Professional Documents
Culture Documents
Audit Project 111
Audit Project 111
SEMESTER- III
ACADEMIC YEAR:2016-17
SUBMITTED BY
MISS. CHITRA VELMURUGAN
ROLL NO:25
PROJECT REPORT ON
1
ANALYSIS OF AUDIT OF A SMALL COMPANY
SEMESTER- III
ACADEMIC YEAR:2016-17
SUBMITTED BY
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER
DEGREE OF COMMERCE
MISS. CHITRA VELMURUGAN
ROLL NO: 25
2
N.E.S. RATNAM COLLEGE OF ARTS, SCIENCE AND
COMMERCE,
N.E.S. MARG, BHANDUP (WEST), MUMBAI- 400078
CERTIFICATE
INTERNAL EXAMINER:
EXTERNAL EXAMINER:
Principal
Mrs. Rina Saha
3
DECLARATION
Date:
4
ACKNOWLEDGEMENT
I owe a great many thanks to great many people who helped and
supported me doing the writing of this book.
My deepest thanks to lecturer, Prof. ASIF Baig. of the project for guiding
and correcting various documents of mine with attention and care. She/ he has
taken pains to go through my project and make necessary corrections as and
when needed.
I would also thank my institution and faculty members without whom this
project would have been a distant reality. I also extend my heartfelt thanks to my
family and well-wishers.
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INDEX
CHAPTER TOPICS PAGE NO
S
Chapter 1 Introduction Of Audit 7-10
Chapter 2 Importance, Advantages, 11-19
Disadvantages And Limitations Of
Audit
Chapter 3 The Importance Of An Audit System 20-33
To Companies And Accounting
Standards
Chapter 4 Company Profile Of Tirtharoop 34-36
Electricals Private Limited
Chapter 5 Profit And Loss A/C And Balance 37-43
Sheet And Audit Report
Chapter 6 Conclusion 44
Chapter 7 Bibliography 45-46
1.1 INTRODUCTION
If decisions are to be consistent with the intention of the decision makers, the
information used in the decision process must be reliable. Unreliable information can
cause inefficient use of resources to the detriment of the society and to the decision
makers themselves. In the lending decision example, assume that the barfly makes the
loan on the basis of misleading financial statements and the borrower Company is
ultimately unable to repay. As a result the bank has lost both the principal and the
interest. In addition, another company that could have used the funds effectively was
deprived of the money.
The word audit is derived from the Latin word audire which means to hear. It is
an important tool of management. It is concerned with making an analytical and
critical analysis of the books of accounts, checking and verification of evidence in
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support of entries appearing in the books of accounts, and ascertaining the authenticity
of the financial statements. It is also concerned with the examination of accounting
data to determine the extent of an audit examination is too made on the basis of
evidential document such as invoice, money receipts and other records by the
authorized representative of the client. Auditor has used to send for the accountants
and hear whatever they had to say in connection with the accounts. The auditor has to
look into the facts behind figures and he must certify their accuracy. Auditing is to
ascertain the balance sheet and profit and loss account that they show a true and fair
view of the financial state of affairs of a concern. The Institute of Charted Accountants
of India has issued a number of statements of standard auditing practices and
accounting standards for guidance of Auditor of India
The term audit is derived from the Latin term 'audire,' which means to hear. In
early days an auditor used to listen to the accounts read over by an accountant in order
to check them
The original objective of auditing was to detect and prevent errors and frauds
Auditing evolved and grew rapidly after the industrial revolution in the 18 th
century With the growth of the joint stock companies the ownership and management
became separate. The shareholders who were the owners needed a report from an
independent expert on the accounts of the company managed by the board of directors
who were the employees.
The objective of audit shifted and audit was expected to ascertain whether the
accounts were true and fair rather than detection of errors and frauds.
In India the companies Act 1913 made audit of company accounts compulsory
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With the increase in the size of the companies and the volume of transactions
the main objective of audit shifted to ascertaining whether the accounts were true and
fair rather than true and correct. Hence the emphasis was not on arithmetical accuracy
but on a fair representation of the financial efforts
The companies Act. 1913 also prescribed for the first time the qualification of
auditors
In conclusion it can be said that auditing has come a long way from hearing of
accounts to taking the help of computers to examine computerised accounts
1.4 DEFINITION
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For Business
Auditing is helpful for business. The error can be located through it. The location
and correction of error is possible through auditing. The true and fair information
about business is available.
Auditing is helpful for business. The discovery of fraud is possible through it. The
guilty persons can be held responsible. The auditing accounts show fair about
business.
Auditing is useful for business. Lenders for granting loans accept the auditors
accounts. The reputation of borrowers increases due to auditing. Thus auditing
accounts help the businessman to expand his activities.
Auditing is useful for business. The people can seek advise from auditors. The
auditors are professional and they know their work very well. They can spotlight
the grey area. It is the duty of the business man to act upon the advise of the
auditors.
Auditing is essential for business. There is moral check on the management and
other staff. Auditing puts the pressure on the staff of work honestly. There is no
pending work so there is less chance of errors and frauds.
6. Tax Payments
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Auditing is useful for business, tax authority accept audited accounts for
assessment of taxes. There is no further inquiry or investigation from department.
The audited accounts lessen the worries of business people.
For Owners
7. Efficiency Improves
8. Dispute is Settled
Auditing is essential for business. The audited accounts are helpful to settle the
disputes. The audited accounts become the basis of making decisions. The dispute
may relate to infringement of patents or trademarks.
Auditing is helpful for business. The audits accounts present true and fair view of
business activities. The facts and figures can be used to prepare budge and
estimates for the next years. The projected cash receipts and payments, income
statement and balance sheet can be prepared.
Auditing is helpful for business. The auditor can point out the weakness of internal
control system. The business management can take steps to remove these
weaknesses. The effective control systems are essential for large-scale business
enterprises.
Auditing is helpful for business. The auditor can make the detailed study to find of
fluctuation in profits. There are various reasons for changes in profits. The auditor
can determine the true cause of such changes.
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12. High Credit Rating
The auditing is beneficial for business. The auditing accounts increase the credit
standing of any business house. The lenders can rely on audited accounts for
granting credit facility. In fact auditing is a screening test of business entity.
The auditing is beneficial for business. The listing of securities at stock exchange
is optional. The public limited companies can get registration at stock exchange.
Stock exchange management for registration purpose accepts the audited accounts.
Auditing is beneficial for owners. The shareholders feel that their rights are
protected through auditing. They can know the performance of management.
Audited accounts help to determine the value of shares.
Auditing is helpful for partners. The sleeping partner feels satisfaction when there
are audited. The managing partners can use business property for their personal
benefit. There is moral check on managing partners.
16. Proprietors
Auditing is useful for proprietors. The audited accounts help the sole traders that
their business is going on properly. The error and fraud are pointed out auditors.
The owners can determine the efficiency of their employees or assistants.
17. Beneficiary
Auditing is valuable for beneficiaries. The auditor of a trust can nominate any
person as trustee to look after the property of a trust. Auditing can safeguard the
right of beneficiaries. There is a moral check on the trustee to follow the by laws
of trust.
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18. Deceased Estate
The auditing is helpful for dependents of decreased person. The audited accounts
presents true and fair view of financial statements. The family can rely on audited
accounts for distributing the estate of deceased person.
19. Insolvency
The auditing is beneficial for creditors. The audited accounts show true and fair
view of state of affairs of sole proprietorship or partnership. The creditor can get
their money first and then owners can get refund of capital. The audited accounts
help to settle the cases at an early date. For Government
Auditing is beneficial for government. Tax officers accept the audited accounts.
The assessment order can be issued without further clarification. There is saving of
money and time due to audited accounts. The performance of tax officers is
improved.
Auditing is essential for government policies. The true fair view is stated in
audited accounts. The stage of economic progress can be determined. The
government can take measures to raise the rate of economic growth.
Auditing is helpful for government. The private business houses may not work in
favour of general public. The government can take over such business units. The
purchase price is decided on the basis of auditing of accounts.
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24. Sale of Government Business
Auditing is useful for government. The policy can be framed on the basis of
audition accounts. The management comes to know the value of business. The
government can sell state owned unit to private sector. The bid price is settled on
audited accounts.
25. Inspectors
The auditing is helpful for government. The auditing accounts show the fair value
of all assets. The value of assets. The value of assets is the basis of tax. This issue
can be settle through audited accounts. The auditors are experts in their field. They
know all methods of property valuation. They can issue certified the government
agencies for valuation of property. For General Public
Auditing is essential for insurers. The settlement of fire or marine insurance claims
is easy through audited accounts. The policy holders and insurance company can
settle actual loss of property.
Auditing is essential for lenders. The banks and other lenders ask the borrowers to
submit audited accounts before granting loans. The audited accounts are helpful to
check the trust worthiness of customers.
Auditing is essential for creditors. They can know the true performance of their
debtors. The creditor can accept this promise only when he feels that debtor is
reliable businessman. Auditor accounts provide basic information about reliability.
Auditing is helpful for bidders. Audited accounts provide information about net
worth of any business. The people interested in purchasing the business can rely on
such information. They know the fair value of business. They can offer reasonable
price through open bidding.
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2.2 ADVANTAGES OF AUDIT
1. Audited accounts are readily accepted by Government authorities like Tax authorities
and Central banks.
2. By auditing the accounts Errors and frauds can be detected and rectified in time.
3. Audited accounts carry greater authority than the accounts which have not been
audited.
4. For accessing finance from financial institutions like Banks, previous years audited
accounts are evaluated for determining repayment capability.
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5. Regular audit of account create fear among the employees in the accounts department
and exercise a great moral influence on clients staff thereby restraining them from
commit frauds and errors.
7. In the event of loss of property by fire or on happening of the event insured against,
Audited accounts help in the early settlement of claims from the insurance company.
9. To determine the value of the business in the event of purchase or sales of the
business, audited account will be the treated as the base for the evaluation.
10. The audit of accounts by a qualified auditor also help the management to understand
the financial position of the business and also it will help the management to take
decision on various matters like report in internal control system of the organization
or setting up of an internal audit department etc.
11. If the accounts have been audited by an independent person, disputes between the
management and labor unions on payment of bonus and higher wages can be settled
amicably.
12. In the event of admission of a new partner, audited accounts will facilitate the
formation of terms and conditions for joining the new partner. Last 3 years audited
accounts will give a general idea about the growth and financial position of the
business to the new partner.
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3. Dependence on opinions of others: - Auditor has to rely on the views or opinions
given by different experts viz Lawyers, Solicitors, Engineers, Architects etc. he can
not be an expert in all the fields
4. Conflict with others: - Auditor may have differences of opinion with the
accountants, management, engineers etc. In such a case personal judgment plays an
important role. It differs from person to person.
5. Effect of inflation: - Financial statements may not disclose true picture even after
audit due to inflationary trends.
6. Corrupt practices to influence the auditors: - The management may use corrupt
practices to influence the auditors and get a favorable report about the state of affairs
of the organization.
7. No assurance: - Auditor cannot give any assurance about future profitability and
prospects of the company.
10. Detailed checking not possible: - Auditor cannot check each and every transaction.
He may be required to do test checking.
1. All transactions cannot be checked It is not possible for an auditor to check each
and every transaction; he has to check them on sample basis.
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3. Not easy to detect some frauds Its not easy for an auditor to detect the deeply laid
frauds which involves acts designed to conceal them such as forgery, false
explanation, and not recording transaction and so on.
5. Rely on experts The auditor has to rely on experts like lawyers, engineers, valuers
etc. for estimation of contingent liability and valuation of fixed assets.
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CHAPTER 3 - THE IMPORTANCE OF AN AUDIT SYSTEM
TO COMPANIES AND ACCOUNTING STANDARDS
Business Objectives
Risk of Misstatement
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audit system is crucial in preventing debilitating misstatements in a company's records
and reports.
Fraud Prevention
Internal audit serves an important role for companies in fraud prevention. Recurring
analysis of a company's operations and maintaining rigorous systems of internal
controls can prevent and detect various forms of fraud and other accounting
irregularities. Audit professionals assist in the design and modification of internal
control systems the purpose of which includes, among other things, fraud prevention.
An important part of prevention can be deterrence, and if a company is known to have
an active and diligent audit system in place, by reputation alone it may prevent an
employee or vendor from attempting a scheme to defraud the company.
Cost of Capital
The cost of capital is important for every company, regardless of its size. Cost of
capital is largely comprised of the risk associated with an investment, and if an
investment has more risk, an investor will require a higher rate of return to invest.
Strong audit systems can reduce various forms of risk in an enterprise, including its
information risk (the risk of material misstatement in financial reporting), the risk of
fraud and misappropriation of assets, as well the risk of suboptimal management due
to insufficient information on its operations.
To help you maintain your daily financial records, you should consider:
Setting up either a manual or electronic record keeping system that suits your
needs,
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Recording your business transactions accurately and promptly, How to keep
daily financial records
Maintaining good financial records starts with a good system and well-organized
business records. The system can be a simple one and does not need to be
complicated.
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Main Principles
The disclosure of the significant accounting policies as such should form part
of the financial statements and the significant accounting policies should
normally be disclosed in one place.
Any change in the accounting policies which has a material effecting the
current period or which is reasonably expected to have a material effect in later
periods should be disclosed. In the case of a change in accounting policies
which has a material effect in the current period, the amount by which any
item in the financial statements is affected by such change should also be
disclosed to the extent ascertainable. Where such amount is not ascertainable,
wholly or in part, the fact should be indicated.
Audit Report
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.
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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.
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.
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
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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.
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.
2. Qualified Opinion
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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
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
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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.
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
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
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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.
Uncertainty arising from either a limitation upon the scope of the auditors work or an
inability to obtain any evidence regarding doubts which exist in relation to an
unresolved matter.
Those having a material but not fundamental effect upon the financial
statements
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Fundamental means that the matter is such as to seriously distort or undermine the
view which is given by the financial statements to the extent that they could mislead
user groups.
An except for qualification will be given when the matter is a material but not
fundamental uncertainty or disagreement. An example of an uncertainty could be the
destruction of a part of the clients accounting records leading to a limitation of scope
being imposed upon the auditors work because audit evidence is then unavailable. An
example of a disagreement under this heading could be a failure by a client to apply a
reasonable depreciation policy to a particular class of fixed assets, however in both of
these examples the effect is not pervasive to the view which the financial statements
give as a whole.
The generally accepted auditing standards (GAAS) are the standards you use for
auditing private companies. GAAS come in three categories: general standards,
standards of fieldwork, and standards of reporting.
Keep in mind that the GAAS are the minimum standards you use for auditing private
companies. Additionally, the Public Company Accounting Oversight Board (PCAOB)
has adopted these standards for public (traded on the open market) companies. Each
audit engagement you work on may require you to perform audit work beyond whats
specified in the GAAS in order to appropriately issue an opinion that a set of financial
statements is fairly presented. You need to use professional judgment and exercise due
care in following all standards.
General standards: The first three GAAS are general standards that address your
qualifications to be an auditor and the minimum standards for your work product:
Standards of fieldwork: The next three GAAS govern how you actually do your job:
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Your work is adequately planned, and all assistants are properly supervised.
You gain an understanding of the client and its environment, including internal
controls, to assess the risk of material misstatement in the financial statements
and to plan your audit.
The evidence you gather during the audit is appropriate and sufficient to
evaluate managements assertions on the financial statements.
Standards of reporting: The last four GAAS concern information you must consider
prior to issuing your audit report:
You have to state whether the financial statements are prepared using generally
accepted accounting principles (GAAP).
Just as important is to report whether GAAP are consistently applied for all
financial accounting. Should this not be the case, you have to report any
departures.
You also have to make sure that disclosures any additional information
needed to explain the numbers on the financial statements are provided.
Lastly, you have to include your opinion as to whether the financial statements present
fairly in all material respects the financial position of the company under audit.
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AS 10 Accounting for Fixed Assets Y
AS 15 Employee Benefits Y
AS 16 Borrowing Costs Y
AS 26 Intangible Assets Y
Accounting Policies adopted by the enterprise should represent true and fair
view of the state of affairs of the financial statements
The cost of inventories should comprise all costs of purchase, costs of conversion and
other costs incurred in bringing the inventories to their present location and condition.
Inventories are valued at lower of cost or net realisable value. Specific identification
method is required when goods are not ordinarily interchangeable.
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AS-4 CONTINGENCIES AND EVENTS OCCURRING AFTER THE
BALANCE SHEET DATE
The amount of a contingent loss should be provided for by a charge in the statement of
profit and loss if it is probable that future events will confirm that, after taking into
account any related probable recovery, an asset has been impaired or a liability has
been incurred as at the balance sheet date, and a reasonable estimate of the amount of
the resulting loss can be made.
Assets and liabilities should be adjusted for events occurring after the balance sheet
date that provide additional evidence to assist the estimation of amounts relating to
conditions existing at the balance sheet date or that indicate that the fundamental
accounting assumption of going concern (i.e., the continuance of existence or
substratum of the enterprise) is not appropriate.
Basis must be consistently followed and disclosed. Any change to be quantified and
disclosed.
The cost of a fixed asset should comprise its purchase price and any
attributable cost of bringing the asset to its working condition for its intended
use.
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In case of exchange of asset, fair value of asset acquired or the net book value of asset
given up whichever is more clearly evident shall be considered.
Revaluation is permitted provided it is done for the entire class of assets. The basis of
revaluation should be disclosed.
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TIRTHAROOP ELECTRICALS PRIVATE LIMITED
34
Company Status (for eFiling) Active
Mr. VinitVinayak Joshi designated as (Head - Admin & Logistic) aged 33 years
is a resident of At & Post Palaspe, Tal. Panvel, Dist. Raigad Maharashtra-
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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.
Responsible for:
- Process re-engineering.
- Material Management.
- Cost reduction.
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I. EQUITY AND LIABILITIES
1 Shareholders' Funds 147311162 1090900.23
(a) Share Capital 2 451200.00 451200.00
(b) Reserves and Surplus 3 1021915.62 639700.28
2 Non-Current Liabilities 138343100 138343100
(a) Long-Term Borrowings 4 1399435.00 1389435.00
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No. 31-Mar-2014 31 -Mar-2013
I Revenue from Operations 17 4934998.49 10242318.52
II Other Income - 32018.00
III TOTAL REVENUE (I + II) 4934998.49 10274336.52
IV EXPENSES
Purchases of Stock-in-Trade 18 2331601.74 6473439.95
Changes in Inventories 19 -40832.000 30362.00
Employee Benefit Expenses 20 345348.00 231729.30
Finance Costs 21 40010.00 69750.00
Depreciation and Amortization Expenses 9 46233.00 43053.32
Other Expenses 22 1980472.41 3066345.06
TOTAL EXPENSES 4602733.15 9919299.63
V Profit before Exceptional and Extraordinary 332215.34 355036.89
Items and Tax (IIII-IV)
VI Exceptional Items - -
VII Profit before Extraordinary Items and Tax 332215.34 355036.89
VIII Extraordinary Items - -
IX Profit Before Tax 332215.34 355036.89
X Tax Expense
Current Tax - -
Deferred Tax - -
XI Profit/(LosaJ for the period from 332215.34 355036.89
Continuing Operations(IX-X)
XII Profit/(Loss) from Discontinuing Operations - -
XIII Tax Expense of Discontinuing Operations - -
XIV Profit/(LosaJfrom Discontinuing Operations - -
(after taxHXII-Xlll)
XV Profitless) for the Period(Xl+XIV) 332215.34 355036.89
XVI Earnings per Equity Share
-Basic - -
-Diluted - -
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Scrutiny: Scrutinizing the accounts generally and, in particular, examining the
composition of final balances; and ascertaining the extent of clearance of the balances
brought forward from the previous year particularly those relating to receivables and
payables, sale or disposal of fixed assets and of inventories.
Outstanding for lass than 6 months from the due 595076.00 2633349.50
date
Outstanding for more than months from the due 2645344.47 396903.00
date
Debtor ledger: -
These ledger accounts of customers are opened to whom trader has sold the goods, so
its other name is also sale account ledger. Because all credit sale's amount can be
checked from the amount due from debtors in this ledger. It is also one place where
we can find each debtor's closing balance.
3. To confirm that company has prepared debtors ledger without any errors
and frauds and it is doubt free ledger.
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Particulars as at 31 -Mar-2014 as at 31 -Mar-2013
It is broad in its applicability as it covers all short-term and long term employee
benefits. For example, annual paid leave (though not en cashable), long-term service
rewards, subsidised goods or services, etc. are also covered.
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Report on Financial Statements:
Auditors Responsibility:
41
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, 2014; and
(b) in the case of Statement of Profit and Loss, of the Profit for the year ended on that
date.
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.
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;
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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
CONCLUSION
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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
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www.google.com.
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