Over the years we have specialized in carrying out the internal-management audits of small to big sized business entities. The thrust is to audit for the statutory requirements and also simultaneously report the irregularities and the weakness in the internal control and systems for proper action and rectification.

The purpose of auditing is to satisfy the users of financial statements that the accounts presented to them are drawn up on correct accounting principles together with Accounting Standards/ IAS and that they represent a true and fair view of the state of affairs of the organization. This is possibly one of the most important functions of a Chartered Accountant where specialized training, skill and judgment are required.

Types of Auditing Services rendered

Statutory Audits

We undertake Statutory Audits of Public/Private Limited Companies in the Manufacturing/ Trading/ Service Sectors, IT Companies, Nationalized Banks, Financial Institutions, Non-Banking Finance Companies, Public Sector Undertaking (PSU), Charitable Institutions, NGO, Hotels, Hospitals, Co-operative Societies and other small and medium sized enterprises.

Tax Audits

Every business Company, Firm or Enterprises whose turnover exceeds Rs.1 Crore or total receipts from any profession exceeds Rs. 25 Lakhs in any previous year is required to get its accounts precisely & punctually audited and obtain a report under the section 44AB of the Income Tax Act. Similarly, u/s 44AD where an assessee has declared his net profit less than 8% of its total turnover in that case, the assessee has to obtain tax audit report as prescribed under the law. We have a team of tax experts to conduct such type of audits.

Internal & Management Audit

The focal point is to ensure strong internal & managerial control systems to minimize the risk of accidental or deliberate errors and omissions. Apart from, Safeguarding of valuable assets, Sufficient division of authority over key control areas and stringent compliance with the internal operating policies and corporate governance.

Information System Audit (IS Audit)

IS Audit evaluates the adequacy of internal controls with regard to specific computer programs and the data processing environment as a whole. It ascertains whether computer systems safeguard assets, Maintain data integrity and allow the goals of an organization to be achieved effectively and efficiently. Our team includes experienced computers professionals and qualified system Auditors (DISA) to conduct IS Audit.

Forensic Audit

Forensic Audit is an examination and evaluation of a firm's or individual's financial records to derive evidence that can be used in a court of law or legal proceeding. A forensic audit may be conducted to prosecute a party for fraud, embezzlement, or other financial crimes.

Ind AS - Implementation, Consultancy and Audit Services

Ind-AS has been made applicable w.e.f. Financial Year 2016-17. We at SRA assist you in smooth transitioning and implementation to this new statutory Compliance under Companies Act, 2013.

Applicability

The following class of companies other than NBFC's need to comply with the Ind AS in preparation of the financial statements:

Non-applicability

The above mandatory roadmap will not be applicable to:

• Companies whose securities are listed or in the process of listing on SME exchanges as referred to in Chapter XB or on the Institutional Trading Platform without initial public offering in accordance with the provisions of Chapter XC of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.
• Companies not covered by the roadmap in the "Mandatory adoption" categories above.

Note: SME Exchange to have the same meaning as assigned to it in Chapter XB of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

These companies should continue to apply existing Accounting Standards prescribed in the Annexure to the Companies (Accounting Standards) Rules, 2006, unless they opt for voluntary adoption.

Net worth definition

The definition of "net worth" is as per section 2(57) of the Companies Act, 2013. As per that section, net worth means the paid-up share capital + reserves created out of the profits (excludes reserves created out of revaluation of assets, write-back of depreciation and amalgamation) + securities premium account - accumulated losses - deferred expenditure - miscellaneous expenditure not written off as per the audited balance sheet.

Dates for consideration of net worth

• Net worth to be calculated in accordance with the standalone financial statements of the company as on 31 March 2014 or the first audited financial statements for an accounting period which ends after that date.
• For companies that are not in existence on 31 March 2014 or an existing company falling under any of thresholds specified under 'Mandatory adoption' for the first time after 31 March 2014, the net worth should be calculated on the basis of the first audited financial statements ending after that date in respect of which it meets the thresholds. Such companies meeting the specified thresholds for the first time at the end of an accounting year shall apply Ind AS from the immediate next accounting year.

Applicability for NBFC's

NBFC's need to comply with the Ind AS in preparation of the financial statements:

Non-Banking Financial Company means a Non-Banking Financial Company as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 and includes Housing Finance Companies, Merchant Banking companies, Micro Finance Companies, Mutual Benefit Companies, Venture Capital Fund Companies, Stock Broker or Sub-Broker Companies, Nidhi Companies, Chit Companies, Securitisation and Reconstruction Companies, Mortgage Guarantee Companies, Pension Fund Companies, Asset Management Companies and Core Investment Companies.

For the purposes of calculation of net worth of Non-Banking Financial Companies the following principles shall apply, namely:-

(a) the net worth shall be calculated in accordance with the stand-alone financial statements of the NBFCs as on 31st March, 2016 or the first audited financial statements for accounting period which ends after that date;
(b) for NBFCs which are not in existence on 31st March, 2016 or an existing NBFC falling first time, after 31st March, 2016, the net worth shall be calculated on the basis of the first audited stand-alone financial statements ending after that date, in respect of which it meets the thresholds.

Scope of work

1. Restatement of financials for the purpose of listing of securities on Stock Exchanges
2. Transition to Ind AS - The scope of work will include an end-to-end solution for smooth transition and implementation from existing accounting practices to Indian Accounting Standards (Ind AS) both Standalone and Consolidated financial of any company which is required to do mandatorily or voluntarily adoption of Ind AS.

• Identification of accounting and reporting differences between Indian GAAP and Ind AS.
• Identification and selection of exemptions available under Ind AS 101.
• Assess the impact of changes on various components of business, documentation and IT systems.
• Assess income tax implication of Ind AS adoption.
• Detailed implementation plan based on this impact assessment.
• Assistance in preparation of opening balance sheet on April 1, 2017 and any other subsequent date on which company is required to transition to Ind AS.
• Assistance in preparation of financial statements for current and comparative year financials i.e. in case of transition to Ind AS effective April 1, 2017, the current year 2017-18 and comparative year 2016-17.

The following section highlights some of the common accounting issues that are particularly important:

1. Employment Benefits (Ind AS 19) - Accounting for actuarial gains and losses.

Leases (Ind AS 17) - Determining whether an arrangement contains a lease is complex and requires significant judgment thereby impacting the classification of lease, classification of lease in operating lease and finance lease. Accounting for operating lease and finance lease.

Property, plant and equipment (Ind AS 16) - Componentisation of assets capitalisation, judgement on depreciable live and residual values of assets. Tax effect of capitalisation.

Consolidated Financial Statements (Ind AS 110) - More judgment in determining the entities to be consolidated and the date when control / joint control was obtained. Efforts needed to align accounting policies across subsidiaries.

Joint Arrangements (Ind AS 111) - More judgment in determining whether the entities are joint operations or joint ventures.

Business Combinations (Ind AS 103) - Fair value measurement of assets acquired and liabilities assumed on acquisition of any business. Accounting for tax contingencies impacting tax calculation of the company.

Financial Instruments (Ind AS 32, 107 and 109) - Accounting for derivatives. Accounting and classification of financial assets and liabilities. Accounting for cost incurred on availing new borrowing. Security deposits accounting. Classification of financial arrangements as equity or debt in the balance sheet.

Concurrent and Income & Expenditure Audit

Large organizations and corporations need to verify day to day business transactions. We have a pool of qualified & experienced professionals and ancillary staff, to conduct such audits.

Current Asset / Stock Audit

Organizations needs to verify there debtors/stocks or the lender needs to verify its borrowers repaying capacity. We undertake current assets audit to enable companies assure the value of there book debts/stock.