The financial statements of DFCC Bank PLC (“the Bank”) and the consolidated financial statements of the Bank and its subsidiaries as at 31 December 2016 are prepared and presented in compliance with the requirements of the following:
The formats used in the preparation of the financial statements and disclosures made, comply with the formats prescribed by the Central Bank of Sri Lanka.
The Accounting Policies used in the preparation of the financial statements are appropriate and are consistently applied by the Group. There are no departures from the prescribed Accounting Standards in their adoption. Comparative information has been reclassified wherever necessary to comply with the current presentation. The Board of Directors and the Management of the Bank accept responsibility for the integrity and objectivity of these financial statements. The estimates and judgments relating to the financial statements were made on a prudent and reasonable basis, in order that the financial statements reflect true and fair view. To ensure this, the Bank has taken proper and sufficient care in installing a system of internal control and accounting records, for safeguarding assets and for preventing and detecting frauds as well as other irregularities, which is reviewed, evaluated and updated on an ongoing basis. The Board of Directors assessed the effectiveness of the Bank’s internal controls over financial reporting during the year ended 31 December 2016, as required by the Banking Act Direction No. 11 of 2007, result of which is given on the Directors Statement on Internal Control page. External Auditor’s Independent Assurance Report on the “Directors’ Statement on Internal Control” is given under Stewardship section.
It is confirmed that the Bank has adequate resources to continue its operations in the foreseeable future. Therefore, the Bank will continue to adopt the ‘going concern’ basis in preparing these financial statements.
The Bank’s internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and procedures of the Bank were consistently followed. However, there are inherent limitations that should be recognised in weighing the assurances provided by any system of internal controls and accounting.
The financial statements of the Group and Joint Venture Company were audited by Messrs KPMG. The Associate company National Asset Management Limited, is also audited by Messrs KPMG.
The Audit Committee of the Bank meets periodically with the internal auditors and the independent auditors to review the manner in which the external auditor performs their responsibilities and to discuss auditing, internal control and financial reporting issues. To ensure complete independence, the independent auditor and the internal auditors have full and free access to the members of the Audit Committee to discuss any matter of substance. Details of which are given in the ‘Audit Committee Report’.
The Audit Committee approves the audit and non-audit services provided by external auditor, Messrs KPMG, in order to ensure that the provision of such services does not impair KPMG’s independence.
We confirm that,
A R Fernando
Chief Financial Officer
20 February 2017