To

ABC & Co.

New Delhi –

Sub: Management Representation for Tax Audit for Assessment Year 2013-14

Dear Sir,

Please find enclosed a copy of Form 3 CD alongwith all relevant details for the purpose of
conducting the Tax Audit of XYZ Company, for the year ended 31st March, 2013. In this
connection, we further confirm that

1. The address that we have given in the form 3CD is same as we have informed to the
income tax department, there is no change in the same. The details are attached.
2. The company has followed the mercantile system of accounting.
3. We certify, there has been no change in the nature of business during the year
under report.
4. We certify that the valuation of closing stock is on the same basis as stated in clause
12 (a) of form 3 CD.
5. We confirm that the specific books of accounts as prescribed u/s 44AA have been
maintained.
6. We confirm that the books of accounts have been maintained as mentioned in
Clause 9.
7. We confirm that the profit and loss account does not include any profits and gains
assessable on presumptive basis under relevant sections 44AD, 44AE, 44AF, 44B,
44BB, 44BBA, 44BBB or any other relevant section.
8. There is no change in the method of accounting employed in the immediately
preceding previous year, for the preparation of final accounts for the financial year
2012-2013.
9. We certify there is no capital receipt which is credited to Profit & Loss Account.
10. We certify that there are no capital assets which are converted into stock in trade.
11. No personal expenses, except those under contractual obligations or by generally
accepted business practice, have been charged to the profit & loss account.
12. We certify that there is no sum paid to an employee as bonus or commission for
service rendered, where such sum was otherwise payable to him as profit or
dividend.
13. We certify that there is no expenditure on advertisement in any souvenir, broucher,
tact, pamphlet etc. published by a political party. Further we confirm that we have
not made any expenditure at clubs.
14. We confirm that no amount borrowed on a hundi from or any amount due there on
(including interest on amount borrowed) is repaid to any person during the year.
15. We certify that company has not paid any amount to the person specified U/s 40A(2)
(b) of the Income Tax Act,1961.
16. We certify that all bank payments by cheque/draft have been made through crossed
cheques or draft only.
17. We confirm that the company has not taken/repaid any loan other than account
payee cheque / draft in respect to parties covered u/s 269 SS/T.
18. No sums have been paid by the company as an employer which is not allowable U/s
40A (7) of the Income Tax Act, 1961.
19. We confirm that, there are no Performa credits/drawback/refunds of duties of
customs or excise of both/refund of sales tax which have become due and admitted
by the authorities but have not been accounted for in the profit & loss account of the
financial year 2012-2013.
20. We certify that there are no escalation claims accepted during the previous year.
21. No liability of contingent nature has been debited to Profit & Loss account except
those, which has been disclosed in the financial statements.
22. i) Dates of capitalization and put to use taken for the purpose of depreciation are
correct.
ii) The Cenvat claimed and exchange fluctuations are correctly stated in the form
3CD.
23. We certify, the statement prepared respect to clause 12(b) and the statement of
Excise prepared under clause 22(a) of Form 3CD has been derived from the source
documents and shown accordingly.
24. The employee’s and employer’s share contributed towards provident fund, pension
fund and ESI, date of deposit and amount of deposit is correctly stated in the
relevant clauses of Form 3CD.
25. Expenditure incurred at clubs as entrance fee, subscription, cost for club services and
facilities used are correctly stated in Form 3CD.
26. No amount has been paid by way of penalty or fine for violation if any or for the time
being in force.
27. There are no deductions under Chapter VI A .
28. We certify that the company has no requirement of cost audit.
29. The basis of calculation of ratios as specified in clause 32 of Form 3CD is correct.
30. We certify that no Cash Payment has been made exceeding Rs.20,000/- (Rs.35000/-
in case of plying and hiring or leasing goods carriage w.e.f. 1.10.2009).
31. We certify that there is no Speculative business and any transaction which is
speculative in nature.

32. We certify that the items falling within the scope of section 28 have been correctly
stated.
33. We certify that particulars of depreciation allowable as per the Income-tax Act, 1961
in respect of each asset or block of assets, as the case may be are correct.

34. We also certify information furnished in Annexures 1 to ….. of Form 3CD are true
and correct.

For and on behalf of

AUTHORISED SIGNATORY