ICICI Bank 2016 Annual Report Download - page 199

Annual Report 2015-2016 197
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
7. Because of the inherent limitations of internal nancial controls over nancial 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 nancial controls over nancial reporting to future
periods are subject to the risk that the internal nancial control over nancial 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 Holding Company, its subsidiary companies and associate companies, which are companies
incorporated in India, have, in all material respects, an adequate internal nancial controls system over nancial
reporting and such internal nancial controls over nancial reporting were operating effectively as at 31 March 2016,
based on the internal control over nancial reporting criteria established by the Group 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.
OTHER MATTERS
9. The auditors of ICICI Prudential Life Insurance Company, the Group’s Life Insurance subsidiary have reported, “We
report that the actuarial valuation of liabilities for life policies in force and policies where premium is discontinued
but liability exists as at March 31, 2016 has been certied by the Appointed Actuary as per the regulations, and has
been relied upon by us as mentioned in para other matters of our audit report on the nancial statements for the year
ended March 31, 2016. Our opinion is not modied in respect of above matter.”
10. The auditors of ICICI Lombard General Insurance Company Limited, the Group’s General Insurance subsidiary have
reported, “The Actuarial valuation of liabilities in respect of Incurred But Not Reported (‘IBNR’) and Incurred But Not
Enough Reported (‘IBNER’) as at March 31, 2016, other than for reinsurance accepted from Declined Risk Pool (‘DR
Pool’) has been duly certied by the Appointed Actuary of the Company as per the Regulations and has been relied
upon by us as mentioned in para 9(h) of our Audit Report on the nancial statements for the year ended 31st March,
2016. Accordingly, our opinion on the internal nancial controls over nancial reporting does not include reporting
on the adequacy and operating effectiveness of the internal controls over the valuation and accuracy of the aforesaid
actuarial liabilities”.
11. Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal
nancial controls over nancial reporting insofar as it relates to seven subsidiary companies, one subsidiary company
which is jointly audited with another auditor and an associate company, which are companies incorporated in India,
is based on the corresponding reports of the auditors of such companies incorporated in India.
Our opinion on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 is not modied in respect of the above matters with respect to our reliance on the work done and the reports of the
other auditors.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Venkataramanan Vishwanath
Mumbai Partner
29 April 2016 Membership No: 113156
Annexure A
to the Independent Auditor’s Report of even date on the Consolidated Financial Statements of ICICI Bank Limited