Find
below Format of the Independent Auditor’s Report on Standalone Financial
Statements under the Companies Act, 2013 As Applicable from Financial Year
2014-15.
INDEPENDENT AUDITORS’ REPORT
TO THE
MEMBERS OF ABC LIMITED
Report on
the Financial Statements
We have
audited the accompanying financial statements of ABC LIMITED (“the company”),
which comprise the Balance Sheet as at 31 March 20__, the Statement of Profit
and Loss, the Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management’s
Responsibility for the Financial Statements
The
Company’s Board of Directors is responsible for the matters in section 134(5) of
the Companies Act, 2013 (“the Act”) with respect to the preparation of these
financial statements that give a true and fair view of the financial position,
financial performance 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, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the provision of
the Act for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial
control, 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.
Auditor’s
Responsibility
Our
responsibility is to express an opinion on these financial statements based on
our audit.
We have
taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report
under the provisions of the Act and the Rules made thereunder.
We conducted
our audit in accordance with the Standards on Auditing specified under section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit
involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. 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. In
making those risk assessments, the auditor considers internal financial control
relevant to the Company’s preparation of the financial statements that give
true and fair view in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates
made by Company’s Directors, as well as evaluating the overall presentation of
the financial statements.
We believe
that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
In our
opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements, give the information required
by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India;
a)
in the case of the Balance Sheet, of the state of affairs of the Company as at
March 31, 20__;
b)
in the case of the Statement of Profit and Loss, of the profit for the year
ended on that date; and
c)
in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
Emphasis
of Matters
We draw
attention to the following matters in the Notes to the financial statements:
a)
Note A to the financial statements which, describes the uncertainty related to
the outcome of the lawsuit filed against the Company by ABC Company.
b)
Note B in the financial statement which indicates that the Company has
accumulated losses and its Net worth has been fully/substantially eroded, the
Company has incurred a net loss/net cash loss during the current year and
previous year(s) and, the Company current liabilities exceeded its current
assets as at the balance sheet date. These conditions, along with other matters
set forth in Note B, indicate the existence of a material uncertainty that cast
significant doubt about the Company’s ability to continue as a going concern.
However, the financial statements of the Company have been prepared on a going
concern basis for the reasons stated in the said Note.
Our opinion
is not modified in respect of these matters.
Report on
other Legal and Regulatory Requirements
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 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)
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 by us in preparing this report
d)
The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement
dealt with by this Report are in agreement with the books of account and the
returns received from the branches not visited by us.
e)
In our opinion, the aforesaid 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)
The going concern matter described in sub-paragraph (b) under the Emphasis of
Matters paragraph above, in our opinion, may have an adverse effect on the
functioning of the Company.
g)
On the basis of written representations received from the directors as on 31
March, 20__, taken on record by the Board of Directors, none of the directors
is disqualified as on 31 March, 20___, from being appointed as a director in
terms of Section 164(2) of the Act.
h)
With respect to the other matters included in the Auditor’s Report and to our
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 _____ to the financial
statements ;[or the Company does not have any pending litigations which would
impact its financial position]
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 _______ to the financial
statements; [or the Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses]
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 required to be transferred]
FOR ___________________
Chartered
Accountants
Firm Reg.
No. ___________
(________)
PARTNER
Membership
No. ___________
Place:
Dated:Thanks
CS Nikhil Kalra
csnikhilkalra@gmail.com
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