1. AUDIT OF PRIVATE LIMITED COMPANIES
Presented at ICAI ALAPPUZHA on 18th January 2019, SURI & CO, QUALITY CONTROL WING

2. Where to begin Planning an Audit Review of Financial Statements
Compliance with Accounting Standards
Compliance with Auditing Standards
Internal Control over Financial Reporting
Audit Report
Audit Documentations
Suri & Co, Quality Control Wing

3. Nature of company Private Limited Company One Person Company
Small Company
Paid-up SC of which does not exceed 50 lakh or such higher not be more than 10 crore and
Turnover of which  as per profit and loss account for the immediately preceding financial year does not exceed 2 crore or such higher not be more than 100 crore
Suri & Co, Quality Control Wing

4. Compliance by management
Responsibility Of
Management
Board Meeting
AGM
ROC Filing
Prepare FS
Maintain
Records
Other
Compliance
Suri & Co, Quality Control Wing

5. Board meeting 7 Days notice 2 or 1/3rd Number for Quorum
Min of 4 in a year – Small Co min of 2
Interval shouldn’t exceed 120 days
Suri & Co, Quality Control Wing

6. Annual general meeting
21 Clear Days notice
Within 6 Months from end of FY
Preferable at RO Else in the same city
Quorum – 2
Auditor to attend all General Meeting
Annual general meeting of an unlisted company may be held at any place in India if consent is given in writing or by electronic mode by all the members in advance
All notices relating to, any general meeting shall be forwarded to the auditor of the company, and the auditor shall, unless otherwise exempted by the company, attend either by himself or through his authorised representative, who shall also be qualified to be an auditor, any general meeting and shall have right to be heard at such meeting on any part of the business which concerns him as the auditor.
Suri & Co, Quality Control Wing

7. Postal ballot MGT 7 – Annual Return AOC 4 – Filing of FS with ROC
MGT 9 – Extract of Annual Return
AOC 1 – CFS Attachment
AOC 2 – Related Party Disclosure
Suri & Co, Quality Control Wing

8. Roc filing MGT 7 – Annual Return AOC 4 – Filing of FS with ROC
MGT 9 – Extract of Annual Return
AOC 1 – CFS Attachment
AOC 2 – Related Party Disclosure
Suri & Co, Quality Control Wing

9. True and fair view Compliance with law
Correct and Adequate Disclosures
Compliance with Accounting and Auditing Standards
Suri & Co, Quality Control Wing

10. Financial statement Section 129 Comply with AS and Sch III
Consolidation mandatory – Separate Statement of Salient Features to be enclosed
Non compliance of AS – Disclosure mandatory
Directors to lay FS and CFS at AGM
Suri & Co, Quality Control Wing

11. Schedule iii Split into 3 Division Non Ind AS Co Ind AS Co NBFC
Suri & Co, Quality Control Wing

12. Schedule iii Division 1 Part I – Balance Sheet
Part II – Statement of Profit and Loss
General Instructions for preparation of CFS
Suri & Co, Quality Control Wing

13. Schedule iii Some Things that we miss out
Disclosure of AS mandatory - Sch III Disclosure are in Addition to that
Narrative Description or disaggregation of items should be in Notes
Each item on the face of the Balance Sheet and Statement of Profit and Loss shall be cross-referenced to any related information in the notes to accounts
Once a unit of measurement is used, it should be used uniformly in the Financial Statements.
Trade Payables to be split as
total outstanding dues of micro enterprises and small enterprises; and
total outstanding dues of creditors other than micro enterprises and small enterprises.
Suri & Co, Quality Control Wing

14. Schedule iii Some Things that we miss out
No more Fixed Assets – its PPE
Classification of assets to Current and Non Current – Note on how the segregation happened “Operating Cycle”
Changes in Accounting Standards
Deferred tax and its disclosure
Employee benefits and its disclosure
Suri & Co, Quality Control Wing

15. Records to be maintained
Shareholder Register
Director Register along with the share holding
Disclosure of Interest
Charge Register
Board Minutes and GM minutes
Fixed Asset Register
Suri & Co, Quality Control Wing

16. Update on companies act
Suri & Co, Quality Control Wing

17. UPDATES on companies act
CHANGES IN SCHEDULE III
FOR NON IND AS FS
ROUNDING OFF USED IN FS SHOULD BE UNIFORMLY USED THROUGHOUT
FIXED ASSETS CHANGED TO PPE
RESERVE AND SURPLUS CHANGED TO SURPLUS
FOR IND AS FS
TRADE PAYABLE MSMED DISCLOSURE INTRODUCED
SECURITIES PREMIUM RESERVE CHANGED TO SECURITIES PREMIUM
DISCLOSURE BY WAY OF NOTE FOR EACH RESERVE
Suri & Co, Quality Control Wing

18. UPDATES on companies act
CHANGES IN SCHEDULE III
FOR IND AS FS
DETAILED TRADE RECEIVABLE AND LOANS RECEIVABLE DISCLOSURE – SECURED, UNSECURED, INCREASE IN CREDIT RISK AND CREDIT IMPAIRED
NEW FS FORMAT FOR NBFC INTRODUCED IN DIVISION III
Suri & Co, Quality Control Wing

19. UPDATES on companies act
SOME IMPORTANT CIRCULARS / NOTIFICATIONS
THE COMPANY TO GIVE PREFERENCE TO THE LOCAL AREA AND AREAS AROUND IT WHERE IT OPERATES, FOR CSR
SATISFACTION OF CHARGE FORM REVISED
INTRODUCTION OF NFRA AND ITS RULES
DIRECTORS REPORT TO INCLUDE POINTS ON COST RECORDS AND COMPLIANCE OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
Suri & Co, Quality Control Wing

20. UPDATES on companies act
SOME IMPORTANT CIRCULARS / NOTIFICATIONS
DIRECTORS REPORT OF OPC AND SMALL CO TO INCLUDE CERTAIN DISCLOSURES
PHYSICAL QUORUM PRESENT THEN NO RESTICTION IN APPROVAL OF FS, DIRECTORS REPORT THROUGH VIDEO CONFERENCING
RATIFICATION OF AUDITORS APPOINTMENT OMITTED
AMENDMENTS TO IND AS RULES MADE
Suri & Co, Quality Control Wing

21. UPDATES on companies act
SOME KEY CHANGES COMPANIES (AMENDMENT) ORDINANCE 2019
NEW COMPANIES INCORPORATED AFTER THE ORDINANCE – NEW PROCEDURES TO COMMENCE BUSINESS
ROC TO HAVE POWERS TO VERIFY THE REGISTERED OFFICE OF CO
CONVERSION OF PUBLIC LTD TO PRIVATE WITH C GOVT PERMISSION
PENALTY FOR ISSUE OF SHARES AT DISCOUNT
PENALTY FOR ALTERATION OF SHARE CAPITAL
Suri & Co, Quality Control Wing

22. UPDATES on companies act
SOME KEY CHANGES COMPANIES (AMENDMENT) ORDINANCE 2019
CHARGE TO BE REGISTERED WITH IN 60 DAYS
SATISFACTION OF CHARGE – RECTIFICATION POWES BY C GOVT
REGISTER OF SIGNIFICANT BENEFICIAL OWNERSHIP – TIME LIMIT FOR TRIBUNAL ORDER AND PENALTY FOR OFFICERS
PENALTY TO BE LEVYED TO PROMOTORS, DIRECTORS AND KMP FOR NON DISCLOSURE OF INTEREST IN TRANSACTIONS
PENALTY OF RS 5000 FOR NON COMPLIANCE OF PROXIES FORM
Suri & Co, Quality Control Wing

23. UPDATES on companies act
SOME KEY CHANGES COMPANIES (AMENDMENT) ORDINANCE 2019
RESOLUTIONS AND AGREEMENT TO BE FILED – PENALTY REVISED AND FOR CONTINOUS DEFAULT PENALTY INTRODUCED.
LISTED CO – PENALTY INCREASED FOR NON FILING OF REPORT ON AGM
PENALTY REVISED FOR NON FILIN OF FS WITH REGISTERAR
ADDITIONAL PENALTY INTRODUCED FOR AUDITORS FOR CONTIOUS DEFAULT FOR NON FILING OF FORM ADT3
PENALTY REVISED AND FOR CONTINOUS DEFAULT PENALTY INTRODUCED TO CO FOR NON DISCLOSURE OF DIN TO ROC BY CO AND TO DIRECTORS TO CO
Suri & Co, Quality Control Wing

24. UPDATES on companies act
SOME KEY CHANGES COMPANIES (AMENDMENT) ORDINANCE 2019
DIRECTORS EXCEEDING THE LIMIT OF DIRECTORSHIP TO BE DISQULIFIED PENALISED
NON COMPLIANCE OF SEC 197 – PENALTY INCREASED TO DIRECTOR AND NEW PENALTY INTRODUCED TO CO
PENALTY ENHANCED FOR NON COMPLIANCE OF APPOINTMENT OF KMP
PENALTY FOR FRAUD INCREASED TO 50 LAKHS
Suri & Co, Quality Control Wing

25. AUDIT REQUIREMENTS
Suri & Co, Quality Control Wing

26. Audit Requirements
PHYSICAL VERIFICATION OF ASSETS – ALONG WITH REASONS FOR VARIATION IF ANY
PHYSICAL VERIFICATION OF INVENTORY – ALONG WITH REASONS FOR VARIATION IF ANY
CONFIRMATION OF BALANCES OF DEBTORS ALONG WITH RECONCILIATION IF ANY
CONFIRMATION OF BALANCES OF CREDITORS ALONG WITH RECONCILIATION IF ANY
CONFIRMATION OF CREDITORS FOR CLASSIFICATION AS MSMED
Suri & Co, Quality Control Wing

27. Audit Requirements
CONFIRMATION OF BALANCES OF BETWEEN INTER COMPANIES (GROUP CONCERNS)
LIST OF RELATED PARTIES ALONG WITH TRANSACTIONS ENTERED WITH THEM
CONFIRMATION OF BALANCE OF ALL THE BANK ACCOUNTS AS ON 31ST MARCH 2019.
PHYSICAL CASH CONFIRMATION AS ON 31ST MARCH 2019 ALONG WITH COPY OF THE CASH BOOK BALANCE.
Suri & Co, Quality Control Wing

28. Audit Requirements
CONFIRMATION OF BALANCE OF BANK DEPOSIT AND THE INTEREST ACCRUED.
COPIES OF BOARD RESOLUTIONS PASSED DURING THE YEAR
REGISTERS UNDER COMPANIES ACT 2013 FOR VERIFICATION
CONFIRMATION OF BALANCE OF ELECTRICITY DEPOSIT AND THE INTEREST ACCRUED.
Suri & Co, Quality Control Wing

29. Audit Requirements LIST OF CONTINGENT LIABILITY AS ON 31ST MARCH 2019
CONFIRMATION OF STOCK WITH SUB CONTRACTORS ALONG WITH RECONCILIATION IF ANY
RECONCILIATION OF INWARD AND OUTWARD SUPPLY WITH GST RETURN
STATE WISE / GSTIN WISE
COPIES OF ORDERS RECEIVED DURING THE YEAR – INCOME TAX / VAT / EXCISE / ST
LIST OF FIXED ASSETS CAPITALISED DURING THE YEAR
Suri & Co, Quality Control Wing

30. Thank you CA G Rengarajan Partner Suri & Co, Chartered Accountants
Suri & Co, Quality Control Wing