the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 (''the Act'') read with guidelines issued by the
Reserve Bank of India insofar as they are applicable to the Bank and in
conformity with Form A and B (revised) of the Third Schedule to the
Banking Regulation Act, 1949 as applicable. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Bank''s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Banking Regulation Act, 1949 and the Act in
the manner so required for banking companies, and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Bank as at 31 March 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. The Balance Sheet and the Profit and Loss Account have been drawn
up in accordance with the provision of section 29 of the Banking
Regulation Act, 1949 read with section 211 of the Act.
8. We report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit and have found them to be satisfactory;
(b) In our opinion, the transactions of the Bank which have come to our
notice have been within its powers;
(c) The financial accounting systems of the Bank are centralised and
therefore, accounting returns for the purpose of preparing financial
statements are not required to be submitted by the branches; we have
visited 98 branches for the purpose of our audit;
9. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Act.
10. We further report that:
(a) In our opinion, proper books of account as required by law have
been kept by the Bank so far as appears from our examination of those
books;
(b) The Balance Sheet, Profit and Loss Account, and Cash Flow Statement
dealt with by this Report are in agreement with the books of account;
(c) On the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Other Matter
11. We did not audit the financial statements of Singapore, Bahrain,
Hong Kong, Dubai, Qatar, Sri Lanka and New York-USA branches, whose
financial statements reflect total assets of Rs. 1,270,195 million as
at 31 March 2013, the total revenue of Rs. 60,882 million for the year
ended 31 March 2013 and net cash flows amounting to Rs. 84,228 million
for the year ended 31 March 2013. These financial statements have been
audited by other auditors, duly qualified to act as auditors in the
country of incorporation of the said branches, whose reports have been
furnished to us, and our opinion is based solely on the report of other
auditors.
For S.R. Batliboi & Co. LLP
Firm registration number: 301003E
Chartered Accountants
per Shrawan Jalan
Partner
Membership No.: 102102
Place: Mumbai
Date: April 26, 2013
Mar 31, 2012
1. We have audited the attached balance sheet of ICICI Bank Limited
(the 'Bank') as at 31 March 2012 and also the profit and loss account
and cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Bank's management. Our responsibility is to express an opinion on these
financial statements based on our audit. Incorporated in the said
financial statements are the returns of the Singapore, Bahrain, Hong
Kong, Dubai, Qatar, Sri Lanka and New York-USA branches of the Bank,
audited by other auditors.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. The balance sheet and profit and loss account are drawn up in
conformity with Forms A and B (revised) of the Third Schedule to the
Banking Regulation Act, 1949, read with Section 211 of the Companies
Act, 1956.
4. We did not audit the financial statements of Singapore, Bahrain,
Hong Kong, Dubai, Qatar, Sri Lanka and New York-USA branches, whose
financial statements reflect total assets of Rs. 1,140,883 million as
at 31 March 2012, the total revenue of Rs. 53,809 million for the year
ended 31 March 2012 and net cash flows amounting to Rs. 119,605 million
for the year ended 31 March 2012. These financial statements have been
audited by other auditors, duly qualified to act as auditors in the
country of incorporation of the said branches, whose reports have been
furnished to us, and our opinion is based solely on the report of other
auditors.
5. We report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit and have found them to be satisfactory;
b) In our opinion, the transactions of the Bank which have come to our
notice have been within its powers;
c) We have visited 100 branches of the Bank for the purpose of our
audit;
d) In our opinion, proper books of account as required by law have been
kept by the Bank so far as appears from our examination of those books
and proper returns adequate for the purposes of our audit have been
received from branches not visited by us. The Branch Auditor's
Report(s) have been forwarded to us and have been appropriately dealt
with;
e) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account
and with audited returns of the branches;
f) In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub section (3C) of Section 211 of the
Companies Act, insofar as they apply to the Bank;
g) On the basis of written representations received from the directors,
as on 31 March 2012, and taken on record by the Board of Directors, we
report that none of the directors is disqualified from being appointed
as a director in terms of clause (g) of sub section (1) of Section 274
of the Companies Act, 1956;
h) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required for
banking companies, and give a true and fair view in conformity with the
accounting principles generally accepted in India;
i. in case of the balance sheet, of the state of the affairs of the
Bank as at 31 March 2012;
ii. in case of the profit and loss account, of the profit for the year
ended on that date; and
iii. in case of cash flow statement, of the cash flows for the year
ended on that date.
For S.R. Batliboi & Co.
Firm registration number: 301003E
Chartered Accountants
per Shrawan Jalan Partner
Membership No.: 102102
Mumbai April 27, 2012
Mar 31, 2011
1. We have audited the attached balance sheet of ICICI Bank Limited
(theBank) as at 31 March 2011 and also the profit and loss account
and cash flow statement for the year ended ori that date annexed
thereto. These financial statements are the responsibility of the
Banks management. Our responsibility is to express an opinion on these
financial statements based on our audit. Incorporated in the said
financial statements are the returns of the Singapore, Bahrain and Hong
Kong branches of the Bank, audited by other auditors.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards rsquire that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that ou- audit provides a reasonable basis for
our opinion.
3. The balance sheet and profit and loss account are drawn up in
conformity with Forms A and B (revised) of the Third Schedule to the
Banking Regulation Act, 1949, read with Section 211 of the Companies
Act, 1956.
4. We did not audit the financial statements of Singapore, Bahrain and
Hong Kong branches, whose financial statements reflect total assets of
Rs. 850,507.9 million as at 31 March 2011, the total revenue of Rs.
42,480.8 million for the year ended 31 March 2011 and net cash flows
amounting to Rs. 39,302.7 million for the year ended 31 March 2011. These
financial statements have been audited by other auditors, duly
qualified to acts as auditors in the country of incorporation of the
said branches, whose reports have been furnished to us, and our opinion
is based solely on the report of other auditors.
5. We report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit and have found them to be satisfactory;
b) In our opinion, the transactions of the Bank which have come to our
notice have been within its powers;
c) In our opinion, proper books of account as required by law have been
kept by the Bank so far as appears from our examination of those books
and proper returns adequate for the purposes of our audit have been
received from branches not visited by us. The Branch Auditors
Report(s) have been forwarded to us and have been appropriately dealt
with;
d) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
e) In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub section (3C) of Section 211 of the
Companies Act, insofar as they apply to the Bank;
f) On the basis of written representations received from the directors,
as on 31 March 2011, and taken on record by the Board of Directors, we
report that none of the directors is disqualified from being appointed
as a director in terms of clause (g) of sub section (1) of Section 274
of the Companies Act, 1956;
g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required for
banking companies, and give a true and fair view in conformity with the
accounting principles generally accepted in India;
i. in case of the balance sheet, of the state of the affairs of the
Bank as at 31 March 2011;
ii. in case of the profit and loss account, of the profit for the year
ended on that date; and
iii. in case of of cash flow statement, of the cash flows for the year
ended on that date.
For S.R. Batliboi & Co.
Firm registration number: 301003E
Chartered Accountants
per Shrawan Jalan
Partner
Membership No.: 102102
Mumbai
April 28, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of ICICI Bank Limited
(Ãthe BankÃ) as at 31 March 2010 and also the Profit and Loss Account
and the Cash Flow Statement for the year then ended, both annexed
thereto. These financial statements are the responsibility of the
BankÃs management. Our responsibility is to express an opinion on these
financial statements based on our audit. Incorporated in the said
financial statements are the returns of the Singapore, Bahrain and Hong
Kong branches of the Bank, audited by other auditors.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. We did not audit the financial statements of the Singapore, Bahrain
and Hong Kong branches of the Bank, whose financial statements reflect
total assets of Rs 719,480.4 million as at 31 March 2010, total
revenues of Rs 41,095.5 million and cash flows of Rs 11,195.0 million
for the year then ended. These financial statements have been audited
by other auditors, duly qualified to act as auditors in the country of
incorporation of the said branches, whose reports have been furnished
to us, and which were relied upon by us for our opinion on the
financial statements of the Bank.
4. The Balance Sheet and the Profit and Loss Account have been drawn
up in accordance with the provisions of Section 29 of the Banking
Regulation Act, 1949 read with Section 211(1), (2) and (3C) of the
Companies Act, 1956.
5. We report that:
a) we have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit and have found them to be satisfactory;
b) the transactions of the Bank, which have come to our notice, have
been within the powers of the Bank; and
c) the returns received from the offices and branches of the Bank have
been found adequate for the purposes of our audit.
6. In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting principles generally accepted in India including Accounting
Standards referred to in subsection (3C) of section 211 of the
Companies Act, 1956, to the extent they are not inconsistent with the
accounting policies prescribed by the Reserve Bank of India.
7. We further report that:
a) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account and the returns;
b) in our opinion, proper books of account as required by law have been
kept by the Bank so far as appears from our examination of those books;
c) the reports on the financial statements of the Singapore, Bahrain
and Hong Kong branches audited by other auditors have been dealt with
in preparing our report in the manner considered appropriate by us;
d) as per information and explanation given to us, the Central
Government has till date, not prescribed any cess payable under Section
441A of the Companies Act, 1956;
e) on the basis of written representations received from the directors,
as on 31 March 2010, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31 March 2010
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
8. In our opinion and to the best of our information and according to
the explanations given to us and on consideration of reports submitted
by the Singapore, Bahrain and Hong Kong branch auditors, the said
financial statements together with the notes thereon give the
information required by the Banking Regulation Act, 1949 as well as the
Companies Act, 1956, in the manner so required for banking companies
and give a true and fair view in conformity with accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Bank as at 31 March 2010;
b) in the case of the Profit and Loss Account, of the profit of the
Bank for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Bank for the year ended on that date.
For B S R & Co.
Chartered Accountants
FirmÃs Registration No: 101248W
Akeel Master
Partner
Membership No.: 046768
Mumbai
April 24, 2010