Illustration 2: New audit report format for report issued on Consolidated Ind AS

Financial Statements of a Listed Company prepared under the requirements of the

Companies Act, 2013 [unmodified opinion]

Notes:

1. Text in [xxx] should be edited / deleted as appropriate.

2. The engagement is to audit a complete set of Ind AS consolidated general purpose financial
statements of a Listed Company, prepared under the financial reporting framework and
requirements of the Companies Act, 2013, which is a fair presentation framework. The
format attached is to be used for issuing Auditor’s report on Consolidated Ind AS financial
statements of the Company.

3. In addition to the audit of consolidated Ind AS financial statements, the auditor has other
reporting responsibilities required under the Companies Act, 2013 and/or other regulatory
requirements on the consolidated Ind AS financial statements based on the interpretation
of section 129(4) of the Act. Reporting on the financial statements is under the section titled
“Report on the Audit of the Consolidated Ind AS Financial Statements”.

4. The audit report format included in this document is for issuing an unqualified / clean
opinion issued in accordance with the SA 700 Revised – ‘Forming an Opinion and
Reporting on Financial Statements’.

5. When issuing a modified or adverse report, there is no longer a requirement to state

qualifications in italics/bold – refer separate report formats. The engagement teams also
need to refer to ‘Guidance on reporting requirements under Companies Act, 2013’, the
reporting guidance issued separately to address reporting in 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, as amended, reporting on section 143(3)(f) and (h) of the
Companies Act, 2013.

6. Specific matters to be reported under the requirements stated in section 143(3) of the
Companies Act, 2013 and Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as
amended, are reported under the section titled “Report on Other Legal and Regulatory
Requirements”. As required in paragraph 17 of Guidance Note on Audit of Consolidated
Financial Statements (Revised 2016), while considering the observations (for instance
modification and /or emphasis of matter/other matter in accordance with SA 705/706) of
the component auditor in his report on the standalone financial statements, the parent
auditor should comply with the requirements of SA 600 - Using the Work of Another
Auditor.

Paragraph 23 of SA 600 states - In all circumstances, if the other auditor issues, or intends
to issue, modified auditor's report, the principal auditor should consider whether the subject
of the modification is of such nature and significance, in relation to the financial
information of the entity on which the principal auditor is reporting, that it requires a
modification of the principal auditor's report.

Hence, the group engagement teams need to evaluate their consideration of the observations
(modification and /or emphasis of matter) in the component auditor’s report, in the auditor’s
 report on the consolidated financial statements. For example, the considerations would
include:
• Materiality and scope of the component;
• The assessment of risk of material misstatement for the Group;
• The impact of the modification in light of the materiality thresholds for the Group
audit, etc.

7. The modified auditor’s report shall need approval in the new Global Consultation database.
The draft reports should be accompanied by a consultation memo which describes the
background of the Company, issue, technical literature, engagement team’s conclusion and
any other related specialists involved, including PPG where necessary on accounting
related matters and draft language of the qualification or disclaimer. Audit teams must also
ensure compliance with respect to the requirements as stated in the Practice alert #20/2018
dated August 21, 2018 – Consultation policy and protocols.

In instances of disclaimer of opinion, the engagement team must justify the reason for
disclaimer. Where quantification is not possible to the modification, the engagement team
needs to include, in the consultation memo, the justifications for an uncertainty
qualification. The engagement team should clearly evaluate and document the effect of
such accounting or auditing issues on their report on Internal control over financial
reporting under section 143(3)(f) of the Companies Act, 2013, where applicable.

8. The engagement teams should also refer to the firm guidance on Indian Accounting
Standard - Reporting Guidance_201606 [Refer Firm Guidance – Ind AS in Atlas - India
Channel], on financial reporting implementation matters in connection with the auditor’s
responsibility to report on first time adoption of Ind AS financial statements.
Illustration 2 - Auditor’s Report on Consolidated Financial Statements of a Listed
company containing an unmodified opinion when the auditor has obtained all of the other
information prior to the date of the auditor's report and has not identified a material
misstatement of the other information 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 Ind AS financial statements of a listed company (registered 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 – ‘Using the Work of Another Auditor’ applies).
• The consolidated financial statements are prepared by management of the entity in accordance with
the Indian Accounting Standards (Ind AS) 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
financial statements in SA 210 – ‘Agreeing the Terms of Audit Engagements’.
• The auditor has concluded an unmodified (i.e., “clean”) opinion is appropriate based on the audit
evidence obtained.
• The Code of Ethics issued by Institute of Chartered Accountants of India (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 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) – ‘Going Concern’.
• Key audit matters have been communicated in accordance with SA 701 – ‘Communicating Key
Audit Matters in the Independent Auditor’s Report’.
• The auditor has obtained all of the other information prior to the date of the auditor’s report and
has not identified a material misstatement of the other information. Other information has been
reported in accordance with SA 720 (Revised) – ‘The Auditor’s Responsibilities to Other
Information’
• In addition to the audit of the consolidated 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 Consolidated Ind AS Financial Statements1

Opinion

We have audited the accompanying consolidated Ind AS financial statements of ABC Company
Limited (hereinafter referred to as “the Holding Company”), its subsidiaries (the Holding Company and
its subsidiaries together referred to as “the Group”) its associates and joint ventures / joint operations2
comprising of the consolidated Balance sheet as at March 31 20XX, the consolidated Statement of Profit
and Loss, including other comprehensive income, the consolidated Cash Flow Statement and the
consolidated Statement of Changes in Equity for the year then ended, and notes to the consolidated Ind
AS financial statements, including a summary of significant accounting policies and other explanatory
information (hereinafter referred to as “the consolidated Ind AS financial statements”).
In our opinion and to the best of our information and according to the explanations given to us [and
based on the consideration of reports of other auditors on separate financial statements and on the other
financial information of the subsidiaries, associates and joint ventures /joint operations3], the aforesaid
consolidated Ind AS financial statements give the information required by the Companies Act, 2013, as
amended (“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 consolidated state of affairs of the Group, its
associates and joint ventures /joint operations4 as at March 31, 20XX, their consolidated profit/loss
including other comprehensive income, their consolidated cash flows and the consolidated statement of
changes in equity5 for the year ended on that date.

Basis for Opinion

We conducted our audit of the consolidated Ind AS financial statements in accordance with the
Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Consolidated
Ind AS Financial Statements’ section of our report. We are independent of the Group 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
Act 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 audit opinion on the consolidated Ind AS financial
statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated Ind AS financial statements for the financial year ended March 31, 20XX.
These matters were addressed in the context of our audit of the consolidated Ind AS financial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. For each matter below, our description of how our audit addressed the matter is provided in
that context.

1
The sub-title “Report on the Audit of the Ind AS Financial Statements” is not required in circumstances when the second sub-
title “Report on Other Legal and Regulatory Requirements” is not applicable.
2
As the case may be applicable
3
As the case may be applicable
4
As the case may be applicable
5
If applicable
We have determined the matters described below to be the key audit matters to be communicated in our
report. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of
the consolidated Ind AS financial statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our assessment
of the risks of material misstatement of the consolidated Ind AS financial statements. The results of
audit procedures performed by us [and by other auditors of components not audited by us, as reported
by them in their audit reports furnished to us by the management]6, including those procedures
performed to address the matters below, provide the basis for our audit opinion on the accompanying
consolidated Ind AS financial statements.

Key audit matters
Acquisition of additional interest in a joint venture (as described in note XX of the consolidated
Ind AS financial statements)
The Company acquired additional shares in
M Limited. As a result of this transaction
the Company's interest increased from 50 %
to 75%. As of October XX, 20XX, the
Company no longer has joint control over
M Limited and stopped accounting for its
interest using the equity method of
accounting in its consolidated financial
statements. From October XX, 20XX, the
results of M Limited are included in the
consolidated statement of Profit and Loss,
including the statement of Other
Comprehensive Income in accordance with
Ind AS 110, Consolidated Financial
Statements.
How our audit addressed the key audit matter
Our audit procedures included the following:
 Ind AS 103 ‘Business Combinations’ requires
that assets and liabilities acquired in a business
combination are measured at their fair value.
This requires the Company to identify and
recognise assets and liabilities in the acquired net
assets of M Limited at fair value.
 The identification and valuation of the acquired
net assets can have a material impact on the
consolidated financial statements and is an area
that involves judgement. Because this is a non-
routine transaction and the accounting treatment
is complex we consider this a key audit matter
for our audit.
 We analysed the transaction and the acquisition
of control and discussed it with the Directors and
management of the Company. To assess whether
the accounting treatment complies with the
requirements of Ind AS 103, we reviewed
relevant underlying documents, including the
sale and purchase contracts. Our audit procedures
included among others, an assessment of the
acquisition accounting, evaluating the procedures
applied to identify and value additional assets
and liabilities on acquisition and evaluating the
key judgements. In performing these procedures,
we obtained and reviewed the most recent
external valuation report done on the building,
which is the most significant asset of M Limited.
We also considered the adequacy of the Group's
disclosures about the acquisition of M Limited
within the consolidated Ind AS financial
statements.

Revenue recognition (as described in note XX of the consolidated Ind AS financial statements)
The Group has a number of revenue Our audit procedures included the following:
streams relating to its Healthcare and  We relied upon the controls tested over revenue
Distribution segments including clinic recognition, including the timing of revenue
revenues, insurance claims, over-the- recognition.

6
To be included, only if applicable
Key audit matters
counter sales, pharmacy sales and sales of
goods. There is a risk of improper revenue
recognition, particularly with regard to cut-
off at period end dates, in the healthcare
business, given the diversity of the Group’s
healthcare operations, and in the
distribution business. Furthermore, there is
a risk that management may incorrectly
determine whether the Group is acting as
principal or agent in certain arrangements
such as distribution agreements with key
suppliers and revenue sharing agreements
with doctors. The risk has increased in the
current year due to the acquisitions which
have resulted in new revenue streams for
the Group.
Recoverability of trade receivables (as described in note XX of the consolidated Ind AS financial
statements)
The gross balance of trade receivables as at Our audit procedures included the following:
March 31, 20XX amounted to INR XX
million, against which provision for
doubtful debts amounting to INR XX
million was made. The collectability of
trade receivables is a key element of the
Company’s working capital management,
which is managed on an ongoing basis by
local management of the subsidiaries. The
Company’s management supports
subsidiaries in setting credit limits for
customers and approves such limits above
certain thresholds, where applicable. The
assessment of the impairment of trade
receivables requires significant
management judgment in assessing the
trade debtors’ ability to pay, which in turn  We assessed the adequacy of the disclosures on
impacts the recoverability of the Group’s
receivables.
How our audit addressed the key audit matter
 We performed analytical review procedures and
performed cut-off testing procedures (by
selecting a sample of transactions either side of
year-end) to check that revenue had been
recognised in the appropriate accounting period.
 We performed procedures on contractual
arrangements in respect of new and one-off fee
income and considered the appropriateness of the
accounting through verification to legal
agreements and vouching the amounts
recognised to invoices and cash receipts.
 We tested a sample of new distribution
agreements entered into during the year and
revenue sharing contracts with doctors in newly
acquired businesses to verify that the company’s
determination that they are acting as a principal
rather than an agent is appropriate.
 We checked the company’s adherence to their
revenue recognition policies and we agreed that
these policies are in accordance with Ind AS 115

 We evaluated the Company’s processes and
controls relating to the monitoring of trade
receivables and review of credit risks of
customers. Our audit procedures included,
amongst others, evaluating management’s
assessment of the credit review procedures of
trade receivables, obtaining trade receivable
confirmations, and obtaining evidence of receipts
from the trade receivables after the year end.
 We also evaluated management’s assumptions
used to determine the trade receivables
impairment amount, through detailed analyses of
ageing of receivables, assessment of material
overdue individual trade receivables and risks
specific to the trade debtors.
the trade receivables in Note XX and the related
risks such as credit risk and liquidity risk in Note
XX of the consolidated Ind AS financial
statements.

Impairment of Goodwill (as described in note XX of the consolidated Ind AS financial statements)
The Group’s balance sheet includes Rs XX Our audit procedures included the following:
crores of goodwill, representing XX% of  We assessed the appropriateness of the Group’s
total Group assets. In accordance with Ind methodology applied in determining the CGUs to
AS, these balances are allocated to Cash which goodwill is allocated. In making this
Generating Units (CGUs) which are tested assessment, we also evaluated the objectivity and
annually for impairment using discounted
 Key audit matters
cash-flow models of each CGU’s
recoverable value compared to the carrying
value of the assets. A deficit between the
recoverable value and the CGU’s net assets
would result in impairment.
The inputs to the impairment testing model
which have the most significant impact on
CGU recoverable value include:
- Projected revenue growth, operating
margins and operating cash-flows in the
years 1-5;
- Stable long-term growth rates in years 6-
10 and in perpetuity; and
- Business specific discount rates (pre-tax).
The impairment test model includes
sensitivity testing of key assumptions,
including revenue growth, operating margin
and discount rate.
The annual impairment testing is
considered a significant accounting
judgement and estimate (Note XX) and a
key audit matter because the assumptions
on which the tests are based are highly
judgmental and are affected by future
market and economic conditions which are
inherently uncertain, and because of the
materiality of the balances to the financial
statements as a whole.
Inventory (as described in note XX of the consolidated Ind AS financial statements)
The auditors of ABC, a subsidiary of the
Holding Company have reported existence
of inventory as a Key Audit Matter due to
involvement of high risk, basis the nature of
the retail industry wherein value per unit is
relatively insignificant but high volumes are
involved which are dispersed across
different point of sales and warehouses.
How our audit addressed the key audit matter
independence of Company’s internal specialists
involved in the process.
 We assessed the assumptions around the key
drivers of the cash flow forecasts including
discount rates, expected growth rates and
terminal growth rates used.
 We also assessed the recoverable value headroom
by performing sensitivity testing of key
assumptions used.
 We discussed potential changes in key drivers as
compared to previous year / actual performance
with management in order to evaluate whether the
inputs and assumptions used in the cash flow
forecasts were suitable.
 We tested the arithmetical accuracy of the
models.
The procedures performed by the auditor of ABC, as
reported by them, included the following:
 Evaluation of the design and testing of the
implementation of internal controls relating to
physical inventory counts on a test basis;
 Performance of test of controls over verification
of documentary evidences of controls including
the calculation of shrinkages;
 Performance of test of details through sample
selection of stores as part of the inventory
verification program, including verification of
inventory from floor to documentary evidence
and vice versa and verification of shrinkage.

7
Other Information [or another title if appropriate, such as “Information Other than the
Financial Statements and Auditor’s Report Thereon”]

7
For reporting on ‘Other Information’ as per SA 720 (Revised), refer our separate document on the firm’s Illustrative Languages
to be used as applicable to the Company and FAQs on SA 720 (Revised). The language included above is when the auditor has
obtained all of the other information prior to the date of the auditor’s report and has not identified a material misstatement.
The Holding Company’s Board of Directors is responsible for the other information. The other
information comprises the [information included in the Annual report8, but does not include the
consolidated Ind AS financial statements and our auditor’s report thereon.]

Our opinion on the consolidated Ind AS 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 consolidated Ind AS financial statements, our responsibility is to
read the other information and, in doing so, consider whether such other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the 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.

[Responsibilities of Management for the Consolidated Ind AS Financial Statements]9

The Holding Company’s Board of Directors is responsible for the preparation and presentation of these
consolidated Ind AS financial statements in terms of the requirements of the Act that give a true and
fair view of the consolidated financial position, consolidated financial performance including other
comprehensive income, consolidated cash flows and consolidated statement of changes in equity of the
Group including its associates and joint ventures /joint operations10 in accordance with11 the accounting
principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified
under section 133 of the Act read with [the Companies (Indian Accounting Standards) Rules, 2015, as
amended]12. The respective Board of Directors of the companies included in the Group and of its
associates and joint ventures /joint operations13 are responsible for maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the Group and of
its associates and joint ventures/joint operations14 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 the accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the consolidated Ind AS
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 Ind AS
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 joint ventures/joint operations are responsible for
assessing the ability of the Group and of its associates and joint ventures/joint operations 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.
[Those respective Board of Directors of the companies included in the Group and of its associates and

8
A more specific description of the other information, such as “the management report and chairman’s statement,” may be used
to identify the other information.
9
Para 34 of SA 700 (Revised) states that when those responsible for such oversight are different from those who fulfil the
responsibilities described in paragraph 33, in this case, the heading of this section shall be “Responsibilities of Management
and Those Charged with Governance for the Consolidated Financial Statements” or such term that is appropriate in the
context of the legal framework applicable to entity.
10
As the case may be applicable
11
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 ...”
12
Engagement teams should include reference to most recent amendment rules as applicable.
13
As the case may be applicable
14
As the case may be applicable
joint ventures/joint operations]15 are also responsible for overseeing the financial reporting process of
the Group and of its associates and joint ventures/joint operations.

Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated Ind AS 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 Ind AS 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 consolidated Ind AS 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 Act, we are also
responsible for expressing our opinion on whether the Holding Company has adequate internal
financial controls system in place and the operating effectiveness of such controls.]16
• 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 joint
ventures/joint operations17 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 Ind AS 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
joint ventures/joint operations18 to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated Ind AS financial
statements, including the disclosures, and whether the consolidated Ind AS 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 entities or
business activities within the Group and its associates and joint ventures/joint operations19 of which
we are the independent auditors [and whose financial information we have audited20], to express
an opinion on the consolidated Ind AS financial statements. We are responsible for the direction,

15
If para 34 of SA 700 (R) is applicable (as stated above), to be replaced by “Those charged with governance”
16
When the scope of audit does not include reporting on adequacy and operating effectiveness of entity’s internal financial control
under section 143(3)(i) of the Act – language to be replaced by “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 Company’s internal control.”
17
As the case may be applicable
18
As the case may be applicable
19
As the case may be applicable
20
To be included when we have audited financial information of a component, without being the statutory auditor (with or without
issuing the audit report thereon)
 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 Ind AS 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 Ind AS financial statements for the financial
year ended March 31, 20XX 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

(a) [We did not audit the financial statements and other financial information, in respect of
_____subsidiaries, and ____ joint operations, whose Ind AS financial statements include total assets
of Rs __ as at March 31, 20XX, and total revenues of Rs __ and net cash outflows/(inflows)21 of Rs
___ for the year ended on that date. These Ind AS financial statement and other financial
information have been audited by other auditors, which financial statements, other financial
information and auditor’s reports have been furnished to us by the management. The consolidated
Ind AS financial statements also include the Group’s share of net [profit/loss] of Rs. _____ for the
year ended March 31, 20XX, as considered in the consolidated Ind AS financial statements, in
respect of ____ associates and joint ventures, whose financial statements, other financial
information have been audited by other auditors and whose reports have been furnished to us by
the Management. Our opinion on the consolidated Ind AS financial statements, in so far as it relates
to the amounts and disclosures included in respect of these subsidiaries, joint ventures /joint
operations and associates, and our report in terms of sub-sections (3) of Section 143 of the Act, in
so far as it relates to the aforesaid subsidiaries, joint ventures and joint operations and associates, is
based solely on the report(s) of such other auditors.] 22

[Certain of these subsidiaries/associates/ joint ventures and joint operations are located outside
India whose financial statements and other financial information have been prepared in accordance
with accounting principles generally accepted in their respective countries and which have been
audited by other auditors under generally accepted auditing standards applicable in their respective
countries. The Company’s management has converted the financial statements of such
subsidiaries/associates/ joint ventures and joint operations located outside India from accounting
principles generally accepted in their respective countries to accounting principles generally
accepted in India. We have audited these conversion adjustments made by the Company’s
management. Our opinion in so far as it relates to the balances and affairs of such
subsidiaries/associates/ joint ventures and joint operations located outside India is based on the

21
Please delete what is not applicable in the given case
22
To be included only if applicable
 report of other auditors and the conversion adjustments prepared by the management of the
Company and audited by us.]23

(b) [The consolidated Ind AS financial statements of the Company for the year ended March 31, 20XX,
included in these consolidated Ind AS financial statements, have been audited by the predecessor
auditor who expressed an [unmodified] opinion on those statements on ____, 20XX.]24
(c) [The accompanying consolidated Ind AS financial statements include unaudited financial
statements and other unaudited financial information in respect of __subsidiaries, and ____ joint
operations, whose financial statements and other financial information reflect total assets of Rs __
as at March 31, 20XX, and total revenues of Rs __ and net cash outflows/(inflows)25 of Rs ___ for
the year ended on that date. These unaudited financial statements and other unaudited financial
information have been furnished to us by the management. The consolidated Ind AS financial
statements also include the Group’s share of net [profit/loss] of Rs. _____ for the year ended
March 31, 20XX, as considered in the consolidated Ind AS financial statements, in respect of ____
associates and joint ventures, whose financial statements, other financial information have not been
audited and whose unaudited financial statements, other unaudited financial information have been
furnished to us by the Management. Our opinion, in so far as it relates amounts and disclosures
included in respect of these subsidiaries, joint ventures and joint operations and associates, and our
report in terms of sub-sections (3) of Section 143 of the Act in so far as it relates to the aforesaid
subsidiaries, joint ventures and joint operations and associates, is based solely on such unaudited
financial statement and other unaudited financial information. In our opinion and according to the
information and explanations given to us by the Management, these financial statements and other
financial information are not material to the Group.]26
Our opinion above on the consolidated Ind AS 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 and other
financial information certified by the Management.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act, [based on our audit and on the consideration of report of the
other auditors on separate financial statements and the other financial information of subsidiaries,
associates and joint ventures / joint operations27, as noted in the ‘other matter’ paragraph]28 we report,
to the extent applicable, that:

(a) We/the other auditors whose report we have relied upon 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 Ind AS financial statements;

(b) In our opinion, proper [books of account]29 as required by law relating to preparation of the
aforesaid consolidation of the financial statements have been kept so far as it appears from our
examination of those books and reports of the other auditors;

(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including the
Statement of Other Comprehensive Income, the Consolidated Cash Flow Statement and

23
To be included only if applicable
24
To be included when the Ind AS financial statements of the prior period was audited by a predecessor auditor – refer para 13
to SA 710 (Revised) – ‘Comparative Information—Corresponding Figures and Comparative Financial Statements’
25
Please delete what is not applicable in the given case
26
To be included only if applicable
27
As the case may be applicable
28
To be included if applicable
29
Books of accounts include cost records as may be prescribed under section 148 of the Act, in the case of a company which
belongs to any class of companies specified under that section. The engagement teams should evaluate whether proper cost
records have been kept by the Company while reporting under this clause.
 Consolidated Statement of Changes in Equity30 dealt with by this Report are in agreement with the
books of account maintained for the purpose of preparation of the consolidated Ind AS financial
statements;

(d) In our opinion, the aforesaid consolidated Ind AS financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Companies (Indian Accounting
Standards) Rules, 2015, as amended31;

(e) On the basis of the written representations received from the directors of the Holding Company as
on March 31, 20XX taken on record by the Board of Directors of the Holding Company and the
reports of the statutory auditors who are appointed under Section 139 of the Act, of its subsidiary
companies, associate companies and joint ventures/joint operations, none of the directors of the
Group’s companies, its associates and joint ventures/joint operations incorporated in India is
disqualified as on March 31, 20XX from being appointed as a director in terms of Section 164 (2)
of the Act;
[or]
On the basis of written representations received from the directors of the Holding Company as on
March 31, 20XX, and taken on record by the Board of Directors of the Holding Company and the
reports of the statutory auditors who are appointed under Section 139 of the Act, of its subsidiary
companies, associate companies and joint ventures and joint operations incorporated in India,
except for __ (number) director[s] of ___(number) of the Group’s subsidiary[ies], associate[s] and
joint ventures and joint operations incorporated in India who are disqualified from being appointed
as a director in terms of Section 164(2) of the Act, none of the other directors of the Group’s
companies incorporated in India is disqualified as on March 31, 20XX from being appointed as a
director in terms of Section 164 (2) of the Act. The list of subsidiaries / joint ventures and joint
operations incorporated in India where the disqualification arose and the respective directors are
stated below:

(f) [With respect to the adequacy and the operating effectiveness of the internal financial controls over
financial reporting with reference to these consolidated Ind AS financial statements of the Holding
Company and its subsidiary companies, associate companies and joint ventures and joint
operations incorporated in India, refer to our separate Report in “Annexure 2” to this report]32;
[or]
[This report does not include Report on the internal financial controls under clause (i) of Sub-
section 3 of Section 143 of the Companies Act, 2013 (the ‘Report on internal financial controls’),
since in our opinion and according to the information and explanation given to us, the said report
on internal financial controls is not applicable to the Holding Company and its subsidiary
companies, associate companies and jointly controlled companies entities/joint ventures and joint
operations basis the exemption available to the Company under MCA notification no.
G.S.R. 583(E) dated June 13, 2017, read with corrigendum dated July 13, 2017 on reporting on
internal financial controls over financial reporting;]33 34

(g) The provisions of section 197 read with Schedule V of the Act are not applicable to the Holding
Company, its subsidiaries, associates and jointly controlled companies/joint ventures and joint
operations incorporated in India for the year ended March 31, 20XX;
[or]
In our opinion [and based on the consideration of reports of other statutory auditors of the
subsidiaries, associates and jointly controlled companies/joint ventures and joint operations

30
If applicable
31
Engagement teams should include reference to most recent amendment rules as applicable.
32
To be included if scope includes reporting on internal financial control under section 143(3)(i) of the Act.
33
To be used when the reporting on internal financial control under section 143(3)(i) of the Act is not applicable to either the
Holding Company, its subsidiaries, associates and jointly controlled companies/joint ventures and joint operations.
34
When ICFR is applicable to the Holding Company and not to subsidiaries / associates – separate Report on ICFR to be issued.
When ICFR is not applicable to the Holding Company and is applicable to other group companies – PPD consultation is required.
 incorporated in India], the managerial remuneration for the year ended March 31, 20XX has been
paid / provided by the Holding Company, its subsidiaries, associates and jointly controlled
companies/joint ventures and joint operations incorporated in India to their directors in accordance
with the provisions of section 197 read with Schedule V to the Act;

(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, as amended, in our opinion and to the best of
our information and according to the explanations given to us [and based on the consideration of
the report of the other auditors on separate financial statements as also the other financial
information of the subsidiaries, associates and jointly controlled entities/joint ventures and joint
operations, as noted in the ‘Other matter’ paragraph]35:

i. The consolidated Ind AS financial statements disclose the impact of pending litigations on
its consolidated financial position of the Group, its associates and joint ventures and joint
operations in its consolidated Ind AS financial statements – Refer Note XX to the
consolidated Ind AS financial statements;
[or]
[The Group, its associates and joint ventures and joint operations does not have any
pending litigations which would impact its consolidated financial position];

ii. Provision has been made in the consolidated Ind AS 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
Ind AS financial statements in respect of such items as it relates to the Group, its associates
and joint ventures and joint operations and (b) the Group’s share of net profit/loss in
respect of its associates;
[or]
[The Group, its associates and joint ventures and joint operations did not have any material
foreseeable losses in long-term contracts including derivative contracts during the year
ended March 31, 20XX];

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Holding Company, its subsidiaries, associates and
joint ventures and joint operations incorporated in India during the year ended
March 31, 20XX.
[or]
There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Holding Company, its subsidiaries, associates and joint
ventures and joint operations incorporated in India during the year ended
March 31, 20XX.
[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, its subsidiaries,
associates and joint ventures and joint operations incorporated in India during the year
ended March 31, 20XX [Describe the delays, covering date of payment, amount involved
and number of days’ delay].

For [S.R. Batliboi & CO. LLP / S.R. Batliboi & Associates LLP / S R B C & CO LLP]
Chartered Accountants

35
If applicable
ICAI Firm Registration Number: 301003E/E300005 / 101049W/E300004 / 324982E/E300003

______________________________
per [partner name] 36
Partner
Membership Number: []
UDIN: []37
Place of Signature: []38
Date: []39

36
The report should be signed in the personal name of the auditor.
37
Unique Document Identification Number (UDIN) mandatory for all other attest functions w.e.f. July 1, 2019, however, prior
generation of UDIN is recommended. Engagement teams should insert the 18-digits UDIN generated at the time of issuance of
the audit report.
38
City where audit report is signed.
39
Date on which the report is signed