Highlights of Aadhar judgement given by Honorable Supreme Court of India

Highlights of the Aadhar judgement given by Honorable Supreme Court of India: 

1. Aadhaar mandatory for filing of IT returns and allotment of Permanent Account Number;

2. Not mandatory to link Aadhaar to bank accounts;

3. Telecom service providers can't seek linking of Aadhaar;

4. Nothing in Aadhaar Act that violates right to privacy of individual

5. SC upholds passing of Aadhaar Bill as Money Bill by Lok Sabha;

6. No child can be denied benefits of any schemes on not being able to bring their Aadhaar number;

7. Government not to give Aadhaar to illegal immigrants

8. CBSE, NEET, UGC cannot make Aadhaar mandatory, also not compulsory for school admissions;

9. Aadhaar authentication data cannot be stored for more than six months; 

10. SC Constitution Bench strikes down the National security exception under the Aadhaar Act

11. Section 57 of Aadhaar Act permitting private entities to avail Aadhaar data struck down

12. Robust data protection regime has to be brought in place as early as possible, says Justice Sikri in 

majority verdict

13. There is sufficient defence mechanism for authentication in Aadhaar scheme: Justice Sikri

14. The concept of human dignity has been enlarged in the judgement, says Justice Sikri

15. SC declares Aadhaar scheme as constitutionally valid

16. There is no possibility of obtaining a duplicate Aadhaar card: Justice Sikri

17. It is better to be unique than being best; Aadhaar means Unique: SC

18. SC says there has been minimal demographic and biometric data collected by UIDAI for Aadhaar enrolment

19. Attack on Aadhaar by petitioners is based on violation of rights, will lead to a surveillance State

20. Justice A K Sikri pronounces judgement on Aadhaar for himself, Chief Justice of India Dipak Misra and Justice A M Khanwilkar

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Audit Report for 17-18 As per SA 700

INDEPENDENT AUDITOR’S REPORT
To The Members of XXX LIMITED 

Report on the Standalone Financial Statements 

We have audited the accompanying standalone financial statements of XXX LIMITED (“the Company”), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information. 

Management’s Responsibility for the Standalone Financial Statements 
The Company’s Board of Directors is responsible for the matters stated in Section 134(5)  A of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015B, as amended, and other accounting principles generally accepted in India. 

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls C, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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 standalone financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standardsD and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order issued under section 143(11)E of the Act. 

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10)F 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 standalone financial statements are free from material misstatement.

 An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the standalone financial statements. 

We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements. 

Opinion 

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date. 

Report on Other Legal and Regulatory Requirements

 1. As required by Section 143(3)G of the Act, based on our audit we report that:

 a) 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. 

b) 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. 

c) the Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account. 

d) in our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under section 133H of the Act. 

e) on the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act. 

f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.

 g) with respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014I, as amended, in our opinion and to the best of our information and according to the explanations given to us:

    i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements. 

    ii. The Company has made provision, as required under the applicable law or accounting standards, for             material foreseeable losses, if any, on long-term contracts including derivative contracts.

    iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. 

2. As required by the Companies (Auditor’s Report) Order, 2016 J (“the Order”) issued by the Central Government in terms of Section 143(11)k of the Act, we give in “Annexure xxx" statement on the matters specified in paragraphs 3 and 4 of the Order.


                                                                                                                                                       For ABC LLP                                                                                                                                                Chartered Accountants                                                                                                                                  (Firm’s Registration No. 123456.) 

                                 


                                                                                                                                                              Mr.  XYZ
                                                                                                                                                                Partner 
                                                                                                                                        (Membership No. 98765) State, Date



(Above Provided A,B,C,D,E,F,G,H,I,J,K are discussed in other posts of Statutory Audit.)


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Hope To Meet again.... :)

A. Section 134(5) of the Companies Act 2013

A.Section 134(5) Of The Companies Act 2013

(5) The Directors’ Responsibility Statement referred to in clause (c) of sub-section (3)(i.e., Documents attached to Financial statements laid before a company in general meeting) shall state that—

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the directors had 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;

(c) the directors had 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;

(d) the directors had prepared the annual accounts on a going concern basis; and

(e) the directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

Explanation.—For the purposes of this clause, the term “internal financial

controls” means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information;

(f) the directors had devised proper systems to ensure compliance with the

provisions of all applicable laws and that such systems were adequate and operating effectively.


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Last Date of DIR-3 KYC is 15th Sep 2018..... Hurry!!!!

There is a mandatory requirement by government that all the directors in a company need to comply with the KYC requirement  on or before 15th of September 2018. 

Below provided are some FAQs issued by mca:

Ques 1: What is DIR-3 KYC FORM & WHO IS REQUIRED TO FILE DIR-3 KYC FORM?
Ans: DIR-3 KYC FORM is mandatory for those directors who have been allotted DIN on or before 31st March 2018 and whose DIN is in  “Approved status” would be mandatorily required to file DIR-3 KYC FORM on or before 31st August 2018.

- For Financial year 2018-19 - Any person who has been allotted “Director Identification Number (DIN/DPIN)” on or before 31st March 2018 and the status of such DIN is ‘Approved’, needs to file form DIR-3 KYC to update KYC details in the system on or before15th September 2018.
- For Financial year 2019-20 onwards - Every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, would be mandatorily required to file form DIR-3 KYC before 30th April of the immediately next financial year.

After expiry of the respective due dates, system will mark all non-compliant DINs against which DIR-3 KYC form has not been filed as ‘Deactivated’

Ques 2: WHICH TYPE OF DIRECTORS ARE REQUIRED TO FILE DIR-3KYC FORM?
Ans: Two types of directors:-

1. Indian directors
2. Foreign directors

Ques 3: WHICH DOCUMENTS ARE REQUIRED TO FILE DIR-3 KYC FORM? Ans: IN CASE OF INDIAN DIRECTOR:-
1. PAN CARD
2. Aadhar Card 
3. Personal Mobile Number and E-mail ID of directors

IN CASE OF FOREIGN DIRECTORS IN INDIAN COMPANY
1. Passport.
2. Mobile No. and E-mail ID of the director himself/ herself only and will be verified by OTP.
Ques 4: FEE FOR FILING DIR -3 KYC FORM?
Ans: 1. Till 15 September 2018– No Fees
2.  After 15 September 2018 - Rs. 5000/‐.
5. CONSEQUENCE FOR NOT FILING E-FORM DIR-3 KYC
DIN will be deactivated after 15 September 2018 with the reason as ‘Non-filing of DIR-3 KYC’

Statutory audit- Step 1 (Part A- declaration)

A. Declaration of interest.

1. Get the Declaration from all the directors ( details of the Company/firm in which the director is interested, status of their relatives) in Form MBP-1 (Sec 189).

2.Declaration should be  given by the director before the date of First Board Meeting in the FY or on the date of Board Meeting.

3.Transactions with the above said parties(Directors) should be traced- Loan taken & Loan granted(sec. 185 ); Purchases or sales with related parties (Sec.188).

Note: all the particulars as to name, relationship, amount, date of contract/agreement.,etc shall be there in the MBP-1 register & the date of entry must be within 7 days from the date of approval of board.

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