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ACKNOWLEDGEMENT
I am presenting before you the project titled Company Audit of
Tirtharoop Electricals Pvt. Ltd
I would take this opportunity to express my deep regard towards to
all those who offered valuable guidance in my hour of need. I would like
to acknowledge our sincere thanks towards our study centre, and its
facilities for their valuable guidance and suggestions that have resulted
in the successful completion of the project.
I sincerely express my sense of gratitude towards Dr. Sujata
Pandey who gave me an opportunity to work in this project and guided
me in every step of project development and I am highly obliged
towards her for her able and spontaneous guidance given in need of
necessity.
Last but not the least I would like to thank all my colleagues and
those who have been directly or indirectly associated with our project.
Thanking you all.
ADITYA SINGH
CHAPTER
NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
TOPIC
Introduction
Feature Of Company
Accounting Records And Financial
Statement Maintained By The
Company
Disclosure Of Accounting Policies
Meaning, Define And Difference In
Audit Report And Audit Certificate
Types Of Audit Report
Essentials Of Good Audit Report
About Company And Annual Report
Profit & Loss A/C And Balance Sheet
Generally Accepted Auditing
Standards
Accounting Standards
Account Scrutinized From Balance
Sheet And Profit & Loss A/C
Draft Of An Audit Report
Conclusion
INTRODU
CTION
Industrial has revolution led to the emergence of large scale
business organizations. These organizations require big
investments and the risk involved is very high. Limited resources
and unlimited liability of partners are two important limitations of
partnership in undertaking big business. Joint Stock Company
form of business organization has become extremely popular as it
provides a solution to overcome the limitations of partnership
business. The multinational companies like Coca-Cola and General
Motors have their investors and customers spread throughout the
world. The giant Indian Companies may include the name like
Reliance, Talco Bajaj Auto, Infosys Technologies, Hindustan
Unilever Ltd. , Ranbaxy Laboratories Ltd., and Larsen and Turbo
etc.
Meaning of Company
Section 3 (1) (i) of the Companies Act, 1956 defines a company as
a company formed and registered under this Act or an existing
company. Section 3 (1) (ii) Of the Act states that an existing
company means a company formed and registered under any of
the previous companies laws. This definition does not reveal the
distinctive characteristics of a company. According Chief Justice
Marshall of USA, A company is a person, artificial, invisible,
intangible, and existing only in the contemplation of the law.
Being a mere creature of law, it possesses only those properties
which the character of its creation confers upon it either expressly
or as incidental to its very existence.
FEATURES OF A COMPANY
1.Incorporated Association:
A company comes into existence only after a certificate of
incorporation has been obtained from the Registrar of Joint Stock
Companies. Without incorporation, it has no legal existence.
2. Artificial Legal Person:
A company is an artificial person created by law to achieve the
objectives for which it is
formed. A company exists only in
the contemplation of law. It is artificial person in the sense that it
is created by a process other than natural birth and does not
possess the physical attributes of a natural person.
It is invisible, intangible, immortal and exists only in the eyes of
law. It has no body, no soul and no conscience; it is regarded as
an artificial person.
3. Distinct Legal Entity:
Main Principles
Audit Report
An audit report is a written opinion of an auditor regarding an
entity's financial statements. The report is written in a standard
format, as mandated by generally accepted auditing standards
(GAAS). GAAS requires or allows certain variations in the report,
depending upon the circumstances of the audit work that the
auditor engaged in.
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 auditors report is not
available from any other source.
The statutory auditor of a company has to express
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
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 theFP6 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.
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.
8. Timeliness
A report should be prepared and presented within the stipulated
time. If a report is received late, there is no meaning of preparing
such report and no use for management. If the report is presented
in time, necessary actions may be taken.
Obviously financial data are more valuable when the events are
fresh in the minds of users. The element of time elapsing between
the events and the report determines to a large extent, the value
of financial reports. Timeliness is generally more important than a
high degree of accuracy in the figures.
TIRTHAROOP
ELECTRICALS PVT.
LTD.
About The Company
Tirtharoop Electricals Private Limited, founded in 1987 promoted
by Mr. Subhash Purushottam Gokhale, at 7, Yashodeep Apartment,
1356 B, Shivaji Road, Panvel, Maharashtra 410206. The company
is primarily engaged in providing Electrical project designing with
automation and related instrumentation. It undertakes Testing,
Installation and Commissioning of electrical fittings, erection,
industrial fabrication, supply of H.T. & L.T. switchgear, 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 equipments. All the necessary
approvals for commencement of this business are in place.
Personnel
Director
Identification
Number
311639
Name
Designation
Date of
Appointment
Subhash
Purushottam
Managing
Director
07/01/1987
311672
311724
Gokhale
Avinash
Purushottam
Gokhale
Sachin
Subhash
Gokhale
Whole-Time
Director
07/01/1987
Whole-Time
Director
01/06/200
Particulars
Capital and Liabilities:
1.Shareholders Fund
(a) Share Capital
(b)Reserves and Surplus
Mar '16
Mar '15
1473115.62 1090900.28
451200.00
451200.00
1021915.62
639700.28
1389435.00
1389435.00
1767787.96
728880.32
374422.72
660689.45
3795.47
4630338.58
1389435.00
1389435.00
2002349.33
344654.32
1121234.72
339997.82
196462.47
4482684.61
Assets:
1.Non Current Assets
(a)Fixed Assets
(i)Tangible
(ii)Intangible
(b)Long Term Loans and Advances
2.Current Assets
(a)Current Investments
(b)Inventories
(c)Trade Receivables
(d)Cash and Cash Equivalents
(e)Short Team Loan & Advances
(f)Other Current Assets
TOTAL
647022.00
322970.00
310936.00
12034.00
324052.00
3983316.58
175393.04
275980.00
3240920.47
220627.07
40080.00
30316.00
4630338.58
693255.00
369203.00
353709.00
15494.00
324052.00
3789429.61
175393.04
235098.00
3030252.50
278290.07
40080.00
30316.00
4482684.61
Particulars
(I)Revenue from Operations
(II)Other Income
(III)TOTAL REVENUE(I+II)
(IV)EXPENSES
Purchase of Stock-In-Trade
Changes in Inventories
Employee Benefit Expenses
Finance Costs
Depreciation and Amortization
Expenses
Other Expenses
TOTAL EXPENSES
(V)Profit Before Exceptional and
Extraordinary Items(III-IV)
(VI)Exceptional Items
(VII)Profit Before Extraordinary
Items and Tax
(VIII)Extraordinary Items
(IX)Profit Before Tax
(X)Tax Expense
Current Tax
Deferred Tax
(XI)Profit/Loss for the period from
Discontinuing Operations(IX-X)
(XII)Profit/Loss from Discontinuing
Operations
(XIII)Tax Expense of Discontinuing
Operations
(XIV)Profit/Loss from
Discontinuing Operations(after tax)
(XII-XIII)
(XV)Profit/Loss for the
Mar '16
Mar '15
4984998.49
4984998.49
10242318.52
32018.00
10274336.52
2331601.74
40882.00
345348.00
40010.00
6473439.95
30382.00
231729.30
68750.00
46233.00
1880472.41
4602783.15
48653.32
3066345.06
9919299.63
382215.34
-
355036.89
-
382215.34
382215.34
355036.89
355036.89
382215.34
355036.89
382215.34
355036.89
Period(XI+XIV)
General Standards
The first three GAAS are generals that address your qualifications
to be an auditor and the minimum standards for your work
product:
As an auditor, you must have both adequate technical
training and proficiency.
You are independent in both fact and appearance.
You exercise due professional care in performing your
auditing tasks.
Standards of Reporting
1. You have to state whether in the auditor's report whether
the financial statements are presented in accordance with
generally accepted accounting principles (GAAP).
2. The auditor must identify in the auditor's report those
circumstances in which such principles have not been
Yes/No
AS 1
AS 2
AS 4
AS 5
AS 6
AS 9
AS 10
AS 13
AS 14
AS 15
AS 16
AS 18
AS 20
AS 22
AS 26
Disclosure of Accounting
Policies
Valuation of Inventories
Contingencies and Events
Occurring after the Balance
Sheet Date
Net Profit or Loss for the
period, Prior Period Items and
Changes in Accounting Policies
Depreciation Accounting
Revenue Recognition
Accounting for Fixed Assets
Accounting for Investments
Accounting for Amalgamations
Employee Benefits
Borrowing Costs
Related Party Disclosures
Earnings Per Share
Accounting for Taxes on
Income
Intangible Assets
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Trade Receivables
(In Rupees)
Particulars
Outstanding for less than 6
months from the due date
Unsecured, considered
doubtful
Outstanding for more than 6
months from the due date
Unsecured, considered
doubtful
Total
As on 3103-2016
595076.00
595076.00
2645844.47
2645844.47
3240920.47
As on 3103-2015
2633349.5
0
2633349.50
396903.00
396903.00
3030252.5
0
13.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 sales amount can be checked from the amount
due from debtors in this ledger. It is also one place where we can
find each debtors closing balance.
The objectives of studying audit of debtors ledger is :1. To know about ledger (debtors).
2. To verify that there are no errors and frauds in this ledger.
3. To confirm that company has prepared debtors ledger
without any errors and frauds and it is doubt free ledger.
As on 31-03-2016
300906.00
44442.00
As on 31-03-2015
156591.00
75138.00
345348.00
231729.30
DRAFT OF AN AUDIT
REPORT
INDEPENDENT AUDITORS REPORT
To,
The Members,
M/S Tirtharoop Electricals Private Limited,
Maharashtra-410 206.
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 judgement, including the assessment of the risks of
material misstatement of the financial statement, whether
due to fraud or due to error. In making those risk
assessments, the auditor considers internal control relevant
to companys preparation and fair presentation of the
financial statements in order to design audit report
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.
Opinion:
6. In our opinion, and to best of our information and according
to the explanations given to us, the financial statements
gives 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 2016 and
(b) In the case of Statement of Profit and Loss, of the Profit
for the year ended on that date.
For XXX
CHARTERED ACCOUNTANTS
Place: Mumbai
Date: 31/06/2016
Mr. A
(Proprietor)
Membership
No. 132564
CONCLUSION