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Independent Auditors’ Report
To the Members of Ujjivan Small Finance Bank Limited
RepoRT on The AUdiT oF The FinAnciAL STATeMenTS
opinion
We have audited the financial statements of Ujjivan Small Finance Bank Limited (“the Bank”), which comprise the Balance sheet as at March 31, 2020, the profit and loss Account, Cash Flow Statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Banking Regulation Act, 1949 as well as the Companies Act, 2013 (“the Act”) in the manner so required by the 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 March 31, 2020, its profit and its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the 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 (“ICAI”) together with
Identification of npA and measurement of provision on account of npA is made based on the assessment of various criteria stipulated in the Reserve Bank of India (‘RBI’) guidelines on ‘prudential norms on Income Recognition, Asset Classification and provisioning pertaining to advances’ ('IRACp'). the Bank is required to prepare a Board approved policy as per the IRACp guidelines for npA identification and provision.
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.
emphasis of Matter
We draw attention to note 34 to the financial statements which describes that the extent to which the CoVID-19 pandemic will impact the Bank’s financial statement will depend on future developments, which are incapable of assessment at this point in time.
our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current year. 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.
Identification of Non-Performing Assets (‘NPA’) and Provisioning on Advances
total loans and Advances
(net of provision) as at March 31, 2020
Gross npA as at March 31, 2020
provision for npA as at March 31, 2020
: `14,043.64 Crores
: `137.14 Crores
: `109.65 Crores
Refer Schedule (9) and Schedule 18(4.1) to the financial statement
tested the design and operating effectiveness of key controls (including application controls) over approval, recording, monitoring and recovery of loans, monitoring overdue / stressed accounts, identification of npA, provision for npA and valuation of security and collateral.
testing of Application controls include testing of automated controls, reports and system reconciliations.
Key Audit Matter
How our audit addressed the key audit matter
220 | AnnuAl RepoRt 2019-20