(On Letter Head)
Date
M/s. ABC
Chartered Accountants
…………
Dear Sirs,
In connection with the finalisation of the audit of our accounts for the period
ended 31stMarch 20XX, we are enclosing a “Letter of Representation” on
the various queries raised by you during the course of the audit.
Thanking You
Yours faithfully,
For _______________Pvt Ltd
(Name)
Director
(On Letter Head)
Date
M/s. ABC
Chartered Accountants
…………
Sub: 1Letter of Representation
Dear Sir,
This representation letter is provided in connection with your audit of the
financial statements of our company for the year ended 31 st March 2022 for
the purpose of expressing an opinion as to whether the financial statements
give a true and fair view in accordance with the applicable accounting
standards in India.
We confirm that, to the best of our knowledge and belief, having made such
inquiries as we considered necessary for the purpose of appropriately
informing ourselves.
Financial Statements
We have fulfilled our responsibilities for the preparation and presentation
of the financial statements as set out in the terms of the audit
engagement dated ________, in particular, the financial statements give a
true and fair view in accordance with the applicable accounting
standards in India.
Significant assumptions used by us in making accounting estimates,
including those measured at fair value, are reasonable.
All events subsequent to the date of the financial statements and for
which applicable accounting standards in India require adjustment or
disclosure have been adjusted or disclosed.
The effects of uncorrected misstatements are immaterial, both
individually and in the aggregate, to the financial statements as a whole.
Further we confirm the following:
1. Property, Plant & Equipment
1. The net book values at which fixed assets are stated in the Balance
Sheet are arrived at:
a) after taking into account all capital expenditure on additions
thereto but no expenditure properly chargeable to revenue;
b) after eliminating the cost and accumulated depreciation related
to items sold discarded, demolished or destroyed;
c) after charging depreciation on assets put to use during the
financial period;
d) Depreciation amounting to Rs. _______ has been determined on
the basis of assessment of remaining useful life of the fixed
assets as per Schedule II of The Companies Act, 2013.
2. The management has physically verified the fixed assets during the
year.
3. None of the PPE have been revalued during the year.
4. We confirm that all the immovable properties in the Financial
Statements are held in the name of the company.
5. We confirm that no proceedings have been initiated / are pending
against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988.
2. Investments
The company does not have/hold any investments.
3. Long Term Loans and Advances
The following unsecured long term loans and advances in the books as
on 31st March 2022 are considered good and fully recoverable:
__________ - Rs.
4. Other Non-Current Assets
Details of balances with banks in Fixed Deposits:
Balance as Maturity
Particulars on Date
31.03.2022
Bank -(A/c no.) ---- _____
_____ Deposits - Rs
5. Inventories
1. Inventories as on 31st March 2022 consisted of the following:
Raw Materials
Rs
-
Work-in- Rs
-
Progress .
Finished Goods Rs
-
.
Tools & Spares Rs
-
.
2. All quantities were determined by actual physical count or
weight or measurement that was taken under our supervision
and in accordance with written instructions as on 31.03.2022.
3. Inventories were physically verified at periodical intervals during
the year
4. All goods included in the inventory are the property of the
company; none of the goods are subject to any charge except as
stated in the financial statements.
5. Inventories do not include goods sold to customers for which
delivery is yet to be made.
6. Inventories have been valued on the following basis/bases:
Raw Materials - At cost on FIFO basis or NRV,
whichever is lower
Work in Progress - At cost
Finished goods - At cost or NRV,
whichever is lower
Tools & Spares - One third written off to
revenue
7. No item of inventories has a net realisable value in the ordinary
course of business which is less than the amount at which it is
included in inventories.
8. No provisions are required at this stage for the slow-moving/
damaged/ obsolete inventories.
6. Trade Receivables
The following items appearing in the books as at 31 st March
2022 are considered good and fully recoverable.
Sundry Debtors
- Exceeding six months - Rs.
- Others - Rs.
7. Cash and Cash Equivalents
1. The company is operating the following Bank Accounts:
SI Balance as on
Particulars
No. 31.03.2022
1 ( Name of the bank)
2
The Company does not have any other Bank Account.
2. Physical Balance of cash as on 31.03.2022 was Rs. ________
8. Short Term Loans and Advances
The following items appearing in the books as at 31 st March 2022 are
considered good and fully recoverable.
Party Amount
9. Other Current Assets
In the opinion of the Board of Directors, other current assets have a
value on realization in the ordinary course of the company’s business
which is equal to the amount at which they are stated in the
Financial Statements.
10. Deposits
The company has not accepted any deposits as defined under
Companies (Acceptance of Deposits) Rules, 2014.
11. Borrowings from Banks/ Financial Institutions
a) The Term Loans have been used only for the purpose for which
they were taken.
b) The quarterly returns of Current Assets filed with banks or
financial institutions are in agreement with the books of accounts.
c) The company has not been declared as a wilful defaulter by any
bank or financial institutions.
12. Liabilities
1. We have recorded all known liabilities in the Financial
Statements.
2. We have disclosed in Notes to the Financial Statements all
guarantees that we have given to Third parties / pending litigations
and all other Contingent Liabilities.
3. Contingent Liabilities disclosed in the notes to the Financial
Statements do not include any contingencies which are likely to
result in a loss and which, therefore, require adjustment of assets or
liabilities.
13. Provision for Claims and Losses
1. Provision has been made in the accounts for all known losses and
claims of material amounts.
14. Capital Commitments
At the Balance Sheet Date, there are no outstanding commitments for
capital expenditure, excepting those disclosed in the Notes to the
financial statements.
15. Related Party Transactions
1. There are no transaction with Related Parties during the year.
2. Related party relationships and transactions have been properly
disclosed and appropriately accounted for in accordance with the
requirements of applicable accounting standards in India and The
Companies Act, 2013.
3. The full details of the Related Party Transactions are given below:
Name of Relationshi Nature of Balance
Amount
Party p Transaction outstandi
ng
4. We confirm that these transactions are not prejudicial to the
interests of the company.
16. Profit and Loss Account
1. Except as disclosed in Financial Statements, the results for the
period were not materially affected by:
a) transactions of a nature not usually undertaken by the Company ;
b) circumstances of an exceptional or non - recurring nature ;
c) charges or credits relating to prior years ;
d) changes in accounting policies.
2. We confirm that no personal expenses are charged in the
revenue accounts.
General
1. We confirm that the company has complied with all the applicable
provisions of The Companies Act, 2013.
2. We confirm that the current and non-current classification of the assets
and liabilities in the financial statements has been done as per the
requirements of the revised schedule III to the Companies Act 2013.
3. The Financial Statements are free of material misstatements and
omissions.
4. The company has complied with all aspects of contractual agreements
that could have a material effect on the Financial Statements in the
event of non - compliance. There has been no non - compliance with
requirements of regularity authorities that could have material effect on
the Financial Statements in the event of non - compliance.
5. The company is regular in depositing undisputed statutory dues
including GST, income-tax, and other statutory dues with the
appropriate authorities.
6. The list of MSME Suppliers are given below:
Nature of Balance
Name
Transaction Outstanding
No claims have been raised against the company under the `Interest on
Delayed Payments to Small Scale & Ancillary Undertakings Act, 1993
/MSMED Act, 2006’.
7. The company does not have any long term contracts requiring a
provision for material foreseeable losses
8. The company does not have any amounts required to be transferred to
the Investor Education and Protection Fund.
9. The company is not required to maintain cost records as prescribed by
the central government under sub section (1) of section 148 of the
Companies Act 2013.
10. The company has not had any transaction with struck off companies.
11. The company has not acted as an ‘intermediary’ for receiving/
advancing/ investing monies to any other entity(ies).
12. The provisions of section 135 are not applicable to the company.
13. The company has not had any ‘Crypto Currency’ transactions during
the year.
14. No unrecorded incomes have been assessed during the year under the
Income Tax Act, 1961.
15. The company is capable of meeting its liabilities falling due within a
period of one year from the Balance Sheet date and the management
does not see any material uncertainty in this regard.
Information Provided
We have provided you with:
o All information, such as records and documentation, and other
matters that are relevant to the preparation and presentation of the
financial statements;
o Additional information that you have requested from us; and
o Unrestricted access to those within the entity.
All transactions have been recorded in the accounting records and are
reflected in the financial statements.
We have disclosed to you all information in relation to fraud or suspected
fraud that we are aware of and that affects the entity and involves:
o Management;
o Employees who have significant roles in internal control; or
o Others where the fraud could have a material effect on the financial
statements.
We have disclosed to you all information in relation to allegations of
fraud, or suspected fraud, affecting the entity’s financial statements
communicated by employees, former employees, analysts, regulators or
others.
We have disclosed to you all known instances of non-compliance or
suspected non-compliance with laws and regulations whose effects
should be considered when preparing financial statements.
We have disclosed to you the identity of the entity’s related parties and
all the related party relationships and transactions of which we are
aware.
Yours faithfully,
For ___________Pvt Ltd
(Name)
Director
