Dear All,
Can somebody clarify:
1. whether calculation of profit U/s 349 of Companies act and whether the actual remuneration is within the limit need to be verified by the Auditor?
2. Secondly whether the information about calculation of profit as per 349 and Actual remuneration details need to be part of notes to accounts/annual report?
Best Regards
Chandra
Yes, it has to be verified by Auditor. Further it will also be part of your Financial Statements as a Notes to Accounts.
Yes it has to be verified by the Auditor. However, if the remuneration is exceeding the limits, it will not be a qualification in the Auditors Report as it is only recomendatory.
Further, this would form part of your financials and reflect in y our Annual Report.
Regards,
CAclubindia
