Audit Manual - SME - 2018-19 - Formats

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AUDIT MANUAL
FORMATS
SMALL & MEDIUM ENTERPRISES
(Contains New Audit Report Format 2018-19, Format of CARO 2016,
Report on Internal Financial Controls
& Board’s Report (Standard Format and for Small Companies / OPC)
2018-2019
BE HAPPY MAKE HAPPY

APPLICABILITY OF ACCOUNTING STANDARDS TO COMPANIES
APPLICABILITY OF ACCOUNTING STANDARDS TO COMPANIES
Ref. Description SMCs Non-SMCs

A S–1 Disclosures of Accounting Policies Y Y
A S–2 Valuation of Inventories Y Y
Y
A S-3 Cash Flow Statements Y
(Note 1)
Contingencies and Events occurring
A S-4 Y Y
after the Balance Sheet date
Net Profit or Loss for the period, Prior Period
A S-5 Y Y
items and changes in Accounting Policies
A S-6 Depreciation Accounting Y Y
A S-7 Construction Contracts Y Y
A S-9 Revenue Recognition Y Y
A S-10 Accounting for Fixed Assets Y Y
A S-11 The Effects of Changes in Foreign Exchange Rates Y Y
A S-12 Accounting for Government Grants Y Y
A S-13 Accounting for Investments Y Y
A S-14 Accounting for Amalgamation Y Y
Partly
A S-15 Employee Benefits Y
(Note 2)
A S-16 Borrowing Costs Y Y
A S-17 Segment Reporting N Y
A S-18 Related Party Disclosures Y Y
Partly
A S-19 Leases Y
(Note 3)
Partly
A S-20 Earnings Per Share Y
(Note 4)
Y
A S-21 Consolidated Financial Statements Y
(Note 8)
A S-22 Accounting for Taxes on Income Y Y
Accounting for Investments in Associates in Y
A S-23 Y
Consolidated Financial Statements (Note 8)
A S-24 Discontinuing Operations Y Y
Y Y
A S-25 Interim Financial Reporting
(Note 5)
A S-26 Intangible Assets Y Y
Y
A S-27 Financial Reporting of Interests in Joint Venture Y
(Note 8)
Partly
A S-28 Impairment of Assets Y
(Note 6)
Provisions, Contingent Liabilities and Partly
A S-29 Y
Contingent Assets (Note 7)
For more information check: https://www.icai.org/post.html?post_id=15769
AUDIT MANUAL 2018-2019 -2-| Page
APPLICABILITY OF ACCOUNTING STANDARDS TO NON-CORPORATE ENTITIES
APPLICABILITY OF ACCOUNTING STANDARDS TO NON-CORPORATE ENTITIES

Ref. Description Level I Level II Level III
A S–1 Disclosures of Accounting Policies Y Y Y
A S–2 Valuation of Inventories Y Y Y
A S-3 Cash Flow Statements Y N N
Contingencies and Events occurring
A S-4 Y Y Y
after the Balance Sheet date
Net Profit or Loss for the period, Prior Period
A S-5 Y Y Y
items and changes in Accounting Policies
A S-6 Depreciation Accounting Y Y Y
A S-7 Construction Contracts Y Y Y
A S-9 Revenue Recognition Y Y Y
A S-10 Accounting for Fixed Assets Y Y Y
A S-11 The Effects of Changes in Foreign Exchange Rates Y Y Y
A S-12 Accounting for Government Grants Y Y Y
A S-13 Accounting for Investments Y Y Y
A S-14 Accounting for Amalgamation Y Y Y
Partly Partly
A S-15 Employee Benefits Y
(Note 1) (Note 1)
A S-16 Borrowing Costs Y Y Y
A S-17 Segment Reporting Y N N
A S-18 Related Party Disclosures Y Y N
Partly Partly
A S-19 Leases Y
(Note 2) (Note 3)
Partly Partly
A S-20 Earnings Per Share Y
(Note 4) (Note 5)
N N
A S-21 Consolidated Financial Statements Y
(Note 9) (Note 9)
A S-22 Accounting for Taxes on Income Y Y Y
Accounting for Investments in Associates in N N
A S-23 Y
Consolidated Financial Statements (Note 9) (Note 9)
A S-24 Discontinuing Operations Y Y N
Y Y
A S-25 Interim Financial Reporting Y
(Note 6) (Note 6)
A S-26 Intangible Assets Y Y Y
N N
A S-27 Financial Reporting of Interests in Joint Venture Y
(Note 9) (Note 9)
Partly Partly
A S-28 Impairment of Assets Y
(Note 7) (Note 7)
Provisions, Contingent Liabilities and Partly Partly
A S-29 Y
Contingent Assets (Note 8) (Note 8)
For more information check: https://www.icai.org/post.html?post_id=15769

FORMAT OF AUDIT PROGRAM
Name of Entity : XYZ LIMITED FY: 2018-19 ABC& Co

Status: Company CHARTERED ACCOUNTANTS
Type of Business:
Compliance
Sl Remarks done
FINAL REVIEW BY SENIOR PARTNER:
Various abbreviations used in

Check Box (Y/N):
Sl Particulars
1 No of Sets Required
2 SMC or Level I/II/III
3 Applicability of CARO
4 Applicability of Cash Flow
Statement
5 Applicability of
Certification / Signing by CS
6 Co Secretary u/s 203(1)
7 Applicability of RBI
provisions (NBFC etc)
8 Tax Audit Applicability
9 VAT Audit Applicability
10 Transfer Price Audit
11 Cost Audit Applicability
12 Internal Audit Applicability
13 Management
Representation Letter
14 Appointment Letter
15 Validity of Digital Signature
of Signatory for ROC/IT
filing purpose
Basis for Qualified/Adverse Report (if any):
SMC/ Cash CS Co Tax GST 92E Cost Internal

3 CARO RBI MR Appt DSC
sets Level Flow cert Secy Audit Audit Audit Audit Audit
UDIN (ICAI)
Audit Report Type AOC-1 AOC-2 CFS
Partner Standard / Standalone / Consolidated


Type of Business:
AUDIT PROGRAM
Audit Team: 1)Partner- in- Charge :CA. A
2)Team Leader :
3)
4)
5)
Date of Commencement of Audit

Date of Finalisation of Audit
Basic Information
Date of Incorporation/Formation: Number of Branches: No of Employees:
Turnover - PY (Total Receipts): Nominal Capital: Paid-up Capital:
Major Product / Service: NIC Code:
Accounting Standards Applicability:The Companies Act, 2013 / ICAI
CIN: PAN: TAN:
Regn
No
GSTIN: Custom:
Others:
Directors / Shareholders As per our records Year End Audit Date
Number of Directors / Partners
Number of Shareholders / Members
Shareholding Pattern Corporates [%]
Non Corporates - related
Institutions
Govt
Others
Check List
Memorandum & Articles
In case of change of Licencesd Capacity - copy
Appointment Letter of of Association/
Auditors - NOC from thereof / Organisation
Auditors (For Audit Year) Partnership Deed/Trust
previous Auditors Chart / Operation Manual
Deed/Cert of Regnetc
If NBFC, Regn No Subsidiaries/JV/Associate RPT [AS 18]
SMCs / Non- SMCs [SMC

means 'unlisted /other than Applicability of CARO U/L – Director’s relatives &
Bank/FI/Ins [All Co (other than: shareholders Loan to Directors or any
Co./turnover≤50Cr/Borrowings≤10Cr] Bank/Ins/Sec 8 Co /OPC/Small
Co and Pvt Co withPUC+RS≤1
[Sec 73 & Companies person to whom Director
or
Cr + borrowings o/s (any time) (Acceptance of Deposits) is interested [Sec 185]
Non- Corporate Entity ≤1 Cr + total revenue≤10 Cr)] Rules, 2014]
[Level I or II or III]
F/ADT-1 SRN and Date Principal Signatory 2nd Signatory DIN (PAN)
1.
2.


Type of Business:
Special Instructions
Sl. Job (if any)
By Initials
1 Sales /Purchase
2 Vouching of Cash / Bank
3 Vouching of Cash & Credit Receipt
4 Bank Statement and Reconciliation Statement
5 Scrutiny of Current Liabilities & Unsecured Loans
6 Scrutiny of Ledgers
Opening Balances of all Accounts from Previous
7
Year’s Balance Sheet
8 Checking of Indirect Expenses from respective bills
9 Stock Valuation Checking
All Statutory Returns & Challans
10
(Excise/TDS/VAT/Service Tax/GST etc..)
11 Fixed Assets & Depreciation
12 Profit & Loss A/C & Balance Sheet
13 Stock Valuation Checking
14 All Creditors Ledgers & their Ageing Analysis

15 All Debtors Ledgers & their Ageing Analysis
16 Tax Audit form 3CD Checking
17 Rent, Rates & Taxes including Insurance Claim

18 Outstanding Liabilities& Contingent Liabilities
19 PF, BONUS & GRATUITY UNCLAIMED
20 Loan & Interest Thereon
21 Stores, Contracts, Expenses
22 Rent Receipt (Advertisement)
23 MINUTES
24 Notes on Accounts
25 Adherence to Accounting Standards

26 AUDIT REPORT
27 FINALISATION
28
Partner Team Leader

(ADDITIONAL SHEET IN CASE OF TAX AUDIT)

Type of Business:
TAX AUDIT U/S 44AB OF THE INCOME TAX ACT, 1961
Special Instructions
Sl. Job
(if any)
By Initials
1 Books of Accounts Maintained
2 Payment to Relatives 40(A)(2)(b)
3 Cash Payment Exceeding 20000 [40(A)(3)]

Unpaid Statutory Liability [PF/ESI, PT, BONUS, SERVICE TAX,
4
INTEREST ON BORROWING FROM BANKS/FIN IN]
5 Disallowed Amount
6 Loan 269SS/269T
7 Prior Period Income / Expenditure
8 Cenvat/ GST Details
9 Deductions U/Chapter VIA & Exempt Income
10 Depreciation
11 Quantitative Details
12 Ratios
13 Payment to Partners
14 B/F Losses & B/F MAT details
15 Disallowance u/sec 14A
16 Donation Made
17 TDS & TDS Returns
18 Other Items of Form 3CD
In new 3CD wef 20.08.2018:
19 Section 56(2)(viia), (viib), (ix) & (x) requirements
20 Section 94B – Thin Capitalisation

21 Section 92CE – Secondary Adjustment
22 Section 96 – GAAR – deferred till 31.03.2020

Section 269ST – Reporting details of cash receipt or payment
23
in excess of the limit
Qualifications / Observations Remarks
~ Proper books of account, to enable reporting in form 3CD, have not been maintained by the assessee.
All the information and explanations which to the best of my/our knowledge and belief were
~
necessary for the purpose of my/our audit has not been provided by the assessee.
~ Documents necessary to verify the reportable transaction were not made available.
~ Proper stock records are not maintained by the assessee.
~ Valuation of closing stock is not possible.
~ Yield/percentage of wastage is not ascertainable.
~ Records necessary to verify personal nature of expenses not maintained by the assessee.
~ TDS returns could not be verified with the books of account.
~ Records produced for verification of payments through account payee cheque were not sufficient
Amount of expense related to exempt income u/s 14A of Income-tax Act, 1961 could not be
~
ascertained
~ Creditors under Micro, Small and Medium Enterprises Development Act, 2006 are not ascertainable
~ Prior period expenses are not ascertainable from books of account.
~ Fair market value of shares u/s56 (2) (viia)/(viib) is not ascertainable
~ Reports of audits carried by Excise/Service tax Department were not made available
~ GP ratio is not ascertainable from the financial statements prepared by the assessee.
Information regarding demand raised or refund issued during the previous year under any tax laws
~
other than Income-tax Act, 1961 and Wealth tax Act, 1957 was not made available.
~ Others

FORMAT OF ENGAGEMENT LETTER (NON CORPORATE)
To (the appropriate representative of senior management)
--------------
You have requested that we audit the balance sheet of (Name of the entity) as at 31st March, 2XXX and the related
profit and loss account for the year ended on that date. We are pleased to confirm our acceptance and our
understanding of this engagement by means of this letter. Our audit will be conducted with the objective of our
expressing an opinion on the financial statements.
We will conduct our audit in accordance with the auditing standards generally accepted in India and with the
requirements of Accounting Standards as prescribed by the Institute of Chartered Accountants of India. Those
Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement presentation.
 However, having regard to the test nature of an audit, persuasive rather than conclusive nature of audit
evidence together with inherent limitations of any accounting and internal control system, there is an
unavoidable risk that even some material misstatements of financial statements, resulting from fraud, and to
a lesser extent error, if either exists, may remain undetected.
In addition to our report on the financial statements, we expect to provide you with a separate letter concerning any
material weaknesses in accounting and internal control systems which might come to our notice.
The responsibility for the preparation of financial statements on a going concern basis is that of the management.
The management is also responsible for selection and consistent application of appropriate accounting policies,
including implementation of applicable accounting standards along with proper explanation relating to any material
departures from those accounting standards. The management is also responsible for making judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the entity at the
end of the financial year and of the profit or loss of the entity for that period.
The responsibility of the management also includes the maintenance of adequate accounting records and internal
controls for safeguarding of the assets of the company and for the preventing and detecting fraud or other
irregularities. As part of our audit process, we will request from management written confirmation concerning
representations made to us in connection with the audit.
We also wish to invite your attention to the fact that our audit process is subject to ‘Peer review’ under the
Chartered Accountants Act, 1949. The reviewer may examine our working papers during the course of the peer
review.
We look forward to full cooperation with your staff and we trust that they will make available to us whatever
records; documentation and other information are requested in connection with our audit. Our fees will be billed as
the work progresses. This letter will be effective for future years unless it is terminated, amended or superseded.
Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of
the arrangements for our audit of the financial statements.
Acknowledgement on behalf of ABC& Co.

-------------------------------------by Chartered Accountants
----------------------------------- (Signature)
(Signature) (Name of the member)
Name and Designation Designation
Date Date: Place:
Note: For Formats of Engagement Letter in respect of Corporate Client, check link -
http://icai.org/post.html?post_id=11197

CONSENT & CERTIFICATE BY AUDITOR UNDER COMPANIES ACT
Auditors Consent and Certificate

[Pursuant to the provisions of Section 139 of Chapter X of the Companies Act, 2013]
Date
The Board of Directors

XYZ Limited
Kolkata-
Subject: Consent & Eligibility as Statutory Auditor of your Company
Dear Sir,
In connection with our appointment/ re-appointment as Statutory Auditors of your company for the year 2018-19in
accordance with the provisions of the Companies Act, 2013 and Rules made thereunder, We hereby certify that:
1. We hereby give our consent to be appointed as Auditor of the Company u/s 139 of the Act.
2. We are eligible for appointment/ re-appointment, and are not disqualified under the Act, the Chartered
Accountants Act, 1949 and rules or regulations made there under;
3. The proposed appointment is as per the terms provided under the Act;
4. The proposed appointment is within the limits laid down by or under the authority of the Act;
5. There is no proceedings pending against us or any of the partner of the firm with respect to professional matters
of conduct;
You are therefore requested to send us a letter of appointment in this respect and also file the necessary details /
form with the Registrar of Companies.
Thanking you, Received a copy,

Yours Faithfully, For & On Behalf of:
M/s XYZ Limited
(…………………………...)
Partner Authorised Signatory
Signature
Date:
AUDIT MANUAL 2018-2019 - 10 - | P a g e

APPOINTMENT LETTER (CORPORATE) TO AUDITOR - RATIFICATION AT AGM
[Ratification of re-appointment no more required w.e.f. 07.05.2018]
(on the letter head of auditee)
ABC& Co
Chartered Accountants
Kolkata
Subject: Ratification of Reappointment as Statutory Auditor
Dear Sirs,
This is for your information that you were appointed as Statutory Auditor of our Company in Annual General Meeting
held in 2019 for a period of 5 (five) years commencing from 2019-2020.
Further, under proviso to section 139(1), we have ratified and approved your re-appointment for the year …………….
as Statutory Auditors of our Company at the Annual General Meeting of the Company held on ………………...
The extract of Resolution passed at the Annual General Meeting is enclosed herewith for your reference.
Thanking you,
Yours truly,
For XYZ Ltd Received a copy,

For ABC & Co
Name…………………..
(DIN: …………………………..) Partner
Director Date:
Date:……………………………

APPOINTMENT LETTER (CORPORATE) TO AUDITOR – NEW APPOINTMENT
ABC & Co
Kolkata
Dear Sirs,
We are please to inform you that you have been appointed as the auditors of our company for the next five years,
beginning from 2019-2020 in the Annual General Meeting of the company held on …………………
You will hold the office till the conclusion of the fifth Annual General Meeting (next AGM being first) of the company.
The extract of Resolution passed at the Annual General Meeting is enclosed herewith for your reference.
Thanking you,
For XYZ Ltd Received a copy,

For ABC & Co
Name…………………..
(DIN: …………………………..) Partner
Director Date:
Date:……………………………

APPOINTMENT LETTER (TAX AUDIT U/SEC 44AB) TO AUDITOR
ABC& Co
Kolkata
Dear Sirs,
We are pleased to inform you that you have been appointed as the auditors of our firm u/sec 44AB of the Income
Tax Act 1961 for the year 2019-2020
This letter will be effective for future years unless it is terminated, amended or superseded.
Thanking you,
Yours truly,
On Behalf of ……………………….
Name: ……………………………..
Designation:……………………….

COMMUNICATION TO PREVIOUS AUDITOR
Date
DEF & Co
Kolkata
Kind Attn:
Subject: Appointment as Auditor of M/s XYZ Pvt Ltd, Kolkata for the year 2019-2020
Dear Sir,
Please refer to the above. In this respect we hereby bring to your kind notice that we have been appointed as
Statutory Auditors of above referred Company for the year 2019-2020
We have come to know that you were the Auditors of the Company for the immediately preceding year.
If you have any matter, which you want to bring to our knowledge in this connection, let us know within a
reasonable time period. If we do not hear anything within seven days from the date of receipt of this letter by you
we would presume that you have no objection in respect of above appointment.
Thanking you,
Yours faithfully,
(…………………….)
Partner
Received a copy of the above letter,
Authorised Signatory Date Office Seal

AUDIT REPORT FORMAT – UNLISTED COMPANY (NEW) Prepared in Accordance with a Fair Presentation Framework
INDEPENDENT AUDITOR’S REPORT
To the Members of ABC Company Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the standalone56 financial statements of ABC Company Limited (“the Company”), which
comprise the balance sheet as at 31stMarch 2019, and the statement of Profit and Loss, (statement of
changes in equity)57 and statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory information [in
which are included the Returns for the year ended on that date audited by the branch auditors of the
Company’s branches located at (location of branches)]58.
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid standalone56 financial statements give the information required by the Companies Act, 2013 in
the manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31, 2019, and its profit/loss, (changes
in equity)59 and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant to our audit of the financial
statements under the provisions of the Companies Act, 2013 and the Rules there under, 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.
Information Other than the Financial Statements and Auditor’s ReportThereon59A
The Company’s Board of Directors is responsible for the other information. The other information
comprises the information obtained at the date of this auditor’s report [is information included in X
report39, but does not include the financial statements and our auditor’s report thereon].
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of this other
information; we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone56 Financial
Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies
Act, 2013 (“the Act”) with respect to the preparation of these standalone56 financial statements that give
a true and fair view of the financial position, financial performance, (changes in equity)60 and cash flows of
the Company in accordance with the accounting principles generally accepted in India, including the
accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets
of the Company and for preventing and detecting frauds and other irregularities; 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 financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company’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 Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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
financial statements.
60AAs part of an audit in accordance with Standards, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the 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.
• 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) of the Companies Act, 2013, we are
also responsible for expressing our opinion on whether the company has adequate internal financial
controls system in place and the operating effectiveness of such controls.
or
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of 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 Company’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 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 Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
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.
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.
Other Matter
We did not audit the financial statements/ information of ………………. (number) branches included in the
standalone56 financial statements of the company whose financial statements/financial information
reflect total assets of Rs. ……..as at 31stMarch 2019 and total revenue of Rs. ……for the year ended on that
date, as considered in the standalone financial statements. The financial statements/information of these
branches have been audited by the branch auditors whose reports have been furnished to us, and our
opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based
solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we
give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.
or
This report does not include a statement on the matters specified in paragraph 3 of the
Companies (Auditor’s Report) Order 2016 (“the Order”), issued by the Central Government of
India in terms of Section 143(11) of the Act, since in our opinion and according to the
information and explanations given to us, the Order is not applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) 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.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books [and proper returns adequate for the purposes
of our audit have been received from the branches not visited by us.61]
(c) [The reports on the accounts of the branch offices of the Company audited under Section 143(8) of
the Act by branch auditors have been sent to us and have been properly dealt with by us in
preparing this report62.]
(d) The Balance Sheet, the Statement of Profit and Loss, (the Statement of Changes in Equity)63 and
the Cash Flow Statement dealt with by this Report are in agreement with the books of account [and
with the returns received from the branches not visited by us64].
(e) In our opinion, the aforesaid standalone56 financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
(f) On the basis of the written representations received from the directors as on 31 stMarch, 2019
taken on record by the Board of Directors, none of the directors is disqualified as on 31 stMarch,
2019 from being appointed as a director in terms of Section 164(2) of the Act.
(g) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
“Annexure A”.
or
This report does not include Report on the internal financial controls under clause (i) of Sub-section
3 of Section 143 of the Companies Act, 2013 (the ‘Report on internal financial controls’), since in
our opinion and according to the information and explanation given to us, the said report on
internal financial controls is not applicable to the Company basis the exemption available to the
Company under MCA notification no. G.S.R. 583(E) dated June 13, 2017, read with corrigendum
dated July 13, 2017 on reporting on internal financial controls over financial reporting;
(h) 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, in our opinion and to the best of our
information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its
financial statements – Refer Note XX to the financial statements;
or
the Company does not have any pending litigations which would impact its financial
position65
ii. The Company 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 Note XX to the financial statements;
or
the Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses.66
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company
or
following are the instances of delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company
or
there were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company67.
Place : (Place of Signature) For ABC & Co
Date : (Report Date) Chartered Accountants
Firm’s Registration No.:
ABC
Designation68
Membership No.: XXXX
UDIN:…………………….

Note: 39 – A more specific description of the other information, such as ‘the management report and chairman’s statement, may be
used to identify the information;
56 – applicable in case of CFS,
57,58,59,60,61,62,63,64 – Where Applicable;
59AOther Information [or another title if appropriate such as “Information Other than the Financial Statements and Auditor’s
Report Thereon”] [Reporting in accordance with the reporting requirements in SA 720 (Revised) – see Illustration 1 in
Appendix 2 of SA 720 (Revised).]
60A Paragraph 41(b) of this SA explains that the shaded material below can be located in an Appendix to the auditor’s report. Paragraph
41(c) explains that when law, regulation or the applicable auditing standards expressly permit, reference can be made to a website of an
appropriate authority that contains the description of the auditor’s responsibilities, rather than including this material in the auditor’s
report, provided that the description on the website addresses, and is not inconsistent with, the description of the auditor’s responsibilities
below.
65, 66, 67 - As may be applicable; 68 Partner or Proprietor, as the case may be
For more Formats check SA 700, 701, 705, 706 and 720 https://www.icai.org/new_post.html?post_id=450&c_id=141

AUDIT REPORT FORMAT – NON- CORPORATE ENTITY (NEW) Prepared in Accordance with a Fair Presentation Framework
To the Partners of ABC & Associates [or Other Appropriate Addressee]
Opinion
We have audited the financial statements of ABC & Associates (the entity), which comprise the balance
sheet as at March 31st2019, and the profit and loss account, (and statement of cash flows)70 for the year
then ended, and notes to thefinancialstatements,includingasummaryofsignificantaccountingpolicies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of
the entity as at March 31, 2019, and of its financial performance (and its cash flows)71 for the year then
ended in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of
India (ICAI).
Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the entity in accordance with the
Code of Ethics issued by ICAI and we have fulfilled our other ethical responsibilities in accordance with the
Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
72
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fair view
of the state of affairs, results of operations and cash flows of the entity in accordance with the accounting
principles generally accepted in India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the entity’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 management either intends to liquidate the entity or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the entity’s financial reporting process.

A further description of the auditor’s responsibilities for the audit of the financial statements is located at
[Organization’s] website at: [website link]. This description forms part of our auditor’s report.
Date : (Report Date)
ABC
Designation73
UDIN:…………………….
Note: 70, 71 – Where Applicable; 72 - Or other terms that are appropriate in the context of the legal framework of the
particular entity.73 - Partner or Proprietor, as the case may be
For more Formats check SA 700, 701, 705, 706 and 720 https://www.icai.org/new_post.html?post_id=450&c_id=141

AUDIT REPORT FORMAT – NON- CORPORATE ENTITY (NEW) Prepared in Accordance with a General Purpose Compliance Framework
[Appropriate Addressee]
Opinion
We have audited the financial statements of ABC & Associates (the entity), which comprise the balance
sheet as at March 31, 20X1, and the Profit and Loss Account (and the cash flow statement)75 for the year
then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements of the entity are prepared, in all material respects,
in accordance with XYZ Laws.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI. Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the entity in accordance with the
Code of Ethics issued by ICAI and we have fulfilled our other ethical responsibilities in accordance with the
Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
76
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation of the financial statements in accordance with XYZ Laws
and for such internal control as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the entity’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 management either intends to liquidate the entity or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the entity’s financial reporting process.
Paragraph 41(b) of this SA explains that the shaded material below can be located in an Appendix to the
auditor’s report. Paragraph 41(c) explains that when law, regulation or applicable auditing standards
expressly permit, reference can be made to a website of an appropriate authority that contains the
description of the auditor’s responsibilities, rather than including this material in the auditor’s report,
provided that the description on the website addresses, and is not inconsistent with, the description of the
auditor’s responsibilities below.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the 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.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
entity’s internal control.77
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of 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 entity’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 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 Company to cease to continue as a going
concern.
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.
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.
Date : (Report Date)
ABC
Designation78
UDIN:…………………….
Note: 75 – Where Applicable; 76 - Or other terms that are appropriate in the context of the legal framework of the
particular entity. 77- This sentence would be modified, as appropriate, in circumstances when the auditor also has
responsibility to issue an opinion on the effectiveness of internal control in conjunction with the audit of the
financialstatements. 78 - Partner or Proprietor, as the case may be
For more Formats check SA 700, 701, 705, 706 and 720
https://www.icai.org/new_post.html?post_id=450&c_id=141

CARO 2016 (NEW)-UNQUALIFIED STANDARD VERSION
Annexure to the Independent Auditor’s Report of even date to the members of XYZ Private Limited, on
the financial statements for the year ended 31st March 2019
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial
statements of the Company and taking into consideration the information and explanations given to us and
the books of account and other records examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.
(b) The major fixed assets of the company have been physically verified by the management at
reasonable intervals during the year and no material discrepancies were noticed on such
verification.
(c) According to the information and explanation given to us, the title deeds of the immovable
properties are held in the name of the compnay.
or
The Company does not have any fixed assets. Accordingly, the provisions of clause 3(i) of the
Order are not applicable.
The management has conducted physical verification of inventory at reasonable intervals
during the year. As informed to us, no material discrepancies were noticed on such
verification.
or
The Company does not have any inventory. Accordingly, the provisions of clause 3(ii) of the
Order are not applicable.
(iii) The Company has granted interest free secured/unsecured loans to companies, firms,
Limited Liability Partnership or other parties covered in the register maintained under Section
189 of the Act; and with respect to the same:
(a) Receipt of the principal amount and the interest is regular;
or
The schedule of repayment of the principal amount and the payment of the interest have not
been stipulated and hence we are unable to comment as to whether receipt of the principal
amount and the interest is regular;
(b) There is no overdue amount in respect of loans granted to such companies, firms, Limited
Liability Partnership or other parties, accordingly clause 3(iii)(c) of the Order is not applicable;
or
As the schedule of repayment of principal amount and interest is not stipulated, we are unable
to comment on whether the said amount is overdue or not
(c) If the amount is overdue, state the total amount overdue for more than ninety days, and
whether reasonablesteps have been taken by the company for recovery of the principal and
interest;
or

The Company has not granted any loan, secured or unsecured to companies, firms, Limited
Liability Partnership or other parties covered in the register maintained under Section 189 of
the Act. Accordingly, the provisions of clauses 3(iii)(a) to (c) of the Order are not applicable.
(iv) According to the information and explanation given to us, the company has complied with
requirements of section 185 and 186 in respect of loans, investments, guarantees or security
made by it during the year under audit;
or
According to the information and explanation given to us, the company has no loans,
investments, guarantees or security where provisions of section 185 and 186 of the
Companies Act, 2013 are to be complied with.
(v) The Company has not accepted any deposits under the directives of the Reserve Bank of
India and the provisions of Sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 amd the rules framed thereunder, where applicable. Accordingly, the
provisions of clause 3(v) of the Order are not applicable.
or
In our opinion, the Company has complied with the directives issued by the Reserve Bank of
India, the provisions of Sections 73 to 76 and other relevant provisions of the Act and the,
Companies (Acceptance of Deposits) Rules, 2014 (as amended) as applicable, with regard to
the deposits accepted. According to the information and explanations given to us, no order
has been passed by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal, in this regard.
(vi) To the best of our knowledge and belief, the Central Government has not specified
maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of
Company’s products/ services . Accordingly, the provisions of clause 3(vi) of the Order are
not applicable.
(vii) (a) The Company is regular in depositing undisputed statutory dues including provident fund,
employees’ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of
excise, value added tax, cess and any other statutory dues, as applicable, with the
appropriate authorities. Further, no undisputed amounts payable in respect thereof were
outstanding at the year-end for a period of more than six months from the date they became
payable.
(b) There are no dues in respect of income-tax or sales-tax or service tax or duty of customs or
duty of excise or value added tax that have not been deposited with the appropriate
authorities on account of any dispute.
or
The dues outstanding in respect of income-tax, sales-tax, service tax, duty of customs, duty of
excise, value added tax and cess on account of any dispute, are as follows:(A mere
representation to the concerned Department shall not be treated as a dispute)
Name of the Nature Amount Amount Paid Period to which Forum where
statute of Under Protest the amount dispute is
dues relates pending
(viii) In our opinion, the Company has not defaulted in repayment of dues to any financial
institution or a bank or to debenture-holders during the year.
or

The Company has no dues payable to a financial institution or a bank or debenture-holders

during the year. Accordingly, the provisions of clause 3(viii) of the Order are not applicable.
(ix) The Company has not raised any money by way of initial public offer or further public offer
(including debt instrument) and the company did not have any term loans outstanding during
the year. Accordingly, the provisions of clause 3(ix) of the Order are not applicable.
or
The Company has not raised any money by way of initial public offer or further public offer
(including debt instrument) and the Company has applied the term loans for the purpose for
which these loans were obtained.
(x) No fraud by the Company and on the Company by its officers or employees has been noticed
or reported during the period covered by our audit.
(xi) The provisions of the Clause 3(xi) of the Order in respect of Managerial Remuneration is not
applicable to the company.
or
According to the information and explanations given to us, the Managerial Remuneration has
been paid or provided by the company in accordance with the requisite approvals mandated
by the provisions of section 197 read with Schedule V to the Companies Act, 2013;
(xii) Company is not a Nidhi company, accordingly provisions of the Clause 3(xii) of the Order is
not applicable to the company
or
Company is a Nidhi Company and it has complied with the Net Owned Funds to Deposits in
the ratio of 1: 20 to meet out the liability and it is maintaining ten per cent unencumbered term
deposits as specified in the Nidhi Rules, 2014 to meet out the liability;
(xiii) According to the information and explanations given to us, we are of the opinion that all
transactions with related parties are in compliance with Section 177 and 188 of Companies
Act, 2013 where applicable and the details have been disclosed in the Financial Statements
etc., as required by the Accounting Standards and the Companies Act, 2013.
or
According to the information and explanations given to us, the company has not undertaken
any transactions with related parties as mentioned in Section 177 and 188 of Companies Act,
2013, accordingly the provisions of clause 3(xiii) of the Order are not applicable to the
company;
(xiv) According to the information and explanations given to us, we are of the opinion the company
has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures during the year under review. Accordingly, the provisions of clause
3(xiv) of the Order is not applicable.
or
The company has made private placement of shares under review and the requirement of
section 42 of theCompanies Act, 2013 have been complied with and according to information
and explanations given to us, the amount raised have been used for the purposes for
whichthe funds were raised;
(xv) According to the information and explanations given to us, we are of the opinion that the
company has not entered into any non-cash transactions with directors or persons connected
with him and accordingly, the provisions of clause 3(xv) of the Order is not applicable.
or
The company has entered into non-cash transactions with directors or persons connected
with him and According to the information and explanations given to us, the requirements of
section 192 of the Companies Act, 2013 have been complied with;
(xvi) According to the information and explanations given to us, we are of the opinion the company
is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934
and accordingly the provisions of clause 3(xvi) of the Order is not applicable.
or
The company is a Non-Banking Financial Company as registered under section 45-IA of the
Reserve Bank of India Act, 1934.
Place : Kolkata For ABC& Co

Date : ……………..
Firm’s Registration No.
ABC
Partner
Membership No.
Note: Reasons to be stated for unfavourable or qualified answers.-

(1) Where, in the auditor’s report, the answer to any of the questions referred to in paragraph 3 is
unfavourable or qualified, the auditor’s report shall also state the basis for such unfavourable or qualified
answer, as the case may be.
(2) Where the auditor is unable to express any opinion on any specified matter, his report shall indicate
such fact together with the reasons as to why it is not possible for him to give his opinion on the same.

FORMAT OF REPORT ON INTERNAL FINANCIAL CONTROLS
[w.e.f. 13.06.2017 not applicable to a private company:-

(i) which is a one person company or a small company; or
(ii) which has turnover less than rupees fifty crores as per latest audited financial statement and which
has aggregate borrowings from banks or financial institutions or any body corporate at any point of time
during the financial year less than rupees twenty five crore.]
‘Annexure B’ to the Independent Auditor’s Report of even date on the Financial Statements of XYZ
Private Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of XYZ Private Limited (“the
Company”) as of 31st March 2019in conjunction with our audit of the standalone financial statements of
the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls
based on the internal control over financial reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These
responsibilities include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and
errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial controls
over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Company’s internal financial controls system over financial reporting.

FORMAT OF REPORT ON INTERNAL FINANCIAL CONTROLS
Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company's internal
financial control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the
company's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial 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 financial controls
over financial reporting to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were operating
effectively as at 31st March 2019, based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
Place : Kolkata ForABC & Co

Date:………………
Firm’s Registration No.
A
Partner
Membership No.

MANAGEMENT REPRESENTATION LETTER TO AUDITOR
(on the letter head of Auditee)
To
ABC& Co,
Kolkata
Dear Sirs,
This representation letter is provided in connection with your audit of the financial statements of M/s.
XYZfor the year ended 31st Mar 2018 for the purpose of expressing an opinion as to whether the financial
statements give a true and fair view of the financial position of M/s XYZas of 31st Mar 2018 and of the
results of operations for the year then ended. We acknowledge our responsibility for preparation of
financial statements in accordance with the requirements of the other relevant statute and recognized
accounting policies and practices, including the accounting Standards issued by The Companies Act' 2013 /
The Institute of Chartered Accountants of India.
We confirm, to the best of our knowledge and belief, the following representations:
A ACCOUNTING POLICIES
The financial statements have been prepared under the Historical Cost Convention on the basis of a going
concern and in accordance with the Accounting Standards notified under The Companies Act' 2013 / The
Institute of Chartered Accountants of India, wherever applicable.
The accounting policies which are material or critical in determining the results of operations for the year
or financial position are set out in the financial statements and are consistent with those adopted in the
financial statements for the previous year. The financial statements are prepared on accrual basis unless
otherwise stated.
B ASSETS
1 The Company /Firm has a satisfactory title to all assets and there are no liens or encumbrances on the
Company /Firm’s assets, except for those that are disclosed in Notes on Accounts to the financial
statements.
2 Fixed Assets
The net book values at which fixed assets are stated in the balance sheet are arrived (a) after taking into
account all capital expenditure on additions thereto, but no expenditure properly chargeable to revenue;
(b) after eliminating the cost and accumulated depreciation relating to items sold, discarded, demolished
or destroyed:
(c) after providing adequate depreciation/amortisation on fixed assets during the period.
3 Capital Commitments
At the balance sheet date, outstanding commitments for capital expenditure wereRs------------------
4 Investment
As at balance sheet date, investment of the Company /Firm are as below:
Long Term Investment (non trade): Rs------------------
(Market value of Quoted Investment: Rs------------------)
Current Investment (trade): Rs------------------
5 Debtors, Loans and Advances
The following items appearing in the books as at the date of the Balance Sheet are considered good and
fully recoverable with the exception of those specifically shown as “doubtful” in the Balance Sheet
Sundry Debtors Rs------------------
Non Current Loans and Advances Rs------------------
Short Term Loans and Advances Rs------------------

6 Other Current Assets

Other current assets include Rs------------------ as cash in hand, Rs------------------as balances with scheduled
banks and Rs------------------in Term Deposit Account with Scheduled Bank as at Balance Sheet date. In our
opinion, other current assets have a value on realization in the ordinary course of the Company /Firm’s
business, which is at least equal to the amount at which they are stated in the balance sheet
7 Inventories
Inventories recorded in the books as at balance sheet date are based upon the physical verification by as
on that date. The material discrepancies noticed on physical verification of stocks as compared to book
records have been properly dealt with in the books of account and subsequent transactions recorded in
the accounts fairly reflect the changes in the inventories up to balance sheet date.
All goods included in the inventory are the property of the entity, none of the goods are held as consignee
for others or as bailee, and none of the goods are subject to any charge.
The basis/bases of valuation is/ are the same as that /those used in the previous year
8 Details of Inventories in hand is as below:
Raw Materials Rs------------------
Finished Goods Rs------------------
Others Rs------------------
Total Rs------------------
9 Inventories have been valued on the following basis/ bases:
------------------
C Liabilities
1 We have recorded all known liabilities in the financial statements.
2 Details of all contingent liabilities as at the end of year which does not require any accounting treatment
are as below:
------------------
3 Contingent liabilities disclosed in the notes to the financial statements do not include any contingencies
which are likely to result in a loss and which, therefore require adjustment of assets or liabilities.
4 Provisions for Claims and Losses
(i) Provision has been made in the accounts for all known losses and claims of material amounts.
(ii) Details of all major events which occurred subsequent to the Balance Sheet date, which require
adjustment of, or disclosure in the financial statements or notes thereto are as below:
------------------
(iii) Details of all statutory dues (disputed or undisputed) as on Balance Sheet date are as below:
------------------
(iv) Details of all pending litigations and its impact on financial statement are as below:
Particulars Impact on Financial Statement
(v) Details of foreseeable losses on long term contracts including derivative contracts: Rs …………….

D PROFIT AND LOSS ACCOUNT

1 Except as disclosed in the financial statements, the results for the year were not materially affected by
i) transactions of a nature not usually undertaken by the Company /Firm
ii) Circumstances of an exceptional or non-recurring nature
iii) Changes or credits relating to prior years
iv) Changes in accounting policies.
E GENERAL
1 There have been no irregularities involving management or employees who have a significant role in the
system of internal control that could have a material effect on the financial statements.
2 The financial statements are free of material misstatements, including omissions.

3 We have complied with all the relevant provisions of statute as applicable to us and our records and
minutes in this respect are up-to-date and are open for inspection in the course of your audit.
4 The Company has complied with all aspects of contractual agreements that could have a material effect
on the financial statements in the event of non-compliance. There has been no non-compliance with
requirements of regulatory authorities that could have a material effect on the financial statements in
the event of non-compliance.
5 We have no plans or intentions that may materially affect the carrying value or classification of assets and
liabilities reflected in the financial statements.
6 All the loans or deposit or repayment thereof was made by account payee cheques or demand draft only.
7 In term of section 22 of the Micro, Small & Medium Enterprises Development Act, 2006:
Sundry Creditors of the Company: Rs… Interest Paid to them: Rs…
8 We have complied with Income Tax provisions in respect of deduction of TDS.
9 We have complied provisions of GST Act, whichever are applicable and not misrepresented inputs and
outputs thereof.
10 All the payments in respect of any revenue item has been made in compliance with the provisions of
Section 40(A)(3) of the Income Tax Act’1961.
11 Other Information of Company:
Email Id Principal Contact No of No of Branches

No Employees
Unsecured Loan from Shareholders Loan to Directors &

Signatory(ies)
& Director’s Relatives Interested Parties
12 Our Books of Accounts and Other Records are kept at our address as mentioned above.

13 Others: a) We have duly complied provisions of section 185, 186 of the Companies Act, 2013 in respect of
loan, investment, security, guarantee made by us.
b) We have duly complied provisions of section 177, 188 in respect of related party transactions and also
disclosed the details thereof inFinancial Statemetnts as required by the Accounting Standards and the
Companies Act, 2013.
c) The Company has not accepted any deposits under the directives of the Reserve Bank of India and the
provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and rules
framed thereunder.
d) The Company has no dues payable to a financial institution or a bank or debenture-holders and the
company did not have any term loans outstanding during the year.
e) The Company has not accepted any preferential allotment or private placement of shares or fully or
partly convertible debentures.
f) The Company has not entered into any non-cash transactions with directors or persons connected with
him.
g) As recorded, none of the Directors are disqualified u/sec 164(2) of the Companies Act, 2013 as at BS
date.
h) Amount transferred to the Investor Education and Protection Fund: Rs Nil.
Dated: For and on behalf of ……………………………….
Place:
Director
Seal

(ADDITIONAL SHEET IN CASE OF TAX AUDIT)
TAX AUDIT U/S 44AB – Additional Information
1 Details of all immovable Properties Purchased / Sold during the year (attach extra sheet, if required):
Sl Details Purchase/Sale Amount Value as per Stamp Duty Act
2 Details of Shares Issued during the year (attach extra sheet, if required):
Sl Name No of Shares Amount (including Date of Allotment
premium)
3 Details of Investment in Shares (other than in listed companies)- attach extra sheet, if required
Sl Name No of Shares Amount Date of purchase Break-up value per
share
4 Demand raised or refund issued during the previous year under any tax laws other than Income Tax Act,
1961 and Wealth Tax Act, 1957
Sl Tax Laws Name Demand Raised Amount & Year Details of Relevant Proceedings
/ Refund Issued
5 Registration Details under various laws:

Sl Tax Laws Name Registration No Sl Tax Laws Name Registration No
1 VAT 2 CST
3 CENTRAL EXCISE DUTY 4 STATE EXCISE DUTY
5 SERVICE TAX 6 CENTRAL CUSTOM DUTY
7 GSTIN 8
9 10
6 Details of Speculation Loss (attach extra sheet, if required):
Sl Nature of Loss Amount Brief Details of Loss
7 Details of any sum received as an advance against capital asset (forfeited/ not resulted into transfer):
8 Details of any sum >Rs 50000 without consideration or immovable property without consideration or
with stamp duty value exceeds > Rs 50000:

BOARD’S REPORT - STANDARD VERSION
ABC PRIVATE LIMITED
DIRECTOR’S REPORT
To the Members,
Your Directors have pleasure in submitting their Annual Report of the Company together with the Audited
Statements of Accounts for the year ended 31st March 2018
1 FINANCIAL SUMMARY Amount in Rs
Particulars As at the end of current As at the end of previous
reporting period reporting period
Total Revenue
Total Expenses
Profit or Loss before Exceptional and
Extraordinary items and Tax
Less: Exceptional Items
Less: Extraordinary Items
Profit or Loss before Tax
Less: Current Tax
Deferred Tax
Profit or Loss After Tax
Add: Balance as per last Balance Sheet
Less: Transfer to Reserves
Balance Transferred to Balance Sheet
2 DIVIDEND
No Dividend was declared for the current financial year.
3 TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCTION AND PROTECTION FUND

The provisions of Section 125(2) of the Companies Act, 2013 do not apply as there was no dividend declared
and paid last year.
4 REVIEW OF BUSINESS OPERATIONS AND FUTURE PROSPECTS:

Your Directors are optimistic about company’s business and hopeful of better performance with increased
revenue in next year. There was no change in the nature of business of company.
5 MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY
OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENTS RELATE
AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Company occurred between the
end of the financial year to which this financial statements relate on the date of this report
6 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

The provisions of Section 134(m) of the Companies Act, 2013 do not apply to our Company. There was no
foreign exchange inflow or Outflow during the year under review.
7 STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE

COMPANY
The Company does not have any Risk Management Policy as the elements of risk threatening the Company’s
existence are very minimal.
8 DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIAL
RESPONSIBILITY INITIATIVES
The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said
provisions are not applicable.

9 PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES
ACT, 2013
There were no loans, guarantees or investments made by the Company under Section 186 of the Companies
Act, 2013 during the year under review and hence the said provision is not applicable.
or
The particulars of Loans, guarantees or investments made under Section 186 is as per financials of the company
for the year.
or
The provisions of Sec 186 is not applicable to the company, as the company is a Non-Banking Finance Company
registered with RBI.
10 PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES

There were no, material arm's length / non arm's length, contract or arrangements made with related parties as
defined under Section 188 of the Companies Act, 2013 during the year under review.
or
The particulars of Contracts or Arrangements made with related parties made pursuant to Section 188 is
furnished in Annexure B and is attached to this report.
11 EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR

DISCLAIMERS MADE BY THE AUDITORS AND THE PRACTICING COMPANY SECRETARY IN THEIR REPORTS
There are no qualifications, reservations or adverse remarks made by the Auditors in their report. The
provisions relating to submission of Secretarial Audit Report is not applicable to the Company.
12 COMPANY’S POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF REMUNERATION AND

DISCHARGE OF THEIR DUTIES
The provisions of Section 178(1) relating to constitution of Nomination and Remuneration Committee are not
applicable to the Company
13 NUMBER OF BOARD MEETINGS CONDUCTED DURING THE YEAR UNDER REVIEW

The Company has conductedFour (28/07/2017, 27/10/2017,. 09/01/2018, 30/03/2018) Board meetings during
the financial year under review. Details of number of meetings attended by each director is as below:
Name of Director X Y Z
Number of Meetings attended
14 DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board hereby submit its
responsibility Statement:
a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with
proper explanation relating to material departures;
b) the directors had selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the
company at the end of the financial year and of the profit and loss of the company for that period;
c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and
detecting fraud and other irregularities;
d) the directors had prepared the annual accounts on a going concern basis;
e) the Company being unlisted, sub clause (e) of section 134(5) of the Companies Act, 2013 pertaining to laying
down internal financial controls is not applicable to the Company; and
f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and
that such systems were adequate and operating effectively.

15 SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The Company does not have any Subsidiary, Joint venture or Associate Company during the year under review.
or
Statement containing salient features of the financial statement of Associate Company in Form AOC-1 is as
annexed with financial statement. The Company does not have any Subsidiary or Joint venture Company during
the year under review.
16 DEPOSITS
The Company has neither accepted nor renewed any deposits during the year under review.
17 DIRECTORS
There was no Director who was appointed/ceased/reelected/reappointed during the year under review.
Company is not mandatorily required to appoint any whole time Key Management Personnel (KMP).
18 DECLARATION OF INDEPENDENT DIRECTORS

The provisions of Section 149 for appointment of Independent Directors do not apply to the company.
19 ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

The Company has in place adequate internal financial controls with reference to financial statements. During
the year under review, such controls were tested and no reportable material weakness in the design or
operation were observed.
20 STATUTORY AUDITORS
M/s ABC& Co Chartered Accountants were appointed as Statutory Auditors for a period of years in the Annual
General Meeting held in the year 2014 and are eligible.
21 DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND PROVIDING VIGIL MECHANISM

The provisions of Section 177 of the Companies Act, 2013 read with Rule 6 and 7 of the Companies (Meetings of
the Board and its Powers) Rules, 2013 is not applicable to the Company.
22 SHARES
During the year under review, the company has undertaken following transactions:
Increase in Share Buy Back of Employees Stock
Sweat Equity Bonus Shares
Capital Securities Option Plan
23 DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS, COURTS AND TRIBUNALS
No significant and material order has been passed by the regulators, courts, tribunals impacting the going
concern status and Company’s operations in future.
24 ACKNOWLEDGEMENTS
Your Directors place on record their sincere thanks to bankers, business associates, consultants, and various
Government Authorities for their continued support extended to your Companies activities during the year
under review. Your Directors also acknowledges gratefully the shareholders for their support and confidence
reposed on your Company.
Date: ………………………………. FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Place: ……………………………………….. X Y
Director Director
(DIN: …………………) (DIN:………………)

BOARD’S REPORT – SMALL COMPANY AND OPC WEF 31.07.2018
ABC PRIVATE LIMITED
DIRECTOR’S REPORT
To the Members,
Your Directors have pleasure in submitting their Annual Report of the Company together with the Audited
Statements of Accounts for the year ended 31st March 2018
1 FINANCIAL SUMMARY Amount in Rs
Particulars As at the end of current As at the end of previous
reporting period reporting period
Total Revenue
Total Expenses
Profit or Loss before Exceptional and
Extraordinary items and Tax
Less: Exceptional Items
Less: Extraordinary Items
Profit or Loss before Tax
Less: Current Tax
Deferred Tax
Profit or Loss After Tax
Add: Balance as per last Balance Sheet
Less: Transfer to Reserves
Balance Transferred to Balance Sheet
2 DIVIDEND
No Dividend was declared for the current financial year.
3 TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCTION AND PROTECTION FUND

The provisions of Section 125(2) of the Companies Act, 2013 do not apply as there was no dividend declared
and paid last year.
4 REVIEW OF BUSINESS OPERATIONS AND FUTURE PROSPECTS:

Your Directors are optimistic about company’s business and hopeful of better performance with increased
revenue in next year. There was no change in the nature of business of company.
5 MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY
OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENTS RELATE
AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Company occurred between the
end of the financial year to which this financial statements relate on the date of this report
6 EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR

DISCLAIMERS MADE BY THE AUDITORS AND THE PRACTICING COMPANY SECRETARY IN THEIR REPORTS
There are no qualifications, reservations or adverse remarks made by the Auditors in their report. The
provisions relating to submission of Secretarial Audit Report is not applicable to the Company.
7 NUMBER OF BOARD MEETINGS CONDUCTED DURING THE YEAR UNDER REVIEW

The Company has conducted Four (28/07/2017, 27/10/2017,. 09/01/2018, 30/03/2018) Board meetings
during the financial year under review. Details of number of meetings attended by each director is as below:
Name of Director X Y Z
Number of Meetings attended

BOARD’S REPORT – SMALL COMPANY AND OPC WEF 31.07.2018
8 DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board hereby submit its
responsibility Statement:
a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with
proper explanation relating to material departures;
b) the directors had selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the
company at the end of the financial year and of the profit and loss of the company for that period;
c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and
detecting fraud and other irregularities;
d) the directors had prepared the annual accounts on a going concern basis;
e) the Company being unlisted, sub clause (e) of section 134(5) of the Companies Act, 2013 pertaining to laying
down internal financial controls is not applicable to the Company; and
f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and
that such systems were adequate and operating effectively.
9 JOINT VENTURES AND ASSOCIATE COMPANIES
The Company does not have anyJoint venture or Associate Company during the year under review.
or
Statement containing salient features of the financial statement of Associate Company in Form AOC-1 is as
annexed with financial statement. The Company does not have any Joint venture Company during the year
under review.
10 DEPOSITS
The Company has neither accepted nor renewed any deposits during the year under review.
11 DIRECTORS
There was no Director who was appointed/ceased/reelected/reappointed during the year under review.
Company is not mandatorily required to appoint any whole time Key Management Personnel (KMP).
12 ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

The Company has in place adequate internal financial controls with reference to financial statements. During
the year under review, such controls were tested and no reportable material weakness in the design or
operation were observed.
13 STATUTORY AUDITORS
M/s ABC & Co Chartered Accountants were appointed as Statutory Auditors for a period of years in the Annual
General Meeting held in the year 2014 and are eligible.
14 DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS, COURTS AND TRIBUNALS
No significant and material order has been passed by the regulators, courts, tribunals impacting the going
concern status and Company’s operations in future.
15 ACKNOWLEDGEMENTS
Your Directors place on record their sincere thanks to bankers, business associates, consultants, and various
Government Authorities for their continued support extended to your Companies activities during the year
under review. Your Directors also acknowledges gratefully the shareholders for their support and confidence
reposed on your Company.
Date: ………………………………. FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Place: ……………………………………….. X Y
Director Director
(DIN: …………………) (DIN:………………….)

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BE HAPPY MAKE HAPPY

APPLICABILITY OF ACCOUNTING STANDARDS TO COMPANIES

Ref. Description SMCs Non-SMCs

APPLICABILITY OF ACCOUNTING STANDARDS TO NON-CORPORATE ENTITIES

AUDIT MANUAL 2018-2019 -3-| Page

FORMAT OF AUDIT PROGRAM

Name of Entity : XYZ LIMITED FY: 2018-19 ABC& Co

FINAL REVIEW BY SENIOR PARTNER:

Various abbreviations used in

Basis for Qualified/Adverse Report (if any):

SMC/ Cash CS Co Tax GST 92E Cost Internal

AUDIT MANUAL 2018-2019 -4-| Page

Name of Entity : XYZ LIMITED FY: 2018-19 ABC& Co

Date of Commencement of Audit

If NBFC, Regn No Subsidiaries/JV/Associate RPT [AS 18]

SMCs / Non- SMCs [SMC

AUDIT MANUAL 2018-2019 -5-| Page

Name of Entity : XYZ LIMITED FY: 2018-19 ABC& Co

14 All Creditors Ledgers & their Ageing Analysis

17 Rent, Rates & Taxes including Insurance Claim

25 Adherence to Accounting Standards

AUDIT MANUAL 2018-2019 -6-| Page

Name of Entity : XYZ LIMITED FY: 2018-19 ABC& Co

1 Books of Accounts Maintained

2 Payment to Relatives 40(A)(2)(b)

3 Cash Payment Exceeding 20000 [40(A)(3)]

7 Prior Period Income / Expenditure

8 Cenvat/ GST Details

9 Deductions U/Chapter VIA & Exempt Income

14 B/F Losses & B/F MAT details

15 Disallowance u/sec 14A

17 TDS & TDS Returns

18 Other Items of Form 3CD

In new 3CD wef 20.08.2018:

19 Section 56(2)(viia), (viib), (ix) & (x) requirements

20 Section 94B – Thin Capitalisation

AUDIT MANUAL 2018-2019 -7-| Page

22 Section 96 – GAAR – deferred till 31.03.2020

~ Proper stock records are not maintained by the assessee.

~ Valuation of closing stock is not possible.

~ Yield/percentage of wastage is not ascertainable.

~ TDS returns could not be verified with the books of account.

~ Prior period expenses are not ascertainable from books of account.

~ Fair market value of shares u/s56 (2) (viia)/(viib) is not ascertainable

AUDIT MANUAL 2018-2019 -8-| Page

To (the appropriate representative of senior management)

Acknowledgement on behalf of ABC& Co.

AUDIT MANUAL 2018-2019 -9-| Page

Auditors Consent and Certificate

The Board of Directors

Subject: Consent & Eligibility as Statutory Auditor of your Company

Thanking you, Received a copy,

AUDIT MANUAL 2018-2019 - 10 - | P a g e

[Ratification of re-appointment no more required w.e.f. 07.05.2018]

(on the letter head of auditee)

Subject: Ratification of Reappointment as Statutory Auditor

For XYZ Ltd Received a copy,

(DIN: …………………………..) Partner