Page 180 - CA Inter Audit PARAM

CA Ravi Taori

➢ In relation to balances with statutory authorities like GST input credit, prepare a reasonability analysis
with respect to purchases by applying the applicable rate to the purchases and in case of any variance
with the asset recorded by the entity, reasons for variance should be requested from the entity.

➢ Obtain copies of statutory GST returns filed on GST portal.

➢ In case refundable amount as on balance sheet date is still outstanding, verify whether the amount
recorded as per books of account tallies with the claim made with the authorities subsequently by
going to GST portal.

➢ In case refundable amount as on balance sheet date is received subsequently, verify it from Bank
statement.

QNO— Disclosure of Loan Granted to Promoter New Course – (SM25/M24E)
AIFS.45.50 Bhaskar CNO - AIFS-P2.120
LD Ltd. has given below loans to the following borrowers during the financial year 2023-24. Mr. В an
auditor wants your guidance regarding additional regulatory information required to be provided under
the Companies Act, 2013:

Borrowers Maximum Loan granted during Outstanding Loan as at
the year 2023-2024 (₹ in Lakh) 31/03/2024 (₹ in Lakh)
X (Promoter) 20 15
Y (Director) 30 25
Z (KMP) 10 05
A (Related Party) 20 10
Others 80 65
Total 160 120

OR

MNO & Associates are the statutory auditor of Venus Ltd. for the FY 2021-22. During the course of audit,
one of the audit team members, Mr. Viaan noticed that the company has made loans totalling to 50
lakhs to the promoters of the company, namely, Mr. Raj and Mr. Rajeev without specifying the period
of repayment. Mr. Viaan discussed with Mr. Manik, the engagement partner, about the disclosure
requirements with respect to such loans required by Schedule III to the Companies Act, 2013. What
should Mr. Manik advise Mr. Viaan?"

Answer As additional regulatory requirements, following disclosures shall be made where Loans or Advances in
the nature of loans are granted to promoters, Directors, KMPs and the related parties (as defined under
Companies Act, 2013,) either severally or jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment.

Type of Borrower Amount of loan or advance in Percentage to the total Loans
the nature of loan and Advances in the nature of
outstanding (₹ in Lakh) loans (₹ in Lakh)
X (Promoters) 15 12.5% =15/120 X 100
Y (Directors) 25 20.833% =25/120 X 100
Z (KMPs) 05 4.167% =5/120 X 100
A (Related Parties) 10 8.333% =10/120 X 100

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