The Auditors’ Report sets out the respective responsibilities of the Directors and Auditors relating to the financial statements and this statement provides additional information.
The Directors are required by relevant statutory provisions to prepare financial statements for each financial year which give a true and fair view of the state of affairs of DFCC Bank PLC (Bank) and the Group for that year. The statutory provisions are in the Companies Act No. 07 of 2007 and Banking Act No. 30 of 1988 and amendments thereto. The application of principal qualitative characteristics and appropriate accounting standards and regulatory requirements inclusive of specific disclosures would result in financial statements that convey a true and fair view of financial performance.
The Directors’ are satisfied that the Bank and Group have the resources to continue in business for the foreseeable future and therefore, these financial statements are prepared on a going concern basis.
The financial statements for the year ended 31 December 2016 and the comparative period have been prepared and presented in accordance with Sri Lanka Accounting Standards (SLFRS and LKAS).
The Directors are responsible for keeping proper accounting records and to take reasonable steps as far as practicable, to ensure the accuracy and reliability of accounting records, to enable the preparation of financial statements. The Directors have a responsibility to take reasonable steps to safeguard the assets of the Bank. In discharging these responsibilities, the Directors have instituted a system of internal financial controls and a system for monitoring
its effectiveness. These provide reasonable but not absolute assurance of safeguarding of the Bank’s assets, maintenance of proper accounting records and the reliability of financial information.
The Board appointed Audit Committee chaired by an Independent, Non-Executive Director who possesses qualifications and experience in accountancy and audit assists the Directors to discharge their responsibility on the integrity of financial reporting system and monitoring the effectiveness and adequacy of internal control system. This Committee has made an independent assessment of the financial reporting system of the Bank and confirmed that to the best of its knowledge and belief the financial statements issued for external purposes by the Bank complied with Sri Lanka Accounting Standards and complies with the statutory provisions of the Companies Act No. 07 of 2007 and Banking Act No. 30 of 1988 as amended. The Report of the Committee is under Board Committees section.
The Directors are in agreement with the assessment of the Audit Committee on the reliability of financial reporting system of the Bank and confirm that the financial statements prepared for external use is in accordance with relevant accounting principles and regulatory requirements. As part of institutional checks and balances and accountability, in addition to this Statement of Directors’ Responsibilities in relation to financial statements, the Directors’ have included the Chief Executive’s and the Chief Financial Officer’s Responsibility Statement under Financial Reports section.
By Order of the Board,
Ms A Withana
20 February 2017