Hi, friends...wish u all a very happy new year! my firm got Limited Quarterly review of Bank. So Please help me to understand all about limited review. is there any pre-audit programme for this, and what are the things to be checked, pls explain.


Thanks in Advance..

One of My client being A state Government Ltd Company.

During the current year the Company has given a Bank Guarantee to one of party from bank against Performance based contract.(i.e. Performance Guarantee) but not Financial Guarantee.

Accordingly the Bank charged to My client's Account towards BG issuance charges which was in Lakhs of Rupees.Our client debited to such charges to Other Expenses.However during the course C & AG Audit the Auditor pointed out that the same should be Financial Cost to Co.hence wrongly debited to Other Expenses instead of Financial Cost/Expenses.

Noe query is whether remarks/observations as pointed out by C & AG Auditor is correct or not as my client is not having any non fund based facility from Bank in the form Bank Guarantee. even they can request to Bank for issuance of Bank Guarantee without Margin in form of FDR so far State Government undertaking is concerned.

Respected expert,

Greeting of the Day!

Sirs plz let me know when annual accounts are said to be audited. Can we say it audited before singing and giving audit report on the same. My further question is when we put annual accounts in board meeting preceding AGM for their approval and signing, is these to be said draft annual accounts or audited annnual accounts and what to write in minutes book....Chairman placed before Board draft annual accounts or audited annnual accounts.


Regards

wat is drawing power & how it is calculated

Sir, I am doing the Stock Audit of one company (Manufacturing Concern) on behalf of the bank. Can anyone please clarify me whether Depreciation is considered in Cost while calculating Drawing Power (DP) of the company. As per my point of view it should not be considered because first it is unavoidable cost and second only considered when plant is running at 100% capacity, but i am not sure about it. Please help me out and please provide the reasoning for your answer also and any reference from where i can also check this out.
Thanks in Advance
Waiting for response.

Hii...
My Query is as follows:

Can a Company (Let say ABC ltd.) transfer its funds in cash to its "Sister Concern Company" for some purpose ?
If yes ,
1.is there any limit for such fund transfer ?
2.is there any condition to disclose the purpose of such fund transfer?

What if the sister concern company has also given a loan to ABC ltd.?


PLEASE SOLVE THIS QUERY

THANK YOU!!!

PLEASE GIVE AN EXAMPLE OF THE TERM 'OTHER INFORMATION' IN SA 720

whether it is possible to know the auditor of a co.

Dear Experts,

Sub.: Query regarding Applicability of Cost Audit.

As order given by MCA on 24th January, 2012 that every company to which Cost Accounting Rules, 2011 applicable and the aggregate value of turnover made by the company during the immediate preceding F.Y. exceeds 100 crore of rupees; shall get cost accounting records audited on or after 1st day of April, 2012 under chapter 50 to 63 i.e. for textile industry.

My query is regarding applicability of cost audit when the company has its turnover in the preceding F.Y. 2011-12 less than Rs. 100 crores (it is just because company have weak financial position in that F.Y. and unable to buy raw material on its own account and receiving only job work or processing charges for material produced on account of material supplied by others).

However’ in the financial year’s preceding to the financial year as mentioned above (i.e. 2011-12) company have its turnover more than Rs. 100 crores.

I want you please suggest me that whether Cost audit for financial year 2012-13 shall applicable to the company or not or give necessary suggestion as you think appropriate.

Regards,
Yogesh Bansal

Dear Expert,
can u pls tell me that what is Form - 704. Who has to file this Form is compulsory ?