TMI BlogMatters to be included in the auditor's report.X X X X Extracts X X X X X X X X Extracts X X X X ..... perly dealt with in the books of account; (c) if a substantial part of fixed assets have been disposed off during the year, whether it has affected the going concern; (ii) (a) whether physical verification of inventory has been conducted at reasonable intervals by the management; (b) are the procedures of physical verification of inventory followed by the management reasonable and adequate in relation to the size of the company and the nature of its business. If not, the inadequacies in such procedures should be reported; (c) whether the company is maintaining proper records of inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is a continuing failure to correct major weaknesses in internal control system;] [3] [(v) (a) whether the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section; and (b) whether transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time;] (This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one financial year). (vi) in case the company has accepted deposits from the public, whether the directives issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor. [7] [(b) in case dues of Income-tax/Sales-tax/Wealth-tax/Service tax/Customs duty/ Excise duty/cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned.] (A mere representation to the Department shall not constitute the dispute). (x) whether in case of a company which has been registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mely entries have been made therein; also whether the shares, securities, debentures and other [11] [investments] have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the Act; (xv) whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company; (xvi) whether term loans were applied for the purpose for which the loans were obtained; (xvii) whether the funds raised on short-term basis have been used for long-term investment [12] [* * *]; If yes, the nature and amount is to be indicated; (xviii) whether the company has m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nventory and fixed assets and for the sale of goods. Whether there is a continuing failure to correct major weaknesses in internal control;" [3] Substituted by the Companies (Auditor's Report) (Amendment) Order, 2004, w.e.f. 25-11-2004 for the following: "(a) whether transactions that need to be entered into a register in pursuance of section 301 of the Act have been so entered; (b) whether each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time;" [4] Substituted for the words "sections 58A and 58AA of the Act" by the Companies (Auditor's Report) (Amendment) Order, 2004, w.e.f. 25-11-2004. [5] Inserted by the Companies (Auditor's Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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