Independence

The Code of Ethics for Professional Accountants, prepared by the International Federation of Accountants (IFAC) identifies types of threats to independence These are the followings:- .

Self-interest threats

Self-review threats

Advocacy threats

Familiarity threats

Intimidation threats

The firm advises the following principles to the managing partner, engagement partner, quality control partner and engagement team members to safeguard against the aforesaid threats:-

Always be and appears to be independent of the entities that they are performing professional services;

Inculcate integrity, objectivity and professional scepticism while performing professional services;

Diligently consider whether it involves threats to his independence;

Compliance of provisions of Companies Act, 2013

Follow Provisions contained under the Chartered Accountants Act, 1949, Chartered Accountants Regulations, 1988 and under Code of Ethics

The firm also takes declaration for Independence as suggested in SQC-1 from the team members that he or immediate family members or other entities in which they have direct or indirect interest:-

Do not have transactions related to Investments, borrowings and any other financial transactions with the entity or to an officer, director or major shareholder of that entity and group entry to whom any assurance services are rendered by the M/s Patel Jain & Associates;

Do not hold a position as an executor, administrator, or trustee of a trust/estate, and do not have authority to make investment decisions for the trust/estate;

Do not associate with an entity or an officer, director or major shareholder of that entity and group entity to whom any assurance services are rendered by the M/s Patel Jain & Associates;

Do not obtain a new, or make significant changes to an existing, insurance product of any kind from an entity or from an officer, director or major shareholder of that entity and group entity to whom any assurance services are rendered by the M/s Patel Jain & Associates;

Do not have a business relationship with or joint investment (e.g., partnership interests) in an entity or with an officer, director or major shareholder of that entity and group entity to whom any assurance services are rendered by the M/s Patel Jain & Associates

Do not negotiate employments offer with the entity or an officer, director or major shareholder of that entity and group entity to whom any assurance services are rendered by the M/s. Patel Jain & Associates

In case of any ethical threat in any specific case, safeguards, as prescribed in terms of the professional code of ethics, are adopted.

Integrity

Straight forward and honest in our professional and business relationships

Truthful about the services provided, the knowledge, and the experience

Objective

Do not allow bias, conflict of interest, or undue influence of others to override our professional judgments

Address differences of opinion and handle them constructively and professionally

Engagement Performance

The Firm ensures that the engagement is performed, supervised, documented, reported and communicated in accordance with the requirement of professional standards, applicable regulators. The same is ensured through the following:

Ensuring those relevant auditing standards such as those dealing with risk assessment, fraud, etc. that deal with the planning phase of engagement are duly complied with

Providing adequate supervision during the course of an engagement, including briefing the engagement team on the objectives of their work. The training, ability, and experience of the personnel are considered when assigning supervisors to the engagement. Requiring that a written work program be used and monitored for all engagements.

Requiring that there is consistency in the quality of engagement performance. Consistency may be accomplished through written or electronic manuals, software tools, checklists, templates, models or other forms of standardized documentation, and industry or subject matter-specific guidance material.

Requiring that a suitable audit summary memorandum is documented and kept among the engagement working papers to provide a history of the planned risks (including fraud risks), by what audit procedures those risks were mitigated, conclusions on controls and substantive testing, and whether the extent and quality of audit evidence examined to support the audit opinion.

Addressing significant issues and newly identified risks arising during the engagement, considering their significance, and appropriately modifying the planned approach.

Requiring engagement documentation in accordance with professional standards, applicable regulatory requirements, and the Firm's policies.

Personnel Management

The Firm determines capabilities and competencies required for an engagement at me of starting of the assignment

The allocation of team members are based on risk and competence require for the assignments so that team members assume the responsibility to act on an assignment carefully, thoroughly and on a timely basis

The allocation criteria also include the following:

The role of the Firm's system of QC and the Code of Ethics issued by the ICAI in ensuring the integrity of the accounting, auditing, and attest functions to users of reports;

The professional standards applicable to the engagement and the industry in which the client operates. Such standards include accounting, auditing, and attestation standards, and relevant accounting and auditing framework applicable to the engagement as well as rules and regulations issued by applicable regulators; and

The skills that contribute to sound professional judgment, including the ability to exercise professional skepticism.

How the auditee uses information technology and the manner in which information systems are used to record and maintain financial information.

Professional competence and due care

The firm has established certain criteria for recruitment of Staff and Article Assistant in a manner so that it can achieve quality control policies designed to meet the highest standard of the profession under the supervision of Managing partner

The firm also conducts education seminars and encourages personnel to attend for knowledge enhancement and quality improvement of the personnel.

Aforesaid steps again and maintain staff's professional knowledge and skills at the level required to ensure that the clients receive competent professional services and they act diligently while providing professional services.

The allocation of team members are based on risk and competence require for the assignments so that team members assume the responsibility to act on an assignment carefully, thoroughly and on a timely basis

The firm evaluates written engagement leer duly signed by authorized signatories of the client for beer understanding of the services to be performed especially regarding the nature, scope and limitations of the services to be performed. Based on evaluation, the firm assigns responsibility to engagement partner who has the appropriate capabilities, competence, authority, and me to perform the role. The firm also monitors the workload and availability of engagement partners to enable these individuals to have sufficient me to adequately discharge their responsibilities.

The firm executes the same through the following

Designating an individual in the Firm to be responsible for the following activities:

Managing the human resources function.

Evaluating the Firm’s personnel needs by considering factors such as existing clientele, anticipated growth, personnel turnover, and individual advancement

Developing criteria for determining which individuals will be involved in the interviewing and hiring process

Establishing an understanding among the partners about the qualifications, attributes, achievements, and experiences desired in entry-level and experienced personnel.

Setting guidelines for the additional procedures to be performed when hiring experienced personnel, such as performing background checks and inquiring about any outstanding regulatory

The firm determines the capabilities and competencies possessed by personnel by establishing criteria or evaluating personal characteristics such as integrity, competence and motivation and also evaluating the personnel at least annually to determine their capabilities and competences. Selection of the personnel also depends upon the past experiences and the performance evaluation, Nature of past assignments allocated to the personnel