Quarter II results

 

SD/F-24/129/2020-21                                                                              22 October  2020

 

                                                      

To,

The London Stock Exchange

 

 

Dear Sir,

 

We enclose herewith the Un- Audited Standalone and Consolidated Financial Results of the Bank for the period ended September 30, 2020 which was approved at the Bank's Board of Directors meeting held on 16^th October 2020

 

Kindly take the same on your record.

 

For The Federal Bank Limited

 

 

Samir P Rajdev

Company Secretary

 

Varma & Varma                                                    Borkar & Muzumdar

Chartered Accountants,                                                     Chartered Accountants

No.53/2600, Kerala Varma Tower                                     Anand Nagar, Om Co-op

Off Kunjanbava Road,                                                        Hsg Society, Anand Nagar Lane

Vytilla,                                                                                    Off Nehru Road, Santacruz(East)

Kochi -682019                                                                     Mumbai - 400 055

 

 

Limited Review Report on unaudited standalone financial results of The Federal Bank Limited for the quarter/half year ended 30^th September 2020, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015

 

 

Review Report to

The Board of Directors,

The Federal Bank Limited

 

1.     We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of The Federal Bank Limited ('the Bank') for the quarter/half year ended 30^th September, 2020 ('the Statement') attached herewith, being submitted by the Bank pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (as amended), except for the disclosures relating to Pillar 3 disclosure under Basel III Capital Regulations, as at 30^th September 2020, including Leverage Ratio and Liquidity Coverage Ratio as have been disclosed on the Bank's website and in respect of which a link has been provided in the aforesaid Statement, which have not been reviewed by us.

 

2.     The Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25'), prescribed under section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines'), SEBI circular CIR/CFD/FAC/62/2016 dated 5th July, 2016 (hereinafter referred to as the 'SEBI Circular'), and other accounting principles generally accepted in India. Our responsibility is to issue a report on the Statement based on our review.

3.     We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

 

4.     Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.

 

5.     Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of Unaudited Standalone Financial Results prepared in accordance with applicable accounting standards, the RBI Guidelines, the SEBI circular and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) including the manner in which it is to be disclosed, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters.

 

6.     We draw attention to Note No.10 of the accompanying Statement of Unaudited Standalone Financial results, regarding the impact of COVID-19 pandemic and the adjustments made in the accounts for the quarter/half year ended 30^th September, 2020 on account of the same. As stated therein, in view of continuing uncertainties, the extent of impact of the pandemic on the Bank's operations and financial position would depend on various aspects, including actions taken to mitigate its impact and other regulatory measures. 

 

Our conclusion on the Statement is not modified in respect of this matter.

 

 

7.     The  review of unaudited quarterly/half yearly financial results for the quarter ended 30^th June 2020 and the quarter/half year ended 30^th September 2019 and audit of financial results for the year ended 31^st  March 2020 included in the Statement were carried out and reported by predecessor auditors who have expressed unmodified conclusion vide review reports dated 15^th  July, 2020 and 16^th October 2019 respectively for the periods ended 30^th June 2020 and 30^th September 2019 and unmodified opinion vide audit report dated 28^th May, 2020, whose reports have been furnished to us and which have been relied upon by us for the purpose of our review of the Statement.

 

Our conclusion on the Statement is not modified in respect of this matter.

         

 

For Varma & Varma                                               For Borkar & Muzumdar

Chartered Accountants                                          Chartered Accountants

FRN:004532S                                                        FRN:101569W

                            

                                               

 

R Rajasekharan                                                    Devang Vaghani

Partner                                                                  Partner

M. No. 22703                                                         M. No. 109386

UDIN: 20022703AAAAAA8316                                UDIN: 20109386AAAAFN1336

 

Kochi-19                                                                Mumbai-55

16th October 2020                                                 16th October 2020

 

 

Varma & Varma                                                    Borkar & Muzumdar

Chartered Accountants,                                                     Chartered Accountants

No.53/2600, Kerala Varma Tower                                     Anand Nagar, Om Co-op

Off Kunjanbava Road,                                                        Hsg Society, Anand Nagar Lane

Vytilla,                                                                                    Off Nehru Road, Santacruz(East)

Kochi -682019                                                                     Mumbai - 400 055

 

 

 

Limited Review Report on consolidated unaudited financial results of The Federal Bank Limited for the quarter/half year ended 30^th September 2020, pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015

 

 

Review Report to

The Board of Directors,

The Federal Bank Limited

 

1.       We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of The Federal Bank Limited (the 'Bank') and its Subsidiaries (the Bank and its subsidiaries together referred to as 'the Group') and its share of the net profit after tax of its Associates for the quarter ended 30^th September 2020 and the year to date results for the period from 1^st April 2020 to 30^th September 2020 (the 'Statement'), attached herewith, being submitted by the Bank pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations'), except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30^th September 2020, including Leverage Ratio and Liquidity Coverage Ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the aforesaid Statement, which have not been reviewed by us.

 

2.       The Statement, which is the responsibility of the Bank's Management and has been approved by the Bank's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard -25 'Interim Financial Reporting' ('AS-25'), prescribed under section 133 of the Companies Act, 2013, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the 'RBI') from time to time (the 'RBI Guidelines'), SEBI circular CIR/CFD/FAC/62/2016 dated 5^th July, 2016 (hereinafter referred to as the 'SEBI Circular'), and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

 

3.       We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, to the extent applicable.

 

4.       Our review primarily is conducted on the basis of review of the books of account and records of the Bank. We have also relied on the information and explanations furnished to us by the Bank and the returns as considered necessary by us for the review.

 

5.       This Statement includes the results of the following entities:

a.   Fedbank Financial Services Limited (Subsidiary)

b.   Federal Operations and Services Limited (Subsidiary)

c.   IDBI Federal Life Insurance Company Limited (Associate)

d.   Equirus Capital Private Limited (Associate)

 

6.       Based on our review conducted and procedures performed as stated in Paragraphs 3 and 4 above and based on the consideration of the review reports of other auditors referred to in Paragraphs 8 and 9 below, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with applicable accounting standards, the RBI Guidelines, the SEBI circular and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) including the manner in which it is to be disclosed, except for the disclosures relating to consolidated Pillar 3 disclosure, as at 30^th September 2020, including Leverage Ratio and Liquidity Coverage Ratio under Basel III Capital Regulations as have been disclosed on the Bank's website and in respect of which a link has been provided in the aforesaid Statement, which have not been reviewed by us, or that it contains any material misstatement.

 

7.       We draw attention to Note No.11 of the accompanying Statement, regarding the impact of COVID-19 pandemic and the adjustments made in the accounts for the quarter/half year ended 30^th September, 2020 on account of the same. As stated therein, in view of continuing uncertainties, the extent of impact of the pandemic on the Bank's operations and financial position would depend on various aspects, including actions taken to mitigate its impact and other regulatory measures.

 

Our conclusion on the Statement is not modified in respect of this matter.

 

8.       The statement of consolidated unaudited financial results includes the interim financial statements / financial information/ financial results of the two subsidiaries whose unaudited financial results reflects total assets of Rs.  4,54,990.48 Lakhs as at 30^th September 2020 and total revenues of Rs. 17,416.68 Lakhs and Rs.32,940.75 Lakhs and total net profit after tax of Rs.808.06 Lakhs and Rs.2241.69 Lakhs for the quarter ended 30^th September 2020 and for the period from 1^st April 2020 to 30^th September 2020 respectively, and cash flows (net) of Rs.15,560.19 for the period from 1^st April 2020 to 30^th September 2020. These interim financial statements/financial information/ financial results have been reviewed by one of the Joint auditors of the Bank, whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on their reports and the procedures performed by us as stated in Paragraphs 3 and 4 above.

 

Our conclusion on the Statement is not modified in respect of this matter.

 

9.       The statement of consolidated unaudited financial results includes the Group's share of net loss after tax of Rs.42.73 Lakhs and Rs.49.55 Lakhs for the quarter ended 30^th September  2020 and for the period from 01^st April 2020 to 30^th September 2020, respectively, in respect of one associate whose interim financial results have not been reviewed by us. These interim financial results have been reviewed by another auditor whose report has been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said associate, is based solely on the report of the other auditor and the procedures performed by us as stated in Paragraphs 3 and 4 above.

 

Our conclusion on the Statement is not modified in respect of this matter.

 

10.     The statement of consolidated unaudited financial results also includes the Group's share of net profit after tax of Rs.216.74 lakhs and Rs.379.95 lakhs for the quarter ended 30^th September 2020 and for the period from 1^st April 2020 to 30^th September 2020, respectively, in respect of one associate, based on their interim financial results which have not been reviewed/audited. According to the information and explanations given to us by the Management, these interim financial statements / financial information / financial results are not material to the Group.

Our conclusion on the Statement is not modified in respect of this matter.

 

11.     The  review of unaudited quarterly/half yearly financial results for the quarter ended 30^th June 2020 and the quarter/half year ended 30^th September 2019 and audit of financial results for the year ended 31^st March 2020 included in the Statement were carried out and reported by predecessor auditors who has expressed unmodified conclusion vide review reports dated 15^th July, 2020 and 16^th October 2019 respectively for the periods ended 30^th June 2020 and 30^th September 2019 and unmodified opinion vide audit report dated 28^th May, 2020, whose reports have been furnished to us and which have been relied upon by us for the purpose of our review of the Statement.

 

Our conclusion on the Statement is not modified in respect of this matter.

 

 

For Varma & Varma                                               For Borkar & Muzumdar

Chartered Accountants                                          Chartered Accountants

FRN:004532S                                                        FRN:101569W

                                                                            

 

 

R Rajasekharan                                                     Devang Vaghani

Partner                                                                  Partner

M. No. 22703                                                         M. No. 109386

UDIN: 20022703AAAAAB2436                                 UDIN: 20109386AAAAFO6674

 

Kochi-19                                                                Mumbai-55

16th October 2020                                                 16th October 2020