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Ylause4(iii)
Ylause onLoans
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Ylause 4(v) on Yontracts or arrangements
referred to in Section 301 of the Yompanies
Act,, 1956.
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Ylause 4(vii) on Internal Audit
Existence of internal audit system commensurate with size &
nature of business for:
: Listed companies or,
: Yompanies with paid up capital and reserves >50 lakhs
or,
: Average annual turnover >5 crores for 3 consecutive
years
: Documentation
  Existence of internal audit department
  Its organizational chart
  Internal audit reports
: References
  AAS 7
Ylause 4(viii) on Yost Records
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Ylause 4(xi) on default in repayment
of dues
Details of default, if any , in repayment of dues to financial
institutions, banks or debenture holders
Period and amount of default
Documentation
  Schedule showing loans taken with terms, conditions &
repayment schedule
  Details of debentures with redemption date, payment date etc
  Loan agreement, debenture trust deeds
Reference
  Yompanies Act, 1956 (section 372A)& SEBI DIP Guidelines,
2000(chapter X)
Ylause 4(xii) on loans granted
against securities
Adequacy of records & documents where loans &
advances granted on security of shares, debentures
& other securities
  Details of deficiencies , if any
Documentation
  List of loans & advances granted by pledge of security
  List of records maintained by company
  Statement of holding stating registration in company͛s name(
D-mat shares & securities)
Reference
  Yompanies Act, 1956 (section 125, 372A and Schedule VI)
Ylause 4(xiii) special statutes
to chit fund
Yompliance with provisions of any special statutes
applicable
  Yheck
a)Net Owned Funds to Deposit Liability Ratio > 1:20 as on date of
Balance Sheet
b)Yompliance with prudential norms on income recognition and
provisioning against Non Performing Assets
c) Existence of proper credit appraisal procedures
d) Repayment schedule of various loans granted by nidhi based on
the borrowers capacity to repay
Ylause 4(xiv) on dealing/trading
of securities
Maintenance of proper records of transactions and
contracts and timely recording of entries by
companies who deal or trade in shares, securities,
debentures and other investments.
  securities to be held in company͛s own name subject to
exemption under Section 49 of the Yompanies Act
Documentation
  List of records maintained
  Statement of holding stating registration in company͛s name(
D-mat shares & securities)
Reference
  Yompanies Act (section 49),AS 13
4(xv) on guarantee
Ylause4(xv)
Ylause
for others
Whether the company has given guarantee for loans taken by
others from bank or financial institutions, the terms and
conditions whereof are prejudicial to the interest of the
company
Documentation
  List of guarantees provided with details of name, amount
,period and purpose
  Board resolution
  Management representation stating reason for
guarantee
Reference
  Yompanies Act (section 372A)
Ylause 4(xvi) on use of term
loans
Whether term loan applied for purpose
obtained
Documentation
  List of loans taken
  Board resolution
  Sanction letter to verify the purpose of loan
Reference
  The Yompanies Act [section 227(1A)]
Ylause 4(xvii) on short-
short-term funds
used for long term purpose
 

  
 

  
 
 
  
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Ylause 4(xviii) on preferential
allotment
Preferential allotment of shares to parties and companies
covered in the Register maintained under section 301 of
the Yompanies Act
  Issue price of shares is prejudicial to the interest of the
company
Documentation
  List of companies, firms, parties covered u/s 301
  Board resolution for preferential allotment
  Valuation report
Reference
  The Yompanies Act (section 301),SEBI DIP Guidelines, 2000
4(xix) on debentures
Ylause4(xix)
Ylause
Yreation of security or charge for debentures
issued
Documentation
  List of debentures issued
  Board resolution for creation of charge or security
  Verify creation of charge from ROY documentation
Reference
  The Yompanies Act , SEBI Act, 1992
Ylause 4(xx) on end use of
Ylause4(xx)
public issue
Disclosure of end use of money raised by public
issues
  Verification of same by auditor
Documentation
  Yopy of prospectus
  Management representation on completeness of
disclosure
Ylause 4(xxi) on frauds
Whether any fraud on or by the company has been noticed
or reported during the year,
  if yes, the nature and amount involved is to be indicated
Documentation
  List of debentures issued
  Board resolution for creation of charge or security
  Verify creation of charge from ROY documentation
Reference
  AAS 4
BIBLOGRAPHY ʹ
1. BESTWORD͛S AUDITING(YA SURBHI
BANSAL)
2. www.icai.org/post.html
3. www.caclubindia.com