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15+ Auditor Appointment Letter Format – Email Template, Examples

  • Letter Format
  • January 29, 2024
  • Appointment Letters , Business Letters , Legal Letters

Auditor Appointment Letter Format: An Auditor Appointment Letter Format is a formal document that is used to notify a prospective auditor that they have been appointed to carry out an audit of a company or organization . This Auditor Appointment Letter Format serves as a legal document and outlines the expectations of the auditor as well as the terms and conditions of the audit engagement .

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  • Acceptance of Appointment Format
  • Appointment Letter Format

Auditor Appointment Letter Format

Content in this article

The Auditor Appointment Letter Format can vary depending on the company or organization’s specific requirements, but generally, it should contain the following elements:

  • Company or Organization’s Letterhead : The Auditor Appointment Letter Format should be written on the company or organization’s official letterhead. This provides a professional appearance and indicates that the letter is coming from a legitimate source.
  • Date of the Letter : The date of the letter should be clearly stated. This is important as it provides a reference point for when the engagement was initiated.
  • Address of the Auditor: The name and address of the auditor should be clearly stated in the letter. This is important as it provides the auditor with a reference point for where they will be carrying out the audit.
  • Salutation : The Auditor Appointment Letter Format should be addressed to the auditor in a professional and respectful manner. This could be “Dear Mr./Ms. [Auditor’s Name]” or “To Whom It May Concern.”
  • Introduction : The introduction should clearly state the purpose of the letter, which is to appoint the auditor for a specific engagement. This section should also provide some background information on the company or organization and the type of audit that will be carried out.
  • Scope of the Audit : This section should clearly outline the scope of the audit engagement. It should specify what areas of the company or organization will be audited and the time frame for the audit.
  • Terms and Conditions : The terms and conditions of the audit engagement should be clearly outlined in this section. This could include the auditor’s responsibilities, the company or organization’s responsibilities, the fees for the audit, and the expected timeline for completion of the audit.
  • Contact Information : It is important to provide the auditor with contact information for the person who will be the main point of contact for the audit engagement. This could include the name, email address, and phone number of the contact person.
  • Closing : The letter should be closed with a polite and professional statement. This could be something like “Thank you for accepting this engagement. We look forward to working with you.”
  • Signature : The Auditor Appointment Letter Format should be signed by an authorized representative of the company or organization. This could be the CEO, CFO, or other high-level executive.

Here are some examples about Auditor Appointment Letter Format :

Example 1: Auditor Appointment Letter Format

[Company Letterhead]

[Date of the Letter]

[Address of the Auditor]

Dear Mr./Ms. [Auditor’s Name],

We are pleased to appoint you as the auditor for [Company/Organization Name] for the financial year ending [Financial Year End Date].

The purpose of the audit is to provide an independent opinion on the financial statements of the company in accordance with the applicable accounting standards and regulations.

The scope of the audit will cover all areas of the company’s financial statements, including its balance sheet, income statement, and cash flow statement. The audit will be conducted in accordance with the generally accepted auditing standards and regulations.

The terms and conditions of the audit engagement are as follows:

The audit fees will be $[Fee Amount] per hour, which is payable upon completion of the audit. The expected timeline for completion of the audit is [Timeline]. The auditor is responsible for obtaining sufficient and appropriate evidence to support the audit opinion. The company is responsible for providing the auditor with all necessary information and access to its financial records. If you have any questions or concerns regarding the engagement, please do not hesitate to contact [Contact Person] at [Email Address or Phone Number].

Thank you for accepting this engagement. We look forward to working with you.

[Authorized Representative Signature]

[Authorized Representative Name] [Authorized Representative Title]

Example 2: Email Format about Auditor Appointment Letter

Subject: Auditor Appointment Letter – [Company/Organization Name]

Dear [Auditor’s Name],

I am pleased to inform you that [Company/Organization Name] has appointed you as the auditor for the financial year ending [Financial Year End Date].

Please acknowledge your acceptance of this appointment by replying to this email.

[Company/Organization Name]

Example 3: Auditor Appointment Letter Format

To Whom It May Concern,

We are pleased to appoint [Auditor’s Name] as the auditor for [Company/Organization Name] for the audit of our financial statements for the financial year ending [Financial Year End Date].

The purpose of the audit is to provide an independent opinion on the financial statements of the company in accordance with the generally accepted auditing standards and regulations.

An Auditor Appointment Letter Format is an important document that outlines the expectations and terms of an audit engagement . The Auditor Appointment Letter Format should be clear, concise, and professional . By the following format to ensure that both the company or organization and the auditor have a clear understanding of the scope and expectations of the audit engagement .

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Appointment Letter : Statutory Auditor of Company

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Akash Jhaveri

A company should get a statutory audit of books of accounts by a Chartered Accountant every year as per Companies Act 2013. The Board of Directors appoints the statutory auditor in the Board Meeting. The Company has to send the Letter of Appointment to the Statutory Auditor. Hence, it is mandatory for the Company to record the appointment of the auditor in the Board Meeting minutes and also pass a resolution.

Sample: Appointment Letter to Statutory Auditor

Company sends letter to a statutory auditor for an appointment for a financial year and to hold office for specific period of time. The Company can appoint a statutory auditor for a maximum period of 5 years.

Sample: Appointment Letter to Auditor

The directors of the company usually appoint the first auditor of a company. The shareholders may appoint the first auditor. The company appoints the auditor each year at the Annual General Meeting who holds office for the coming years.

Every company has to appoint an individual or a firm as an auditor at the first annual general meeting. The company can appoint an auditor for each financial year or for 5 consecutive financial years.

A Private Limited Company has to file Form ADT- 1 on the MCA portal. Filing Form ADT-1 will intimate the ROC i.e Registrar of Companies about the new appointment of an auditor.

Last Updated on 3 years by Aishwarya Shah

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APPOINTMENT OF AUDITOR – DRAFT FORMAT

Table of Contents

REQUEST LETTER FOR CONSENT OF AUDITOR:

To,                                                                                                                  Date: ________________                                                       

Mr. _____________

M/s _______________.

Chartered Accountants

Add: __________________

Sub: Proposal for appointment as Statutory Auditors of the Company.

The company is planning to hold Annual General Meeting on ________________ and in accordance with provisions of Section 139 of Companies Act, 2013, we need your consent and certificate under section 141 of Companies Act, 2013 for your appointment as Statutory Auditor of Company.

Thanking you

Yours faithfully

FOR AND ON BEHALF OF

__________________________________

 (Name Of Director)

Director        

DIN: _______________

Add: ___________________

CONSENT OF AUDITOR

To                                                                                                                   Date: ____________________

The Board of Directors

Name of the Company

(mention Address)

Dear Sir/Ma’am,

Sub Consent for appointment as statutory auditors of ___________________

We thank you for your letter dated: _________________, seeking our consent for appointment as statutory auditors of _____________________ (“the company”). We hereby consent to our appointment as statutory auditors of the Company pursuant to the provisions of Section-139 of the Chapter X of the Companies Act, 2013.

Thanking you,

Yours Sincerely,

_____________________.

Firm Registration No._____________

(________________)

Membership No.___________

Place: Bengaluru

ELIGIBILITY CERTIFICATE OF AUDITOR

Certificate.

[Pursuant to the provisions of Section-139 of the Chapter X of the Companies Act, 2013 read with

The Companies (Audit and Auditors) Rules, 2014]

To                                                                                                                   Date: _____________________

Name of Company

( mention address )

Sub: Eligibility Certificate to act as statutory auditor under the Companies Act, 2013

In connection with appointment of M/s. _______________  (“the Firm”), Chartered Accountants as auditors of ____________________ (“the Company”) in accordance with the provisions of the Companies Act, 2013 (the Act) and rules and regulations made there under, We are pleased to confirm that:

1) The firm is eligible for appointment and is not disqualified for appointment under section 141 of the Companies Act, 2013, the Chartered Accountant Act, 1949 and rules and regulations made there under;

2) Our proposed appointment would be as per the terms provided under the Act;

3) The proposed appointment is within the limits laid down by or under the authority of the Act;

4) There are no proceedings pending against either of the partners or the firm with respect to professional matters of conduct.

5) We satisfy other criteria as provided under Section 141 of the Act.

Yours Faithfully,

EXTRACT OF ANNUAL GENERAL MEETING

CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING OF THE SHAREHOLDER OF __________________________ HELD ON ___________, __________ DAY OF _________________, 2019 AT ___________________ AM AT REGISTERED OFFICE OF THE COMPANY AT ____________________________.

“RESOLVED THAT pursuant to the provisions of Section 139 and other applicable provisions, if any, of the Companies Act, 2013, and the Rules framed there under, as amended from time to time, M/s. ________________________________, Chartered Accountants, (FRN No. __________________) be and is hereby appointed as Auditor of the Company to hold office from the conclusion of this Annual General Meeting (AGM) till the conclusion of the __________ AGM of the Company to be held in the year 2024, at such remuneration as may be agreed upon between the Board of Directors and Statutory Auditor.

CERTIFIED TRUE COPY OF RESOLUTION

(Name of Director)

INTIMATION TO AUDITOR

To,                                                                                                                              ___________                                                 

Sub: Intimation of the Appointment as Statutory Auditors of the Company.

We are pleased to inform you that your firm i.e. M/s _____________________ (Firm Registration No- _______________), Chartered Accountants is appointed as Statutory Auditors of the Company in General meeting of the Company, held on (DAY), (DATE) for the Financial Year _____________to _____________ subject to approval of shareholder in subsequent General Meeting, on such terms and conditions and at remuneration as mutually agreed.

For and on Behalf of

_________________

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Auditor Appointment Letter Template

An auditor is a person who is hired by a firm or person to execute an audit. Auditor appointment letters are essential as they serve as proof from a specific firm approving of the respective auditor.

Letter Template: 1

A Letter For Appointment Of Auditor

[Your Name]

[Your Company]

[Your Address]

Sub:- Appointment of Auditor

Dear [Name of the Applicant]

We are pleased to inform you that in the board meeting that was held this morning, after much thinking, board members decided to give the position of auditor to [name of the concerned person] for the financial period from [current year] to [ end year of his period].

We have come to this decision after seeing the dedication and loyalty of [name of the concerned person], and he/she is expected to work in the best interests of the company. He/ she should always report to the manager at the asked time and should always be punctual and loyal in what he/she does.

The details and the required information will be given to [name of the concerned person] by our manager tomorrow positively. He/she is requested to be present at our office at [ concerned time] to get the knowledge of his/her work and to have an office tour. 

We hope that [name of the concerned person] will not disappoint us and will show the best version of him/her. He/ she is expected to keep the reputation of the company and to work hard. 

Thanking You,

[Your name]

Download Template : ( pdf, docs, ODT, RTF, txt, HTML, Epub, Etc )

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Internal Auditor Appointment Letter

Internal Auditor Appointment Letter in Word, Google Docs, PDF, Apple Pages, Outlook

Download this Internal Auditor Appointment Letter Design in Word, Google Docs, PDF, Apple Pages, Outlook Format. Easily Editable, Printable, Downloadable.

When scheduling a meeting about internal auditing, consider doing so through formal correspondence. And we can help you compose your note with our Free Internal Auditor Appointment Letter. You can personalize our appointment letter in Apple Page, Google Docs, and Microsoft Word. Download today and compose your appointment letters in no time.

INTERNAL AUDITOR APPOINTMENT LETTER

Dear [RECIPIENT NAME],

[YOUR COMPANY NAME] is pleased to inform you that we have duly received your application and we would like to appoint you as the Internal Auditor of the company for the financial year [YEAR]-[YEAR 1] as duly provided under Companies Act of [LAW/ACT].

Such a decision was made according to the resolution passed in the organizational meeting conducted by the Board of Directors on [DATE 1]. In brief, the resolution agreed on contains the following terms and conditions covering the scope of the audit: [DETAIL].

Furthermore, to further orient and give details to your duties and responsibilities as an internal auditor of the company, we have enclosed the resolution for your use and reference. 

We will be truly grateful if you would reply to this letter giving assent and acceptance to such an appointment. 

[YOUR SIGNATURE]

[YOUR NAME]

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Auditor Appointment Letter

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An appointment letter from an auditor confirms the appointment in the company. The letter is sent by the company's board of directors and the audit committee, that outlines the terms and conditions of the appointment.

The letter basically outlines the scope of the audit, the time frame for completion, or any other specific area. Also, it includes the name of the firm and the auditor, the reason for the appointment, fee structure, payment terms, and other information about the appointment. Both parties have to sign the document and carefully review and read the terms before signing. 

The appointment letter helps to understand the terms and conditions between the firm and the auditor. Also, it establishes a successful audit process. Similarly, it ensures compliance with any relevant regulations or standards.

Powers and Duties of Auditor

The following are the powers and duties of an auditor:

Prepare an audit report, which shows a true and fair view of the company's finances.

Issue a disclaimer of opinion, if he finds that the information provided is not proper to make a decision. 

Comply with auditing standards issued by the Central Government.

Lend assistance in case of branch assistance, across to the company auditor.

Adhere to the code of ethics and code of professional conduct.

If the auditor found any suspicious activity, then he should report the fraud to the Central Government.

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Business-in-a-Box's Board Resolution Appointing an Auditor Template

Board Resolution Appointing an Auditor Template

Document description.

This board resolution appointing an auditor template has 1 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our board resolution appointing an auditor template:

BOARD RESOLUTION OF [YOUR COMPANY NAME] APPOINTING AN AUDITOR DULY PASSED ON [DATE] APPOINTMENT OF AN AUDITOR WHEREAS, pursuant to [BYLAW], [YOUR COMPANY NAME] will be subject to an audit by the [GOVERNING BODY] Auditor; and WHEREAS, [YOUR COMPANY NAME] has just completed its [NUMBER]th year of operation and an early and independent review of its books, records and financial procedures promotes prudent financial management practices; and WHEREAS, after receiving and reviewing information with regard to experienced firms capable of providing that early review, this Board has determined that the independe

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appointment letter of auditor

Auditor Appointment Letter

[Your Company Letterhead]

[Name and Address of the Auditor]

Dear [Auditor's Name],

We are pleased to inform you that you have been appointed as the auditors of [Your Company Name] for the financial year ending on [Financial Year End Date]. The decision to appoint your firm was made by the Board of Directors in accordance with the recommendation of the Audit Committee.

We believe that your firm has the necessary expertise and experience to conduct a thorough and independent audit of our financial statements. We expect your firm to perform the audit in accordance with the International Standards on Auditing and provide us with an unqualified opinion on our financial statements.

As the auditors of our company, we expect you to be independent, objective and professional in your work. You will have access to all our financial records and other relevant documents and we will provide you with all the necessary assistance and cooperation to enable you to carry out your duties effectively.

Your appointment will be effective from [Date of Appointment] and your remuneration will be in accordance with the terms and conditions outlined in the engagement letter, which we will send to you shortly.

We look forward to working with your firm and we are confident that your expertise and experience will be valuable to our company.

Please let us know if you have any questions or require any further information.

Yours sincerely,

[Your Name]

[Your Position]

[Your Company Name]

appointment letter of auditor

Sample Auditor Appointment letter

Tag: sample auditor appointment letter, download format of audit report, caro and auditor appointment letter for company.

Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting. The appointment of auditor shall be made through Auditor appointment letter.

Below is the format of Auditor Appointment letter

On the letter head of the company

Name and address of auditors  

Sub:  Appointment as Statutory Auditors of the Company for the F.Y. 2019-20.

We are pleased to inform you that you have been appointed as statutory auditor of the company for the Financial Year 2019-20 in the Annual General Meeting of the company on dated ______.

We also confirm that We have not appointed any other auditors for this purpose.

Thanking you,

Yours faithfully,

For «Name of the company»

Name of Authorized Signatory

Designation of Authorized Signatory

Enter your email address:

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Format of Audit report for Statutory audit of Company

On the letter head of the Auditor

Independent Auditor’s Report

To the Members of «Name of the company»

Report on the Audit of the Standalone Financial Statements

We have audited the financial statements of «Name» (“the Company”), which comprise the balance sheet as at 31st March «YearClos», and the statement of Profit and Loss 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 our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 31st March, «YearClos», its profit/loss 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.

Information other than the financial statements and auditors’ report thereon

The Company’s board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Board’s Report including Annexures to Board’s Report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Emphasis of Matter

We draw attention to Note X of the financial statements, which describes the effects of a …………… in the Company’s facilities. Our opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance 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 financial statements that give a true and fair view of the financial position, financial performance 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 statements 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 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.

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 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.

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’, 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.
  • 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.
  • 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.
  • In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
  • On the basis of the written representations received from the directors as on 31st March, «YearClos» taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, «YearClos» from being appointed as a director in terms of Section 164 (2) of the Act.
  • With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in ‘Annexure B’.

This report does not include report relating to internal financial controls as required u/s 143(3)(i) pursuant to Notification No. GSR 583(E) dated 13.06.2017 issued by MCA.

  • With respect to the other matters to be included in the Auditor’s report in accordance with the requirements of Sec 197(16) of the Act as amended, we report that Section 197 is not applicable to a private company. Hence reporting as per Section 197(16) is not required. (applicable in case of Private Company)

With respect to the matter to be included in the Auditor’s Report under section 197(16), In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under section 197(16) which are required to be commented upon by us. (applicable in case of Public Company).

  • 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:
  • The Company does not have any pending litigations which would impact its financial position.

The Company has disclosed pending litigations and the impact on its financial position – refer note ___________ to the Standalone Financial Statements.

  • The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
  • There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

For Firm name

Chartered Accountants

FRN: Firm Registration No

Name of Auditor

Designation of Audior

Format of CARO report

CARO Report

We report that:

1. Fixed Asset:

  • The company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets.
  • As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.
  • The title deeds of immovable properties are held in the name of the company.

2. Inventory :

As explained to us, inventories have been physically verified during the year by the management at reasonable intervals. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. Loans, Guarantee and Advances given :

The company has granted loans to ………parties covered in the register maintained under section 189 of the Companies Act, 2013

  • The terms and conditions of the grant of such loans are not prejudicial to the company’s interest;
  • The schedule of repayment of principal and payment of interest has been stipulated and in such cases the borrowers have been regular in repayment of principal and interest.

The terms of arrangement do not stipulate any repayment schedule and the loans are repayable on demand with interest.

  • There are no overdue amounts in respect of the loans granted to the parties listed in the register maintained under section 189 of the Act.

Since the term of arrangement do not stipulate any repayment schedule and the loans are repayable on demand, no question of overdue amounts will arise in respect of the loans granted to the parties listed in the register maintained under section 189 of the Act.

Amounts are overdue in respect of above loans. The total amount overdue for more than ninety days is……….and reasonable steps have been taken by the company for recovery of the principal and interest.

Amounts are overdue is respect of above loans. But there is no amounts overdue for more than ninety days. Reasonable steps have been taken by the company for recovery of the principal and interest.

                                                            OR

According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties listed in the register maintained under Section 189 of the Companies Act, 2013.  Consequently, the provisions of clauses iii (a), (b) and (c)of the order are not applicable to the Company.

4. Loans, Guarantee and Advances to Director of Company :

In respect of loans, investments, guarantees, and security, provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.

The company has complied with provisions of section 185 & 186 in respect of loans, investments, guarantees, and security except to the extent of:

5. Deposits :

  • The company has not accepted any deposits from the public covered under sections 73 to 76 of the Companies Act, 2013 except Rs.______ from ________. According to information and explanation provided to us, no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.

The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

6. Maintenance of costing records :

As per information & explanation given by the management, maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013.

7. Deposit of statutory liabilities:

  • According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income-tax, Sales-tax, Service Tax, Goods and Service tax, Custom Duty, Excise Duty, value added tax, cess and any other statutory dues to the extent applicable, have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st March «YearClos» for a period of more than six months from the date they became payable, except :
  • According to the information and explanations given to us, there is no amount payable in respect of income tax, service tax, sales tax, customs duty, excise duty, value added tax and cess whichever applicable, which have not been deposited on account of any disputes.

According to the records of the Company, the dues outstanding of income-tax, sales-tax, service tax, goods and service tax, duty on custom, duty of excise, value added tax and cess on account of any dispute, are as follows:

8. Default in repayment of borrowings :

In our opinion and according to the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank, Government or debenture holders, as applicable to the company.

9. Funds raised and utilisation:

Based on our audit procedures and according to the information given by the management, the money raised by way of initial public offer or further public offer (including debt instruments) and term loans have been applied for the purpose for which they were obtained.

Based on our audit procedures and according to the information given by the management, the company has not raised any money by way of initial public offer or further public offer (including debt instruments) or taken any term loan during the year.

10. Fraud and whistle-blower complaints :

According to the information and explanations given to us, we report that no fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year.

11. Managerial Remuneration :

The company is a private limited company. Hence the provisions of clause (xi) of the order are not applicable to the company.

According to the information and explanations given to us, we report that managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.

12. Nidhi Company:

The company is not a Nidhi Company. Therefore, clause (xii) of the order is not applicable to the company.

The Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules, 2014 to meet out the liability.

13. Related Party Transactions:

According to the information and explanations given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards.

14. Internat Audit:

The company does not have an internal audit system commensurate with the size and nature of its business.

15. Prefrential allotment :

The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.

The company has made preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and the requirement of section 42 of the Companies Act, 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised.

16. Non Cash Transactions:

The company has not entered into non-cash transactions with directors or persons connected with him.

Provisions of section 192 of Companies Act, 2013 have been complied with in case of non-cash transactions entered by the company with directors or persons connected with him

17. Cash Losses:

The company has not incurred cash losses in the financial year and  in the immediately preceding financial year

18. Resignation of Statutory Auditors:

There has been no instance of any resignation of the statutory auditors occurred during the year

19. Material uncertainty on meeting liabilities:

No material uncertainty exists as on the date of the audit report that company is capable of meeting its liabilities existing at the date of balance sheet  as and when they fall due within a period of 1 year from the balance sheet date

20. Transfer to fund specified under Schedule VII of Companies Act, 2013

In respect of other than ongoing projects, the company has not transferred unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of six months of the expiry of the financial year in compliance with second proviso to sub-section (5) of section 135 of the said Act;

21. Registration under RBI act:

The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

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Auditor and audit requirements In a LLP | Unilex

  • April 8, 2023, 10:19 a.m.

appointment letter of auditor

Auditor and audit requirements In an LLP

Like every other company registered in India, an LLP also has to undergo an audit of its books of account. LLP Act, 2008 governs the compliances of an LLP. Provisions of the Companies Act, 2013 of the audit do not apply to the LLP. Under the LLP act appointment of an auditor has a certain threshold limit. Only above that threshold limit an LLP has to audit its books of accounts. This relaxation under the Act has encouraged entrepreneurs in India to LLP registration. It saves LLP from various hardships in complying with government rules. It also saves audit costs and promotes saving, funds, and time. One of the advantages of LLP is that the audit rule applies only above the threshold limit. Following is the threshold provided under the rules for the audit of the accounts of an LLP: If turnover > Rs 40 lacs in a financial year or/and Contributions> Rs 25 lacs in a financial year LLP which does not exceed the above-mentioned threshold need not have an audit. Although partners can suo-moto decide to go for the LLP audit. If the above exemption applies to any LLP, then you have to file a declaration. The declaration will state the position of turnover not exceeding the above threshold. In e-form 8, the declaration is filed every year with ROC as LLP compliance.

appointment letter of auditor

The responsibility to appoint an auditor in an LLP is of designated partners. At any time for the first financial year but within 30 days before the end of the Financial Year. If designated partners fail to appoint an auditor in an LLP within a prescribed period. Then partners will have the right to get the appointment done.

Auditor appointment procedure in an LLP

In absence of any specific auditor appointment procedure given under LLP Act 2008. An LLP can appoint an auditor by passing a resolution signed by the designated partners. Such appointments do not need any e-form. Prior consent of the auditor is a must for his appointment in an LLP. The designated partners have powers for such appointments. Otherwise, the partners have the right to appoint the auditor. An auditor appointment can be at any time in the financial year. But it should be 30 days before the end of the financial year. There is no procedure prescribed for the reappointment of the auditor. The old auditor will continue if no resolution for the new auditor is there in the partner's meeting. Unlike under the Companies Act, 2013 there is no provision under the LLP Act, 2008 for auditors' fees. LLP agreement and/or the mutual understanding between partners and auditor will prevail.

Documents for appointment of auditor in an LLP

1. Consent letter 2. A valid certificate from an auditor stating their eligibility to get appointed. 3. A resolution from an LLP 4. No form is there to intimate the ROC for an auditor appointment in an LLP.

Removal of auditor from the LLP

There is no particular period of auditor appointment in an LLP. Like in the case of a private company which has the criteria for 5 years auditor appointment. An LLP auditor holds the office until a new auditor is appointed by the designated partners. For removing the auditor from his position, an LLP requires the consent of all the partners. LLP can remove an auditor by passing a resolution only. The auditor can resign from office by submitting a resignation letter. The term of the auditor comes to an end as of the date of the resignation. or any further date specified on the resignation letter.

Penalty for not appointing auditor in LLP

LLP fails to appoint its auditor before the prescribed period. The LLP will be punishable with a fine which will not be less than Rs. 25,000 not exceeding Rs. 5,00,000. Every designated partner will be punished with a fine that will not be less than Rs. 10,000 and not exceed Rs. 5,00,000.

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appointment letter of auditor

Draft Letter for Appointment of auditor along with consent, eligibility, CTC & intimation thereof under the Companies Act – 2013

Draft letter for appointment of auditor along with consent, eligibility, ctc & intimation thereof under the companies act – 2013, here are the draft letter for appointment of auditor along with consent, eligibility, ctc & intimation thereof under the companies act – 2013, draft letter for appointment of auditor – (for annual filing draft – i).

Format For Appointment Letter Of An Auditor

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Procedure for Auditor Appointment and Removal: Compliance Guide

  • CS Sonali Singhania
  • | Company Law - Articles
  • Download PDF
  • 18 Sep 2023
  • 13,050 Views

“Unlock the compliance guide to auditor appointment and removal under the Companies Act, 2013. Dive into the nuances of appointing the first auditor, subsequent auditors, and managing casual vacancies. Explore the procedural intricacies, from obtaining consent to filing relevant forms. Learn the steps for removal and resignation of auditors, including special notices and government approvals. Enhance your understanding to ensure transparent and accountable financial reporting, fostering trust in financial markets. Disclaimer: This article provides informational content and not solicitation. For professional advice, consult a qualified expert.”

An auditor is a professional who is responsible for examining and evaluating the financial records, transactions, and statements of an organization to ensure accuracy, transparency, and compliance with applicable laws and regulations. Auditors play a critical role in detecting and preventing financial fraud or embezzlement within organizations. The presence of auditors enhances trust and confidence in financial markets and institutions, which is essential for economic stability and growth.

Page Contents

Appointment of First Auditor, Subsequent Auditor & Casual Vacancy due to Resignation and Other Reasons

Process for appointment of auditor:, removal of auditor, appointment of an auditor other than retiring auditor by way of special notice.

Section 139 of the Companies Act, 2013 read with Rule 4 of Companies (Audit and Auditors) Rules, 2014 deals with the appointment of an auditor.

  • Only a  Practicing Chartered Accountant can be appointed as an auditor of a company.
  • Before the appointment of an auditor of a company, the written consent of the auditor must first be obtained along with a certificate from the Auditor that the appointment, if made, shall be in accordance with the conditions prescribed and that the Auditor satisfies the criteria provided in Section 141 of the Companies Act, 2013 (Provision relating to audit and auditor).
  • The process for appointment of an auditor is as follows:

i. Convene a Board meeting to decide upon the proposed auditor & after obtaining his consent, decide upon the date & time of AGM.

ii. Send notice of AGM to the members of the company.

iii. Pass the required ordinary resolution at the AGM for appointment of the auditor:

“RESOLVED THAT pursuant to the provisions of (mention relevant laws and regulations) and the recommendation of the Board of Directors of the Company (name of auditor/ auditor’s firm), Chartered Accountants (Registration no.), be and is hereby appointed as the statutory auditor of the Company to hold office for a period of five/ten consecutive years from this Annual General Meeting at such remuneration as shall be fixed by the Board of Directors of the company.”

iv. File Form ADT-1 with the Registrar within 15 days of the meeting in which the auditor is appointed.

Removal and Resignation of Auditor and special notice – Section 140

  • This section provides for the removal of auditor before the expiry of his term. The auditor may be removed only by way of special resolution and after obtaining prior approval of the Central government (power delegated to Regional Director).
  • The application to Central Government shall be made in Form ADT-2 within 30 days of the resolution passed by the Board. The company shall hold a general meeting within 60 days from the date of receipt of approval from the Central government for passing the Special Resolution.
  • Before passing such resolution, the auditor concerned shall be given a reasonable opportunity of being heard.
  • In case of resignation by an auditor, the auditor shall file Form ADT-3 with the Registrar within 30 days from the date of his resignation.

Where a person other than the retiring auditor is proposed to be appointed as an auditor, or where it is proposed that the retiring auditor shall not be re-appointed, a special notice under Section 115 of the Companies Act, 2013 has to be given proposing that such a resolution would be moved at the next annual general meeting.

In case where the retiring auditor has completed a consecutive tenure of five years or ten years, as the case may be, then such special notice can be avoided. For the purpose of special notice, the relevant points shall be considered:

  • On receipt of the special notice for removing the auditor, the company should send a copy of the same to the retiring auditor.
  • The special notice should not be received by the company too late for the purpose of circulation to members.
  • state the fact of representation in any notice regarding the resolution
  • send a copy of the representation to whom notice of the meeting is sent
  • if a copy of the representation is not so sent, a copy of the representation shall be read out at the meeting.
  • If the Tribunal is satisfied that the rights conferred are being abused by the auditor based on an application either of the company or of any other aggrieved person, then the copy of the representation may not be sent and the representation need not be read out at the meeting.

Conclusion:  Understanding the procedure for appointing and removing auditors is essential for companies to maintain compliance with the Companies Act, 2013. Adhering to these guidelines ensures transparency and accountability in financial reporting, fostering trust in financial markets and institutions.

Disclaimer: This article provides informational content and should not be construed as solicitation for any purpose. For professional advice, consult a qualified expert.

For specific inquiries or further assistance, contact the author at [email protected] or 99538 08432 .The author is the founder of SINGHANIA & ASSOCIATES ( Practicing Company Secretaries Firm) based in Delhi.

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In case of private Limited, Removal of Auditor before expiry: query is we need to file ADT-2 First or MGT-14 for Special Resolution. and RD-1 form is also being filed or not.

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appointment letter of auditor

Auditor Appointment Letter Format

The letter is written by an organization or a company in order to appoint an auditor firm to look after their audit. The letter follows a professional format to present every detail regarding the appointment. It is addressed to the chartered accounting departments of a company mentioning all the terms and conditions. The details mentioned by the company should be framed as per the provisions of the Companies ACT, 1956. The name of the charted account firm and its Reg. No. is mentioned along with the details in the letter. The time period and working area of the auditor firm should also be mentioned in the letter. To make the data authorized, the signature of the director of a respective company is needed.

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Appointment of Auditor

Updated on : Dec 7th, 2021

Any individual trained to review and verify accounting data and recognised as a Chartered Accountant (CA) under the Chartered Accountant Act, 1949 is deemed to be an auditor. Every company needs to appoint an auditor as per the provisions of the Companies Act, 2013.

Purpose for Appointment of Auditor

The purpose of the auditors in the company is to protect the interests of the shareholders. The auditor is obligated by law to examine the accounts maintained by the directors and inform them of the true financial position of the company. Auditor gives his independent opinion to the owners or shareholders of the company to protect and keep the company in a safe financial condition.

Appointment of an Auditor for Different Kinds of Companies

Appointment of auditor other than retiring auditor by a special notice.

Where a person other than the retiring auditor is proposed to be appointed as an auditor, or where it is proposed that the retiring auditor shall not be re-appointed, a special notice under Section 115 of the companies Act, 2013 has to be given proposing that such a resolution would be moved at the next annual general meeting. 

In case where the retiring auditor has completed a consecutive tenure of five years or, as the case may be, ten years then such special notice can be avoided. For the purpose of special notice the relevant points are as under:

  • State the fact of representation in any notice regarding the resolution
  • The copy of representation should be sent to those members by the company  to whom notice of meeting is sent, whether before or after the receipt of representation.
  • if the copy of representation is not so sent , copy thereof should be filed with the Registrar.
  • On receipt of the special notice for removing the auditor, the company should send a copy of the same to the retiring auditor.
  • Such representation should be of a reasonable length and not too long.
  • The special notice should not be received by the company too late for the purpose of circulation to members.
  • Auditor may require the company to read out the representation in the meeting if it is not notified to members because it was too late or because of company’s default.

If the Tribunal is satisfied that the rights are being abused by the auditor based on an application either of the company or of any other aggrieved person, then:

  • the copy of the representation may not be sent, and
  • the representation need not be read out at the meeting.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

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appointment letter of auditor

Financial handbook for independent training providers

Part 5: assurance.

Assurance arrangements and how they apply to independent training providers.

5.1. This section outlines assurance arrangements and how they apply to independent training providers (ITPs), depending on the funding group they fall within.

Internal controls review

5.2. To have, and follow, a formalised internal review process which ensures that the ITP’s policies, procedures, and controls relating to financial management and governance are robust, effective and up to date.

5.3. The approach an ITP could use might vary dependent on the size, scale and type of funded contracts/income they have, but could range from an annual review of key policies to a full internal audit of relevant processes, policies and programmes of work.

5.4. Having internal audit would provide DfE/ESFA with additional confidence that an ITP can effectively deliver allocated funds. Internal audit could be carried out by an independent in-house function or by a bought-in internal audit service.

5.5. Where internal audit is undertaken, it should:

  • be independent and objective – for example it should not be performed by a member of the finance team or by anyone with a controlling influence over the organisation
  • be conducted by suitably experienced and, where appropriate, qualified individuals, able to draw on technical expertise, as required
  • be timely, with the programme of work spread appropriately over the year, so higher risk areas are reviewed in good time
  • evaluate the suitability and effectiveness of, and level of compliance with, financial and other controls, including the ITP’s oversight of any sub-contracted delivery
  • offer advice and insight to the management team of the organisation on how to address weaknesses in financial and other controls, acting as a catalyst for improvement, but without diluting management’s responsibility for the day to day running of the organisation
  • ensure all categories of risk are adequately identified, reported, and managed
  • identify on a risk-basis (with reference to its risk register, where appropriate) the areas it will review each year, modifying checks accordingly. For example, this may involve greater scrutiny where procedures or systems have changed
  • take account of other assurance arrangements and procedures to inform the programme of work. For example, it should have regard to any recommendations from external auditors and from any reports produced by ESFA as part of their programme of assurance activity

Appointment of external auditors

5.6. To appoint an external auditor to provide an opinion on whether the ITP’s annual accounts are a true and fair view of its financial performance and position, even if not a statutory requirement for the ITP. This might be an audit of group level accounts if there are no separate subsidiary accounts. This is effective for accounting periods commencing on or after 1 August 2025.

5.7. Many ITPs are already required to appoint external auditors under the Companies Act 2006, Charities Act 2011 or Limited Liability Partnership Audit and Accounts Regulations 2008.

5.8. ITPs must note any areas for improvement identified by the external auditor and have a plan to implement and monitor the recommended improvements. ITPs with an audit and risk committee (or equivalent) should ensure the committee holds the management team to account in relation to improvements identified.

External audit management letters

5.9. To submit management letters provided by external auditors (where appointed) to DfE/ESFA, using submission methods determined by DfE/ESFA. Control risks for wider group structures, which are unrelated to DfE/ESFA-funded delivery, may be redacted. Access to management letters will enable ESFA to work with ITPs to mitigate risks and protect funds and learning delivery.

5.10. Management letters will outline and rank control risks, if any, identified by the external auditors and make recommendations to the ITP.

ESFA assurance activity

5.11. ESFA will continue to perform its regular programme of assurance activity relating to ITPs. This includes funding audits, sampled on a random and risk basis, as well as financial health assessments. This handbook helps ITPs establish processes which will enhance the likelihood of positive assurance outcomes from those audits and assessments.

ESFA funding audits

5.12. ITPs receive funding under contracts for services with DfE/ESFA. These require providers to comply with funding rules, maintain individualised learner records (ILRs) and submit ILR data and other returns to DfE/ESFA to support their funding claims. They also provide for DfE/ESFA to conduct funding assurance and other ad hoc reviews.

5.13. ESFA obtains direct assurance over providers’ funding through ILR data returns. ESFA conducts a programme of funding monitoring and data validation, which involves data analysis and identifying providers’ ILR data anomalies. ESFA informs providers of the ILR data anomalies and explains how to correct any errors. ESFA also obtains direct assurance through a programme of funding assurance reviews (funding audits).

5.14. In addition to the direct assurance performed by ESFA, mayoral combined authorities (MCAs)/Greater London Authority (GLA) may adopt their own processes for assurance on the funding they give to ITPs.

5.15. Providers may sub-contract the delivery of ESFA-funded learning, provided they comply with the sub-contracting requirements set out in ESFA’s funding rules and in the Assurance reviews of the subcontracting standard for post-16 providers .

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IMAGES

  1. Auditor Appointment Letter Templates

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  5. Auditor Appointment Letter Templates

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  6. Auditor Appointment Letter Templates

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COMMENTS

  1. 11+ Auditor Appointment Letter Templates

    Auditor Appointment Letter Guidelines. As with other kinds of appointment letters, such as contractor appointment letters, there are some tips that you can use yourself in order to make your letters more effective. Aside from making them more effective at their jobs, these tips can also serve to ensure that your letters conform to basic standards, which would make them more presentable.

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    Sub: Appointment as Statutory Auditor for the financial year 2013-14. We are pleased to inform you that your firm has been appointed as Statutory Auditors of our Company for conducting the audit under Section 224 of the Companies Act, 1956, vide the resolution (reproduced below) passed at the 10 th Annual General Meeting of the Shareholders which was held on 30 th September, 2013.

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