TIRTHAROOP ELECTRICALS PVT.

LTD

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

TIRTHAROOP ELECTRICALS PVT. LTD

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

TIRTHAROOP ELECTRICALS PVT. LTD

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.

TIRTHAROOP ELECTRICALS PVT. LTD

Another comprehensive and clear

definition of a company is given by
Lord Justice Lindley, an association of
many persons who contribute money
or money's worth to a common stock
and employed it in some trade or
business and who share the profit or
loss arising there from. The common
stock so contributed is denoted in
money and is the capital of the company. The persons who
contributed it or to whom it belongs are members, the portion of
capital to which each member is entitled is his share. The shares
are always transferable although the right to transfer them may
be restricted".

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:

TIRTHAROOP ELECTRICALS PVT. LTD

A company is a legal person having a juristic personality entirely

distinct and independent of the individual persons who are its
members. It enjoys in many respects the right of a natural person
in the eyes of law.
It can own property, conduct a lawful business, enter into
contracts with others, buy, sell and hold property, all in its own
name under its own seal. It can file a suit against others and can
be sued against.
4. Perpetual Succession:
A company has perpetual existence i.e. its existence is not
affected by the death or lunacy or insolvency or retirement of its
member.
Members may come and go, but the company continues its
operations so long as it fulfills the requirements of the law under
which it has been formed. Thus, a company has a perpetual
succession irrespective of its membership.
5. Limited Liability:
Liability of members of a limited company is limited to the face
value of the shares subscribed by each of them. Members cannot
be asked to pay anything more than what is due or unpaid on the
shares of the company held by them.
In no case the personal property of the members of a company
can be attached to satisfy the claims of creditors of a company.
6. Transferability of Shares:
Members of a public limited company are free to transfer the
shares held by them to any one members for either to purchase
or sell the shares.
7. Diffused Ownership:

TIRTHAROOP ELECTRICALS PVT. LTD

Ownership of a company is in the hands of a large number of

people. In case of Private Ltd. Company, the upper limit is up to
50. In case of a public Ltd. Company there is upper limit to the
number of members.
Any individual is free to acquire the share of any company and
become to the owner to that extent only. As such ownership is
spread among a number of share holders.
8. Separation of ownership and management:
Share holders are the owners of the company. Companys share
holders are widely scattered. It is physically impossible for all of
them to take patty in the management of the company.
Being a share holder of a company does not give him the right to
manage the affairs of a company. The management is vested with
the directors, who are the legal representatives of the
shareholders. Thus owners of the company have no direct control
over the management of the company.

Accounting Records And Financial

Statement Maintained By The Company.
Good record keeping is an important part of monitoring business
performance. It also makes it easier for small business owners to
meet their taxation obligations. Appropriate and up-to-date
financial records provide the necessary information for managing
the business efficiently and making sound business decisions.
To help you maintain your daily financial records, one should
consider:

TIRTHAROOP ELECTRICALS PVT. LTD

Setting up either a manual or electronic record keeping

system that suits your needs.
Recording your business transactions accurately and
promptly. How to keep daily financial records.
Preparing a summary account (including income and
expenditure) at the end of each month.
Maintaining good financial records starts with a good system
and well-organized business records. The system can be a
simple one and does not need to be complicated.

Disclosure of Accounting Policies

To ensure proper understanding of financial statements, it is
necessary that all significant accounting policies adopted in

TIRTHAROOP ELECTRICALS PVT. LTD

the preparation and

presentation of financial
statements should be
disclosed.
Such disclosure should form
part of the financial
statements.
It would be helpful to the
reader of financial statements if they are all disclosed as
such in one place.
Examples of matters in respect of which disclosure of
accounting policies adopted will be required are contained in
paragraph 14. This list of examples is not, however, intended
to be exhaustive.
Any change in an accounting policy which has a material
effect should be disclosed. The amount by which any item in
the financial statements is affected by such change should
also be disclosed to the extent ascertainable. Where such
amount is not ascertainable, wholly or in part, the fact
should be indicated. If a change is made in the accounting
policies which has no material effect on the financial
statements for the current period but which is reasonably
expected to have a material effect in later periods, the fact
of such change should be appropriately disclosed in the
period in which the change is adopted.
Disclosure of accounting policies or of changes therein
cannot remedy a wrong or inappropriate treatment of the
item in the accounts.

Main Principles

TIRTHAROOP ELECTRICALS PVT. LTD

All significant accounting policies adopted in the preparation

and presentation of financial statements should be disclosed.
The disclosure of the significant accounting policies as such
should form part of the financial statements and the
significant accounting policies should normally be disclosed
in one place.
Any change in the accounting policies which has a material
effect in the current period or which is reasonably expected
to have a material effect in later periods should be disclosed.
In the case of a change in accounting policies which has a
material effect in the current period, the amount by which
any item in the financial statements is affected by such
change should also be disclosed to the extent ascertainable.
Where such amount is not ascertainable, wholly or in part,
the fact should be indicated.
If the fundamental accounting assumptions, viz. Going
Concern, Consistency and Accrual are followed in financial
statements, specific disclosure is not required. If a
fundamental accounting assumption is not followed, the fact
should be disclosed.

(Meaning and define of audit report and audit certificate)

TIRTHAROOP ELECTRICALS PVT. LTD

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.

TIRTHAROOP ELECTRICALS PVT. LTD

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.

TIRTHAROOP ELECTRICALS PVT. LTD

Difference Between Audit Report & Audit

Certificate
1. A report means simply an expression of opinions whereas a
Certificate means that the person issuing or signing the
certificate vouchsafes the truth of the statement made by
him.
2. The Auditor Report is based on facts, estimates and
assumptions whereas Auditor's Certificate is based on actual
facts.
3. Auditor Report is not a guarantee of the absolute correctness
& accuracy of the books of accounts. But the auditor
certificate serves as a guarantee of the absolute correctness
& accuracy of the books of accounts.
4. If the Auditor Report is later on found to be wrong, he cannot
be held responsible since he has given merely his opinion on
the state of affairs of the company. But if the duly signed
certificate is found as wrong, he will be held responsible.

TIRTHAROOP ELECTRICALS PVT. LTD

Types Of Audit Report

An audit report is an appraisal of a
small businesss complete financial
status. Completed by an
independent accounting professional, this document covers a
companys assets and liabilities, and presents the auditors
educated assessment of the firms financial position and future.
Audit reports are required by law if a company is publicly traded
or in an industry regulated by the Securities and Exchange
Commission (SEC). Companies seeking funding, as well as those
looking to improve internal controls, also find this information
valuable. There are four types of audit reports.
1. Unqualified Opinion
Often called a clean opinion, an unqualified opinion is an audit
report that is issued when an auditor determines that each of the
financial records provided by the small business is free of any
misrepresentations. In addition, an unqualified opinion indicates
that the financial records have been maintained in accordance
with the standards known as Generally Accepted Accounting
Principles (GAAP). This is the best type of report a business can
receive.
Typically, an unqualified report consists of a title that includes the
word independent. This is done to illustrate that it was prepared
by an unbiased third party. The title is followed by the main body.
Made up of three paragraphs, the main body highlights the
responsibilities of the auditor, the purpose of the audit and the
auditors findings. The auditor signs and dates the document,
including his address.

TIRTHAROOP ELECTRICALS PVT. LTD

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.

TIRTHAROOP ELECTRICALS PVT. LTD

Essentials Of Good Audit Report

1. Title
A suitable title has to be provided to each report according to the
nature of contents. It should also highlight upon its origin and the
person for whom it is being prepared.
2. Simple
A report should be readable by an ordinary layman and in known
language. Such type of simple style of language is used in the
report preparation. As far as possible, scientific or technical
language is best left out of reports, unless it becomes
unavoidable. In case the reports are of regular nature, it is
preferable to get language more or less standardized.
3. Effective Communications
If the management executives have taken the action on the basis
of report and the report influence decisions, there is an effective
communication.
In order to be useful to management, accounting information
must be communicated to managerial personal. Communication
implies that a person receiving the information understands the
nature and significance of material contained in the reports he
receives when communication is genuinely effective,
managements actions and decisions are likely to be based on the
facts which they receive rather than on untested impressions and
guesses.

TIRTHAROOP ELECTRICALS PVT. LTD

However, there is a reason to believe that accounting reports to

management have not always achieved their intended purpose
because the reports were not understood, recipients lacked time
required to grasp the meaning or contents of reports was not
relevant to problems facing the persons who received them.
4. Comparability
Sometimes a report is prepared with some comparative
information. In this case, a standard information is compared with
actual information. If not so, current year information is compared
with last year information. In certain cases, the prospective
information is prepared well in advance and the actual
information is compared. The main objective of comparability is to
highlight significant variations.
5. Precise and Accurate
A report should be precise, accurate and specific. It can be just a
bad reporting practice to supply too much information which over
whelms the order; as too little which leaves him guessing. If
report is quite long or detailed, then a synopsis should be
prepared to cover all significant facts and conclusions.
6. Relevant Information
Relevant accurate data is alone included in the report. If not so, it
will involve unnecessary expenditure and the reports will be a
waste.
7. Routine Details
Every report should contain the routine details like the period of
time of preparing report, the period covered in the report, date of
presentation of report, the units of information, the name of the
person preparing and presenting it, names of persons to whom it
is being submitted. etc.

TIRTHAROOP ELECTRICALS PVT. LTD

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.

Qualified Audit Reports

It is necessary to firstly identify the circumstances which can give
rise to a qualification.
These are as follows:
Uncertainty arising from either a limitation upon the scope of the
auditors work or an inability to obtain any evidence regarding
doubts which exist in relation to an unresolved matter.
Disagreement arising from factual discrepancies, unsuitable
accounting policies, inadequate or misleading disclosures given in
the financial statements or failure to comply with an accounting
standard or legislation. Some of these types of disagreement
should be resolved fairly easily with the client so that a
qualification can be avoided.
For Example, a factual disagreement should lead to the financial
statements being amended to reflect the correct view. Other
types of disagreement which are perhaps more subjective will be

TIRTHAROOP ELECTRICALS PVT. LTD

much more difficult to resolve such as those relating to the

suitability of an accounting policy.

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.

TIRTHAROOP ELECTRICALS PVT. LTD

Background Of Key Management

Personnel
Director
Identification
Number
311639

Name

Designation

Date of
Appointment

Subhash
Purushottam

Managing
Director

07/01/1987

TIRTHAROOP ELECTRICALS PVT. LTD

311672

311724

Gokhale
Avinash
Purushottam
Gokhale
Sachin
Subhash
Gokhale

Whole-Time
Director

07/01/1987

Whole-Time
Director

01/06/200

Key Deliverables By The Company

Overseeing breakdown and preventive maintenance of
Spinning, Polyester, Test Rising, Knitting, Utility Plants and
Diesel Generating Sets.
Executing Fault fining and rectification of faults in control
circuits, power circuits or in any type of electrical breakdown
in various types of equipments, like Extruders, (D.C.),
Agitators , Chillers, Compressors, Pumps, Heaters, Lifts, etc.
Responsible for : Erection of Machine Tools
Process Re-engineering
Material Management
Cost Reduction
Monitoring switchyard, H.T. (22KV) and L.T. substation.
Responsible for implementing preventive maintenance of
switchyard, H.T. and L.T. breakers, transformers, PCCs, MCCs,
lead acid batteries, etc.
Overhauling motors in electrical workshop.
Major equipments handled: 22 KV switchyard and switchgear (MOCB, SF6 Breakers).
9 nos. 2 MVA, 22 KV/433 transformers.
DG sets (1100 KVA No Break and Short Break generators with
AMF). DC Motors.

TIRTHAROOP ELECTRICALS PVT. LTD

TIRTHAROOP ELECTRICALS PVT. LTD.

Balance Sheet As On 31st March 2016
(In Rupees)

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

TIRTHAROOP ELECTRICALS PVT. LTD

2.Non Current Liabilities

Long Term Borrowings
3.Current Liabilities
(a)Short Term Borrowings
(b)Trade Payables
(c)Other Current Liabilities
(d)Short Term Provision
TOTAL

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

TIRTHAROOP ELECTRICALS PVT. LTD.

Statement of Profit & Loss Account For The Year Ended
31st March 2016
(In Rupees)

TIRTHAROOP ELECTRICALS PVT. LTD

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

TIRTHAROOP ELECTRICALS PVT. LTD

Period(XI+XIV)

Generally Accepted Auditing Standards

The generally accepted auditing standards (GAAS) are the
standards you use for auditing private companies. GAAS come in
three categories:- general standards, standards of fieldwork, and
standards of reporting.
Keep in mind that the GAAS are the minimum standards you use
for auditing private companies. Additionally, the Public Company

TIRTHAROOP ELECTRICALS PVT. LTD

Oversight Board (PCAOB) has adopted these standards for public

(traded on the open market) companies. Each audit engagement
you work on may require you to perform audit work beyond
whats specified in the GAAS in order to appropriately issue an
opinion that a set of financial statements is fairly presented. You
need to use professional judgement and exercise due care in
following all standards.

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 Field Work

The next three GAAS govern how you actually do your job :
Your work is to be adequately planned and assistants, if any,
are to be properly supervised.

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

TIRTHAROOP ELECTRICALS PVT. LTD

consistently observed in the current period

in relation to the preceding period.

Accounting Standards (Currently

applicable and used in company or not)
Accounting Standards

Yes/No

TIRTHAROOP ELECTRICALS PVT. LTD

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

AS-1 DISCLOSURE OF ACCOUNTING

POLICIES
Any change in an accounting policy which has a material
effect should be disclosed.

TIRTHAROOP ELECTRICALS PVT. LTD

If the fundamental accounting assumptions, viz. Going

Concern, Consistency and Accrual are followed in financial
statements, specific disclosure is not required. If a
fundamental accounting assumption is not followed, the fact
should be disclosed.
The view presented in the financial statements of an
enterprise of it state of affairs and of the profit or loss can be
significantly affected by the accounting policies followed in
the preparation and presentation of the financial statements.

AS-2 VALUATION OF INVENTORIES

The cost of inventories should comprise all costs of purchase,
costs of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Inventories should be valued at the lower of cost and net
realizable value.

AS-4 CONTINGENCIES AND EVENTS

OCCURING AFTER THE BALANCE SHEET
DATE
The amount of a contingent loss should be provided for by a
charge in the statement of profit and loss if:
(a) it is probable that future events will confirm that, after taking
into account any related probable recovery, an asset has been
impaired or a liability has been incurred as at the balance sheet
date, and
(b) a reasonable estimate of the amount of the resulting loss can
be made.

TIRTHAROOP ELECTRICALS PVT. LTD

Assets and liabilities should be adjusted for events occurring after

the balance sheet date that provide additional evidence to assist
the estimation of amounts relating to conditions existing at the
balance sheet date or that indicate that the fundamental
accounting assumption of going concern (i.e., the continuance of
existence or substratum of the enterprise) is not appropriate.

AS-6 DEPRECIATION ACCOUNTING

The depreciable amount of a depreciable asset should be
allocated on a systematic basis to each accounting period during
the useful life of the asset.
Basis must be consistently followed and disclosed. Any change to
be quantified and disclosed.
Rates of depreciation should be disclosed.
A change from one method of providing depreciation to another
should be made only if the adoption of the new method is
required by statute or for compliance with an accounting standard
or if it is considered that the change would result in a more
appropriate preparation or presentation of the financial
statements of the enterprise.
Any addition or extension to an existing asset which is of a capital
nature and which becomes an integral part of the existing asset is
depreciated over the remaining useful life of that asset.

AS-10 ACCOUNTING FOR FIXED ASSETS

The cost of an item of fixed asset comprises its purchase price,
including import duties and other non-refundable taxes or levies
and any directly attributable cost of bringing the asset to its
working condition for its intended use.
The cost of a self-constructed fixed asset should comprise those
costs that relate directly to the specific asset and those that are

TIRTHAROOP ELECTRICALS PVT. LTD

attributable to the construction activity in general and can be

allocated to the specific asset.
An increase in net book value arising on revaluation of fixed
assets should be credited directly to owners interests under the
head of revaluation reserve, except that, to the extent that such
increase is related to and not greater than a decrease arising on
revaluation previously recorded as a charge to the profit and loss
statement, it may be credited to the profit and loss statement.

Account Scrutinized From Balance Sheet

And Profit & Loss Account
Scrutiny: Scrutinizing the accounts generally and, in particular,
examining the composition of final balances; and ascertaining the
extent of clearance of the balances brought forward from the
previous year particularly those relating to receivables and
payables, sale or disposal of fixed assets and of inventories.

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

TIRTHAROOP ELECTRICALS PVT. LTD

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.

20.Employee Benefit Expenses

Particulars
Salaries and Wages
Staff Welfare
Expenses
Total

As on 31-03-2016
300906.00
44442.00

As on 31-03-2015
156591.00
75138.00

345348.00

231729.30

TIRTHAROOP ELECTRICALS PVT. LTD

DRAFT OF AN AUDIT
REPORT
INDEPENDENT AUDITORS REPORT
To,
The Members,
M/S Tirtharoop Electricals Private Limited,
Maharashtra-410 206.

Report on Financial Statements:

1. We have audited the accompanying Financial Statements of
M/S Tirtharoop Electricals Private Limited which comprises
the Balance Sheet as at 31st March 2016 and Statement of
Profit and Loss for the year ended on that date, and a
summary of significant accounting policies and other
explanatory information.

Managements Responsibility for the

Financial Statements:
2. Management is responsible for the preparation of these
Financial Statements that give true and fair view of the
financial position and financial performance of the Company
in accordance with the Accounting Standards referred to in

TIRTHAROOP ELECTRICALS PVT. LTD

sub section (3C) of section 211 of the Companies Act, 1956.

This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation
and presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error.

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.

TIRTHAROOP ELECTRICALS PVT. LTD

5. We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our Audit
opinion.

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.

Report on Other Legal and Regulatory

Requirements:
7. As required by section 227(3) of the Act, 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 purpose of the audit.
b. In our opinion, proper books of account as required by law
have been kept by the company so far as appears from
our examination of those books.
c. The Balance Sheet and Statement of Profit and Loss deals
with by this report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet and Statement of Profit
and Loss comply with the Accounting Standards referred
to in sub section (3C) of section 211 of the Companies Act,
2013.

TIRTHAROOP ELECTRICALS PVT. LTD

e. On the basis of written

representations received
from the directors as on
31st March 2016and taken
on record by the Board of
Directors, none of the
directors is disqualified as
on 31st March, 2016 from
being appointed as a
director in terms of clause (g) of sub-section (1) of Section
274 211 of the Companies Act, 2013.
f. Since the Central Government has not issued any
notifications as to the rate at which the cess is to be paid
under section 441A of the Companies Act, 2013 nor has it
issued any Rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due
and payable by the Company.

For XXX
CHARTERED ACCOUNTANTS
Place: Mumbai
Date: 31/06/2016

Mr. A
(Proprietor)
Membership

No. 132564

CONCLUSION

TIRTHAROOP ELECTRICALS PVT. LTD

The project concluded that, given the complexity and

development of Company, the overall level of compliances with
the standards and codes is of high order. This project gives the
correct ideas about how the major areas can be found by way of
effective auditing system i.e. errors, frauds, manipulations etc.
from this auditor get the clear idea show to recommend on the
position. Project also contain that how to conduct of audit of the
company, what are the various procedure through which audit of
company should be done. From auditing point of view, there is
proper follow up of work done in every organization there no
misconduct of transactions is taken places for that purpose the
auditing is very important aspect in todays scenario from
company and point of view.