1.01 The accounting policies are in accordance with the accounting standards and other recognised accounting practices and policies generally accepted in India.
1.02 The management viewed XYZ LIMITED as continuing in business for the foreseeable future. Further management assumes that XYZ LIMITED will continue to exist long enough to carry out its objectives and commitments and will not liquidate in the foreseeable future and hence the financial statements are prepared on a going concern basis.
1.03 The accounting policies and practices which are material or critical in determining the results of operations for the period or financial position are consistent with those adopted in the financial statements for the previous period. The financial statements are prepared on accrual basis. 2
1.04 We have no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
2.00 INTERNAL CONTROL STRUCTURE:
2.01 There have been no irregularities, such as thefts, frauds, or defalcations, involving management or employees who have significant roles in the internal control structure.
2.02 There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements.
3.00 REGISTERS, MINUTES AND CONTRACTS:
3.01 The Minutes of the meetings of the Shareholders and Directors and the Registers required to be maintained under the Companies Act are complete and authentic.
3.02 We have made available to you all significant registers, contracts and agreements and all minutes of the meetings of shareholders, directors, and committees of directors.
3.03 All matters required to be recorded in the registers and minute books of the company have been, and are, recorded correctly.
3.04 We have complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of non-compliance.
4.00 OWNERSHIP AND PLEDGING OF ASSETS:
4.01 The Company does not have any fixed assets in the balance sheet as on March 31, 2015.
4.02 No security agreements have been executed and there are no liens or encumbrances on assets nor has any asset been pledged, mortgaged or hypothecated.
5.00 RELATED PARTY TRANSACTIONS:
5.01 Transaction with the related parties and related amounts receivable or payable, including sales, purchase, loans, transfers, leasing arrangements, and guarantees, have been properly recorded and disclosed to you.
5.02 The Company does not have Subsidiaries, Joint Ventures or Associate Companies for the period covered under Statutory Audit
6.00 CONFLICT OF INTERESTS:
6.01 There are no instances where any officer or employee of the company has an interest in a company with which the company does business that would be a “conflict of interest.” Even where the interest exists, the transactions have been made at prices which are reasonable having regard to the prevailing market prices and are not prejudicial to the interest of the company.
7.00 FIXED ASSETS AND INTANGIBLES:
7.01 There is no Fixed asset or Intangible asset owned by the Company.
8.01 All the investments recorded in financial statement belong to the Company and do not include any investment held on behalf of any other person. 3
8.02 The Company has a clear title to all its investments and there are no charges against the investments.
8.03 Current investments consist of only such investments as are readily realisable and intended to be held for not more than one year from the respective dates on which they were made. All other investments are treated as long term investments.
8.04 Current Investments are valued at cost or fair value determined category wise, whichever is lower.
8.05 Long term investments have been carried in the financial statements / records at cost except where a decline other than temporary decline, is recognised, in the value of investments.
Audit of Statutory Financial Statements
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