Illustration 1 – Auditor’s Report on Financial Statements of a Listed Entity

Prepared in Accordance with a Fair Presentation Framework

For purposes of this illustrative auditor’s report, the following circumstances are assumed:
• Audit of a complete set of financial statements of a listed company (registered under
the Companies Act, 2013) using a fair presentation framework. The audit is not a
group audit (i.e., SA 600 does not apply).
• The financial statements are prepared by management of the entity in accordance
with the accounting Standards prescribed under section 133 of the Companies Act,
2013.
• The terms of the audit engagement reflect the description of management’s
responsibility for the financial statements in SA 210.
• The auditor has concluded an unmodified (i.e., “clean”) opinion is appropriate based
on the audit evidence obtained.
• The relevant ethical requirements that apply to the audit comprise the Code of Ethics
issued by ICAI together with the other relevant ethical requirements relating to the
audit and the auditor refers to both.
• Based on the audit evidence obtained, the auditor has concluded that a material
uncertainty does not exist related to events or conditions that may cast significant
doubt on the entity’s ability to continue as a going concern in accordance with SA 570
(Revised).
• Key audit matters have been communicated in accordance with SA 701.
• Those responsible for oversight of the financial statements differ from those
responsible for the preparation of the financial statements.
• In addition to the audit of the financial statements, the auditor has other reporting
responsibilities required under the Companies Act, 2013.
INDEPENDENT AUDITOR’S REPORT
To the Members of ABC Company Limited
Report on the Audit of the Standalone Financial Statements1
Opinion
We have audited the standalone financial statements of ABC Company Limited (“the
Company”), which comprise the balance sheet as at 31st March 20XX, and the statement of
Profit and Loss, (statement of changes in equity)2 and statement of cash flows for the year
then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information [in which are included the Returns for
the year ended on that date audited by the branch auditors of the Company’s branches

1
The sub-title “Report on the Audit of the Standalone Financial Statements” is unnecessary in circumstances when the second
sub-title “Report on Other Legal and Regulatory Requirements” is not applicable.
2
Where applicable.
26
located at (location of branches)]3.
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,
20XX, and profit/loss, (changes in equity)4 and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of
the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
[Description of each key audit matter in accordance with SA 701.]
Management’s Responsibility for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) 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, (changes in equity)5 and cash flows of the Company in accordance with6 the
accounting principles generally accepted in India, including the accounting Standards
specified under section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding of
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, that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the preparation and presentation of
the financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related

3
Where applicable.
4
Where applicable
5
Where applicable.
6
Where management’s responsibility is to prepare financial statements that give a true and fair view, this may read:
“Management is responsible for the preparation of financial statements that give a true and fair view in accordance with
International Financial Reporting Standards, and for such ...”
27
to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these
financial statements.
Paragraph 40(b) of this SA explains that the shaded material below can be located in an
Appendix to the auditor’s report. Paragraph 40(c) explains that when law, regulation or
applicable auditing standards expressly permit, reference can be made to a website of an
appropriate authority that contains the description of the auditor’s responsibilities, rather than
including this material in the auditor’s report, provided that the description on the website
addresses, and is not inconsistent with, the description of the auditor’s responsibilities below.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements,
28
 including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Matter
We did not audit the financial statements/ information of ………………. (number) branches
included in the stand alone financial statements of the Company whose financial
statements/financial information reflect total assets of Rs. ……………….. as at 31 st March
20XX and the total revenue of Rs. ………………. for the year ended on that date, as
considered in the standalone financial statements/information of these branches have been
audited by the branch auditors whose reports have been furnished to us, and our opinion in
so far as it relates to the amounts and disclosures included in respect of branches, is based
solely on the report of such branch auditors.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Companies
Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, 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 [and proper returns
adequate for the purposes of our audit have been received from the branches not visited
by us.7]
(c) [The reports on the accounts of the branch offices of the Company audited under Section
143(8) of the Act by branch auditors have been sent to us and have been properly dealt
with by us in preparing this report8.]

7
Where applicable.
8
Where applicable.
29
(d) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account [and with the
returns received from the branches not visited by us9].
(e) In our opinion, the aforesaid standalone financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
(f) On the basis of the written representations received from the directors as on 31 st March,
20XX taken on record by the Board of Directors, none of the directors is disqualified as
on 31st March, 20XX from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) 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”.
(h) 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, 2014, 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 financial statements – Refer Note XX to the financial statements;
[or the Company does not have any pending litigations which would impact its
financial position10]
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 – Refer Note XX to the financial
statements; [or the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses.11]
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company {or, following are
the instances of delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company or there were no
amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company12}.
For XYZ & Co
Chartered Accountants
(Firm’s Registration No.)

Signature
(Name of the Member Signing the Audit Report)

9
Where applicable.
10
As may be applicable.
11
As may be applicable.
12
As may be applicable.
30
 (Designation13)
(Membership No.
XXXXX)
Place of Signature:
Date:

13
Partner or Proprietor, as the case may be
31
Illustration 2 – Auditor’s Report on Consolidated Financial Statements of a
Listed Company (incorporated under the Companies Act, 2013) Prepared in
Accordance with a Fair Presentation Framework
For purposes of this illustrative auditor’s report, the following circumstances are assumed:
• Audit of a complete set of consolidated financial statements of a listed Company
(incorporated under the Companies Act, 2013) using a fair presentation framework.
The audit is a group audit of an entity with subsidiaries (i.e., SA 600 applies).
• The consolidated financial statements are prepared by management of the entity in
accordance with the Accounting Standards prescribed under section 133 of the
Companies Act, 2013 (a general purpose framework).
• The terms of the audit engagement reflect the description of management’s
responsibility for the consolidated financial statements in SA 210.
• The auditor has concluded an unmodified (i.e., “clean”) opinion is appropriate based
on the audit evidence obtained.
• The Code of Ethics issued by ICAI comprises all of the relevant ethical requirements
that apply to the principal auditor in relation to this audit.
• Based on the audit evidence obtained, the principal auditor has concluded that a
material uncertainty does not exist related to events or conditions that may cast
significant doubt on the entity’s ability to continue as a going concern in accordance
with SA 570 (Revised).
• Key audit matters have been communicated in accordance with SA 701.
• Those responsible for oversight of the consolidated financial statements differ from
those responsible for the preparation of the consolidated financial statements.
• In addition to the audit of the consolidated financial statements, the principal auditor
has other reporting responsibilities required under the Companies Act, 2013.
INDEPENDENT AUDITOR’S REPORT
To the Members of ABC Company Limited
Report on the Audit of the Consolidated Financial Statements14
Opinion
We have audited the accompanying consolidated financial statements of ABC Company
Limited (hereinafter referred to as the ‘Holding Company”) and its subsidiaries (Holding
Company and its subsidiaries together referred to as “the Group”), its associates and jointly
controlled entities, which comprise the consolidated Balance Sheet as at March 31, 20XX,
and the consolidated statement of Profit and Loss, (the consolidated statement of changes in
equity)15 and the consolidated cash flows Statement for the year then ended, and notes to
the consolidated financial statements, including a summary of significant accounting policies
(hereinafter referred to as “the consolidated financial statements”).
In our opinion and to the best of our information and according to the explanations given to
us, the aforesaid consolidated 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 their consolidated state of affairs of the Company

14
The sub-title “Report on the Audit of the Consolidated Financial Statements” is unnecessary in circumstances when the
second sub-title “Report on Other Legal and Regulatory Requirements” is not applicable.
15
Where applicable.
32
as at March 31, 20XX, of consolidated profit/loss, (consolidated changes in equity)16 and its
consolidated cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies act, 2013. Our responsibilities under those Standards are
further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the
Code of Ethics issued by ICAI, and we have fulfilled our other ethical responsibilities in
accordance with the provisions of the Companies Act, 2013. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the consolidated financial statements of the current period. These
matters were addressed in the context of our audit of the consolidated financial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
[Description of each key audit matter in accordance with SA 701.]
Responsibilities of Management and Those Charged with Governance for the
Consolidated Financial Statements
The Holding Company’s Board of Directors is responsible for the preparation and
presentation of these consolidated financial statements in term of the requirements of the
Companies Act, 2013 that give a true and fair view of the consolidated financial position,
consolidated financial performance and consolidated cash flows of the Group including its
Associates and Jointly controlled entities in accordance with the accounting principles
generally accepted in India, including the Accounting Standards specified under section 133
of the Act. The respective Board of Directors of the companies included in the Group and of
its associates and jointly controlled entities are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the assets
of the Group 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 the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error, which have been used for the purpose of preparation of the
consolidated financial statements by the Directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the respective Board of Directors of the
companies included in the Group and of its associates and jointly controlled entities are
responsible for assessing the ability of the Group and of its associates and jointly controlled
entities to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends
to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group and of its
associates and jointly controlled entities are responsible for overseeing the financial
reporting process of the Group and of its associates and jointly controlled entities.

16
Where applicable.
33
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these consolidated financial statements.
Paragraph 40(b) of this SA explains that the shaded material below can be located in an
Appendix to the auditor’s report. Paragraph 40(c) explains that when law, regulation or the
applicable auditing standards expressly permit, reference can be made to a website of an
appropriate authority that contains the description of the auditor’s responsibilities, rather than
including this material in the auditor’s report, provided that the description on the website
addresses, and is not inconsistent with, the description of the auditor’s responsibilities below.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the ability of the
Group and its associates and jointly controlled entities to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the consolidated financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group and its associates and jointly
controlled entities to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that achieves
fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the
34
 entities or business activities within the Group and its associates and jointly controlled
entities to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the audit of the financial
statements of such entities included in the consolidated financial statements of which
we are the independent auditors. For the other entities included in the consolidated
financial statements, which have been audited by other auditors, such other auditors
remain responsible for the direction, supervision and performance of the audits carried
out by them. We remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such
other entities included in the consolidated financial statements of which we are the
independent auditors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the consolidated financial statements of
the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
(a) We did not audit the financial statements / financial information of ______ subsidiaries,
and ______ jointly controlled entities, whose financial statements / financial information
reflect total assets of Rs.______ as at 31st March, 20XX, total revenues of Rs._______
and net cash flows amounting to Rs.______ for the year ended on that date, as
considered in the consolidated financial statements. The consolidated financial
statements also include the Group’s share of net profit/loss of Rs. _____ for the year
ended 31st March, 20XX, as considered in the consolidated financial statements, in
respect of ____associates, whose financial statements / financial information have not
been audited by us. These financial statements / financial information have been audited
by other auditors whose reports have been furnished to us by the Management and our
opinion on the consolidated financial statements, in so far as it relates to the amounts
and disclosures included in respect of these subsidiaries, jointly controlled entities and
associates, and our report in terms of sub-sections (3) and (11) of Section 143 of the Act,
in so far as it relates to the aforesaid subsidiaries, jointly controlled entities and
associates, is based solely on the reports of the other auditors.
(b) We did not audit the financial statements / financial information of ______ subsidiaries
and ______ jointly controlled entities, whose financial statements / financial information
reflect total assets of Rs.______ as at 31st March, 20XX, total revenues of Rs._______
and net cash flows amounting to Rs.______ for the year ended on that date, as
considered in the consolidated financial statements. The consolidated financial
statements also include the Group’s share of net profit/loss of Rs. _____ for the year
ended 31st March, 20XX, as considered in the consolidated financial statements, in
respect of ____associates, whose financial statements / financial information have not
35
 been audited by us. These financial statements / financial information are unaudited and
have been furnished to us by the Management and our opinion on the consolidated
financial statements, in so far as it relates to the amounts and disclosures included in
respect of these subsidiaries, jointly controlled entities and associates, and our report in
terms of sub-sections (3) and (11) of Section 143 of the Act in so far as it relates to the
aforesaid subsidiaries, jointly controlled entities and associates, is based solely on such
unaudited financial statements / financial information. In our opinion and according to the
information and explanations given to us by the Management, these financial statements
/ financial information are not material to the Group.
Our opinion on the consolidated financial statements, and our report on Other Legal and
Regulatory Requirements below, is not modified in respect of the above matters with respect
to our reliance on the work done and the reports of the other auditors and the financial
statements / financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, we report, to the extent applicable, 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 of the aforesaid
consolidated financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the
aforesaid consolidated financial statements have been kept so far as it appears from our
examination of those books and the reports of the other auditors.
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, and
the Consolidated Cash Flow Statement dealt with by this Report are in agreement with
the relevant books of account maintained for the purpose of preparation of the
consolidated financial statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the
Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of the Holding
Company as on 31st March, 20XX taken on record by the Board of Directors of the
Holding Company and the reports of the statutory auditors of its subsidiary companies,
associate companies and jointly controlled companies incorporated in India, none of the
directors of the Group companies, its associate companies and jointly controlled
companies incorporated in India is disqualified as on 31st March, 20XX from being
appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of internal financial controls over financial reporting of the
Group and the operating effectiveness of such controls, refer to our separate report in
Annexure.
(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 Auditor’s) Rules, 2014, in our opinion and to
the best of our information and according to the explanations given to us:
i. The consolidated financial statements disclose the impact of pending litigations on
the consolidated financial position of the Group, its associates and jointly controlled
entities– Refer Note XX to the consolidated financial statements.
Or
36
 There were no pending litigations which would impact the consolidated financial
position of the Group, its associates and jointly controlled entities.17
ii. Provision has been made in the consolidated financial statements, as required
under the applicable law or accounting standards, for material foreseeable losses, if
any, on long-term contracts including derivative contracts – Refer (a) Note XX to the
consolidated financial statements in respect of such items as it relates to the Group,
its associates and jointly controlled entities and (b) the Group’s share of net
profit/loss in respect of its associates.
Or
The Group, its associates and jointly controlled entities did not have any material
foreseeable losses on long-term contracts including derivative contracts.18
iii. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Holding Company and its subsidiary
companies, associate companies and jointly controlled companies incorporated in
India.
Or
Following are the instances of delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Holding
Company, and its subsidiary companies, associate companies and jointly controlled
companies incorporated in India19.
Or
There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Holding Company, and its subsidiary
companies, associate companies and jointly controlled companies incorporated in
India20.

Place of Signature: For XYZ & Co

Signature
(Name of the Member Signing the Audit
Report)
(Designation21)
(Membership No. XXXX)

17
Where applicable.
18
Where applicable.
19
Where applicable.
20
Where applicable.
21
Partner or Proprietor
37
Illustration 3 – Auditor’s Report on Financial Statements of an Unlisted
Company Prepared in Accordance with a Fair Presentation Framework
For purposes of this illustrative auditor’s report, the following circumstances are assumed:
• Audit of a complete set of financial statements of an unlisted company (registered
under the Companies Act, 2013) using a fair presentation framework. The audit is not
a group audit (i.e., SA 600 does not apply).
• The financial statements are prepared by management of the entity in accordance
with the accounting Standards prescribed under section 133 of the Companies Act,
2013.
• The terms of the audit engagement reflect the description of management’s
responsibility for the financial statements in SA 210.
• The auditor has concluded an unmodified (i.e., “clean”) opinion is appropriate based
on the audit evidence obtained.
• The relevant ethical requirements that apply to the audit comprise the Code of Ethics
issued by ICAI together with the other relevant ethical requirements relating to the
audit and the auditor refers to both.
• Based on the audit evidence obtained, the auditor has concluded that a material
uncertainty does not exist related to events or conditions that may cast significant
doubt on the entity’s ability to continue as a going concern in accordance with SA 570
(Revised).
• The auditor is not required, and has otherwise not decided, to communicate key audit
matters in accordance with SA 701.
• Those responsible for oversight of the financial statements differ from those
responsible for the preparation of the financial statements.
• In addition to the audit of the financial statements, the auditor has other reporting
responsibilities required under the Companies Act, 2013.
INDEPENDENT AUDITOR’S REPORT
To the Members of ABC Company Limited
Report on the Audit of the Standalone Financial Statements22
Opinion
We have audited the standalone financial statements of ABC Company Limited (“the
Company”), which comprise the balance sheet as at 31st March 20XX, and the statement of
Profit and Loss, (statement of changes in equity)23 and statement of cash flows for the year
then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information [in which are included the Returns for
the year ended on that date audited by the branch auditors of the Company’s branches

22
The sub-title “Report on the Audit of the Standalone Financial Statements” is unnecessary in circumstances when the second
sub-title “Report on Other Legal and Regulatory Requirements” is not applicable.
23
Where applicable.
38
located at (location of branches)]24.
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,
20XX, and profit/loss, (changes in equity)25 and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of
the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Responsibility of Management for Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) 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, (changes in equity)26 and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the accounting Standards
specified under section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding of
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, that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the preparation and presentation of
the financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
Those Board of Directors are also responsible for overseeing the company’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements

24
Where applicable.
25
Where applicable
26
Where applicable.
39
as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these
financial statements.
Paragraph 40(b) of this SA explains that the shaded material below can be located in an
Appendix to the auditor’s report. Paragraph 40(c) explains that when law, regulation or the
applicable auditing standards expressly permit, reference can be made to a website of an
appropriate authority that contains the description of the auditor’s responsibilities, rather than
including this material in the auditor’s report, provided that the description on the website
addresses, and is not inconsistent with, the description of the auditor’s responsibilities below.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
40
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Other Matter
We did not audit the financial statements/ information of ………………. (number) branches
included in the standalone financial statements of the company whose financial
statements/financial information reflect total assets of Rs. ……as at 31st March 20XX and the
total revenue of Rs. ………for the year ended on that date, as considered in the standalone
financial statements/information of these branches have been audited by the branch auditors
whose reports have been furnished to us, and our opinion in so far as it relates to the
amounts and disclosures included in respect of branches, is based solely on the report of
such branch auditors.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Companies
Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we report that:
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.
(a) 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 [and proper returns
adequate for the purposes of our audit have been received from the branches not visited
by us.27]
(b) [The reports on the accounts of the branch offices of the Company audited under Section
143(8) of the Act by branch auditors have been sent to us and have been properly dealt
with by us in preparing this report28.]
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account [and with the
returns received from the branches not visited by us29].
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March,
20XX taken on record by the Board of Directors, none of the directors is disqualified as
on 31st March, 20XX 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”.

27
Where applicable.
28
Where applicable.
29
Where applicable.
41
(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, 2014, 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 financial statements – Refer Note XX to the financial statements;
[or the Company does not have any pending litigations which would impact its
financial position30]
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 – Refer Note XX to the financial
statements; [or the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses.31]
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company {or, following are
the instances of delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company or there were no
amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company32}.
For XYZ & Co
Chartered Accountants
(Firm’s Registration No.)

Signature
(Name of the Member Signing the Audit Report)
(Designation33)
(Membership No. XXXXX)
Place of Signature:
Date:

30
As may be applicable.
31
As may be applicable.
32
As may be applicable.
33
Partner or Proprietor, as the case may be
42
Illustration 4 – Auditor’s Report on Financial Statements of a Non-Corporate
Entity Prepared in Accordance with a Fair Presentation Framework
For purposes of this illustrative auditor’s report, the following circumstances are assumed:
• Audit of a complete set of financial statements of a non-corporate entity using a fair
presentation framework. The audit is not a group audit (i.e., SA 600 does not apply).
• The financial statements are prepared by management of the entity in accordance
with the Accounting Standards issued by the Institute of Chartered Accountants of
India.
• The terms of the audit engagement reflect the description of management’s
responsibility for the financial statements in SA 210.
• The auditor has concluded an unmodified (i.e., “clean”) opinion is appropriate based
on the audit evidence obtained.
• The relevant ethical requirements that apply to the audit are the Code of Ethics
issued by ICAI34.
• Based on the audit evidence obtained, the auditor has concluded that a material
uncertainty does not exist related to events or conditions that may cast significant
doubt on the entity’s ability to continue as a going concern in accordance with SA
570 (Revised).
• The auditor is not required, and has otherwise not decided, to communicate key audit
matters in accordance with SA 701.
• Those responsible for oversight of the financial statements differ from those
responsible for the preparation of the financial statements.
• The auditor has no other reporting responsibilities required under local law.
• The auditor elects to refer to the description of the auditor’s responsibility included on
a website of an appropriate authority.
INDEPENDENT AUDITOR’S REPORT
To the Partners of ABC & Associates [or Other Appropriate Addressee]
Opinion
We have audited the financial statements of ABC & Associates (the entity), which comprise
the balance sheet at March 31st 20XX, and the profit and loss account, (and statement of
cash flows)35 for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the
financial position of the entity as at March 31, 20XX, and of its financial performance (and its
cash flows)36 for the year then ended in accordance with the Accounting Standards issued
by the Institute of Chartered Accountants of India (ICAI).
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI.
Our responsibilities under those standards are further described in the Auditor’s

34
Specify any applicable ethical requirements under the relevant laws or regulations applicable to the entity.
35
Where applicable.
36
Where applicable
43
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the entity in accordance with the ethical requirements that are relevant to our
audit of the financial statements in [jurisdiction], and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements37
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with the aforesaid Accounting Standards, and for such internal
control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the entity’s
ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends
to liquidate the entity or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the entity’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these
financial statements.
A further description of the auditor’s responsibilities for the audit of the financial statements
is located at [Organization’s] website at: [website link].This description forms part of our
auditor’s report.

For XYZ & Co

Signature
(Name of the Member Signing the Audit Report)
(Designation38)
(Membership No. XXXXX)
Place of Signature:
Date:

37
Or other terms that are appropriate in the context of the legal framework of the particular entity.
38
Partner or Proprietor, as the case may be
44
Illustration 5 – Auditor’s Report on Financial Statements of Non-Corporate
Entity Prepared in Accordance with a General Purpose Compliance Framework
For purposes of this illustrative auditor’s report, the following circumstances are assumed:
• Audit of a complete set of financial statements of an entity, other than a listed
company under the Companies Act 2013, required by law or regulation. The audit is
not a group audit (i.e., SA 600 does not apply).
• The financial statements are prepared by management of the entity in accordance
with the Financial Reporting Framework (XYZ Laws) of Jurisdiction X (that is, a
financial reporting framework, encompassing law or regulation, designed to meet the
common financial information needs of a wide range of users, but which is not a fair
presentation framework).
• The terms of the audit engagement reflect the description of management’s
responsibility for the financial statements in SA 210.
• The auditor has concluded an unmodified (i.e., “clean”) opinion is appropriate based
on the audit evidence obtained.
• The relevant ethical requirements that apply to the audit are those of the jurisdiction.
• Based on the audit evidence obtained, the auditor has concluded that a material
uncertainty does not exist related to events or conditions that may cast significant
doubt on the entity’s ability to continue as a going concern in accordance with SA
570 (Revised).
• The auditor is not required, and has otherwise not decided, to communicate key audit
matters in accordance with SA 701.
• Those responsible for oversight of the financial statements differ from those
responsible for the preparation of the financial statements.
• The auditor has no other reporting responsibilities required under local law.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
Opinion
We have audited the financial statements of ABC & Associates (the entity), which comprise
the balance sheet as at March 31, 20X1, and the Profit and Loss Account (and the cash flow
statement)39 for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying financial statements of the entity are prepared, in all
material respects, in accordance with XYZ Laws.
Basis for Opinion
We conducted our audit in accordance with Standards on Auditing (SAs). Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Statements section of our report. We are independent of the
entity in accordance with the ethical requirements that are relevant to our audit of the
financial statements, and we have fulfilled our other responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.

39
Where applicable.
45
Responsibilities of Management and Those Charged with Governance for the
Financial Statements40
Management is responsible for the preparation of the financial statements in accordance
with XYZ Law and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the entity’s
ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends
to liquidate the entity or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the entity’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these
financial statements.
Paragraph 40(b) of this SA explains that the shaded material below can be located in an
Appendix to the auditor’s report. Paragraph 40(c) explains that when law, regulation or
national auditing standards expressly permit, reference can be made to a website of an
appropriate authority that contains the description of the auditor’s responsibilities, rather than
including this material in the auditor’s report, provided that the description on the website
addresses, and is not inconsistent with, the description of the auditor’s responsibilities below.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control.41
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the entity’s

40
Or other terms that are appropriate in the context of the legal framework of the particular entity.
41
This sentence would be modified, as appropriate, in circumstances when the auditor also has responsibility to issue an
opinion on the effectiveness of internal control in conjunction with the audit of the financial statements.
46
 ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the entity to cease to continue
as a going concern.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
For XYZ & Co
Chartered Accountants
(Firm’s Registration No.)

Signature
(Name of the Member Signing the Audit Report)
(Designation42)
(Membership No. XXXXX)
Place of Signature:
Date:

42
Partner or Proprietor, as the case may be
47