Companies (Auditors Report) Order, 2015
_____Limited
Annexure
to the Auditors’ Report
The
Annexure referred to in our report to the members of ______________ (the
Company’) for the year Ended on 31st March, _________. We report
that:
(i) (a) whether the company is maintaining
proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) whether these fixed assets have
been physically verified by the management at reasonable intervals; whether any
material discrepancies were noticed on such verification and if so, whether the
same have been properly dealt with in the books of account;
(ii) (a)
whether physical verification of inventory has been conducted at reasonable
intervals by the management;
(b) are the procedures of physical verification
of inventory followed by the management reasonable and adequate in relation to
the size of the company and the nature of its business. If not, the
inadequacies in such procedures should be reported;
(c) whether the company
is maintaining proper records of inventory and whether any material
discrepancies were noticed on physical verification and if so, whether the same
have been properly dealt with in the books of account;
(iii) whether
the company has granted any loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 189 of the
Companies Act. If so,
(a) whether receipt of the principal amount and
interest arc also regular; and
(b) if overdue amount is
more than rupees one lakh, whether reasonable steps have been taken by the
company for recovery of the principal and interest;
(iv) is there an adequate internal control system
commensurate with the size of the company and the nature of its business, for
the purchase of inventory and fixed assets and for the sale of goods and
services. Whether there is a continuing failure to correct major weaknesses in
internal control system.
(v) in case the company has accepted deposits,
whether the directives issued by the Reserve Bank of India and the provisions
of sections 73 to 76 or any other relevant provisions of the Companies Act and
the rules framed there under, where applicable, have been complied with? I I
not, the nature of contraventions should be stated; If an order has been passed
by Company Law Board or National Company Law Tribunal or Reserve Bank of India
or any court or any other tribunal, whether the same has been complied with or
not?
(vi) where
maintenance of cost records has been specified by the Central Government under
sub-section (1) of section 148 of the Companies Act, whether such accounts and
records have been made and maintained;
(vii) (a)
is the company regular in depositing undisputed statutory dues including
provident fund, employees’ state insurance, income-tax, sales-tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax, cess and any
other statutory dues with the appropriate authorities and if not, the extent of
the arrears of outstanding statutory dues as at the last day of the financial
year concerned for a period of more than six months from the date they became
payable, shall be indicated by the auditor.
(b) in case dues of income tax
or sales tax or wealth tax or service tax or duty of customs or duty of excise
or value added tax or cess have not been deposited on account of any dispute,
then the amounts involved and the forum where dispute is pending shall be
mentioned. (A mere representation to the concerned Department shall not
constitute a dispute).
(c) whether the
amount required to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956)
and rules made there under has been transferred to such fund within time.
(viii) whether
in case of a company which has been registered for a period not less than five
years, its accumulated losses at the end of the financial year are not less
than fifty per cent of its net worth and whether it has incurred cash losses in
such financial year and in the immediately preceding financial year;
(ix) whether
the company has defaulted in repayment of dues to a financial institution or
bank or debenture holders? If yes, the period and amount of default to be
reported;
(x) whether
the company has given any guarantee for loans taken by others from bank or financial
institutions, the terms and conditions whereof are prejudicial to the interest
of the company;
(xi) whether
term loans were applied for the purpose for which the loans were obtained;
(xii) whether
any fraud on or by the company has been noticed or reported during the year; If
yes, the nature and the amount involved is to be indicated.
|
Place-
__________
Date-
__________________
|
for _______________
Chartered
Accountants
Firm’s
registration number: ___________
___________________
Partner
Membership
number: _________
|
*
Reasons to be stated for unfavourable or qualified answers.-
(1) The auditor's report shall also state the
reasons for such unfavourable or qualified answer, as the case may be.
(2) Where the auditor is unable to express
any opinion in answer to a particular question, his report shall indicate such
fact together with the reasons why it is not possible for him to give an answer
to such question.
