1. We have audited the accompanying Standalone Financial Statements of Axis Bank Limited (‘the Bank'), which comprise
the Standalone Balance Sheet as at 31 March 2025, the Standalone Profit And Loss Account, and the Standalone Cash
Flow Statement for the year ended on that date, and notes to the Standalone Financial Statements, including a summary
of the significant accounting policies and other explanatory information (‘the Standalone Financial Statements').
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone
Financial Statements give the information required by the Banking Regulation Act, 1949, as well as the Companies Act,
2013 (‘the Act') and circulars and guidelines issued by the Reserve Bank of India (‘the RBI'), in the manner so required for
banking companies and give a true and fair view in conformity with the Accounting Standards prescribed under section
133 of the Act, read with the Companies (Accounting Standards) Rules, 2021 (‘AS') and other accounting principles
generally accepted in India, of the State of Affairs of the Bank as at 31 March 2025, and its profit and its Cash Flows for
the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (‘SAs') specified under section 143(10) of the
Act. Our responsibilities under those SAs are further described in the Auditor's Responsibilities for the Audit of the
Standalone 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 the ethical requirements that are
relevant to our audit of the Standalone 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.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment were of most significance in our audit of the
Standalone Financial Statements of the current year. These matters were addressed in the context of our audit of the
Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. We have determined the matters described below to be the Key Audit Matters:
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Sr.
No.
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Key Audit Matter
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How the matter was addressed in our audit
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1
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Information Technology (IT) Systems and controls over financial reporting
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As the Bank operates on Core Banking Solution across its branches
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In assessing the controls over the IT systems of the Bank, we
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and asset centres, the reliability and security of Information
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involved our specialists to understand the IT control environment,
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Technology (“IT”) systems plays a key role in the business
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IT infrastructure and IT systems.
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operations. Since large volume of transactions are processed daily,
the IT controls are required to ensure that applications process
data as expected and that changes are made in an appropriate
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We conducted an assessment and identified key IT systems that
are critical for accounting and financial reporting process and
are relevant for our audit and tested their internal controls. In
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manner.
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particular:
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IT infrastructure is critical for smooth functioning and accurate
accounting and financial reporting process.
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• We obtained an understanding of the Bank's IT control
environment and key changes during the audit period that
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Due to the pervasive nature and complexity of the IT environment,
we have ascertained key IT systems used in financial reporting
process and its related controls as a key audit matter.
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may be relevant to the audit;
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Sr.
No.
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Key Audit Matter
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How the matter was addressed in our audit
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1
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Information Technology (IT) Systems and controls over financial reporting
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•
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We tested the design, implementation and operating
effectiveness of the Bank's General IT controls over the
key IT systems that are critical to accounting and financial
reporting. This included evaluation of Bank's controls for user
access management, program change management, database
management, network operations, incident management and
other IT operations performed by the Bank during the period
of audit;
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•
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We tested key automated and manual business cycle controls
and logic for system generated reports relevant to the audit;
and
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•
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We also tested compensating controls and performed
alternate procedures to assess whether there were any
unaddressed IT risks that would materially impact the
financial statements.
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2
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Income Recognition, Asset Classification and Provisioning on Advances (IRAC) as per the regulatory requirements.
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Total Loans and Advances (Net of Provision) as at 31 March 2025: INR 1,040,811 crore
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Provision for Non-Performing Advances as at 31 March 2025: INR 10,272.49 crore
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Refer Schedule 9, Schedule 17(5.3) and Schedule 18(1)- Note 1.4
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The Bank is required to comply with the Master Circular issued by
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•
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Our audit approach included testing the design, operating
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the Reserve Bank of India ('RBI') on 'Prudential Norms for Income
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effectiveness of internal controls and substantive audit
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Recognition, Asset Classification and Provisioning pertaining
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procedures in respect of income recognition, asset
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to Advances' (the' IRAC norms') and amendments thereto (“RBI
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classification and provisioning pertaining to advances. In
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guidelines”) which prescribes the norms for identification and
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particular:
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classification of Non-Performing Assets ('NPAs') and the minimum
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•
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We have evaluated and understood the Bank's internal
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provision required for such assets.
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control system in adhering to the RBI guidelines;
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The Bank is also required to apply its judgement to determine the
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•
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We have analysed and understood key IT systems/
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identification and provision required against NPAs considering
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applications used and tested the design and implementation
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various quantitative as well as qualitative factors.
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and operational effectiveness of relevant controls in relation
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As the identification of and provisioning against NPAs requires
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to income recognition, asset classification, viz., standard, sub-
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considerable level of management estimation, application of
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standard, doubtful and loss with reference to RBI guidelines
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various regulatory requirements and its significance to the overall
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and provisioning pertaining to advances; and
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audit due to stakeholder and regulatory focus, we have identified
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•
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We test checked advances to examine the validity and
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this as a key audit matter.
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•
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accuracy of the recorded amounts, provision for NPAs, and
compliance with IRAC norms.
Assessed appropriateness & the adequacy of disclosures as
per RBI guidelines relating to NPAs.
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Other Information
5. The Bank's Board of Directors are responsible for the other information. The other information comprises the
information included in the Bank's Annual Report but does not include the Standalone Financial Statements and our
auditor's report thereon. The Other Information included is expected to be made available to us after the date of this
auditor's report.
6. Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
7. In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is materially
inconsistent with the Standalone Financial Statements, or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
8. When we read the other information, if we conclude that there is a material misstatement therein, we are required
to communicate the matter to those charged with governance and take appropriate action as applicable under the
relevant laws and regulations.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
9. The Bank's Management and Board of Directors are responsible for the matters stated in section 134(5) of the Act, with
respect to the preparation of these Standalone Financial Statements that give a true and fair view of the State of Affairs,
Profit and Cash Flows of the Bank in accordance with the Accounting Standards specified under section 133 of the
Act read with the Companies (Accounting Standards) Rules, 2021, and other accounting principles generally accepted
in India and provisions of section 29 of the Banking Regulation Act, 1949 and circulars and guidelines and issued by
the RBI from time to time (‘RBI Guidelines'). This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act and the RBI Guidelines for safeguarding of the assets of the Bank
and for preventing and detecting frauds and other irregularities; selection of the appropriate accounting software for
ensuring compliance with applicable laws and regulations including those related to retention of audit logs; selection
and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent;
and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
10. In preparing the Standalone Financial Statements, the Management and the Board of Directors are responsible for
assessing the Bank's ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the Management and the Board of Directors either intends to
liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
11. The Board of Directors is also responsible for overseeing the Bank's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
12. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these Standalone Financial Statements.
13. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
13.1. Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
13.2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) the Act, we are also responsible for expressing our
opinion on whether the Bank has adequate internal financial controls with reference to Standalone Financial
Statements and the operating effectiveness of such controls.
13.3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the Management.
13.4. Conclude on the appropriateness of the Management's use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Bank's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the related disclosures in the Standalone
Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Bank to cease to continue as a going concern.
13.5. Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the
disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events
in a manner that achieves fair presentation.
14. We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
15. We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Standalone Financial Statements for the current year and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Other Matters
16. Attention is drawn to the fact that the Standalone Financial Statements of the Bank for the year ended 31 March 2024
were audited by predecessor auditors whose report dated 24 April 2024 expressed an unmodified opinion on those
Standalone Financial Statements.
Report on Other Legal and Regulatory Requirements
17. The Standalone Balance Sheet and the Standalone Profit and Loss account have been drawn up in accordance with
the provisions of section 29 of the Banking Regulation Act, 1949 and section 133 of the Act and relevant rules
issued thereunder.
18. As required by sub-section (3) of section 30 of the Banking Regulation Act, 1949, based on our audit we report that:
18.1. We have sought and obtained all the information and explanations which, to the best of our knowledge and belief,
were necessary for the purpose of our audit and have found them to be satisfactory;
18.2. The transactions of the Bank, which have come to our notice during the course of our audit, have been within the
powers of the Bank; and
18.3. Since the key operations of the Bank are automated with the key applications integrated to the core banking
system, the audit is carried out centrally, as all the necessary records and data required for the purposes of our
audit are available therein. We have visited 92 branches (including credit units) to examine the records maintained
at such branches for the purpose of our audit.
19. Further, as required by Section 143(3) of the Act based on our audit we report, to the extent applicable, that:
19.1. We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
19.2. In our opinion, proper books of accounts as required by law have been kept by the Bank, so far as it appears from
our examination of those books.
19.3. The Standalone Balance Sheet, the Standalone Profit And Loss Account, and the Standalone Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
19.4. In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified
under Section 133 of the Act read with the relevant rules thereunder to the extent they are not inconsistent with
the accounting policies prescribed by the RBI.
19.5. On the basis of the written representations received from the directors as on 31 March 2025 taken on record
by the Board of Directors, none of the directors are disqualified as on 31 March 2025 from being appointed as a
director in terms of Section 164(2) of the Act.
19.6. With respect to the adequacy of the internal financial controls with reference to the Standalone Financial Statements
of the Bank and the operating effectiveness of such controls, refer to our separate Report in ‘Annexure A'.
19.7. With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of
Section 197(16) of the Act, as amended; the Bank is a Banking Company as defined under Banking Regulation Act,
1949. Accordingly, the requirements prescribed under Section 197 of the Act, do not apply.
20. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the
explanations given to us:
20.1. The Bank has disclosed the impact of pending litigations on its financial position in its Standalone Financial
Statements - Refer Schedule 12 - Contingent Liabilities to the Standalone Financial Statements;
20.2. The Bank has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Schedule 5 and 12 read
with Note No. 2.14 of Schedule 18 to the Standalone Financial Statements;
20.3. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Bank.
20.4. The Management has represented, to best of their knowledge and belief, that no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Bank to or in any other person(s) or entity(ies), including foreign entities (‘Intermediaries'), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the Bank (‘Ultimate
Beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
20.5. The Management has represented, to best of their knowledge and belief, that no funds have been received by
the Bank from any person(s) or entity(ies), including foreign entities (‘Funding Parties'), with the understanding,
whether recorded in writing or otherwise, that the Bank shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate
Beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
20.6. Based on such audit procedures, that have been considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representation under para 20.4 and 20.5
contain any material misstatement.
20.7. In our opinion and according to the information and explanations given to us, the dividend declared and / or paid
during the year by the Bank is in compliance with Section 123 of the Act.
20.8. Based on our examination which included test checks, the Bank has used an accounting software for maintaining
its books of account which has a feature of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit
we did not come across any instance of audit trail feature being tampered with.
Additionally, the audit trail has been preserved by the Bank as per the statutory requirements for record retention.
For M M Nissim & Co LLP For KKC & Associates LLP
Chartered Accountants Chartered Accountants
Firm Registration Number: 107122W/W100672 (formerly Khimji Kunverji & Co LLP)
Firm Registration Number: 105146W/W100621
Sanjay Khemani Gautam Shah
Partner Partner
ICAI Membership No: 044577 ICAI Membership No: 117348
UDIN: 25044577BMOBDU8496 UDIN: 25117348BMOBBU3174
Place: Mumbai Place: Mumbai
Date: 24 April 2025 Date: 24 April 2025
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