reliance infrastructure auditors
DESCRIPTION
Auditors dutyTRANSCRIPT
http://dir.coolclips.com/Business/Gif_Animations/business_21.html
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.
