MCOM SEM III

I.

INTRODUCTION

DEFINITION:
Spicer and Pegler: "Auditing is such an examination of books of accounts and vouchers of
business, as will enable the auditors to satisfy himself that the balance sheet is properly drawn
up, so as to give a true and fair view of the state of affairs of the business and that the profit and
loss account gives true and fair view of the profit/loss for the financial period, according to the
best of information and explanation given to him and as shown by the books; and if not, in what
respect he is not satisfied."

FEATURES OF AUDIT:

Audit is a systematic and scientific examination of the books of accounts of a business;

Audit is undertaken by an independent person or body of persons who are duly qualified

for the job.

Audit is a verification of the results shown by the profit and loss account and the state of

affairs as shown by the balance sheet.

Audit is a critical review of the system of accounting and internal control.
Audit is done with the help of vouchers, documents, information and explanations

received from the authorities.

The auditor has to satisfy himself with the authenticity of the financial statements and

report that they exhibit a true and fair view of the state of affairs of the concern.
The auditor has to inspect, compare, check, review, scrutinize the vouchers supporting
the transactions and examine correspondence, minute books of shareholders, directors,
Memorandum of Association and Articles of association etc., in order to establish
correctness of the books of accounts.

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PRINCIPLES OF AUDIT:
AAS-1 describes the basic principles, which govern the auditor's professional responsibilities
and which should be complied with whenever an audit is carried out. These are:1. Integrity, objectivity and independence:
The auditor should be straightforward, honest and sincere in his approach to his professional
work. He must be fair and must not allow prejudice or bias to override his objectivity.
2. Confidentiality:
The auditor should respect the confidentiality of information acquired in the course of his work
and should not disclose any such information to a third party without specific authority or unless
there is legal or professional duty to disclose.
3. Skill and competence:
The audit should be performed and the report prepared with due professional care by persons
who have adequate training, experience and competence.
4. Work performed by others:
When the auditor delegates work to assistant* or uses work performed by other auditors or
experts, he will continue to be responsible for forming and expressing his opinion on the
financial information. The auditor should carefully direct, supervise & review work delegated by
assistants.
5. Documentation:
The auditor should document matters, which are important in providing evidence that the audit
was carried out in accordance with the basic principles.

6. Planning:

MCOM SEM III

The auditor should plan his work to enable him to conduct an effective audit in an efficient and
timely manner. Plans should be based on knowledge of client's business. They should be further
developed and revised, if required, during the course of audit.
7. Audit evidence:
The auditor should obtain sufficient appropriate audit evidence through the performance of
compliance and substantive test procedure. It will enable him to draw reasonable conclusions
there from on which he has to base his opinion on the financial information.
8. Accounting system & internal control:
The auditor should gain an understanding of the accounting system and related internal controls.
He should study and evaluate the operation of those internal controls upon which he wishes to
rely in determining the nature, timing and extent of other audit procedures.
9. Audit conclusions and reporting:
The auditor should review and assess the conclusions drawn from the audit evidence obtained
and from his knowledge of business of the entity as the basis for the expression of his opinion on
the financial information.
The audit report should contain a written expression of opinion of the financial information. It
should comply with the legal requirements. In case of a qualified opinion, adverse opinion or
disclaimer of opinion is given or reservation on any matter is to be made reasons thereof.

AUDIT REPORT

MCOM SEM III

An auditor, under Section 227 (2) of the Companies Act, 1956, is required to make a report to the
shareholders of the company whether the books of accounts examined by him exhibit true and
fair view of the state of affairs of the business.
The auditor submits his report to his client giving clear and concise information of the result of
audit performed by him. The fact or information contained in the auditor's report is not available
from any other source.
The statutory auditor of a company has to express his professional opinion about the truth and
fairness of the state of affairs of the company as shown by the Balance Sheet and of the profit or
loss as shown by the Profit and Loss Account in addition to other information in his report.
AUDIT CERTIFICATE - DEFINITION
The general purpose of an audit certificate is to give to the Commission reasonable assurance
that eligible costs (and, if relevant, the receipts) charged under the project are calculated and
claimed by the contractors in accordance with the relevant legal and financial provisions of the
FP6 legal texts, including contractual provisions.
When an auditor certifies a financial statement, it implies that the contents of the statement are
reliable as the auditor has vouched for the exactness of the data. The term certificate is,
therefore, used to mean confirmation of the truth and correctness of something after a
verification of certain exact facts. An auditor may therefore certify the circulating figures of a
newspaper or the value of imports and exports of a company.
The term certificate should not be confused with the term report'. While a certificate affirms
the truth and correctness of a fact, figure or a statement, a report is generally a statement of facts
or an expression of opinion regarding the truth and fairness of the facts, figures and statements.

DIFFERENCE BETWEEN AUDIT REPORT & AUDIT CERTIFICATE

MCOM SEM III

1. A report means simply an expression of opinions where as a Certificate means that the person
issuing or signing the certificate vouchsafes the truth of the statement made by him
2. The Auditor Report is based on facts, estimates and assumptions whereas Auditor's Certificate
is based on actual facts
3. Auditor Report is not a guarantee of the absolute correctness & accuracy of the books of
accounts. But the auditor certificate serves as a guarantee of the absolute correctness & accuracy
of the books of accounts
4. If the Auditor Report is later on found to be wrong, he cannot be held responsible since he has
given merely his opinion on the state of affairs of the company. But if the duly signed certificate
is found as wrong, he will be held responsible.
TYPE OF AUDIT REPORT
An audit report is an appraisal of a small businesss complete financial status. Completed by an
independent accounting professional, this document covers a companys assets and liabilities,
and presents the auditors educated assessment of the firms financial position and future. Audit
reports are required by law if a company is publicly traded or in an industry regulated by the
Securities and Exchange Commission (SEC). Companies seeking funding, as well as those
looking to improve internal controls, also find this information valuable. There are four types of
audit reports.
1. Unqualified Opinion
Often called a clean opinion, an unqualified opinion is an audit report that is issued when an
auditor determines that each of the financial records provided by the small business is free of any
misrepresentations. In addition, an unqualified opinion indicates that the financial records have
been maintained in accordance with the standards known as Generally Accepted Accounting
Principles (GAAP). This is the best type of report a business can receive.
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MCOM SEM III

Typically, an unqualified report consists of a title that includes the word independent. This is
done to illustrate that it was prepared by an unbiased third party. The title is followed by the main
body. Made up of three paragraphs, the main body highlights the responsibilities of the auditor,
the purpose of the audit and the auditors findings. The auditor signs and dates the document,
including his address.
2. Qualified Opinion
In situations when a companys financial records have not been maintained in accordance with
GAAP but no misrepresentations are identified, an auditor will issue a qualified opinion. The
writing of a qualified opinion is extremely similar to that of an unqualified opinion. A qualified
opinion, however, will include an additional paragraph that highlights the reason why the audit
report is not unqualified.
3. Adverse Opinion
The worst type of financial report that can be issued to a business is an adverse opinion. This
indicates that the firms financial records do not conform to GAAP. In addition, the financial
records provided by the business have been grossly misrepresented. Although this may occur by
error, it is often an indication of fraud. When this type of report is issued, a company must
correct its financial statement and have it re-audited, as investors, lenders and other requesting
parties will generally not accept it.
4. Disclaimer of Opinion
On some occasions, an auditor is unable to complete an accurate audit report. This may occur for
a variety of reasons, such as an absence of appropriate financial records. When this happens, the
auditor issues a disclaimer of opinion, stating that an opinion of the firms financial status could
not be determined.
ESSENTIALS OF GOOD AUDIT REPORT

MCOM SEM III

The essentials of good audit report are as follows:
1. Title
An auditor report must have appropriate title, such as Auditors Report. It is helpful for the
reader to identify the auditors report. It is easy to distinguish it from other reports. The
management can issue any report about the business performance. The title o the report is
essential.
2. Addressee
The addressee may be shareholder or board of director of a company. The auditor can audit
financial statements of any business unit as per agreement. The report should be appropriately
addressed as required by engagement letter and legal requirements. The report is usually
addresses to the shareholders or the board of directors.
3. Identification
The audit report should identify the financial statement that have audited. The financial statement
may include trading profit and loss accounts, balance sheet and statement of changes in financial
position and sources and application of frauds statement. The report should include the name of
the entity. Moreover the data and period covered by the financial statement are also stated in it.
4. Reference to Auditing Standards
The audit report should indicate the auditing standard or practice followed in conducting the
audit. The international auditing guidelines need assurance that the audit has been conducted as
per set standards.

5. Opinion

MCOM SEM III

The auditors report should clearly state the auditors opinion on the presentation in the financial
statement of the entitys financial position and the result of its operations. The statement give a
true and fair view is an auditors opinion. This opinion is usually based on national standard or
international accounting standards.
6. Signature
The audit report should be signed in the name of the audit firm, the personal name of the auditor
or both as appropriate.
7. Auditors Address
The address of auditor is stated in the audit report. The name of city is stated in the report for
information of the readers.
8. Date of Report
The report should be dated. It informs the reader that the auditor considered the effect on the
financial statements and in his report of events or transactions about which he become aware the
occurred up to that date.

II.

AUDIT OF A COMPANY
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MCOM SEM III

TIRTHAROOP ELECTRICALS PRIVATE LIMITED
Tirtharoop Electricals Private Limited, founded in 1987 promoted by Mr. Subhas Gokhale, at
7,Yashodeep Apt,1356 B, Shivaji Road, Panvel , Navi Mumbai ,Maharashtra 410206. The
Company is primarily engaged in providing Electrical project designing with automation &
related instrumentation. It undertakes Testing, Installation & Commissioning of electrical
fittings, erection, industrial fabrication, Supply of H.T. & L.T. switch gear, upgrade systems for
both HT & LV loads for various valued customers. It is pioneer in providing Turnkey Solution
for installation of all electrical equipments right from the stage of Designing to Implementation
electrical equipment. All the necessary approvals for commencement of this business are in
place.
BACKGROUND OF KEY MANAGEMENT PERSONNEL:

Being the Second Generation entrepreneur; Mr. Sachin Subhash Gokhale (Director) son of Mr.
Subhas Gokhale, aged 33 years holds a bachelor degree of Commerce and Diploma in Electrical
Engineering from DIESE, Pune. He is qualified Engineer with more than 10 years of qualitative
experience. He has proven track record of undertaking valued engineering initiatives,
establishing new set-ups, streamlining operations, evolving cost reduction mechanism, producing
engineering techniques and creating a team work environment to enhance productivity with new
initiatives and innovations within the organizations. He is a dynamic young and enterprising
youth with effective communication skills with great presentation skills. He has the ability to
convert adverse business environment to a favorable business affair.
Mr. Vinay Dattatraya Bhave designated as (Head Sales) aged 49 years, residing at Flat 201,
Kanak Residency, Plot No. 54, MCHS, Near Purohit Hospital, Old Panvel, Dist. Raigad,
Maharashtra-410206. He is a BTech.(Elec.) and holds Diploma in Electrical Engineering from
C.W.I.T., Pune . He is a qualified Engineer with more than 25 years of qualitative experience in
industries like Orkay Polyester, Hikal etc. Expert at planning and effecting preventive
maintenance schedules of various machineries to increase machine up time and equipment
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MCOM SEM III

reliability. He is related to various Social service organizations and is a Founder committee
member of Friends of children organization, a NGO working for poor students. A Member of
Managing Committee of Pen taluka Maternity & Children Welfare Center, a Charitable Hospital
providing Medical Assistance to Poor & Needy people. He is one of the Founder Managing
committee Member of Sobatee a NGO working for Betterment, Awareness, Education,
Environment, Medical Assistance etc for more than 6 years. He is highly influential with regards
to his contacts relating social welfare cause.
Mr. Vinit Vinayak Joshi designated as (Head - Admin & Logistic) aged 33 years is a resident of
At & Post Palaspe, Tal. Panvel, Dist. Raigad Maharashtra-410206. He holds a Master of
Commerce degree and is Finance Management graduate. He is a well known academician with
more than 10 years of qualitative experience of in guiding and training finance & accounts
students. An expert team builder and player, has an experience in different areas such as
Accounts, Administration and Customer relations. He is a visiting faculty for MBA at various
colleges such as, Mumbai School of Business, S. P. More College, Pillais College etc.
KEY DELIVERABLES BY THE COMPANY:

Overseeing breakdown and preventive maintenance of Spinning, Polyester, Test Rising,

Knitting, Utility Plants and Diesel Generating Sets.

Executing Fault fining and rectification of faults in control circuits, power circuits or in
any type of electrical breakdown in various types of equipments, like Extruders, (D.C.),
Agitators, Chillers, Compressors, Pumps, Heaters, Lifts etc.

Responsible for:

Erection of Machine Tools.

Process re-engineering.
Material Management.
Cost reduction.

Monitoring switchyard, H.T. (22 KV) and L.T. substation.

Responsible for implementing preventive maintenance of switchyard, H.T. and L.T.

breakers, transformers, PCCs, MCCs, lead acid batteries, etc.

Overhauling motors in electrical workshop.

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MCOM SEM III

Major equipments handled:

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MCOM SEM III

INDEPENDENT AUDITORS REPORT

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MCOM SEM III

To, The Members
M/s. Tirtharoop Electricals Pvt. Ltd.
Maharashtra 410 206
Report on Financial Statements:
1. We have audited the accompanying Financial Statements of M/s. Tirtharoop Electricals
Private Limited (the Company) which comprise the Balance Sheet as at 31st March 2013 and
Statement of Profit and Loss for the year ended on that date, and a summary of significant
accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements:
2. Management is responsible for the preparation of these Financial Statements that give true and
fair view of the financial position and financial performance of the Company in accordance with
the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act,
1956 (the Act). 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.
Auditors Responsibility:
3. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Standards on Auditing issued by the Institute of
Chartered Accountants of India. 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.

4. An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The Procedures selected depend on the auditors
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MCOM SEM III

judgement, including the assessment of the risks of material misstatement of the financial
statement, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the companys preparation and fair presentation of the financial
statements 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 management, as well as evaluating the overall presentation
of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our Audit opinion.

Opinion:
6. In our opinion, and to the best of our information and according to the explanations given to
us, the 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 31st March, 2013;
and
(b) in the case of Statement of Profit and Loss, of the Profit for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
7. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purpose of the 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.
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MCOM SEM III

c. The Balance Sheet and Statement of Profit and Loss dealt with by this report are in agreement
with the books of account;
d. In our opinion, the Balance Sheet and Statement of Profit and Loss comply with the
Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors as on 31st March, 2013 and
taken on record by the Board of Directors, none of the directors is disqualified as on 31st March,
2013 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274
of the Companies Act, 1956;
f. Since the Central Government has not issued any notification as to the rate at which the cess is
to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the
said section, prescribing the manner in which such cess is to be paid, no cess is due and payable
by the Company.
For XXX
CHARTERED ACCOUNTANTS
Place : Mumbai

MR. A

Date : 31/08/2013

(Proprietor)
Membership No. 132564

III.

AUDIT OF A GENERAL INSURANCE COMPANY

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MCOM SEM III

RELIANCE GENERAL INSURANCE COMPANY

Reliance General Insurance is one of the leading private general insurance companies of India.
We offer an exhaustive and customized basket of insurance products that include motor, health,
travel, student travel insurance etc with over 94 customized insurance products catering to the
corporate, SME and individual customers. In our endeavor to delight our customers, we strive to
come up with innovative products like India's first Over-The-Counter health & home insurance
policies.
To pursue our belief in providing easy access to our customers and distributors, we have 139
offices spread across 102 cities over 24 states. Apart from this, we also provide easy access to
our customers with our dedicated 24x7 call center, a transactional website, tie-ups through banks,
channel partners and brokers.
Vision
To be an insurer of World Standards and the most preferred choice for clientele at the domestic
and global level.
Mission
Our Mission is to keep the customer satisfaction as focal point of all our operations, adopt the
best international practices in underwriting, claims and customer service, be the most innovative
in product development, establish presence all over India, ensure sustained value addition to all
stake holders and to uphold Corporate Value & Corporate Governance.
Goals

Make affordable insurance accessible to all

Keep customer as focal point for all operations

Protect policy holders interests

INDEPENDENTS AUDITORS REPORT

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MCOM SEM III

To the Members of
Reliance General Insurance Company Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of RELIANCE GENERAL
INSURANCE COMPANY LIMITED (the Company) which comprises of the Balance Sheet as
at March 31, 2013, the Revenue Account, the Profit and Loss Account and the Receipts and
Payments Account for the year then ended and a summary of significant accounting policies and
other explanatory information, annexed thereto.
Managements Responsibility for the Financial Statements
2. The Companys Management is responsible for the preparation of these financial statements
that give a true and fair view of the financial position, financial performance and receipts and
payments of the Company in accordance with the requirements of the Insurance Act, 1938, the
Insurance Regulatory and Development Authority Act, 1999, the Insurance Regulatory and
Development Authority (Preparation of Financial Statements and Auditors Report of Insurance
Companies) Regulations, 2002 (the IRDA Financial Statements Regulation) and the
Companies Act, 1956, to the extent applicable and in the manner so required. This responsibility
includes the design, implementation and maintenance of internal controls 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.
Auditors Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Standards on Auditing issued by the Institute of
Chartered Accountants of India. Those standards require that we comply with the ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatements. An audit involves performing
procedures to obtain audit evidence about the amounts and the disclosures in the financial
statements. The procedures selected depend on the auditors judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In
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MCOM SEM III

making those risk assessments, the auditors consider the internal controls relevant to the
Companys preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the accounting
estimates made by the Management, 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.
Opinion
4. In our opinion and to the best of our information and according to the explanations given to us,
the financial statements have been prepared in accordance with the requirements of the Insurance
Act, 1938, the Insurance Regulatory and Development Authority Act, 1999, the IRDA Financial
Statements Regulation and the Companies Act 1956, to the extent applicable and in the manner
so required, and give a true and fair view in conformity with the accounting principles generally
accepted in India, as applicable to insurance companies:
i. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;
ii. in the case of the Revenue Account, of the surplus / (deficit), as the case maybe for the year
ended on that date;
iii. in the case of the Profit and Loss Account, of the Loss of the Company for the year ended on
that date; and
iv. in the case of the Receipts and Payments Account, of the Receipts and Payments for the year
ended on that date.

Emphasis of Matter and Other Matters

Emphasis of Matter
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MCOM SEM III

5. Without qualifying our opinion, we draw attention to Note 16 in Schedule 17 to the financial
statement,

regarding

Insurance

Regulatory

and

Development

Authority

Order

no.

IRDA/F&A/ORD/MTAP/070/03/2012 dated 22nd March 2012 relating to IMTPIP liability for

underwriting years 2009-10, 2010-11, 2011-12, wherein the Company has opted to amortise
the transitional liability on straight line basis over three years beginning with financial year 31st
March, 2012. Accordingly, 952,789 thousand has been charged to Revenue Account and the
unamortised transitional liability amounting to ` 792,765 thousand has been carried forward as
per the Order.
Other Matters
6. The actuarial valuation of liabilities with respect to claims Incurred But Not Reported (IBNR)
and claims Incurred But Not Enough Reported (IBNER) is the responsibility of the Companys
Appointed Actuary (the Appointed Actuary). The Appointed Actuary has certified to the
Company that the assumptions for such valuation are in accordance with the guidelines and
norms issued by the Insurance Regulatory and Development Authority (IRDA) and the
Actuarial Society of India in concurrence with IRDA. We have relied on the Appointed Actuarys
certificate in this regard for forming our opinion on the financial statements of the Company.
7. Audit of the previous year figures presented as comparatives was carried out by M/s Singhi &
Co., Chartered Accountants, M/s Chaturvedi & Shah, Chartered Accountants, and M/s Haribhakti
& Co., Chartered Accountants, being the auditors of the Company for that year.
Report on Other Legal and Regulatory Requirements
8. As required under Schedule C of IRDA Financial Statements Regulations, read with section
227 of the Companies Act, 1956, we report that :
a. we have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit and have found them to be satisfactory;
b. in our opinion and to the best of our information and according to the explanations given to us,
proper books of account as required by law have been maintained by the Company so far as
appears from our examination of those books;

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MCOM SEM III

c. the financial accounting systems of the Company are centralized and therefore accounting
returns are not required to be submitted by branches and other offices;
d. the Balance Sheet, Revenue Account, Profit and Loss Account and Receipts and Payments
account referred to in this report are in agreement with the books of account;
e. in our opinion and to the best of our information and according to the explanations given to us,
investments of the Company have been valued in accordance with the provisions of the
Insurance Act, 1938 and the regulations/directions issued by the IRDA in this behalf;
f. in our opinion and to the best of our information and according to the explanations given to us,
the accounting policies selected by the Company are appropriate and in compliance with
applicable accounting standards referred to in Section 211(3C) of the Companies Act, 1956 and
the Rules framed there under, except as stated in para 5 above, to the extent they are not
inconsistent with the accounting principles prescribed in the IRDA Financial Statements
Regulations and orders or directions issued by the IRDA in this behalf;
g. the Balance Sheet, Revenue Account, Profit and Loss Account and Receipts and Payments
Account referred to in this report are in compliance with the accounting standards referred to in
Section 211(3C) of the Companies Act, 1956 and the Rules framed there under, except as stated
in para 5 above, to the extent they are not inconsistent with the accounting principles prescribed
in the IRDA Financial Statements Regulations and orders or directions issued by the IRDA in
this behalf; and
h. Based on the written representations received from the Directors of the Company, as on March
31, 2013, and taken on record by the Board of Directors, we report that none of the directors are
disqualified as on March 31, 2013 from being appointed as a Director in terms of Section 274 (1)
(g) of the Companies Act, 1956.
9. As required by the IRDA Financial Statements Regulations, we have issued a separate
certificate of even date on the matters specified in paragraph 3 and 4 of Schedule C to the IRDA
Financial Statements Regulations.
For Pathak H.D. & Associates

For Singhi & Co.

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MCOM SEM III

Chartered Accountants

Chartered Accountants

Firm Registration No.107783W

Firm Registration No. 302049E

Mukesh Mehta

Nikhil Singhi

Partner

Partner

Membership No. 043495

Membership No. 061567

Place: Mumbai
Date: April 23, 2013

AUDITORS CERTIFICATE
In accordance with the information and explanations given to us and to the best of our
knowledge and belief and based on our examination of the books of accounts and other records

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MCOM SEM III

maintained by Reliance General Insurance Company Limited (the Company) for the year
ended March 31, 2013, we certify that:
1) We have reviewed the Management Report attached to the financial statements for the year
ended March 31, 2013 and have found no apparent mistake or material inconsistency with the
financial statements;
2) Based on management representations and the compliance certificate submitted to the Board
by the officers of the Company charged with compliance and the same being noted by the Board,
nothing has come to our attention which causes us to believe that the Company has not complied
with the terms and conditions of registration as per sub-section 4 of section 3 of the Insurance
Act, 1938;
3) We have verified the cash balances, to the extent considered necessary and securities relating
to Companys loans and investments as at March 31, 2013, by actual inspection or on the basis of
certificates/ confirmations received from the Custodians/Depository Participants appointed by
the Company, as the case may be;
4) The Company is not a trustee of any trust; and
5) No part of the assets of the Policyholders Funds has been directly or indirectly applied in
contravention of the provisions of the Insurance Act, 1938 relating to the application and
investments of the Policyholders Funds.The compliance with conditions stated in the regulations
is the responsibility of the Companys management. Our responsibility is to perform the abovementioned procedures on the particulars and state our findings. We performed the abovementioned procedures, in accordance with the Guidance Note on Audit Reports and Certificates
for Special Purposes issued by the Institute of Chartered Accountants of India (ICAI). The
above-mentioned procedures include examining evidence supporting the particulars on a test
basis. We have not performed an audit, the objective of which would be the expression of an
opinion on the financial statements, specified elements, accounts or items thereof, for the
purpose of this certificate. Accordingly, we do not express such opinion.
This certificate is issued to comply with Schedule C of the Insurance Regulatory and
Development Authority (Preparation of Financial Statements and Auditors Report of Insurance
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MCOM SEM III

Companies) Regulations, 2002 read with the Regulation 3 of the Regulations and may not be
suitable for any other purpose.
For Pathak H.D. & Associates

For Singhi & Co.

Chartered Accountants

Chartered Accountants

Firm Registration No.107783W

Firm Registration No. 302049E

Mukesh Mehta

Nikhil Singhi

Partner

Partner

Membership No. 043495

Membership No. 061567

Place: Mumbai
Date: April 23, 2013

IV.

CONCLUSION

The project concluded that, given the complexity and development of Company, the overall level
of compliances with the standards and codes is of high order. This project gives the correct ideas
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MCOM SEM III

about how the major areas can be found by way of effective auditing system i.e. errors, frauds,
manipulations etc. form this auditor get the clear idea show to recommend on the position.
Project also contain that how to conduct of audit of the company, what are the various procedure
through which audit of company should be done. Form auditing point of view, there is proper
follow up of work done in every organization there no misconduct of transactions is taken places
for that purpose the auditing is very important aspect in todays scenario form company and
point of view.

BIBLIOGRAPHY
https://www.reliancegeneral.co.in/insurance/about-rgi/reliance-capital.aspx
https://www.reliancegeneral.co.in/insurance/annual-report/2012-13-rgic-annual-report.pdf
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MCOM SEM III

www.niapune.com/Profiles2014-15/P363.htm

25