Moneycontrol
SENSEX NIFTY
Jammu and Kashmir Bank | Auditor's Report > Banks - Private Sector > Auditor's Report from Jammu and Kashmir Bank - BSE: 532209, NSE: J&KBANK
YOU ARE HERE > MONEYCONTROL > MARKETS > BANKS - PRIVATE SECTOR > AUDITORS REPORT - Jammu and Kashmir Bank

Jammu and Kashmir Bank

BSE: 532209|NSE: J&KBANK|ISIN: INE168A01041|SECTOR: Banks - Private Sector
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
May 26, 16:00
84.15
3.95 (4.93%)
VOLUME 65,916
LIVE
NSE
May 26, 15:56
84.30
4.25 (5.31%)
VOLUME 422,034
Array
Mar 15
Auditor's Report (Jammu and Kashmir Bank) Year End : Mar '16
1.  We have audited the accompanying standalone financial statements of
 The Jammu and Kashmir Bank Limited (''the Bank''), which comprise the 
 Balance Sheet as at 31st March 2016, the Profit and Loss Account, 
 the Cash Flow Statement for the year then ended, and a summary of 
 significant accounting policies and other explanatory information and 
 notes forming part of the accounts. Also incorporated in these financial statements are the returns of 55
Branches/Offices audited by us and 837 Branches/Offices audited by Statutory Branch Auditors. The Branches/
 Offices audited by us and those audited by the other auditors have 
 been selected by the Comptroller & Auditor General of India in 
 accordance with the guidelines issued to the Bank by the Reserve 
 Bank of India.
 
 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 and provisions of Section 29 of the
 Banking Regulation Act, 1949 and circulars and guidelines issued by the
 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 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.
 
 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 thereunder.
 
 5.  We conducted our audit of the Bank including its branches 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.
 
 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 financial 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 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 we have obtained 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 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 of the state of
 affairs of the Bank as at 31st March, 2016, and its profit/loss and its
 cash flows for the year then ended.
 
 Report on Other Legal and Regulatory Requirements
 
 9.  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 Companies Act, 2013
 read with Rule 7 of the Companies (Accounts) Rules, 2014.
 
 10.  The Comptroller and Auditor-General of India has issued directions
 indicating the areas to be examined in terms of sub-section (5) of
 section 143 of the Companies Act, 2013, the compliance of which is set
 out in Annexure-A to this Report.
 
 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.
 
 c) the returns received from the offices; and branches of the Bank have
 been found adequate for the purposes of our audit.
 
 12.  Further, as required by section 143(3) of the Act, we further
 report that:
 
 i) we have sought and obtained all the information and explanations
 which to the 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 it appears from our examination of
 those books;
 
 iii) the reports on the accounts of the branch offices audited by
 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) 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;
 
 v) 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;
 
 vi) on the basis of written representations received from the directors
 as on 31st March 2016 taken on record by the Board of Directors, none
 of the directors is disqualified as on 31st March 2016 from being
 appointed as a director in terms of Section 164(2) of the Act; and
 
 vii) 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- B to this
 Report.
 
 viii) 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;
 
 b) the Bank did not have any long-term contracts including derivative
 contracts for which there were any material foreseeable losses; and
 
 c) there has been no delay in transferring amounts, required to be
 transferred, to the Investor Education and Protection Fund by the Bank.
 
 Annexure-A to para 10 of Independent Auditors Report of even date on
 the Standalone Financial Statements of the Jammu and Kashmir Bank
 Limited.
 
 Directions/sub-directions of Comptroller and Auditor General of India
 under Section 143(5) of the Companies Act, 2013
 
 SI. 
 No.  Directions/Sub 
      directions      Auditor''s comments including  Impact on accounts 
                                                    and financial
                      action taken wherever 
                      required                      statements
 
 1    Whether the
      company has 
      clear           As per information and
                      explanations                  The acquisition 
                                                    value of the said 
      title/lease
      deeds for
      freehold and    given to us, the company 
                      has clear                     lands/properties has 
                                                    been capitalized
      leasehold 
      land 
      respectively?   
      If not          title/lease deeds for 
                      freehold and                  and the value as on
                                                    31-03-2016 is 
      please state  
      the area of 
      freehold        leasehold lands except 
                      the following                 Rs.16.78 crores.
      and leasehold 
      land for which 
      title/          Land           Area
      lease deeds 
      are not 
      available.
                      Vashi, Mumbai  5400 Sq.ft
                     (1st Floor)
                      Budgam         4 Kanals
                      Ansal Plaza,   17787 Sq.Ft.
                      Khelgaon, 
                      Delhi
                     (2nd and 3Rd
                      floor)
 
                      It is advised to complete
                      the documentation for 
                      clear title at the earliest.
 
 2    Please report 
      whether there
      are             There are cases of waiver
                      /write                        Profit for the
                                                    current year is 
                                                    reduced 
      any cases of 
      waiver/write 
      off of          off of debts/ loans/
                      interest etc.                 by Rs.2.11 crores
                                                    and unrealized
                                                    income
      debts/ loans/
      interest etc., 
      if yes, the     amounting toRs.2.11 crores
                      in addition                   of Rs.18.03 crores
                                                    has been forgone,
      reasons there
      for and the 
      amount          to the waiver of unaplied
                      interest of
      involved        Rs. 18.03 crores on account 
                      of negotiated settlement 
                      with the borrowers 
                      defaulting in payment due 
                      to the circumstances beyond
                      their control such as death/
                      disappearance of the 
                      borrower, recession in
                      economy, no enforceable 
                      security, natural calamities 
                      such as earthquake, flood, 
                      drought, change in govt, 
                      policy, genuine business 
                      failure in spite of sincere 
                      efforts made by borrower
                      etc. and where the recovery
                      chances through normal 
                      business operations are bleak.
 
 3    Whether proper 
      records are     As per explanations given 
                      to us,                         NIL
      maintained for 
      inventories 
      lying           the company has not received
      with third 
      parties & 
      assets 
      received        any assets as gift/grant(s) 
                      from
      as gift/
      grant(s) from
      Govt, or other  government or other 
                      authorities,
      authorities.    The company has no inventories.
 
 4    Whether the 
      restructuring
      of loan         As per information and 
                      explanations                  Profit of the
                                                    current year is 
                                                    reduced by 
      was done as 
      per the 
      provisions      given to us, the
                      restructuring of              Rs.12.60 crores on
                                                    account of provision
      of the
      Reserve Bank 
      of India and    loans done during the year
                      was as                        made on the
                                                    restructured 
                                                    accounts. 
      Bank''s own 
      Restructuring 
      of loan         per the provisions of the 
                      Reserve
      Policy.         Bank of India and Bank''s own
                      Restructuring of loan 
                      Policy.
 
 SI. 
 No.  Directions/Sub
      directions      Auditor''s comments including   Impact on accounts
                                                     and financial
                      action taken wherever 
                      required                       statements
 
 5    Whether the
      Bank is
      maintaining/    As per information and
                      explanations                   Profit of the 
                                                     current year is
                                                     reduced
      developing
      various assets 
      of the          given to us, the bank is
                      maintaining/                   by net Rs.12.70 
                                                     crores.
      State Govt. The
      treatment of
      the             developing various assets of
      assets and 
      expenditure
      incurred and    the State Govt, which are  
                      not on      
      revenue earned  
      may be 
      examined        the charge of the company.
                      The
      and comment 
      may be 
      offered.        expenditure amounting to 
                      Rs.13.86 crores has been 
                      incurred & revenue of 
                      Rs.1.16 crores has been 
                      earned for maintaining/
                      developing of those assets 
                      and amounts have been 
                      debited/credited to the 
                      Profit & Loss Account.
 
 6    Whether the 
      branches were
      doing           As per information and 
                      explanations              There is an impact of
                                                Rs.2.48 crores 
      window 
      dressing and  
      its impact/     given to us and as per 
                      the reports               increase in the
                                                deposits by similar
      materiality 
      on the overall 
      deposit         of the Branch Auditors, 
                      some                      increase in the advances
                                                which has  
      portfolio.      branches were involved    
                      in doing                  now been reversed.
                      window dressing by 
                      which there is an 
                      impact of Rs.2.48
                      crores increase on the 
                      overall deposit 
                      portfolio.
 
 7    Whether the  
      Bank has been 
      able to         As per information and 
                      explanations              The impact on the 
                                                financial health 
      achieve the
      targets under
      Priority        given to us, the bank 
                      has not been              of the bank is lower
                                                rate of return
      sector lending,
      if not, impact 
      on              able to achieve the 
                      targets under             of interest ranging 
                                                from 3.75% p.a.  
      the financial 
      health of the 
      Bank            priority sector lending.
                      As a result               to 6.50% p.a. received
                                                from the 
      by lending the 
      shortfall
      amount in       of shortfall, the bank 
                      has deposits of           agencies with which 
                                                deposits were 
      Rural 
      infrastructure 
      Development     low yield interest with
                      the following             made for shortfall.
      Fund, Small 
      industrial
      Development     as on 31-03-16 :
      Bank of India, 
      etc. may please
      be              PARICULARS       (Rs.In 
                                       Crores)
      br0Ught0Ut      NABARD           823.44
 
                      RIDF(NABARD)    1065.30
 
                      SIDBI            165.27
 
                      NHB(RHDF)        297.07
 
                      TOTAL           2348.08
 
 8    Whether there 
      were cases of   One account amounting to
                      Rs.142.50                  NIL
      greening of
      advances, up 
      gradation       crores identified by RBI
                      in AQR (BOS
      of loan account
      at the fag end 
      of              as on 31.03.2016- 
                      Rs.113.65 crores)
      the Financial 
      Year or delay
      /non-           has not been downgraded
                      as NPAs
      declaration of
      Non-performing  in view of dispensation 
                      given by RBI
      Assets as per
      RBI guidelines. 
      Its             on the basis of
                      representation made
      impact on the
      profitability
      and             by the banks.
      Asset
       Classification. Further advances
                      amounting to              interest amounting to 
                                                Rs.33.76 crores
                      Rs.246.89 crores were
                      not declared              has been reversed on
                                                said NPAs and
                      by the bank as NPAs as 
                      per RBI                   Provision of Rs.60.10
                                                crores has been
                      guidelines which were
                      downgraded                pr0vided resulting in
                                                decrease in
                      after those were 
                      identified by the         profit of Rs.93 86
                                                crores  
                      statutory auditors.
 
 For Gupta Sharma & 
 Associates             For Dhar Tiku & Co.      For Arora Vohra & Co
 
 Chartered Accountants  Chartered Accountants    Chartered Accountants
 
 FRN:001466N            FRN:003423N              FRN:009487N
 
 CA Gurneet Singh Bhan  CA Madhusudan Meher      CA Prem C. Bansal
 
 Partner                Partner                  Partner
 
 (M. No. 532675)       (M No.097409)            (M. No. 083597)
 
 For Darshan Nagpal & Associates      For Dharam Raj & Co
 
 Chartered Accountants                Chartered Accountants
 
 FRN:011022N                          FRN:014461N
 
 CA Vishal Rometra                    CA Dharam Raj
 
 Partner                              Partner
 
 (M. No. 501333)                     (M No.094108)
 
 Place: Srinagar
 
 Dated: 24th May 2016
Source :
Quick Links for jammukashmirbank
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.