Auditor Report Sample Format in Word

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AUDITORS REPORT

The Members of

Autra Private Limited

Mumbai
1.         We have audited the attached balance sheet of xyz Private Limited as at 31st March 2023, and also the profit and loss account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.
2.         We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3.         As required by the Companies (Auditor’s Report) Order, 2015 issued by the Central Government of India in terms of sub-section (4A) of section 210 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
4.         Further to our comments in the Annexure referred to above, 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;
(b)   In our opinion, proper books of account as required by law have been kept by the company as far as appears from our examination of those books.
(c)    The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.
(d)   In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; except AS-15 realting to retirement benefits.
(e)    On the basis of written representations received from the Directors, as on 31st March 2023 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2023 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;
(f)     In our opinion and to the best of our information and according to the explanations given to us, the said accounts except Note No. 1(i) of Retirement Benefits, the effect of which cannot be quantified and Note No. 3 of Schedule ‘N’ for non conformation of balances, in absence of which figures as stated in books have been relied upon read together with other Accounting Policies and Notes to Accounts give the information required by the Companies Act, 1956, 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 2023;
(b)   In the case of the Profit and Loss Account, of the profit for the year ended on that date.

For abc accountants

Chartered Accountants



Place  : Mumbai                                                                                                Ghosh Basu & Associated
Dated :                                                                                                               Partner
                                                                                                                           Membership No. 4251212


Annexure to the Auditors’ Report


Annexure referred to in paragraph 3 of the Auditors’ Report to the Members of M/s. xyz (P) Limited on the accounts for the year ended 31st March, 2023.

1.      (a) The company has maintained proper records showing full particulars including     
Quantitative details and situation of fixed assets.      

(b)   All the assets have been physically verified by the management during the year. There is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.
(c)    During the year, the company has not disposed off substantial part of fixed assets.

2.      (a) The inventory has been   physically   verified   at   reasonable   intervals   by the
            Management.
(b)   The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.
(c)    On the basis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3.      (a) We are informed that the company has taken unsecured loan from two companies covered in the register maintained under Section 301 of the Act. The maximum amount involved during the year and the year-end balance of such loans aggregates to Rs. 25,517.00& Rs. 51,05,321.00 respectively.
(b)   In our opinion the rate of interest and other terms and conditions on which loans have been granted to companies, firms or other parties listed in the registers maintained under Section 301 are not, prima facie, prejudicial to the interest of the company.
(c)    The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest.
(d)   There is no overdue amount of loans granted to companies, firms or other parties listed in the registers maintained under section 301 of the Companies Act, 1956.
4.      In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods.

5.      a)   In our opinion and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under Section 301 have been so entered.
(b)  In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements entered in the registers maintained under Section 301 and has been made at prices which are reasonable having regard to prevailing market prices at the relevant time.
6.      The company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under.
7.         In our opinion, the company has an internal audit system commensurate with the size and nature of its business.
8.         The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act for any of the products of the company.

9.         (a) According  to  the  records  of  the  company, the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees’ state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other statutory dues applicable to it.
(b)   According to the information and explanations given to us and the records of the company examined by us, there are no dues of sales tax, income tax, customs duty, wealth-tax, excise duty and cess, which have not been deposited on account of any dispute.

10.  The company does not have any accumulated losses. The company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.
11.  Based on our examination and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or bank.
12.  Based on our examination of documents and records, we are of the opinion that the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13.  Para (xiii) is not applicable to the company.
14.  In our opinion, the company is not a dealer or trader in shares, securities, debentures and other investments.
15.  Based on our examination of the records and evaluation of the related internal controls, we are of the opinion that proper records have been maintained of the transaction and contracts and timely entries have been made in those records. We also report that the company has held the shares, securities, debentures and other securities in its own name.
16.  The company has not given any guarantee for loans taken by others from bank or financial institutions.
17.  In our opinion and according to the information and explanations given to us, the funds raised on short-term basis have not been used for long-term investments.
18.  We are informed that the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.
19.  The company has not issued debentures and hence requirement of reporting regarding creation of security in respect of debentures issued does not arise.
20.  The company has not raised any money by public issues.
21.  Based upon the audit procedures performed and as per information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the year.

For abc accountants

Chartered Accountants




Place: Mumbai                                                                                   Ghosh Basu & Associated
Dated :                                                                                                Partner
                                                                 Membership No. 4211212

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