AUDITING CIA 1

INDEPENDENT AUDITOR REPORT OF

CITYZENS LTD (2018-19)
To the members of Cityzens Limited,
Report on the Audit of the
Standalone financial statements
We have audited the accompanying financial
statements of Cityzens Limited included in the
financial statements dated March 31 2019. The
statements include the Balance sheet (Dated
March 31 2019) and Profit and loss account
In our opinion and to the best of our
information and according to the explanations
given to us the aforesaid Standalone Financial
Statements give the information required by
the 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.
Basis for Opinion
We conducted our audit in accordance with the
Standards on Auditing (SAs) specified under
section 143(10) of the Act. Our responsibilities
under those SAs are further described in the
Auditor's Responsibilities for the Audit of the
Standalone 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 standalone 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.
Please do note that the subsidiaries of Cityzens
Limited have not been audited by us and we are
purely relying on the audited statements of
their companies.
AUDITORS’ RESPONSIBILITIES FOR THE
AUDIT OF THE CONSOLIDATED FINANCIAL
STATEMENTS
Our objectives are to obtain reasonable
assurance about whether the Consolidated
Financial Statements as a whole are free from
material misstatement, whether due to fraud or
error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs
will always detect a material misstatement
when it exists. Misstatements can arise from
fraud or error and are considered material if,
individually or in the aggregate, they could
reasonably be expected to influence the
economic decisions of users taken on the basis
of these Consolidated Financial Statements.
Apart from this we conduct the following:-
 Identify and assess the risks of material
misstatement, it can occur out of
misjudgment, error or fraud. It is
difficult to point out a misstatement
which arises out of an error than that of
a fraud
 Analyzing the internal audit controls
established by the organization and
assessing the audit procedures
designed by the company
 Evaluating overall presentation of
Financial Statements provided by the
company
 Ensuring all the accounting standards
and principles are in action while
preparing financial statements
 Obtaining sufficient audit evidence for
the transactions recorded in the
statements
 KEY AUDIT MATTERS
Assessment of Tangible Assets and the
valuation of their depreciation
Please do note that the valuation of
Tangible Assets has to be aligned with IAS
16 (Property, Plant and Equipment) and
that the depreciation should be calculated
on the basis of IAS 16 as well
We had noticed a significant increase in
the depreciation value stated in the Profit
and Loss Account between the two years.
Accounting for Investments
It is to be noted that Investments have to
be followed using the accounting
standards AS 13 and AS15 and keeping in
mind the prudence principle. The
company has presented a fair valuation of
the investments in the Balance sheet.
RESPONSIBILITIES OF
MANAGEMENT FOR THE
CONSOLIDATED FINANCIAL
STATEMENTS
 The Holding Company’s Board of
Directors is responsible for the
preparation and presentation of these
Consolidated Financial Statements in
terms of the requirements of the Act
that give a true and fair view of the
consolidated financial position. Their
statements need to be aligned with the
e 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.
How we dealt with it
Assessed the new machinery purchased in
the financial year and further evaluated the
depreciation calculations after questioning
the accountants. It was found out that one of
the machinery’s were over depreciated by
250000Rs. It was an error while accounting
and not an intentional fraud. Cityzens Ltd
have been advised to improve their Internal
Audit controls hereafter.
How we dealt with it
We looked through the Notes To Account
provided by the company and compared
investments to their market price. Each
investment has been recorded with proper
estimates and a fair value has been issued
thereafter
 It is to be noted that the Board of
Directors are responsible for the
financial statements of its holdings,
joint ventures, acquisitions etc. . Any
fraud or misstatement found, they are
equally liable for the same
AUDITORS RESPONSIBILITY FOR THE
INTERNAL AUDIT CONTROL
Our responsibility is to express an opinion on
the Company's internal financial controls over
financial reporting based on our audit. We have
suggested certain measurements to the
organization regarding ERM (Enterprise Risk
Management) and focused on them developing
a strategy to minimize internal risk in the
organization. We conducted our audit in
accordance with the Guidance Note on Audit of
Internal Financial Controls Over Financial
Reporting (the "Guidance Note") and the
Standards on Auditing issued by ICAI
MANAGEMENTS RESPONSOBILITY FOR CONCLUSION
INTERNAL AUDIT CONTROL
In our opinion the Company has all material
The Company's management is responsible for respects an adequate internal financial Control
maintaining internal financial controls based on system and financial statements effectively as
the internal control over financial reporting at March 31 2019. The company has adhered to
criteria established by the Company considering all the required standards and principles and
the essential components of internal control has displayed all the relevant accounting
stated in the Guidance Note on Audit of Internal information to the public. The company has
Financial Controls over Financial Reporting maintained professional acumen throughout
issued by the Institute of Chartered the auditing process and has a reliable team of
Accountants of India (ICAI). These accountants.
responsibilities include the design
implementation and maintenance of adequate
internal financial controls and risk management
techniques that were operating effectively for
ensuring the orderly and efficient conduct of its
business. . Further, risk examination is done on
a periodic basis which shows that the
management has a rigid internal control

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