Remarks Forming Part of Form 3CB and Form 3CD Relating To ICDS

Remarks forming part of Form 3CB and Form 3CD relating to ICDS
Form 3CB
In our opinion and to the best of our information and according to examination of books of account
including other relevant documents and explanations given to us, the particulars given in the said
Form No. 3CD are true and correct subject to the following observations/qualifications:
i. The assessee is responsible for the preparation of the statement of particulars required to be
furnished under section 44AB of the Income-tax Act, 1961 annexed herewith in Form No.
3CD read with Rule 6 G (1) (b) of Income Tax Rules, 1962 that give true and correct
particulars as per the provisions of the Income-tax Act, 1961 read with Rules, Notifications,
Circulars etc. that are to be included in the Statement. This responsibility also includes
designing, implementing and maintaining internal controls, that are relevant and operating
effectively for the preparation and presentation of the particulars furnished in Form No.
3CD that are free from material misstatement, whether due to fraud or error.
ii. Our responsibility is to provide reasonable assurance about whether the particulars
furnished in Form No. 3CD as a whole are free from material misstatement, whether due to
fraud or error. We conducted our audit in accordance with the Standards on Auditing (SAs)
issued by the Institute of Chartered Accountants of India (ICAI). In order to identify and
assess the risk of material misstatement, we 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. Reasonable assurance is a high level of assurance but is not
a guarantee that an audit conducted in accordance with Standards on Auditing 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. In making those risk assessments, we
obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
iii. As part of an audit in accordance with Standards on Auditing, we exercise professional

judgement and maintain professional skepticism throughout the audit.
iv. We evaluate the appropriateness of accounting policies used and the reasonableness of the
accounting estimates and related disclosures made by the assessee as well as evaluate the
overall presentation, structure and content of the information.
v. We are also responsible for verifying the statement of particulars required to be furnished
under section 44AB of the Income-tax Act, 1961 annexed herewith in Form No. 3CD read
with Rule 6G (1) (b) of Income-tax Rules, 1962. Further, in terms of circular No 387 dated 6th
July, 1984, the scope and effect audit under section 44AB does not extend to investigational
aspects of a case. We have conducted our verification of the statement in accordance with
Guidance Note on Tax Audit under section 44AB of the Income-tax Act, 1961, issued by the
ICAI which includes test checks and concept of materiality, and also requires that we
comply with the ethical requirements of the code of ethics issued by the ICAI.
In terms of Clause 13(f) of Form 3CD:
We have given disclosures pertaining to Income Computation and Disclosure Standards

notified under Section 145(2) only to the extent applicable to the assessee.
i) ICDS I – Accounting Policies

a) The significant accounting policies adopted by the assessee are as per the Note 5,
being Notes to the financial statements.
b) As reported to us by the assessee there is no change in accounting policies as
compared to last year.
ii) ICDS II – Valuation of Inventories

Inventories comprises of Raw Materials, Work in Progress and Finished Goods. Raw
Materials are valued at cost. Work in Progress and Finished Goods are valued at lower
of cost and net realisable value.
iii) ICDS III – Construction Contracts

During the Previous Year ended 31 March 2020, the assessee has not entered into any
Construction Contracts. Accordingly, the provisions of ICDS III - Construction
Contracts are not applicable to the assessee.
iv) ICDS IV – Revenue Recognition

a) Total amount not recognised as revenue during the Previous Year ended 31 March
2020 due to lack of reasonably certainty of its ultimate collection aggregates to –
`Nil. Accordingly, there is no nature of uncertainty required to be disclosed as per
requirements of ICDS IV.
b) The assessee contends that there are no service transactions in progress at the
Previous Year end on 31 March 2020. Accordingly, the disclosures pertaining to
service transactions are not applicable.
v) ICDS V – Tangible Fixed Assets

The disclosure requirements specified under “ICDS V - Tangible Fixed Assets” have
been made in Clause No. 18 of the Form No. 3CD.
vi) ICDS VII – Government Contracts

The assessee has not received any Government Grants during the previous year ended
31st March, 2020. Accordingly, the provisions of ICDS VII are not applicable to the
assessee.
vii) ICDS IX – Borrowing Cost

a) Accounting Policy:
Borrowing costs attributable to the acquisition or construction of qualifying assets
are capitalized as part of the cost of such assets. A qualifying asset is one that
necessarily takes a substantial period of time to get ready for its intended use. All
other borrowing cost are charged to revenue
b) The assessee has not does not have any direct borrowing cost attributable to the
acquisition, construction or production of a qualifying asset. However, based on the
percentage of funds used for acquisition of asset `5,98,854 is capitalised during the
previous year ended 31 March, 2020.
viii) ICDS X - Provisions, Contingent Liabilities and Contingent Assets

The assessee does not have any provisions for contingencies or contingent assets that
need to be recognised in its books of accounts during the Previous Year ended 31
March, 2020.
For ___________________________
Proprietor/Partner/Director

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Remarks forming part of Form 3CB and Form 3CD relating to ICDS

iii. As part of an audit in accordance with Standards on Auditing, we exercise professional

In terms of Clause 13(f) of Form 3CD:

We have given disclosures pertaining to Income Computation and Disclosure Standards

i) ICDS I – Accounting Policies

ii) ICDS II – Valuation of Inventories

iii) ICDS III – Construction Contracts

iv) ICDS IV – Revenue Recognition

v) ICDS V – Tangible Fixed Assets

vi) ICDS VII – Government Contracts

vii) ICDS IX – Borrowing Cost

viii) ICDS X - Provisions, Contingent Liabilities and Contingent Assets

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