Does anybody have a format of Auditor's Report and Directors Report as per the new companies act 2013. (if anyone has prepared drafted reports as per companies act 2013.)
25 July 2024
Certainly! Below are formats for the Auditor's Report and Director's Report as per the Companies Act, 2013. These formats adhere to the general requirements under the Act and can be customized based on specific company circumstances.
### Auditor's Report Format (As per Companies Act, 2013)
**[On the Letterhead of the Auditor]**
**AUDITOR'S REPORT**
To, The Members of [Company Name], [Address of the Company]
**Report on the Financial Statements**
We have audited the accompanying financial statements of [Company Name] ("the Company"), which comprise the Balance Sheet as at [Date], and the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
**Management's Responsibility for the Financial Statements**
The Company's Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance, and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 2013 ("the Act"). 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.
**Auditor's Responsibility**
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 specified under section 143(10) of the Act. 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.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
**Opinion**
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give 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:
- in the case of the Balance Sheet, of the state of affairs of the Company as at [Date]; - in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and - in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
**Emphasis of Matter**
We draw attention to [Describe any emphasis of matter, if applicable].
**Report on Other Legal and Regulatory Requirements**
1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order"), issued by the Central Government in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that: - We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. - In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. - The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account. - In our opinion, the aforesaid financial statements comply with the Accounting Standards notified under the Act, read with the General Circular 15/2013 dated September 13, 2013, of the Ministry of Corporate Affairs, in respect of Section 133 of the Act.
**Annexure to the Auditor's Report**
[Include here the Annexure containing the statement on the matters specified in paragraphs 3 and 4 of the Order]
**[Name of the Audit Firm]** [Chartered Accountants] [Firm's Registration Number] [Address] [City, State, Zip Code] [Date]
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### Director's Report Format (As per Companies Act, 2013)
**[On the Letterhead of the Company]**
**DIRECTORS' REPORT**
To, The Members, [Company Name]
The Directors have pleasure in presenting their [Number] Annual Report together with the Audited Accounts of the Company for the Financial Year ended [Date].
**Financial Performance**
The financial highlights of the Company's performance for the year under review are as follows:
- [Provide key financial figures such as Revenue, Profit Before Tax (PBT), Profit After Tax (PAT), etc.]
**Dividend**
Your Directors are pleased to recommend a dividend of [Amount] per equity share for the year ended [Date].
**Operations Review**
A detailed review of the operations, state of affairs of the Company, and the future outlook is provided in the Management Discussion and Analysis Report, which forms part of this Annual Report.
**Corporate Governance**
The Company is committed to maintaining high standards of corporate governance. A separate section on Corporate Governance along with a certificate from the Auditors confirming compliance is included in this Annual Report.
**Board Meetings**
During the year, [Number] Board Meetings were held. For details of the Meetings, please refer to the Corporate Governance Report.
**Directors and Key Managerial Personnel**
As on [Date], the Board comprises [Number] Directors, out of which [Number] are Independent Directors. The changes in Directors and Key Managerial Personnel during the year are detailed in the Corporate Governance Report.
**Conservation of Energy, Technology Absorption, and Foreign Exchange Earnings and Outgo**
Information required under section 134(3)(m) of the Act, read with the Companies (Accounts) Rules, 2014, is provided in Annexure A forming part of this Report.
**Employees**
The information required under section 197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in Annexure B forming part of this Report.
**Corporate Social Responsibility**
As part of its initiatives under Corporate Social Responsibility (CSR), the Company has undertaken various projects. Details of CSR activities are provided in Annexure C forming part of this Report.
**Directors' Responsibility Statement**
Pursuant to section 134(3)(c) of the Act, the Directors state that: - In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures; - They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period; - They have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; - They have prepared the annual accounts on a going concern basis; - They have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and - They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
**Auditors**
The auditors, [Name of the Audit Firm], Chartered Accountants, [City], retire at the conclusion of the ensuing Annual General Meeting and are eligible for reappointment. The Company has received a certificate from the Auditors to the effect that their reappointment, if made, would be within the limits prescribed under section 139 of the Act.
**Acknowledgements**
Your Directors take this opportunity to express their sincere thanks to the Shareholders, Customers, Suppliers, Bankers, Government and Regulatory Authorities, and other Business Associates for their continued support during the year under review. Your Directors also place on record their appreciation of the dedicated efforts put in by employees of the Company at all levels.
For and on behalf of the Board of Directors,
[Signature of Director] [Name of Director] [Designation]
Place: [City] Date: [Date]
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### Notes:
- **Customization:** Customize the reports with specific financial figures, operational details, and compliance as per your company's requirements. - **Legal Compliance:** Ensure that all disclosures and statements in the reports comply with the Companies Act, 2013, and other applicable laws. - **Annexures:** Annexures A, B, and C are placeholders for specific disclosures required under the Act. Ensure these are filled with relevant information specific to your company. - **Signature:** The Director's Report should be signed by the Chairman or Managing Director, along with any other Director authorized by the Board for this purpose.
These formats should serve as a comprehensive template for preparing Auditor's Report and Director's Report as per the Companies Act, 2013. Adjustments may be needed based on specific company circumstances and legal advice.
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