FORMING AN PINTON & REPORTING ONForm an opinion on FS based on an evaluation of the conclusions drawn From the audit evidence obtained and Express clearly the opinion through awritl ri wt that alco describes the basice for the opin, \ (J.K. SHAH (GoBoag Hidayatullah - 9372959879RACTC EIEMINTS 0) U.2 DADLL CLEMENT) Title An addressee, as required by the circumstances of the engagement. Auditor's Opinion: The Opinion section of the auditor's report shall also: Identify the entity whose financial statements have been audited: State that the financial ctatemente have been audited, Identify the title of each statement comprising the financial statements; ; Refer to the notes, including the summary of significant a ae ; Reta accounting policies; and Specify the date of, or period covered by, each financial statement comprising the financial statements{J.K. SHAH GUO Basis for Opinion: The auditor's report chall include a section, directly following the Opinion section, with the heading ‘Basis for Opinion” that: States that the audit was conducted im accordance with Standards on Auditing; Refers to the section of the auditor's report that deccribec the auditor's responsibilities under the CAs; Includes a statement that the auditor i¢ independent of the entity in accordance with the relevant ethical requiremente relating to the audit and has fulfilled the auditor's other ethical responsibilities in accordance with thece requirements. States whether the auditor believes that the audit evidence the auditor has obtained ic cufficient and appropriate to provide a basic for the auditor's opinionGoing Concern: Where applicable, the auditor shall report in accordance with SA 570 (Revived) Key Audit Matters: For audits of complete sete of general purpose financial statements of listed entities, the auditor chall communicate key audit matters in the auditor's report in accordance with CA 707 Management Responsibilities : The auditor's report chall include a section with a heading “Responsibilities of Management for the Financial Statements.” ATTA ALSeN Col") cla 9372959879Management Responsibilities : a) Preparing the financial statements in accordance with the AFRF, and for such internal control ac management determines ic necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error Assessing the entity's ability to continue as a going concern and whether the uce of the going concern basic of accounting is appropriate as well as disclosing, if applicable, matters relating to going concern.Note: Oversight of the financial reporting process: This section of the auditor's report challl alco identify those responsible for the oversight of the financial reporting process, when those responsible for cuch oversight are different from Management. In thie case, the heading of this section chal alco refer to “Those Charged with Governance” TUE] ER oY Achebe let bs)(J.K. SHAH Auditor's Responsibilities for the Audit of the Financial \& eu Statements: Thi¢ cection of the auditor's report shall: a. State that the objectives of the auditor are to: i. Obtain reasonable assurance about whether the financial statements ac a whole are free from material misstatement, whether dueto fraud-or- error; and Tecue an auditor's report that includes the auditor's Opinion. 6. State that reaconable assurance ic a high level of accurance, but ig not a guarantee that an audit conducted in accordance with SAc will always detect a material misstatement when it exists; and{J.K. SH. (euooun c. State that micctatemente can arice from fraud or error, and either: i__Describe that they are considered material if, individually or in the aggregate, they could reaconably be expected to influence the economic decisions of users takeron the basic of these financial statements; or Provide a definition or description of materiality in accordance with the AFRF.Auditor's responsibility State that auditor exercises professional judgement and Describe auditor's maintains professional stating that audit responsibility in skopticism responsibilities aro group audit To evaluate To evaluate Tessas the To obtain an the i the overall ae understanding | |) appropriatene coe presentation, ines ‘of the Intornat 38 of mana anre | fp tucture and misstatement | contro! system accounting x] content of icles, sn going concem statementsa) THE AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE (8S SHES) FINANCIAL STATEMENTS SECTION OF THE AUDITOR'S REPORT ALSO-SHALL State that the auditor communicates with TCWG regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that the auditor identifies during the audit For audits of FS of listed entities, state that the auditor provider TCWG with a statement that the auditor has complied with relevant ethical requirements regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on the auditor's independence, and where applicable, related cafequards: and¢) For audits of financial statements of listed entities and any other entities for which key audit matters are communicated in accordance with SA 701, state that, from the matters communicated with thoce charged with governance, the auditor determines thoce matterc that were of most significance in the audit-of the firancial ctatements of the current period and are therefore the key audit matters. The auditor deccribes thece matters in the auditor's report unlece /aw or regulation precludes public dicelocare.Signature of the auditor: The report ic signed by the auditor (i.e. the engagement partner) in hic personal name. Where the firm ic appointed as the auditor, the report is signed in the personal name of the auditor and in the name of the audit firm. The partner/proprietor signing the audit report alco needs to mention the membership number assigned by the Institute of Chartered Accountants of IndiaPlace of auditors report: The auditor's report chall name specific location, which ic ordinarily the city where the audit report ic signed. Date of auditors report: The auditor's report chall be dated no earlier than the date on which the auditor has obtained sufficient appropriate audit evidence on which to bace the auditor's opinion on the financial statementsMODIFICATIONS 10 THE OPINION IN THE INDEPENDENT AUDETORS-AEPORE(3.K. SHAH ) Gosocg TYPE OF REPORT Unmodified Modified Modified by modifying opinion Modified without modifying opinion Emphasic on Others matter matters Para Para (€0M) (OM)Modified by modifying opinion Auditor has SAAE Auditor i¢ unable to obtain that micctatement exict in FO SAAE that FS are free from misstatement Matter is Matter is material material matter i¢ material and pervasive but not and pervasive pervasive ADVERSE QUALIFIED Die BCLATMER OPINION OPINION OPINIONPervasive : Pervasive effects on the financial statements are those that, in the auditor's judgment: i. Are not confined to specific elements, accounts or iteme of the financial statements; If co confined, reprecent or could reprecent a substantial proportion of the financial statements; or In relation to disclosures, are fundamental to users’ understanding of the financial statemente-SA J06: EOM PARA * (™ PARA IN INDEPENDE V1 ARQ.1 OBJECTIVE & MEANING: The objective of the auditor, having formed an opinion on FS’ ig to draw user's attention, when in the auditor's judgement it ig necessary to do so, by way of clear additional communication in the auditor's report, to: A matter, although appropriately presented or dicclosed in FE, is that ic of such importance that it ic fundamental to users understanding of the FC. As appropriate, any other matter that is relevant to users understanding of the audit, the auditor's responsibilities or the auditor's report.Q.2 EMPHASIS OF MATTER PARA IN THE AUDITOR'S REPORT Include it immediately after the basic of opinion Para in auditor's report. Uke the heading Emphasic of Matter’ or other appropriate heading Tnelude in the Para a clear reference to matter being emphasized Indicate that the auditor's opinion ic not modified in recpect of the emphasized matterExamples: @ (GAAL) 6-There ic substantial doubt about the entity's ability to continue as a going concern. A-Early application of new accounting standard that hac a pervasive effect on FE in advance of ic effective date. A-There has been a material, change between periods in accounting principles or in method of their applications. C-An uncertainty relating to the fuure outcomes of’ an exceptional litigation or regulatory action.K. SHAH} BEL ) An Emphasis of Matter paragraph i¢ not a substitute for a) A modified opinion in accordance with SA 705 (Reviced) when required by the circumstances of a specific audit engagement. locures in the FE that the applicable FRF requires yuinwnt £9 take, ar that are otherwice nececcary to achieve fair presentation; or Reporting in accordance with SA 570 (Revived) when a material uncertainty existe relating to events or conditions that may cast significant doubt on an entity's ability to continue as a going concernQUESTION Khan Hidayatullah - 9372959879rea eet) ERY piac)QUESTIONQ.3 OTHER MATTER PARA IN AUDITORS REPORT: Tf the auditor considers it nececcary to communicate a matter other than those that are presented or disclosed in FS that, in auditors judgement, i¢ relevant to users understanding of the audit, the auditors responsibilities or auditor's report & this ic not prohibited by law or regulation, the auditor chall do so in a Para in the auditor's report , with the heading * others matter’ or other appropriate heading. The auditor chall include thic Para immediately after the basic of opinion Para & any EOM Para.EXAMPLES: GF (RAL) R-Reasons why auditor ic unable to resign From the engagement even though there ic limitation of scope. A-Another set of FS has been prepared by the came entity in accordance with another general purpoce framework & that the auditor had iccued a report on those FS. (-Law, regulation or generally accepted practive that may require or permit the auditor to elaborate on matters that provide further explanation. L-Auditors report is intended solely for intended users.The auditor chall include an Other Matter paragraph in the auditor's report, provided: ited by law or regulation; and pplies, the matter has not been determined to be a key audit matter to be communicated in the auditor's report.aaa ; $A 701: COMMUNICATING KEY AUDIT MATTERSQ.1 MEANING Those matters that, in the auditor's professional judgment, were of most significance in the audit of the financial statements of the current period. Key audit matters are celected from matters. communicated with those charged with governanceAPPLICABILITY: Listed entities Voluntary if auditor otherwise decides to communicate hey audit matter().2 PURPOSE OF COMMUNICATING KAM: (CAM) To enhance the communicative value of the auditor's ee report by providing greater transparency about the audit 93729598 that was performed. Communicating key audit matters provides additional information to intended users of the financial statements to assist them in understanding those matters that, in the auditor's professional judgment, were of most significance in the audit of the financial ctatements of the current period Communicating key audit matters may alco assist intended users in understanding the entity and areas of significant management judgment in the audited FCQ. SACS $10 BE CONSIDERED FOR DETERMINING KEY AUDIT MATTER Giciisencie © Areas of higher altcecced rick of material micctatement, or significant risks identified in accordance with SA 315 (For examples Refer SA 315) Significant auditor judgments relating to areas in the Cater financial statementc that involved significant Seared management judgment, including accounting ectimatec that have been identified The_effect_on the audit of significant events or trancactionc that occurred during the period. The auditor chall determine which of the matters so determined above were of most significance in the audit of FE of the current period and therefore are the key audit matters.Q.§ COMMUNICATING KEY AUDIT MATTERS IN THE AUDITOR'S REPORT IS NOT: oO A substitute for divclocures in the financial statements that the AFRF requires management to make, or that are otherwice nececcary to achieve fair presentation A substitute for the auditor expressing a modified opinion when required by the circumstances of a specific audit engagement in accordance with SA 705 (Revised) © Asubstitute for reporting in accordance with [A 570 (Revived) when a material uncertainty exists relating to events or conditions that may cast significant dealt om an entity's ability to continue as a going concern © A separate opinion on individual mattersPARTICLUAR | UNQUALIFIED | QUALIFIED | ADVERSE DICLAIMER | OPINION OPINION OPINION OPINION | Opinion We have We have We have We were | Para tet | audited audited audited engaged to cd | audit | 2nd Line | Which comprices the balance cheet at March | | 34°20XX and the P&L. A/o, (and statement of Cash flows) for the year ended, and notes to the FS, including a summary of significant accounting policies. : } 3% Cine | In our opinion and to the best of our information and i | according to the explanations given to us, | oz aoo— =PARTICLUAR ¢* Line UNQUALIFIED OPINION Gives true and fair view of the financial position QUALIFIED OPINION Except for the effects/possibl e effects of | the matter described in | the basis for | Qualified | opinion para | the FE are | true & fair ADVERSE OPINION Because of the significance of the matters described in the basic of adverse opinion para opinion para ‘J.K. SHAH DICAMER OPINION Because of the significance of the | matters described in | the basic of the FS are not true & fair disclaimer of | SIRES) the auditor | doesnot exprese an | opinion on FO{J.K. SHAH PARTICLUAR| UNQUALIFIED | QUALIFIED | ADVERSE __| DICLAIMER OPINION OPINION _| OPINION OPINION Basic of | We believe we | We believe we | We believe we | Because of opinion para | that the audit | that the audit | that the audit | the matters Last line evidence we have | evidence we evidence we described in obtained ic | have obtained | have obtained | the basic of sufficient and | ic sufficient | ic sufficient | disclaimer of | apprepriate to | and | and | opinion para, | ieee ene 9372959879 provide a basic | appropriate to | appropriate to | we were not for our opinion | provide a basic| provide a basic | able to obtain | | for our for adverse SAAE to | qualified opinion provide a opinion basis for our opinion| PARTICLUAR | UNQUALIFIED | QUALIFIED | ADVERSE DICLAIMER OPINION OPINION OPINION OPINION bGasic of — | We conducted our audit in accordance with the [Ac iccued | [opinion by ICAL. Our responsibilities under thoce standards are | para further described in the Auditor's Responsibilities for the | | Audit of the Financial Statements cection of our report. | | We are independent of the entity in accordance with the | ethical requirements that are relevant to our audit of the | financial statements in [juricdiction], and we have Fulfilled | our other ethical responsibilities in accordance with thece | requirements.(We believe that the audit evidence we have | | obtained ic cufficient and appropriate to provide a bacic | | for our opinion: |: COMPARATIVE INFO-CORRESPONDING1. MEANING Cerrar Figure Comparative information Where amounts & other dicclocurec for the preceding period Are included As part of current period financial statements And are intended to be read in relation to the amounts & other dicclocures relating to the current period. These corresponding figures are not precented as complete financial ctatements capable of standing alone, but are integral part of the current period financial statement intended to be ready only in relationchip to current period figures.MEANING (aSsads ee finantial statement Comparative information where amounts and other disclocuree for the prior period are included for comparicon with the financial statements of the current period but, if audited, are referred to in the auditor ¢ opinion. Khan Hidayatul 937295!IL. AUDITORS RESPONSIBILITIES: i. The auditor chall determine whether FS include the comparative info required by the AFRF & whether such info ic appropriately classified. For thie purpose the auditor shall evaluate whether: a The comparative info agrees with the amounts & other disclosures presented in the prior period; and The accounting policies reflected in the comparative info are consistent with thoce applied in the current period or if there have been changes in accounting policies, whether those changes have been properly accounted for & adequately presented & disclosed.ii. If the auditor becomes aware(of a possible material misstatement in the comparative fe a performing the current period Audit + The auditor chall perform cuch additional audit procedures as are necessary in the circumstances to obtain SAAE to determine whether a material misstatement exists. itt. If the auditor had audited the prior periods FE, the auditor chal alco follow the relevant requirements of SA 560.(J.K. SHAH ooogou Za iv. Ac required by SA 580;the auditor shall request WR for all periods referred to in the auditor's opinion. The auditor shall alco obtain a specific WR regarding any prior period item that ic separately diccloced in cy statement of P/L. ullah - 9372959879eras) Byres TIL. PREVIOUS REPORT CONTAINS A QUALIFICATION: * When the auditors report on * When the auditor report ptior period as previously iccued. on prior period as ~included a modified opinion previously iccued. -and the matter giving rise to -included a modified opinion. modification ic resolved & -and matter giving rice to properly accounted for & discloced modification ic unrecolved. in FE according to AFRF. ¢ The auditor chall modify *¢ The auditors opinion of the the auditor's opinion on current period need not refer current period FS. to modifications.‘J.K. SHAH (Guiuoa IV. REPORTING 1.When comparative financial statements are presented, the auditor's opinion shall refer to each period for which financial statements are precented and on which an audit opinion ic expressed:IV. REPORTING: 2: If the auditor sega it a MME exists in the prior period financial statéments on which an unmodified opinion has been previously icsued: * the auditor shall verify whether the misstatement has been dealt with as required under the AFRF and, if that i¢ not the case, the auditor chall express a qualified opinion or an adverse opinion in the auditor's report on the current period financial statementsIV. REPORTING: 3. If the financial statements of the prior period were audited by a predecessor auditor and * the auditor ic permitted fy fax ar regutotic ofer to the predecessor auditor's report on the corresponding figures and decides to do so, the auditor chal state in an Other Matter paragraph in the auditor's report: That the financial statements of the prior period were audited by the predececcor auditor; The type of opinion expressed by the predecessor auditor and, if the opinion was modified, the reasons therefore; and The date of that report.IV. REPORTING: 4. If the prior period financial statements were not audited: * the auditor chal state in an Other Matter paragraph in the auditor's report that the corresponding figures are unaudited. Such a statement does not, however, relieve the auditor of the requirement to obtain SAAE that the opening balances do not contain micctatements that materially affect the current period's financial statements