Referencer on reconciliation of share capital audit. The accounting of such transactions is special and involves the share capital account. Share capital consists of all funds raised by a company in exchange for shares of either common or preferred shares of stock. Reconciliation of share capital audit to certify reconciliation of total shares of a company held in nsdl, cdsl and in physical form by the shareholders with the total admitted, issued and listed capital. Try out the html to pdf api reconciliation of share capital audit scrip code 524520 name of the company kmc speciality hospitals india limited registered office address registered office address no. He should check the totals in the application and allotment book and see whether appropriate journal entry is duly passed by debiting share application account and crediting share capital account. Reconciliation of share capital audit report for the. Share capital equity invested by shareholders and investors. The auditor should refer to the audit planning documentation to gain an understanding of the financial reporting system and the planned extent of testing for inventories and cost of sales.
Partners and professional staff of deloitte singapore would be pleased to advise you. Audit chapter 15 debt and equity capital flashcards quizlet. The amount of capital with which the company intends to be registered is called registered. Auditing assignment help, share capital audit process, share capital audit process share capital is a special type of liability and when it has been issued during the year then verification procedures are as follows. Reconciliation of share capital audit as per regulation 55a of the sebi depositories and participants regulations, 1996 and sebi circular no. Vfm confirm whether quotes, tenders were invited as per appropriate legislation or policy of the institution. While all reasonable care has been taken in the preparation of these illustrative financial statements, deloitte singapore accepts no. In order to verity the share allotment, the auditor should follow the audit procedure. Share capital audit role of auditor in verifying issue of. Confirm that the matter is within the limits authorised through articles and.
Check authorised share capital is consistent with the companys constitution. This issue of share capital should be audited to verify the compliance of. The illustrative financial statements should not be relied on as a substitute for such professional advice. A company usually raises its capital in the form of shares called share capital and debentures debt capital. Rule 9a has been inserted in the said rule which deals with the issue of securities in dematerialised form by unlisted public companies. Thanking you, yours faithfully, for eros international media limited z,on. The current rules relating to share capital require companies having a share. Funds raised by issuing shares in return for cash or other considerations. Reduction of share capital special audit report english pdf 700 kb.
A private limited company has two types of share capital. Share capital audit report for the quarter ended 31% december 2019 in line with the circular no. For the purpose of carrying out the audit of share capital in case of a newly formed company, the auditor must examine in detail the following books, documents and records. Reconciliation of share capital audit for the quarter ended. Reconciliation of share capital audit report for the quarter ended 31. Hence, we usually try to detect the material misstatement that could occur at various assertion levels. Part 4 share capital division 1 nature of shares 4. Reconciliation of share capital audit to be done by qualified chartered accountant or a company secretary. Share capital audit role of auditor in verifying issue of fresh share.
Reconciliation of share capital audit report for the quarter ended on 30th 2018. The characteristics of common stock are defined by the state within which a company incorporates. If there is any increase in the number of shares due to loans or conversion of debentures, the same has to be verified whether all the formalities were as per law. Reconciliation of share capital audit scrip code 500676 nse symbol gskcons msei symbol notlisted isin ine264a01014 name of the company glaxosmithkline consumer healthcare limited registered office address registered office address patiala road, nabha 147201 registered office state punjab registered office city nabha registered office. Reconciliation of share capital audit as per regulation 55a of the sebi depositories and participants regulations, 1996 and sebi circularn0. Start studying audit chapter 15 debt and equity capital. Reconciliation of share capital audit scrip code 539118 nse symbol vrllog msei symbol notlisted isin ine366i01010 name of the company vrl logistics limited registered office address registered office address vrl logistics limited, r. Reconciliation of share capital audit report by unlisted. May 18, 2011 what is the substantive procedure for share capital reserves and directors emoluments free resources for acca and cima students free acca and. Illustrative financial statements deloitte us audit. There are two general types of share capital, which are common stock and preferred stock. Reconciliation of share capital audit scrip code 500660 nse symbol glaxo msei symbol notlisted isin ine159a01016 name of the company glaxosmithkline pharmaceuticals limited registered office address registered office address gsk house, dr.
It is essential to distinguish revenue expenses and capital expenditure to prepare correct financial statements. Learn vocabulary, terms, and more with flashcards, games, and other study tools. In the audit of share capital, we usually test various audit assertions, such as existence, completeness, and valuation. Accordingly, we enclose herewith a reconciliation of share capital audit report certified by mr. Uniply industries limited please find enclosed herewith reconciliation of share capital audit report of ms. Registered office state maharshtra registered office city mumbai. An auditor can verify the issued capital from balance sheet of the previous year. In this chapter, we will discuss the auditing of capital and revenue. Equity share capital this type of share capital is that part of capital that is not a preferential. The following points highlight the two main objectives of audit. Jul 28, 2009 points to be considered for audit of share capital.
Forfeiture and reissue of shares, buyback of shares, redemption and conversion of preference shares, bonus shares, rights issue, esops, esps, sweat equity shares alteration of share capital underwriting of shares 2. The term asset management as a concept basically evolved from maintenance management to provide a more comprehensive approach to managing the life of. The current rules relating to share capital require companies having a share capital to have a par value or a nominal value ascribed to their shares. Rajwade, a chartered accountant, for the quarter ended june 30, 2016. Use the understanding of the client and its environment to consider inherent risk, including fraud risks. Request pdf audit quality and cost of equity capital the purpose of this research is to examine the relationship between audit quality and cost of equity capital. Modification to the auditing procedures listed below may be necessary in order to achieve the audit. Under provision of regulation 55a of the sebi depositories and participants regulations, 1996, listed companies are required to submit reconciliation of share capital audit report on a quarterly basis to the stock exchanges audited by a qualified chartered accountant or a practicing company secretary, for the purpose of reconciliation of share capital held in depositories and in physical. This chapter deals with the accounting for share capital of companies. When you are auditing stockholder equity, you want to look at the capital stock accounts. Nov 27, 2019 share capital consists of all funds raised by a company in exchange for shares of either common or preferred shares of stock. The section, however, permits issue of redeemable preference shares subject to the following conditions and an auditor should see that they are complied with in addition to the general share capital audit that he should carry out as enumerated above. The amount of share capital a company has can change over time because each time a business sells new shares to the public in exchange for cash, the amount of share capital will increase.
Share capital means capital raised by the company by issue of shares. Share capital shareholders capital, equity capital, contributed capital, or paidin capital is the amount invested by a companys shareholders for use in the business. The need for some outside and independent agency to check transactions on behalf of shareholders and other owners of capital. Dabur india limited is a leading indian consumer goods company with interests in hair care, oral care,health care, skin care, home care and foods. Module 6 audit of debt and equity capital name date debt. Such shares are offered to the members in proportion to the existing shares held by each member. Shareholders equity auditing homework and assignment help. Cirmrddp302010 dated 06092010 june, 2018 ine878a01011 iqs. Check cash received for shares is properly recorded in the main ledger not to sales. Auditing audit of sole proprietary concern there is no obligation for a sole proprietor under any law to get the accounts except in case where the turnover of a proprietary business in any financial year. Auditing audit of sole proprietary concern tutorialspoint. Audit of share capital free download as powerpoint presentation. Office of the director of audit audit procedures budgeted time actual time by initials ref wp for a selected sample of acquisitions determine whether the selected supplier was listed on the approved suppliers list database. In other words it is the basic kind of capital or an ordinary share capital.
Dear sir, kindly find enclosed reconciliation of share capital audit report pursuant to sebis circular no. Share capital means the money paid into the company or legally promised as being available on call by members for shares in the company. Reconciliation of share capital audit scrip code 541195 nse symbol midhani msei symbol notlisted isin ine099z01011 name of the company mishra dhatu nigam limited registered office address registered office address mishra dhatu nigam limited po kanchanbagh hyderabad 500058, telangana, india. Reconciliation of share capital audit scrip code 500002 name of the company abb india limited registered office address registered office address 21st floor, world trade center, brigade gateway, no. How to audit the share capital transactions of a newly. Points to be considered for audit of share capital. The certificate of incorporation of a company is issued by registrar of. The board of directors has to approve all capital stock transactions, including the type of stock issued, the total number of shares that can be outstanding at any one time, and the declaration of dividends.
Reconciliation of share capital audit scrip code 539336 nse symbol gujgasltd msei symbol notlisted isin ine844o01030 name of the company gujarat gas limited registered office address registered office address gujarat gas cng station sector5c gandhinagar registered office state gujarat registered office city gandhinagar. As a part of capacity building, the institute brought out this referencer on reconciliation of share capital audit. The capital of a company is contributed by a large number of persons known as shareholders. Vouch share issue expenses such as prospectus, printing and postage, professional fee, to invoices and cash book. The absence of these will lead to misleading results where no one can conclude anything. Application for shares should be compared with application and allotment sheets.
Uniply industries limited for the quarter ended 31. Sub rule 8 of rule 9a deals with the filing of share capital reconciliation audit report on half yearly basis with registrar of companies. Share capital refers to the funds that a company raises in exchange for issuing an ownership interest in the company in the form of shares. Report of the statutory auditors on the capital increases. Rajwade, a chartered accountant, for the quarter ended june 30, 2019.
Audit of share capital audit assertions procedures. The auditor should examine the following books and documents for the purpose of auditing share capital newly issued. The amount of share capital or equity financing a company has can. Reconciliation of share capital audit scrip code 500215 name of the company agro tech foods limited. Information for each issue of capital stock number of share authorized and issued par or stated. These shareholders are issued shares of the company. The above said report will also be uploaded on companys website. Accounting for share capit al share and share capital. When a company is created, if its only asset is the cash invested by the shareholders, then the balance sheet is balanced through share capital. Series on audit lectures, audit full classes ipcc subscribe and comment for more. Check the nominal value of shares issued during the year to supporting documentation. Nature and transferability of shares 1 a share or other interest of a member in a company is personal property. Share capital audit process, auditing experts mind. Nature and types a company is an artificial person created by law, having separate entity with a perpetual succession and a common seal.
Audit quality and cost of equity capital request pdf researchgate. If there is any increase in the number of shares due. Jun 06, 2012 audit on share capital director remunerations home forums acca forums acca aa audit and assurance forums audit on share capital director remunerations this topic has 1 reply, 2 voices, and was last updated 7 years, 10 months ago by cromwellk. Share capital audit role of auditor in verifying issue. Statutory auditors report on the increase in share capital reserved for members of a. Reconciliation of share capital audit march 31, 2019.
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