Illustrative Formats of Reports/Certificates

Illustrative Formats of Reports/Certificates :

Note: The illustrative formats of assurance reports or certificates for special purposes given in Appendix 2 should be tailored by the practitioner to meet the specific circumstances and requirements of the engagement.

Illustration 1: Practitioner’s Report for Turnover/Net Worth/Net Profit/Working Capital/similar engagement pursuant to a Tender requirement

The Board of Directors

[Name of the Company]

[Company Address]

Independent Practitioner’s Report on the Statement of [Annual Turnover for financial years ended…… and………… (specify periods); Current Assets; Current Liabilities; Computation of Working Capital and Computation of Net worth as at……………………… (specify date)]

1. This Report is issued in accordance with the terms of our engagement letter/agreement dated …………………… [specify date].

2. The accompanying Statement of Annual Turnover for financial years ended …………and…………….. (specify period) and the Statement of Current Assets; Current Liabilities; Working Capital and Net Worth as at ………………… (specify date) (hereinafter referred together as the “Statement”) contains the details as required pursuant to compliance with the terms and conditions contained in …………………… [refer to the clause] of the Tender document issued by ………………………………………… [refer to the authority] dated ………………………….. (specify date) with reference [specify the contract reference if available] (hereinafter referred to as the “Tender Document”), which we have initialled for identification purposes only.

Management’s Responsibility for the Statement

The preparation of the Statement is the responsibility of the Management of …………………………….. [Name of the Company] (hereinafter the “Company”) including the preparation and maintenance of all accounting and other relevant supporting records and documents. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the Statement and applying an appropriate basis of preparation; and making estimates that are reasonable in the circumstances.

The Management is also responsible for ensuring that the Company complies with the requirements of the Tender Document and provides all relevant information to …………………….. [Name of the authority]

Practitioner’s Responsibility

Pursuant to the requirements of the Tender Document, it is our responsibility to provide a reasonable assurance whether:

i) the amounts in the Statement of Annual Turnover for the year ended …………………………… (specify period) have been accurately extracted from the audited financial statements;

ii) the amounts in the Statement in respect of current assets and current liabilities that form part of the working capital computation have been accurately extracted from the audited financial statements for the year ended ………………………… (specify the period) and the computation of working capital is arithmetically correct;

iii) the amounts in the Statement that form part of the Net Worth computation have been accurately extracted from the audited financial statements for the year ended; and [month][date][year] and the computation of net worth is arithmetically correct; and

iv) the computation of net worth and working capital is in accordance with the method of computation set out in the clause [ ] of the Tender Document.

The audited financial statements referred to in paragraph 5 above, have been audited by us, on which we issued an unmodified audit opinion vide our report(s) dated …………………………….. (specify dates) respectively. Our audits of these financial statements were conducted in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of 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.

We conducted our examination of the Statement in accordance with the Guidance Note on Reports or Certificates for Special Purposes issued by the Institute of Chartered Accountants of India. The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India.

We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

Opinion

Based on our examination, as above, we are of the opinion that:

i) the amounts in the Statement in respect of Annual Turnover, Current assets and Current liabilities have been accurately extracted from the audited financial statements for the years ended [date] and [date];

ii) the amounts that form part of the working capital and net worth computation have been accurately extracted from the audited financial statements for the years ended ……………………[specify date] and [specify date]; and that the computation of working capital and net worth in the Statement is mathematically accurate and is in accordance with the method of computation set out in the clause [ ] of the Tender Document.

Restriction on Use

The certificate is addressed to and provided to the Board of Directors of the Company solely for the purpose to enable comply with requirement of Tender Document and to submit the accompanying Statement to [specify the authority], and should not be used by any other person or for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.

For XYZ and Co.

Chartered Accountants

Firm’s Registration Number

Signature
(Name of the Member Signing the Assurance Report)

(Designation36)

Membership Number

Place of Signature

Date

Illustration 2: Auditor’s Annual Activity Certificate for Indian Branch Office/Liaison Office of Foreign Companies

The Authorised Representatives,

[Name of the Branch Office/Liaison Office]

[Address]

Independent Auditor’s Annual Activity Certificate for Indian Branch of [Name of the Foreign Company]

This Certificate is issued in accordance with the terms of our agreement dated [date].

[Name of the Indian Branch /Liaison Office], (the “Indian Branch”/ “Liaison Office/s”) with PAN No. [Insert PAN Number of the Branch /Liaison Office/s] of [Name of the Foreign Company] (UIN [Insert UIN]) was established to undertake certain activities specifically permitted by the Reserve Bank of India (the “RBI”) vide its approval letter/s No/s. [*] (the “letter/s”).

Authorised Representatives’ Responsibility

The Authorised Representatives of the Branch Office/Liaison Office are responsible for ensuring that the Indian Branch/ Liaison Office complies with the requirement of approval letter and for providing all relevant information to the RBI.

Auditor’s Responsibility

Pursuant to the requirements of the RBI Master Circular No. 7 dated July 02, 2012 (the “Circular”), our responsibility is to express reasonable assurance in the form of an opinion based on our audit and examination of books and records as to whether the Indian Branch/ Liaison Office/s has/ have undertaken only those activities that have been specifically permitted by the RBI and has/ have complied with the specified terms and conditions

We audited the financial statements of [Name of the Indian Branch /Liaison Office] as of and for the financial year ended 31 March XXXX, on which we issued an unmodified audit opinion vide our reports dated …………………………….. (specify date). Our audits of these financial statements were conducted in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of 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.

Opinion

Based on our audit of financial statements for the year ended 31 March 20XX and the information and explanations given to us, we are of the opinion that the [Name of the Branch /Liaison Office/s] has/ have37 undertaken only those activities during the period from [month] [date], [year] to [month] [date] that have been specifically permitted by the Reserve Bank of India, vide its approval letter/s38 No/s39 [ ] dated [month][date], [year] and has/have40 complied with the terms and conditions specified in the above mentioned letter/s.

Restriction on Use

This certificate has been prepared at the request of the [Name of the Branch Office/Liaison Office] solely with reference to the Circular, as amended from time to time. It should not be used by any other person or for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care or for any other purpose or to any other party to whom it is shown or into whose hands it may come without our prior consent in writing.

For XYZ and Co.

Chartered Accountants

Firm’s Registration Number

Signature

(Name of the Member Signing the Assurance Report)

(Designation41)

Membership Number

Place of Signature

Date

Illustration 3: Auditor’s Report on the Manner of Utilization of Funds required under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Board of Directors

[Name of the Company]

[Company Address]

Independent Auditor’s Report on the manner of utilization of the funds including for purposes other than those stated in the offer document

This report is issued in accordance with the terms of our agreement dated [●].

The accompanying Statement contains details of manner of the utilization of funds including funds utilized for purposes other than those stated in the offer document for the Rights Issue (the “Statement”), as required by the Clause 32(5) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, by the [Name of the Company] (the “Company”), which we have initialled for identification purposes only. The Funds were raised by the Company pursuant to the rights issue of [*] equity shares of face value of Rs. [ ] each, at a premium of Rs. [*] each, aggregating to Rs. [*].

Managements’ Responsibility for the Statement

The preparation of the accompanying Statement is the responsibility of the Management of the Company. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and presentation of the Statement, and applying an appropriate basis of preparation; and making estimates that are reasonable in the circumstances.

The Management is also responsible for ensuring that the Company complies with the requirements of the Equity Listing Agreement and for providing all relevant information to the Securities and Exchange Board of India.

Auditor’s Responsibility

Pursuant to the requirements of the Equity Listing Agreement, it is our responsibility to obtain reasonable assurance and form an opinion as to whether the Statement is in agreement with the [audited financial statements for the year ended [and books and records]42 of the Company].43

The financial statements referred to in paragraph 5 above, have been audited by us on which we issued an unmodified audit opinion vide our reports dated [month][date][year]. Our audits of these financial statements were conducted in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of 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. Our audits were not planned and performed in connection with any transactions to identify matters that may be of potential interest to third parties.

Opinion

Based on our examination as above, and the information and explanations given to us, in our opinion, the Statement is in agreement with the audited financial statements for the year ended of the Company and fairly presents, in all material respects, the manner of the utilization of funds including funds utilized for purposes other than those stated in the offer document.

Restriction on Use

This report is addressed to and provided to the Board of Directors of the Company solely for the purpose of enabling it to comply with its obligations under the Equity Listing Agreement to submit the accompanying Statement to the Audit Committee accompanied by a report thereon from the statutory auditors and should not be used by any other person or for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent in writing.

For XYZ and Co.

Chartered Accountants

Firm’s Registration Number

Signature

(Name of the Member Signing the Assurance Report)

(Designation44)

Membership Number

Place of Signature

Date

Illustration 4: Practitioner’s Report on Statement of Fixed Assets for the Last Two Years in Respect of One of the Project of an Entity

The Board of Directors

[Name of the Company]

[Company Address]

Independent Practitioner’s Report on Statement of Fixed Assets

This report is issued in accordance with the terms of our agreement dated [date].

The accompanying Schedule of Fixed Assets as at [date] and [date] has been prepared by M/s xxx (the “Company”) in respect of its project at [ABC] (the “Statement”), pursuant to the requirement of ‘Annexure B’ of the application filed by the Company with the ……………………………………… (specify the name of the relevant authority) for availing Fixed Capital Investment Subsidy relating to the new plant commissioned at xxx. We have initialled the Statement for identification purposes only.

The accompanying Statement, including the creation and maintenance of all accounting and other records supporting its contents, is solely the responsibility of the Management of the Company. The Company’s Management is responsible for the designing, implementing and maintaining internal control relevant to the preparation and presentation of the Statement, and applying an appropriate basis of preparation; and making estimates that are reasonable in the circumstances.

The Company’s Management is also responsible for ensuring that the Company complies with the requirements of the Scheme and for providing all relevant information to the ………………………… (name of the authority).

Practitioner’s Responsibility

It is our responsibility to report on the Statement based on our examination of the matters in the Statement with reference to the books of account and other records of the Company for the years ended [dates], which have been subjected to audit pursuant to the requirements of the Companies Act, 2013.

The financial statements for the financial years ended [dates], have been audited by us on which we issued an unmodified audit opinion vide our reports dated [month][date][year]. Our audits of these financial statements were conducted in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of 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. Our audits were not planned and performed in connection with any transactions to identify matters that may be of potential interest to third parties.

Opinion

Based on our examination, as above, and the information and explanations given to us, we report that the Statement is in agreement with the books of account and other records of the Company as produced to us for our examination.

Restriction on Use

This report has been issued at the request of the Board of Directors of the Company, for submission to ______________________ (name of the authority) pursuant to the requirements of the Scheme. Our report should not to be used for any other purpose or by any person other than the addressees of this report. Accordingly, we do not accept or assume any liability or duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

For XYZ and Co.

Chartered Accountants

Firm’s Registration Number

Signature

(Name of the Member Signing the Assurance Report)

(Designation45)

Membership Number

Place of Signature

Date

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