AUDIT PROGRAM Client
: _____ : _____ ___________________________________
For the period : _____________ ____________________ _____________ _____________ _____________ ______ Brief Particulars
1. Check Check out the the previous previous year’ year’s s balances balances & comp comparat aratives ives !!" !!" ## & #$% #.
"har "hare e Cap Capital ital (a) (a) Conf Confir irm m Auth Author oris ised ed & Issu Issued ed Shar Share e Capi Capita tall with with Stat Statut utor ory y books. 2. Check Check incre increase ase in in Author Authorise ised d Capita Capitall with ‘Form with ‘Form No. 5’ and resolutions passed. 3.
erify rify tha that Autho uthori rise sed! d! ssued' "ubscribed and "aid#up "aid#up Capital is properly classified. $Schedule#I! "art#I%.
.
Chec Check k incr increa ease se in "aid "aid#u #up p Capit apital al with with ‘Form No. 2’ and resolutions and note the details of shares issued.
'. Check Check whethe whetherr Share Share Certif Certifica icates tes for fresh issue issue of shares shares ha*e been issued or not (ithin ) months. months . +.
Issu Issue e of shar shares es for for cons consid ider erat atio ion n othe otherr tha than cash cash to be disclosed separately. $Schedule#I! "art#I%.
,.
Issu Issue e of shar shares es by way way of full fully y paid paid bonu bonus s shar shares es to be disclosed separately. $Schedule#I! "art#I%.
-. Calls Calls in arrea arrears rs to be show shown n by way of ded deduct uction ion from from the the paid#up capital. $Schedule#I! "art#I%. . /orfe /orfeite ited d shares shares to be show shown n by way of additi addition on to paid#u paid#up p capital. $Schedule#I! "art#I%. 01. Check Check whether the Co. has made any preferential preferential allotmen allotmentt of shares shares to parties parties co*ered in reister reister maintained maintained under section 310 of the Act. If so whether the price at which the shares ha*e been issued is preudicial to the Co. $CA45 67*iii8%. 00. Check Check whether whether the manaem manaement ent has disclosed disclosed the end use of money raised by public issue and the same has been *erified. $CA456778%.
). Rese Reserv rves es and and "ur "urpl plus us (a) (a) eri erify fy tha that 4ese 4eser* r*es es and and Surp Surplu lus s is prop proper erly ly clas classi sifi fied ed.. $Schedule#I! $Schedule#I! "art#I%. (b) (b) eri erify fy the the re*a re*alu luat atio ion n rese reser* r*e e if any any & any any adu adust stme ment nt for for impairment loss & depreciation. $AS#2- and AS#01% (c) 9nsure 9nsure that that ade:u ade:uate ate trans transfer fer to ;ene ;eneral ral 4eser 4eser*e *e is made made before before declarati declaration on of di*iden di*idend d e7ceedin e7ceedin 01< accordin accordin to =>he =>he Compa Companie nies s (>rans (>ransfer fer of profit profit to 4eser* 4eser*es) es) 4ules! 4ules! 0,'=and 0,'= and in the case of dividends bein* declared out of rese reserv rves es ade+ ade+ua uate te comp compli lian ance ce is bein bein* * made ade to companies ,eclara ,eclaration tion of ,ividen ,ividends ds out of Reserve Reserves% s%
1
Perfor med By
Remarks
rules '1-$.
/. "ecur "ecured ed & 0nse 0nsecur cured ed oans oans (a) 4econcil 4econcile e the balan balance ce as shown shown in in books books of accoun accountt with that that of balance confirmation by ?anks@ Institutions@5ther enders. 2.
eri erify fy the the secu securi riti ties es for Secur Secured ed loans loans from from ‘Register ‘Register of and ‘Form (Mod Charges’ an (Modifi ifica catio tion n of Charg Charge) e) ! "#$ Registration Registration of Charges %’ filed filed with 45C.
3. eri erify fy that that sec secur ured ed loa loans ns and and unsecured loans are loans are properly classified. $Schedule#I! "art#I%. . oan oans s from from Bire Birect ctor ors@ s@a ana nae ers rs to be show shown n sepa separa rate tely ly.. $Schedule#I! $Schedule#I! "art#I%. '. oan oans s uara uarante nteed ed by Birect Birectors ors@a @ana naers ers to be disclos disclosed ed.. $Schedule#I! $Schedule#I! "art#I%. +. erify erify that that full full disclos disclosure ure is made made abou aboutt the securi security ty of the loans. $Schedule#I! "art#I%. .
Chec Check k (het (hethe herr the the comp compan any y has has take taken n any any loan loans s' secur secured ed or unsec unsecur ured ed from from the the compa companie nies' s' firms firms or other parties covered in the re*ister maintained u2s )31 of the !ct. f so' *ive no. of parties and amount involved in the transactions.4C!R5 iii%e%6
7. Check Check (heth (hether er the rate rate of inter interes estt and other other terms terms and conditions of loans taken by the company' secured or unsecured' are prima facie pre8udicial to the interest of the company9 4C!R5 iii%f%6 and . Check Check (hether (hether payment payment of the principal principal amount amount and interest are also re*ular. 4C!R5 iii%*% % 13. f overdue overdue amount is more than Rs. 1 akh verify verify (hether (hether reasonable steps have been taken for the recovery of the amount.4C!R5iii;c;6 00. 9nsu 9nsure re tran transa sact ctio ions ns need need to reco record rded ed in the the rei reist ster er maintained u@s 310 of the Act has been so entered. Dnder section 310 e*ery company is re:uired to maintain one or more more reist reisters ers which which contai contain n all the parti particul culars ars of all the contracts or arranements to which sec 2,or 2 of the act applies.$CA45 6*8 a% 02. erify erify that the total borrowin borrowins s at any time durin durin the year are within the limits laid down by the shareholders shareholders in ;eneral meetin as per Sec. 23 (0)(d) of the Companies Act! 0 '+. 03. 9nsure that that all interest paid@due paid@due on on the loans loans is calculated calculated as per loan areements. 0. 0. Inte Intere rest st accr accrue ued d and and due due on Secu Secure red d oan oans s shou should ld be included under the appropriate sub#heads under the head ES9CD49B 5AFSG. $Schedule#I! "art#I%. 0'. erify erify whether whether >BS has been properly properly deducted deducted on interest interest pro*ided in the books if not! report in the ta7 audit report. 0+. ouch ouch all fresh loans recei*ed recei*ed durin durin the year and ensure ensure that all re:uirements ha*e been fulfilled. 0,. Hhether Hhether any amount amount has been recei*ed@ recei*ed@repai repaid d in cash or in contra*ention contra*ention with Sec. 2+SS and 2+> of I#>a7 Act. $/orm# 3CB! Clause (2)%. 2
0-. erify that the secured loans loans are fully secured secured at the balance balance sheet date otherwise classify it as unsecured loans. $Section 22,#0A (i*)%. 0. 9nsure 9nsure that a note note should reflect reflect in balance balance sheet reardin reardin installments@amounts payable within ne7t financial year. 21. In case case of deben debentures tures i.
Hhethe Hhetherr pro* pro*isi ision on of of inter interest est and and >BS >BS there thereon on is is pro*i pro*ide ded. d.
ii. ii.
Hheth Hhether er terms terms of redem redempt ptio ion@ n@co con* n*er ersi sion on with with earli earlies estt date date of redemption@con*ersion are disclosed. $Schedule#I! "art# I%.
20. erify that the funds obtained obtained on short short term basis ha*e ha*e been used for lon* tem investment. investment . If yes! the nature & amount is to be indicated. $CA45 67*ii8%. 22. 22. 9nsur 9nsure e that that term term loans loans were applie applied d for the purpo purpose se for which the loans were obtained. $CA4567*i8%. 23. 9nsure that that the company company has complied complied with the the pro*isions pro*isions of Section Section '-A & '-AA or any other relevant provisions of the Companies Act 0'+ and the Companies (Acceptance of deposits) 4ules 0,' as well as the rele*ant directions of the 4?I with reard to the deposits from its employees etc. $CA45 6*i8%.
$.
Fi
In case case ther there e is sale sale of sub subst stan anti tial al part part of fi7e fi7ed d asse assets ts!! whether it effects the oin concern concept. If yes! report. $CA45 6i8(c)%.
'. 4e*iew 4e*iew stat stateme ement nt of CHI" CHI" and ensur ensure e that that item show shown n in CHI" are not operational before year#end. +. erify erify the the rates rates of depreci depreciati ation on as per per Schedul Schedule e I to the Companies Act! 0'+. If the rate is different from the rate i*e i*en n in Sche Schedu dule le I I whet whethe herr the the same same has has been een appropriately appropriately disclosed. $AS#+%. ,. erify erify deprec deprecia iatio tion n calcul calculati ation ons s for 01 maor maor items items *alue# *alue# wise. -. 9nsur 9nsure e that fi7ed fi7ed asset assets s are properl properly y classifi classified ed in the final final accounts. $Schedule#I! "art#I%. . 9nsu 9nsure re that that cost cost of a fi7e fi7ed d asse assett incl includ udes es all cost cost dire directl ctly y attributable in brinin brinin an asset to its workin condition condition for its intended use includin borrowin costs! if any. $AS#01 & 0+%. 01. 01. 4e*iew 4e*iew the repairs repairs accou account nt for any capital capital e7pe e7pendi nditur ture. e. Check the amount of current repairs eliible to be added to cost of asset as per sec.31 of the Income >a7 Act.
3
00. 00. 9nsur 9nsure e that that ade:u ade:uate ate adustm adustmen ents ts are made in respec respectt of cost cost and and depre deprecia ciatio tion n of asset assets s sold@ sold@ discar discarde ded d in the the schedule of depreciation and fi
a7 4ules been prepared showin! in case of additions! the date put to use and and adu adust stme ment nt for for Cen* Cen*at at clai claime med! d! subs subsid idy@ y@r ran ant@ t@ reimbu reimburse rsemen ment! t! chane chane in rate rate of e7cha e7chan ne e of forei forein n currency. $/orm#3CB! Clause (0)%. 0,. !scertain (hether there is an ade+uate internal control system commensurate (ith the si=e of the company and the nature of its business and fihether there is a continuin* failure to correct ma8or (eaknesses in internal control system9 4C!R5 iv;6. 0-. 0-. erify erify that that any any e7cha e7chan ne e diffe differen rences ces relati relatin n to forei forein n currency loans taken for purchase of such assets should be adusted in the cost of fi7ed asset and accordinly take the depreciation depreciation effect. $as per AS#00% 0. Check the impairment impairment loss loss on the o*erall basis and adust adust for the the pro* pro*is isio ion n of the same same from from "@ "@ a@c a@c or re*al re*alua uati tion on reser*e. (/or financial year 211#1' applicable only for listed companies) ?. nvento nventories ries F@' F@' RA' "crap' "crap' "tore "tores s & "pare "pares% s% (a) erify erify wheth whether er the compa company ny is maint maintain ainin in prop proper er records records of in*en in*entor tory y and and wheth whether er any mater material ial discre discrepa panci ncies es were were noticed on physical *erification and if so! whether the same ha*e been properly dealt with in the books of account. $CA45 6ii8(c)%. 2. erify erify wheth whether er physica physicall *erifi *erifica catio tion n of in*en in*entor tory y has has been been condu conducte cted d by the the mana manaeme ement nt at reason reasonab able le inter inter*a *als. ls. $CA45 6ii8(a)%. ). eri erify fy (het (hethe herr proc proced edur ures es of phys physic ical al veri verifi fica cati tion on of inventory follo(ed by the mana*ement are reasonable and ade+uate in relation to the si=e of the company and the the natu nature re of its its busi busine ness ss99 and and if not' not' ment mentio ion n the the inade+uacies. 4C!R5 ii;b%6. .
eri erify fy whet wheth her *alu *aluat atio ion n of stoc stocks ks is fair fair and and prop roper in accordance with the normally accepted accountin principles. principles. 4!"#6
'. erify erify whet whether her the the basis basis of *alua *aluatio tion n of stocks stocks is same same as in the precedi precedin n yearK yearK and and if not! not! the :uantif :uantify y the effect effect of
4
chane in *alutation. ?.
n the the case of ra( mate ateria rial (hi (hich is used for for the production of the finished *oods' remain unsold and the market price price of the ra( material material falls belo( belo( its cost but the finished *oods in (hich they are used' e
,. 5btain 5btain *aluatio *aluation n certific certificate ate from manae manaement ment.. -. Hhethe Hhetherr adustm adustmen entt of 97cis 97cise@C e@C9F 9FA> A> has been been made in the *alue of stock#in#trade. . >ake >ake ' item items s and and check check that that prop proper er e7cis e7cise e duty duty is paid paid in case of duty paid finished oods lyin with the company. 01. 01. eri erify fy *alua *aluati tion on of ' items items of /;! RA and and market rates.
>P each each at
00. erify *aluation *aluation of ' lare items of stores and and spares. 02. erify estimated realisable *alue *alue of scrap for 2 lare items. 03. 4e*iew 4e*iew stock leder! identify identify non#mo*in non#mo*in!! slow mo*in mo*in and obsolete obsolete in*entori in*entories. es. f it cons consti titu tute tes s ma8o ma8orr part part of inventory find out the reason for the same. 0. erify the obsolete obsolete in*entory in*entory as worked out out by the company. company. 0'. erify the net realisable *alue *alue of obsolete obsolete in*entory. 0+. 4e*iew 4e*iew the obsolesc obsolescence ence pro*ision pro*ision for reasona reasonablen bleness ess and ade:uacy in *iew of the net realisable *alue. 0,. erify erify whether whether there is ade:ua ade:uate te internal internal control control procedure procedure commensurate with the siLe of the company and the nature of its business! for the purchase of stores and raw materials includin components. $CA45 6i*8%. 0-. erify whether whether there has been been any transaction transaction of purchase purchase of ood oods s and and mate materi rial als s and and sale sale of ood oods! s! mate materi rial als s and and ser*ices in pursuance of contracts or arranements entered in the reister(s reister(s)) maintain maintained ed u@s 310 of the Companies Companies Act! 0'+.If so than ensure whether the same has infact been record recorded ed in the reist reistere ered d mainta maintain ined ed for the purpos purpose.. e.. $CA45 6*8 (a)%. 0. erify whether abo*e mentioned mentioned transaction transaction in respect respect of any party areates durin the year to 4s. '!11!111@# or moreK and if so! whether that has been made at the prices which are reasonable ha*in reard to pre*ailin market prices at the rele*ant time. $CA45 6*8 (b)%. 21. 21. Compa Compare re book book balan balance ce in 97cise 97cise 4ecords 4ecords with with "hysic "hysical al balances for /;. 20. 4econcile purchases purchases as as per stock leder leder and as per financial financial books. 22. 5bser*e cut cut off procedures procedures before before physical count. 23. Attend Attend year#end year#end in*entory in*entory count count and test count for 0' key items. 2. /ollow up test test counts and and aree to final final stock listins. 2'. 2'. erify erify :uant :uantita itati* ti*e e detai details ls of raw materi materials als and and finish finished ed oodsM HI" consumption. 2+. 2+. Show Show princi principa pall item item of raw materi material! al! which which are more than 01< of total *alue of 4. consumed in :uantitati*e details. 5
$Schedule#I! $Schedule#I! "art#II%.
.
nv nventory D >P >P (a) erify erify o*erhe o*erhead ad loadin loadin norms norms for their their reasona reasonable blene ness ss and and conformity with A.S. 2 of ICAI. (b) 9nsure 9nsure that that costin costin method methods s are same same as in in pre*ious pre*ious year. year.
7.
"un "undry dry ,eb ,ebtors (a) 4e*iew aein analysis of Bebtors. (b) 9nsure that the debtors balances are properly classified in the final accounts as f ollowsN i
ore than si7 months.
ii
ess than si7 months.
iii
Secured an and co considered o ood.
i*
Dnsecured and considered ood.
*
Cons Consid ider ered ed doubt oubtfu full (th (this is amou amoun nt sho shoul uld d not not e7ce e7ceed ed the the amount of pro*ision for bad & doubtful debts).
*i
Amount due by directors or other officers of the company.
*ii *ii
Bue Bue by by a firm firm or pri* pri*at ate e com compa pany ny in whic which h any any dire direct ctor or is a partner@director@member. partner@director@member.
*iii *iii
Bue Bue from from othe otherr comp compan anie ies s unde underr the the sam same e man mana aem emen entt as per sec 3,1 (0?).
i7
a7im a7imum um amo amount unt due due by by dire direct ctor ors s or oth other er off offiicers cers of of the the co! at any time durin the year. $Schedule#I! "art#I%.
3. 9nsure 9nsure that that forein forein debtor debtors s are fairly fairly stated stated by by con*ersio con*ersion n at closin rates. $AS#00% . 4e*iew 4e*iew the outstan outstandin din balan balances ces and identi identify fy the doubtf doubtful ul @disputed @lon#term balances. '. 4e*iew 4e*iew year#en year#end d reconcil reconciliatio iation n for all all debtors debtors and and ensure ensure that that all all clai claims ms by debt debtor ors s whic which h are are acce accept ptab able le ha*e ha*e been been pro*ided for. +. Consider Consider ade:uacy ade:uacy of pro*isi pro*ision on for doubtful doubtful debts debts.. ,. /or /or last two two weeks weeks of the the year year and first first week week of of ne7t ne7t year! year! identify all sales in*oices@ dispatch notes to ensure that they are recorded in correct period. -. 9nsu 9nsure re that that conf confir irma mati tion on of bala balanc nces es ( for ma8or amount amount)) has been recei*ed from the debtors. . Check Check postin postin of of cash receipts receipts from from debtors debtors for for 0' items items into into the debtors leder. 01. 9nsure 9nsure that write#off write#off of balances balances (if any) is accordin accordin to the procedure laid down in this behalf. 00. 4econcil 4econciliatio iation n of balance balances s as per debtors debtors and balances balances as per books.
6
-. !dvance !dvances s to(ards to(ards purch purchase ase of of machiner machinery' y' materia materials ls etc. etc. (a) erify erify that that the the capital capital ad*anc ad*ances es are properl properly y classi classifie fied d in the final accounts as per Schedule I of the Companies Act! 0'+. 2. 4econcil 4econcile e supplierO supplierOs s accounts accounts with with pendin pendin purcha purchase se orders orders and deli*ery schedules. 3.
eri erify fy tha that ade: ade:ua uate te pro* pro*is isio ion n has has been been mad made aai aains nstt ad*ances that are doubtful of reco*ery.
. eri erify fy whet whethe herr pena penalt lty y clai claims ms ha*e ha*e been been made made in case case of delayed deli*eries of the machinery. '. 4e*iew 4e*iew the the ain ain analys analysis is of the ad*ance ad*ances. s. +. Aree Aree with with bala balance nce con confirm firmati ation on!! for advances .
13. oans and !dvances !dvances Recoverable Recoverable in cash2kind. cash2kind. (a) 5btain 5btain a list list of of all all ad*anc ad*ances es to to suppli suppliers. ers. (b) (b) 4e*i 4e*iew ew all all prep prepai aid d e7pe e7pens nses es and and comp compar are e with with thos those e for for pre*ious year to ensure they are fairly stated. (c) erify erify the the ain ain ana analys lysis is of ad*a ad*ance nces. s. (d) 9nsure 9nsure ade:u ade:uacy acy of of pro*isio pro*ision n for doubt doubtful ful ad*anc ad*ances. es. (e) 4e*iew 4e*iew list of of outstand outstandin in ad*. ad*. in the the names names of emplo employees yees to to ensure that they are still reco*erable. (f)
erify erify reconci reconciliati liation on of of balance balances s as per per books books with with balan balances ces as per rele*ant Cen*at credit records as per 97cise 4ules and 4eulations! 4eulations! at year#end.
() 4econcil 4econcile e the ad*an ad*ances ces from from confirma confirmation tion by by the parti parties. es. (h) erify erify that the the claims claims loded loded with the the insuran insurance ce company company etc. etc. are accounted for as per the stated policy of the company. (i) (i)
eri erify fy wheth whether er loans loans and and ad*a ad*anc nces es made made by the comp compan any y ha*e been shown as deposits. I$Section 22,(0A) (d)%.
()
Ascert Ascertain ain whe whethe therr securit security y deposit deposits s are fully fully reco* reco*era erable ble or not. /or additions durin the year trace them to the oriinal payment payment *ouchers. *ouchers. Hhether Hhether proper proper adustme adustment! nt! if any! any! has been made.
(k)
9nsure 9nsure that that loans loans and and ad*an ad*ances ces made made by by the company company on on the basi basis s of secu securi rity ty ha*e ha*e been been prop proper erly ly secu secure red. d. $Sec $Secti tion on 22,(0A) (a)%.
l%
Ensure that the loans' secured or unsecured to companies' firms or other parties covered in the re*ister maintained u2s )31 of the !ct. f so' *ive the number of parties and and amount involved involved in the transact transactions9 ions9 4C!R5 iii; a%6.
m% >het hether the rate ate of inte nterest rest and other her terms and conditions of loans *iven by the company' secured' are prima prima facie facie pre8udic pre8udicial ial to the interest interest of the company. company. 4C!R5 iii; b%6. n% n% Ensu Ensure re (he (hether ther rece receip iptt of the the prin princi cipa pall amou amount nt and and interest are also re*ular9 4C!R5 iii; c%6 o% f overdue overdue amoun amountt is more than than one one akh' akh' ensure ensure (hethe (hetherr reas reasona onable ble step step has has been been taken taken for recov recovery ery of the the 7
principal and interest9 4C!R5 iii; d%6. (p) Check Check pro*isi pro*isions ons for for ad*ance ad*ances! s! which which are are doubtfu doubtful. l. (:) Ad*ances Ad*ances & loan loans s to subsidia subsidiary ry are to to be shown shown sepa separate rately. ly. (r)
Check Check the appli applica cabil bility ity of Sec Sec.3, .3,2#A 2#A..
(s)
Check Check the amoun amountt treated treated as deem deemed ed di*ide di*idend nd under under sectio section n 2(22) (e) of Income >a7 Act.
(t) Ensure Compliance with Sec 295 of the companies Act, 1956 11. Cash & Bank Balance Balances s (a) 4e*iew 4e*iew the cash#boo cash#book k for e*iden e*idence ce of lare lare (rea (reater ter than than 4s.21!111@#) or unusual unusual payments payments and receipts. >hese will e7clude Statutory iabilities! "ersonal iabilities and waes@salaries@transactions waes@salaries@transactions.. ouch identified items to supportin documentation. 2. 5btai 5btain n confir confirma matio tion n from banks banks for year#e year#end nd bank bank balan balances ces and ?@4. 3. 4e*iew 4e*iew year#e year#end nd bank bank recon reconcil ciliat iatio ion n for all bank bank account accounts s includin those co*ered under loans. . 4econcil 4econcile e the balan balances ces of unclaim unclaimed ed di*iden di*idend d accounts accounts with with actual unclaimed di*idends. '. "erfo "erform rm physic physical al *erific *erificati ation on of cash as at the year#en year#end d and obtain cash balance certificate from the manaement. +. "lease "lease i*e i*e break break#up #up in in the the follow followin in mann mannerN erN (i)
?alances with scheduled banks.
(ii)
5thers (iii)
/urther break#up in
0 Current account 2 Beposit a@c ,. >o obtain obtain the the certificat certificate e from bank bank reard reardin in interes interestt accrued accrued on /B4s and check whether interest accrued on /B4 has been pro*ided or not. -. Check Check the renewal renewal and and cance cancellat llation ion of of e7pired e7pired /B4s. /B4s. 1#. Current iabilities & Provisions Provisions (a) 4e*iew 4e*iew year year end credi creditors tors reconc reconcilia iliation tion for for all partie parties s ha*in ha*in a balance balance e7ceedin e7ceedin 4s.' acs or ma8or parties parties dependin upon the case and obtain conformation from them. 2. 4e*iew 4e*iew all letter letters s of credit credit open opened ed but outsta outstandi ndin n at year# year# end and compare with the list of Acceptances. 3.
9nsu 9nsure re that that the the undisputed statutory undisputed statutory dues includin "/! 9SI! Income >a7! Sales ta7! 97cise duty & Custom duty! cess & any other statutory dues are reularly deposited by the co. with the appropriate authority. authority. If not than the e7tent of arrears of outstandin dues as at last of financial year concerned for a period of more than si7 month from the date they become payable shall be reported.$CA456i78(a)% ention nature and amount in respect of each item.
. In case case dues dues of sale sales s ta7@ ta7@in inco come me ta7@ ta7@cu cust stom om duty duty@w @wea ealt lth h ta7@service ta7@service ta< @e7cise ta< @e7cise duty@cess ha*e not been deposited 8
on account of dispute! dispute ! then the amounts in*ol*ed and the forum where dispute is pendin may please be mentioned. $CA456i78(b)% ention nature and amount in respect of each item. '. Check Check calcula calculatio tions ns of accru accruals als e7cee e7ceedin din 4s.'1 4s.'1!11 !111@# 1@# for their accuracy. +. Check Check calculat calculations ions for interes interestt accrued accrued but but not due. due. ,. 4e*iew 4e*iew all all assessm assessmen entt orders orders of Sales Sales ta7! 97cise 97cise duty duty and ncome a< for a< for any demands! which ha*e not been pro*ided for. -. 4e*i 4e*iew ew post post year year paym paymen ents ts for two to four four weeks weeks for any unrecorded accruals. . erify erify that the the accepta acceptance nce ha*e ha*e been been shown shown separ separatel ately. y. 01. 9nsure 9nsure that interest interest accrued accrued but not due on loans loans is under under shown under current liabilities. 00. 9nsure that the the co. has not defaulted defaulted in in repayment of of dues to any financial institution@bank@debentu institution@bank@debenture re holders. If so then the period & amount of default should be reported.$CA4567i8% 02. erify that the the pro*ision for di*idend di*idend & corporate corporate di*idend di*idend ta7 is as per board appro*al. 03. 4e*iew confirmations confirmations from from customers for their ad*ances. ad*ances. 0. 4e*iew 4e*iew pro*isio pro*ision n for ta7. 0'. 4e*iew payroll payroll e7penses e7penses for accruals of of salaries & waes waes for the last months. 0+. 9nsure 9nsure that "/ and 9SI ha*e been reularly reularly deposite deposited d with the the appr approp opri riat ate e auth author orit ity y and and prep prepar are e the the stat statem emen entt containin containin the amount amount of employer employer contribut contribution! ion! employe employee e contri contribu butio tion! n! due due date date and and actual actual date date of depo deposit sitin in the same. $CA45 6i78(a)% and $/orm#3CB! Clause 0+(b) & 20(ii) (?)%.
1). 1). nves nvestme tment nts s (a) erify erify in*estm in*estments ents with Bepo Bepositor sitory@ac y@actual tual securi securities. ties. (b) 9nsure 9nsure that that in*estme in*estments nts are are held held in the the name of the company company and not on behalf of or in the name of other persons e7cept under section of the Act. (c) (c)
9nsu 9nsure re that that pro* pro*is isio ions ns of Sec.3, Sec.3,2A 2A of the the Comp Compan anie ies s Act! Act! 0'+ ha*e been complied with in case of any inter corporate in*estments.
d% erify erify in the case case of other other than than bankin* bankin* and and investm investment ent company' (hether so' much of the assets of the co. as consists of shares' debentures and other securities have been sold at prices less than its cost. 4"ec ##1!%6 (e) 9nsure 9nsure that that the terms terms and cond conditi ition ons s of the in*es in*estme tments nts are are not preudicial to the interest of the company. (f)
9nsu 9nsure re that that :uot :uoted ed and un:uo un:uote ted d in*e in*est stme ment nts s are are show shown n separately.
() /urther /urther the the in*es in*estmen tments ts be classifie classified d as underN underN
9
i
;o*ernment securities
ii
Shares! debenture or bonds in*estment in subsidiary co.
iii
Immo*able pr property
i*
In*est *estm ment in cap capital ital of pa partn rtnersh ership ip firm firm..
-.
showin
separately
9nsu 9nsure re tha that the the in*e in*est stme ment nts s ha*e ha*e been been clas classi sifi fie ed into into EcurrentG & Eon* Eon* ermG and ermG and the same are *alued as per the AS#03.
. erify erify that that the in*est in*estmen mentt in Associ Associate ates s ha*e been been *alued *alued followin e:uity method & ha*e been disclosed separately. $AS#23% 01. 01. erify erify the in*est in*estmen ments ts in Point Point *entur *enture. e. 9nsure 9nsure that the *aluation & disclosure of the assets! liabilities & interest is in accordance with AS#2,. 00. 9nsure that interest interest accrued on on in*estments in*estments be shown under under the head ECurrent AssetsG.
1/. 1/. ,efer ,eferred red !sset2iability (a) erify erify that that there there is no pecunia pecuniary ry loss on accou account nt of delayed delayed deli*eries by the machinery suppliers. (b) erify erify the terms terms and and conditi condition ons s of machine machinery ry purcha purchased sed and ensure that all deferred payment liabilities are accounted for. (c)
9nsure 9nsure that that accrued accrued interes interestt on deferre deferred d liabiliti liabilities es is proper properly ly calculated and accounted for.
(d) erify erify that that the Befer Beferre red d ta7 asset asset has been been create created d on the basis basis of con*i con*inci ncin n e*ide e*idence nce & *irtu *irtual al certai certainty nty of future future ta7able income. It is to be ensured that the same is separately disclosed in ?alance SheetG. $AS#22% (e) erify erify that the the deferre deferred d ta7 asset@l asset@liabi iability lity is adus adusted ted e*ery e*ery year year on account of chane in the ta7 rate.
1$. Aiscellan Aiscellaneous eous E
State tate the the pol polic icy y of of e7p e7penses ses and and ba basis sis of of amo amortiL rtiLat atiion in the notes to a@cs.
ii
Hhe Hhether ther amou amount nt writ writte ten n off off duri durin n the the year year or not. not.
iii iii
>o tra transfe nsferr amo amount from from di diffe fferen rent hea heads to B. B. 4. 97 97p. A@c.
3. "re# "re#op oper erat ati* i*e e e7pen e7pense ses s i
>o disclose separately with detail.
ii
;i*e ;i*e note note rea reard rdin in e7p e7pen ense ses s in in the the note notes s to to acc accou ount nt..
1?. Contin*ent iabilities and Capital Capital Commitments Commitments
10
(a) 4e*iew 4e*iew debtors debtors reconc reconcilia iliation tion for for any claims claims by by debtors! debtors! which which are disputed by the company. >hey are to be shown! as claims aainst the company not acknowleded as debts. (b) 4e*iew 4e*iew list list of ?ank ?ank uarant uarantees ees outstan outstandin din at year#en year#end. d. (c) 4e*iew 4e*iew list list of ?ill disco discount unted ed with with ?anks ?anks and outsta outstandi ndin n at year#end. (d) 5btai 5btain n ?anke ?ankers rs confirm confirmati ation on for ?;s ?;s outst outstan andin din and and ?ills ?ills discounted outstandin at year#end. (e) /or /or capit capital al commit commitme ments ntsNN i.
4e*iew *iew ou outsta tstan ndin din lett lette ers of of cre credit dit for for any any Cs Cs a aainst inst capital item purchases.
ii. ii.
4e*i 4e*iew ew list list of ad*a ad*anc nces es for for any any ad*a ad*anc nces es aai aains nstt ord order ers s for capital item purchases.
iii.
5btain clients confir firmation for for any other orders for for capital item purchases! which are pendin as at year#end
+.
5btai btain n a list list of pend pendin in lea leall case cases! s! whic which h may may ha*e ha*e continent liabilities on the company.
,.
Scru Scruti tini niLe Le deta detail ils s of ea eall & "rof "rofes essi sion onal al char chare es s and and compare with list of pendin cases to ensure that there are no cases! which are not stated in the list of pendin leal cases.
-. erify erify the the sales sales ta7 & incom income e ta7 assess assessme ments nts and and e7cise e7cise returns of the Company for any demands! which may be disputed! by the company. . Confirm Confirm contin continent ent liability liability for e7cise e7cise duty. duty. 13. Ensure Ensure contin*ent contin*ent iabilitie iabilities s are properly properly disclosed disclosed in the Balance "heet as re+uired by the "chedule of the Companies !ct' 1-$?.
1. @eneral points to be be verified. verified. (a) erify erify the >BS >BS 4eturns 4eturns filed filed with with the I. >. Bepart Bepartment ment.. $/orm# $/orm# 3CB! Clause (2,)%. (b) 9nsure 9nsure that that contribu contributions tions to politica politicall party party u@s 23A 23A are are not in e7cess of permissible limits. 5btain the :uantitati*e details of the followinN
(c )
In case of manufacturin company I.
>he >he lic licen ense sed d cap capac acit ity y ( wher where e lic licen ense se is in forc force e)
II.
>he installed capacity
III. III.
>he actu ctual pro prod ducti uctio on /ollowin details to be obtain further
I.
4aw 4aw mat mater eria iall con consu sume med d ( ;i*i ;i*in n item item wise wise brea breaku kup p)
II. II.
>he >he ope openi nin n and and clos closin in stoc stock k of ood oods s prod produc uced ed..
(d) erify erify whether whether the the "@ "@ A@c and and ?alanc ?alance e sheet sheet comply comply with with the accountin standards standards referred to in sub#section (3C) of section 200. $Section 22,(3) (d)%. .
11
eri erify fy whet whethe herr tran transa sact ctio ions ns of the the comp compan any! y! whic which h are are represented merely by the book entries! are not preudicial to
the interest of the company. $Section 22,(0A)(b)%. '. erify erify wheth whether er any asset asset in the form of share shares! s! deben debentur tures es and other securities ha*e been sold at a price less than at which they were purchased. $Section 22,(0A) (c)%. +.
In case of listed co. and the and the company ha*in paid#up paid#up capital e7cee e7ceedin din 4s. '1 lakhs lakhs as at the the comme commence ncemen mentt of the financial year concerned! or ha*in a*erae annual turno*er e7cee e7ceedin din ' crore crore for a perio period d of three three consec consecuti uti*e *e /.Q immed immediat iately ely prece precedin din the /.Q .conce .concerne rned d !wheth !whether er the company has an internal audit system commensurate with its siLe and nature of its business. $CA45 6*ii8%.
,.
Chec Check k wheth hether er any any dire direct ctor or is dis: dis:ua uali lifi fied ed from from bein bein appointed as director under clause () of sub. Section (0) of section 2,.5btain 2,.5btain Certificate from ,irectors that they are not dis+ualified u2s
-. Hhether Hhether maint maintena enance nce of of cost record records s ha*e ha*e been been prescrib prescribed ed by the Central ;o*ernment under section 21(0)(d) of the Companies Act! 0'+ (0 of 0'+). Hhether such accounts and records ha*e been made and maintained. $CA45 6*iii8%. . 9nsur 9nsure e that the accu accumul mulate ated d losses losses at the end of financi financial al year are less than '1< of its net worth and the co. has not incurred cash losses in /.Q. and in precedin /.Q. $CA45 678%. 01. 9nsure that the the uarantee uarantee i*en by the Co. for loans loans taken by the others from the bank or financial institution! the term & condition thereof is not preudicial to the company. $CA45 67*8%. 00. In the case of finance! finance! in*estmen in*estment! t! chit fund! nidhi or mutual mutual benefit company N
17!
12
i
Hhe Hhethe ther th the net net ow owned fun funds ds to deposit sit lia liabi bili lity ty ra ratio tio is is more than 0N21 as on last date of balance sheet. $CA45 67iii8(a)%
ii
Hhe Hhether ther the the pro pro*i *isi sion ons s of of any any spec specia iall sta statu tute te appli pplica cabl ble e to chit fund! nidhi or mutual benefit society ha*e been duly complied with. $CA45 67iii8%.
iii iii
If the the com compa pany ny is is deal dealin in or tra tradi din n in in shar shares es!! secu securi riti ties es!! debe debent nture ures s and other other in*est in*estmen ments! ts! wheth whether er prope properr records ha*e been maintained of the transactions and contracts and whether timely entries ha*e been made thereinK also whether the shares! securities! debentures and other in*estments ha*e been held by the company in its own name e7cept to the e7emption! if any! ranted under section of the Companies Act! 0'+ (0 of 0'+). $CA45 67i*8%
i*
Hhe Hhether ther the the co. co. has has comp compli lied ed with with the the prud pruden enti tial al nor norms ms on inco income me reco recon nit itio ion n and and pro* pro*is isio ioni nin n aai aains nstt substandard@default@l substandard@default@loss oss assets $CA45 67iii8 (b)%
*
wheth hether er the the co. co. has has ade ade:u :uat ate e pro proce cedu dure res s for for app appra rais isal al of credit credit proposal proposals@re: s@re:uests uests!! assessme assessment nt of credit credit needs needs and repayment capacity of the borrowers.$CA4567iii8(c)%
*i
Hhether the repayment schedule of *arious loans rant ranted ed by the nidhi nidhi co. is base based d on the repayme repayment nt capa capaci city ty of the the borr borrow ower er & woul would d be cond conduc ucti ti*e *e to reco*ery of the loan amount. $CA45 67iii8 (d)%. Forei*n E
(a) 9nsure that proper records in respect of forein e7chane e7chane transactions has been maintained as N I.
alue alue of impo imports rts mad made e by the the Co. Co. duri durin n the the fina financ ncial ial year year in in respect of a. 4aw 4aw mate materi rial als s b. Comp Compon onent ents s and spare spare part parts s c. Capi Capita tall ;ood ;oods s
II.
97pendit 97penditure ure in in forein forein currency currency on on accou account nt of of royalty! royalty! know how! professional and consultation fee! interest and other matters.
(b) 9nsure that earnin in forein e7chane ( if any ) classified under the followin heads! namely a. 97p 97port of oo oods ds b. 4oyalty! 4oyalty! Rnow Rnow#how #how!! "rofessio "rofessional nal and and Consul Consultatio tation n fee. fee. c. 5ther 5ther income income (Indicati (Indicatin n the the natur nature e thereo thereoff )
(c) 9nsure that all the re:uirements re:uirements of AS 00 has been complied with. (d)
9nsure that the pro*ision of >BS >BS has been complied with in respect with forein e7chane transactions. transactions.
17. "ale "ales s (a) erify erify whethe whetherr there there is ade:u ade:uate ate interna internall contr control ol proced procedure ure commensurate with the siLe of the company and the nature of its business! for the sale of oods and services. services . $CA45 6i*8%. 2. onth onth#w #wise ise sales sales (:ty (:ty wise! wise! rate! rate! *alue *alue)) and and compara comparati* ti*es es with last year month#wise month#wise sales details. 3. 9nsur 9nsure e that the the sales sales made to partie parties s listed listed in the 4eiste 4eisterr maintained u@s 310 of the Companies Act! 0'+ ha*e been made at prices! which are reasonable at the rele*ant time (>his information is re:uired only in cases of transactions e7ceedin 4s. 0 akh in respect of any party and in any one financial year). $CA456*8(b)%
. 4econc 4econcile ile :uant :uantity ity wise wise sales sales as per Sales Sales book book with that that of dispat dispatch ches es Re*ist Re*ister er maint maintain ained ed under under the the sale sales s and and e
9nsu 9nsure re that that Sale Sales s clai claims ms!! reba rebate tes! s! ince incent nti* i*es es etc. etc. are are properly accounted for.
+.
9nsure sure that hat cut off pro proced cedure ures for for sal sales ha*e a*e been een ade:uately performed.
,.
>o show show each each clas class s of ood oods s sold sold sep separat aratel ely y with with thei theirr indi*idual :uantities in the notes to accounts.
-. Hhether Hhether sales sales are are inclus inclusi*e i*e of e7cise e7cise duty. duty. . Hhether Hhether treat treatment ment of C9FA> C9FA> has been been done done prope properly. rly. 01. Hhether Hhether e7cise e7cise on capital capital oods a*ailabl a*ailable e for C9FA> C9FA> has been accounted for in financial records. 00. 00. Hhethe Hhetherr closin closin balan balance ce of differ differen entt e7cise e7cise record records s ha*e ha*e been reconciled. 02. Hhether Hhether sales return@oo return@oods ds for replacem replacement ent as per e7cise
13
records has been accounted for. 03. Hhether sales are e7clusi*e of sales ta7. 0. 0. Hhethe Hhetherr sales sales as per per lede lederr are reconci reconciled led with sales sales ta7 returns filed for the year. 0'. Is there any any need to file re*ised re*ised sales ta7 return 0+. Hhether Hhether all statutory statutory forms =C= form S>#l! S>#3'! S>#3'! has been recei*ed by the company company aainst aainst the current current year sales. sales. If not! not! whet whethe herr any any note note has has been been i*e i*en n unde underr the the head head =Continent =Continent liability=.
1-. 1-. E
#3. #3. 5the 5therr ncome ncome (a) (a) 9nsu 9nsure re that that ade:u de:uat ate e reco record rds s for for sale sale and and disp dispos osal al of realiLable scrap are bein maintained. 2. 4econcil 4econcile e total total scrap scrap sales sales with with the the scrap scrap enera enerated. ted. 3. 4eco 4econc ncil ile e inte intere rest st rece recei* i*ed ed with with the the loan loans s and and ad*a ad*anc nces es!! in*estments and with /B4 Certificates. . 9nsur 9nsure e that incom income e from in*estm in*estmen entt has has distin distinuis uishe hed d as income from >rade In*estment and Fon#>rade In*estment. '. 4e*iew 4e*iew the statem statemen entt of unpa unpaid id liabili liabilitie ties s and re*iew re*iew the list of those no loner re:uired. +.
9nsu 9nsure re that that only only the the insu insura ranc nce e clai claims ms acce accept pted ed by the the insurance companies are accounted for.
,. Hhet Hhethe herr prof profit it@l @los oss s on sale sale of asse assets ts ha*e ha*e been been prope properl rly y accounted for. -.
Hhet Hhethe herr any any othe otherr inco income me has has been been acco accou unted nted for for on accrual basis or any other basis reularly employed by the company.
. Intere Interest st 4ec 4ecei* ei*ed ed from from "art "arties ies 01. Sale of Ad*ance! Ad*ance! icenses icenses etc. $?asis of bookin bookin this entry! also calculate profit & loss on sale of ad*ance licenses%
#1. #1. Purch Purchase ase
14
(a) 9nsure 9nsure that that all materia materials ls included included in stock stock ha*e ha*e been been recorded recorded as purchases. (b) 9nsure 9nsure that that oods oods returned returned has has been been adusted adusted prope properly rly and e7cluded from stock. (c) atch atch the ;oods ;oods recei receipt pt note note with the ordere ordered d :uality :uality and and :uantity. (d) 9nsure 9nsure that forward forward purch purchase ase contract contracts s that are outsta outstandin ndin at the year#end are properly accounted for. (e) 9nsure that the purchase of finished oods is separately disclosed and is not clubbed with the purchase of raw materials (f) 9nsure 9nsure that that the purchas purchases es made made from the the parties parties listed listed in the the 4eister maintained u@s 310 of the Companies Act! 0'+ ha*e been made at prices that are reasonable. $CA45 6*8 (b)%. () 9nsure that that properly properly e7ecuted purchase orders are placed for all purchases. (h) 9nsure that all the purchase purchase orders orders are properly authorised (i) 9nsure 9nsure that that Credit Credit Fotes in respe respect ct of all returns returns!! shortaes shortaes and and reections are recei*ed. () 9nsure 9nsure that that rate differe difference nce (if (if any) is properly properly accou accounted nted for. for.
##. Cost of Ra( Aaterials Aaterials consumed consumed (a) "eruse "eruse throu throuh h the stores stores led leder er for any any unusua unusuall fluctuati fluctuations ons in purchase price of maor raw materials and en:uire into the same! if any discrepancy is found in the store leder. (b) Compare actual consumption of consumption for any unusual *ariance.
4
with
Standard
(c) 9nsure 9nsure that that indi* indi*idu idual al items items of 4C! which which accou account nt for more more than 01< of the total *alue of 4C#Consumption! are fairly stated and separately disclosed. (d) (d) eri erify fy brea break k up of cons consum umpt ptio ion n 4C 4C into into impo import rted ed and and indienous. (e) erify erify that that 4C does not include include cost cost of mater materials ials sold. sold.
#). "tores' spares and and tools consumed. consumed. (a) 9nsure 9nsure that that stocks stocks and spares spares are bifurc bifurcate ated d into importe imported d and indienous items. (b) "erfor "erform m ratio analy analysis sis under under maor maor subhea subheads ds of stores stores and spare tools consumed.
#/. Po(er Po(er & Fuel Fuel E
9nsu 9nsure re that that Secu Securi rity ty paid paid (if any) any) for for 9lec 9lectr tric icit ity! y! ad*a ad*anc nce e payment etc. has been properly accounted.
(d) erify erify that fuel fuel adust adustment ment char chares es re*ised re*ised with with retrospe retrospecti*e cti*e
15
effect (e) ! if any! ha*e ha*e been been properly properly accounte accounted d for for #$. 5ther Aanufactur Aanufacturin* in* & Aaintenance Aaintenance E
"rocessin Chares
ii.
4epairs & aintenance and and com compare with la last yearOs details. details. 9n:uire 9n:uire for any abnormal abnormal *ariatio *ariations. ns. 9nsure 9nsure that no capital items ha*e been chared to e7penses.
#?. !dministrative' !dministrative' sellin*' distribution distribution and other other e
9nsur nsure e that Com Commiss missiion pai paid to sole sole selli ellin n aent is accordin to the areement entered in this behalf.
(d) (d) eri erify fy that that no pers person onal al e7pe e7pens nses es been been char char ed in the the accounts. $Section 22,(0A) (e)%. (e) (e) 9nsu 9nsure re all all e7pe e7pens nses es rela relati tin n to inta intan nib ible le asse assets ts upto upto the the stae of research & de*elopment ha*e been written off in accordance of AS#2+.
#. Payments Payments to and Provision for employees employees (a) 4e*iew 4e*iew 02 02 months months payroll payroll e7pe e7penses nses (onthw (onthwise). ise). (b) 9nsure 9nsure that that statuto statutory ry deductio deductions ns ha*e ha*e been been made made for for "/! 9SI 9SI etc. and the Company has also contributed its share for such dues and deposited with appropriate authorities well in time. (c) (c)
9nsu 9nsure re that that sepa separa rate te disc disclo losu sure re is made made for for e7p e7pense ense on account of contribution to "/! 9SI & such other funds.
(d) (d) 9nsur nsure e that that pro* ro*isi isions ons for for bonus onus ha*e been been made ade in accordance with the pro*ision of the payment of ?onus Act! 0+'. (e) 9nsure 9nsure that that ratuity ratuity liabili liability ty has been been pro*i pro*ided ded on on the basis basis of of actuarial *aluation or per companyOs policy. $AS#0'%. (f)
ea* ea*e e enca encash shme ment nt bene benefi fits ts and and othe otherr reti retire reme ment nt bene benefi fits ts should be in accordance with AS#0'.
#7. #7. "ervi "ervice ce a< a< whether the Co. is re:uired to collect the Ser*ice >a7 (a) 97amine whether or not.4 not.4 f a**re*ate value of ta
service ta<.% ta< .%
(b) 9nsure that Co. has collect the Ser*ice >a7 J 01< on the ross amount chared to the client plus 2< 9ducation Cess.w.e.f 20.1.1. (c) 9nsure that the ta7 has been paid e*ery month@:uarter as the case may be . (d) 9nsure that 4eturn of Ser*ice >a7 has been filed on or before due date. (e) erify that the ser*ice ta7 credit has been taken accordin to the Ser*ice >a7 Credit 4ules #33/. #33/.
(f) Check whether there is any disputed amount! if yes! proper pro*ision in this reard has been made.
() 9nsure that Assessment 5rder has been recei*ed if Assessment has been made.
#-. #-. Cenv Cenvat at (a) erify Cenvat Return for Return for any undisclosed liabilities@ demands by 97cise authorities. (b) erify erify e7cise e7cise duty duty dep deposi osits ts with with R? challans R? challans for ' items. (c) erify erify e7cis e7cise e ate passe passes s for e7port e7port sales sales to ensure ensure that that no duty is paid on such sales. (d) "erfor "erform m Corrob Corrobora orati* ti*e e Analy Analytic tical al 4e*iew 4e*iew "roced "rocedure ure for total total e7cise e7cise duty duty e7pen e7pense. se.4ec 4econc oncile ile total total e7pens e7pense e with with final final accounts. (e) (e) 4e* 4e*iew iew e7cise cise duty rec reconci oncili lia atio tion for for any si sinifi nifica can nt differ differen ences ces in amou amounts nts debit debited ed in the accoun accounts ts and and that that actually paid. (f)
erify R@ #)Part and P! P! reisters and confirm that the balances in these at the year end ha*e been transferred to the balance sheet.
() In case case of concerns concerns where where 4" 4" based based e7cise e7cise is applica applicable ble adustment of profit should be made as per sec 0'A of the I> Act.
)3. nterest nterest & Financial Financial Char*es Char*es (a) 9nsure 9nsure that that interest interest and and bank char chares es are proper properly ly classified classified.. 2. erify erify interest interest payment payments s with Schedule Schedule of payme payment. nt. 3. 9nsu 9nsure re that that inte intere rest st on deben debentu ture res s and and othe otherr fi7e fi7ed d loan loan should be stated separately. . 9nsu 9nsure re that that ta7 ta7 has has been been deduc deducte ted d at sourc source e wher where* e*er er re:uired at the time of payment of interest. '.
4e*i 4e*iew ew e7pe e7pens nse e detai etails ls to iden identi tify fy any any e7pe e7pens nse e to be capitaliLed.
+. erify erify loan loan aree areeme ments nts & subse: subse:ue uent nt correspo correspond ndenc ence e for ade:uacy ade:uacy of interest rates. ,. 9nsur 9nsure e classi classific ficati ation on of intere interest st e7pense e7penses s into into =term loans= loans= and =oth =othe ers=! rs=! stati tatin n separ epara atel tely! in cas case of >erm >erm oans@Be oans@Beben bentures tures!! the amount of interest! interest! if any! paid or 17
payable to the anain Birector and the manaer if any. $Schedule#I! $Schedule#I! "art#II! 3(*)%. -.
4e* 4e*iew iew corr corre espo spondenc ence file file with ith bank ank and fin financia cial institutions for any chane in interest rates with retrospecti*e effect.
)1. @eneral @eneral Hotes Hotes for E
Hhether Hhether transa transaction ctions s with other other conce concerns! rns! firms@co firms@compa mpanies nies in in which directors are interested ha*e been made at competiti*e rates.
(d) "rior "eriod "eriod@97tr @97traordi aordinary nary items items to be shown shown separ separatel ately. y. $AS# '%. (e) Hhether Hhether any any person personal al e7pense e7penses s debited debited to to " & A@c. A@c. $Section $Section 22,#0A (e)%. (f)
>o obtai obtain n the the list list of e7pe e7pense nses s as per per format format i*e i*en n in Inco Income me >a7 4ules reardin. i Ii
See 1( 1(A A)(2) )(2)(b (b)# )#" "aymen ment ma made to to sp speci ecifie fied pe person rsons s 4ule +BB#97ception of cash payment in e7cess of 4s. 21!111.
Iii
Birectors Birecto rs 4emuneration and e7penses incidental to that.
,. Hhethe Hhetherr mana manaeri erial al remuner remunerati ation on in accord accordanc ance e with with the pro* pro*is isio ion n of Sect Sectio ion n 0-! 0-! 3'1 3'1 & Sche Schedu dule le III III of the the Companies Companies Act. -. 4e*i 4e*iew ew ta7 pro*i pro*isi sion on!! if any! any! as per the pro*i pro*isi sion ons s of the Income ta7 Act! 0+0. . 9nsure 9nsure all all related related party party transa transaction ction ha*e been been entered entered in in the certificate pro*ided by the manaement & control o*er the related party transactions is proper.$AS#0-% proper.$AS#0-% 01. >BS M e*ery assessee assessee deductin deductin ta7 has to submit submit :uarterly :uarterly statement 0'th of the month followin the :uarter and yearly return. 00. Annual Annual Informati Information on 4eturn. 4eturn. 02. Income from other sources M As per Section Section '+(0)(i*) '+(0)(i*) any ift in cash cash e7ce e7ceed edin in 4s. 4s. 2'11 2'111@ 1@## to any any pers person on shal shalll be chareable to >a7 subect to e7ception. 03. 9nsure 9nsure >BS has been deduct deducted ed on e*ery work con contrac tractt in case indi*idually it e7ceeds 4s. 21111@# or 4s. '1111@# in areate durin the financial year. 0. 9nsure >BS has has been deducted deducted from the payments payments made for for Interest! ?rokerae! technical ser*ices! professional ser*ices! contra contracto ctors@ rs@ subcon subcontra tracto ctors. rs. In case case >BS has has not not been been deducted same payments shall not be allowed u@s 1(a)(ia) of Income >a7 Act. 0'. ?5B resolution resolution for any donation donation e7ceedin e7ceedin 4s. '1111 '1111 or '< '< 18
of a*erae net profit durin last 3 financial years whiche*er whiche*er is reater under section 23 of Companies Act 0'+. 0+. 9nsure 9nsure Cen*at credit credit has been taken taken ade:uately ade:uately in respect of Ser*ice >a7 & 97cise Buty. )#. a< !udit (a) 5btain a certificate from the assessee to the effect that! where*er applicable ! ta7 has been deducted at source on the payments co*ered under items fallin within pur*iew of sec 1(a). (b) 5btain certified list of persons specified in section 1A(2) (b). (c) Fote down down all the prior period period items! i.e. e7penses e7penses of last year debited in the current year. (d) Fote "ayment made to clubs on account of N# # membership and subscription subscrip tion # entertainment e7penditure )).R5C (a) (a)
Chec Check k whet whethe herr the the minu minute te book book cont contai aini nin n the the Birectors and Shareholders meetin is updated or not.
(b) (b)
Chec Check k whet whethe herr appr appro opria priate te for form m for for appo appoin intm tme ent of of Birect Birector@ or@a ana nain in Birect Birector! or! allotm allotment ent of shares shares !cha !chan ne e in the the auth author oris ised ed and and paid paid up capi capita tall !chane in the name of the company or its reistered office or other chanes which re:uire reportin to the 45C has been properly filed with the 45C.
(c) (c)
Chec Check k whe wheth ther er the the las lastt yea yearr ann annua uall ret retur urn n has has been been timely filed or not.
(d) (d)
>ake >ake a copy copy of the the com compl plia ianc nce e Cer Certi tifi fica cate te fro from the the Company Company Secretary Secretary in case of companie companies s ha*in ha*in paid up share capital more than 4s. 01 akh.$Section akh.$Section 3-3A pro*iso of the Companies Act!0'+%
(e) (e)
Chec Check k in cas case e of of com companies nies ha* ha*in in pai paid up sh share are capital 4s. 2 crore or more whether the whole time company secretary has been appointed appointed or not as per the pro*isions of Sec 3-3A of the Companies Act! 0'+.
(Signature)
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