reliance infrastructure auditors

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5 million Consumer

1,24,300 sq.kms.

Area of Supply

45 million

Population covered

16000 million Units sold

941 MW Installed capacity

Net worth

Rs. 5000 Crore Rank 3

Total Assets

Rs. 9800 Crore Rank 5

Sales

Rs. 7700 CroreRank 7

Market Capitalisation

Rs. 13400 Crore

Net Profit

Rs. 500 Crore

Rank 13

Rank 18

To conclude auditing may be defined as “checking somebody else’s accounting and reporting thereon.”

• Special audit committee.• Reliance infrastructure was set up in

may 1986.• It consists of four non-executive

directors.• Company holds 7 meeting during the

year.• Advises the management regarding

internal audit.

AUDITOR

Inspection

Confirmation Verification

•CARO compliance.•Physical verification of Assets.•Numbering the assets.•Identifying verifying & tagging of all assets.•Engraving the identification number on the asset.•It provides a common ground for communication between the accounts dept & the auditor’s.

As per William Pickles Depreciation may be defined as “the permanent and continuing diminution in the quality, quantity and value of an assets.”

CAUSESCAUSES

InternalInternal ExternalExternal

Expenditure

Revenue Capital

Profit &Loss

BalanceSheet

Depreciation

1) Depreciation is not actual cash flow. It is notional flow which

is mandatory to be charged.2) The depreciation rate is 2.05%

Electricity Department uses

Engineering Procurement Commission (EPC) uses

Straight Line Method.

Diminishing balance method.

As per the rates and in the manner prescribed under schedule XIV of

the Companies Act 1956

Intangible Assets are Amortized

over a period of three years.

1)Date of purchase.

2)Quantity.

3)Situation of the assets.

4)Brief information.

5)Revaluation of asset.

6)Information regarding depreciation.

7)Details regarding sale of assets, if it is sold.

Asset wise transformers

Accumulated depreciation

Inventory no.

Manufacturing serial no.

01 10 111 RE1

02 10 222 RE2

03 10 333 RE3

04 10 444 RE4

05 10 555 RE5

Inventory number is handwritten whereas mfg serial no. is engraved. Nobody can change it. It is engraved (stamped) on the system.

• Adequate provision and relevant principles of accountancy is followed.

• Sincerity and honesty.• The capital employed in the assets is

being kept intact.• Business traditions and rules.• Consistency of Method of

depreciation.• The rate of depreciation.

OBJECTIVES

Calculate correct amountsOf profit.

Conservation ofCash resources.

Disclose asset atCorrect valuation.

Savings in taxes.

1.Revaluation of asset.

2.Sale of asset.

3.Addition or

extension.

4.Consistency.

5.Change of method.

6.Disclosure.