Compiler’s Note
- The Institute of Chartered Accountants of India (ICAI) had issued Standards on Auditing (SA): SA 700 (revised) Forming an Opinion and Reporting on Financial Statements,
- SA 705 Modifications to the Opinion in the Independent Auditor’s Report,
- SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
These standards were effective for audits of financial statements for periods beginning on or after 1st April, 2011. Following these 3 SAs would change the format in which audit reports were to be issued.
ICAI vide an announcement dated 17th April 2012, however, postponed the application of these standards to audits of financial statements for periods beginning on or after 1st April, 2012. The reason for the postponement as mentioned in the ICAI announcement was that regular CPE and other programmes to familiarise the practising members with the requirements of the new standards were necessary and only after ensuring adequate education, publicity and familiarisation, the said standards would be made mandatory.
Some companies, however, had already adopted financial statements before the date of the ICAI postponement and in such cases the statutory auditors had already issued their report in terms of SA 700, SA 705 and SA 706.
Given below is an audit report dated 13th April 2012, issued using the new SAs.
Independent Auditor’s Report
To the Board of Directors of Infosys Limited (formerly Infosys Technologies Limited)
Report on the Financial Statements
We have audited the accompanying financial statements of Infosys Limited (‘the Company’), which comprise the Balance Sheet as at 31 March 2012, the Statement of Profit and Loss of the Company for the quarter and year then ended, the Cash Flow Statement of the Company for the year then ended and a summary of significant accounting policies and other explanatory information.
Management’s responsibility for the Financial Statements
Management is responsible for 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 Standards referred to in s.s (3C) of section 211 of the Companies Act, 1956 (‘the Act’). This responsibility includes the design, implementation and maintenance of internal control 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.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the 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:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit for the quarter and year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements As required by section 227(3) of the Act, we report that:
(a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
(b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
(c) the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account; and
(d) in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in s.s (3C) of section 211 of the Companies Act, 1956. n
