An oil company proposes to install a pipeline to transport crude oil from the wells to the refinery. Investment and
operating costs of the pipeline vary for different sizes (diameter) of pipes. The following details have been
collected:
Pipeline diameter 3" 4" 5" 6" 7"
Investment required (Rs lakh) 16 24 36 64 150
Gross annual savings in operating costs 5 8 15 30 50
before depreciation
Estimated life of the installation is 10 years. Tax rate is 50%.
Questions:
1. Calculate the net saving after paying tax and generating the cash flow. Recommend the largest pipeline to be installed if the company desires 15 per cent profit after tax return. Also indicate the proposal that has the shortest payback. Assume the company follows the straight-line method of depreciation, and there is no salvage value of pipeline after ten years.
2. Why is the Net Present Value method of evaluation superior in evaluating capital expenditure decisions?

I have started my practice as proprietor firm recently and i am also interested in simultaneously joining as a partner in a firm.
I would like to know whether i will be disqualified for bank audits at the time of empanelment

Thank you

what is the procedure for numbering of fixed assets for audit by physically verification.

if any specified format for numbering of fixed assets, then provide me that format.

it's urgent.

your frnd
Ram

please give me suggestion in following:-

If a COP holder CA is becoming partner in a partnership firm and now he also want sign some audit report in his personal name (he is not having proprietorship firm).

is he can?

If purchasing cost of a asset is
further, in next month, if we purchase also same asset costing
Please suggest me.

AN ASSESSEE HAS 3 DIFFERENT NAME OF BUSINESS.
SAY AS A(CEMENT BUSINESS), B(PAPER BUSINESS) & C(CONSTRUCTION BUSINESS).
I HAVE TO DO THE TAX AUDIT OF THIS ASSESSEE.
WHETHER 3 SEPERATE BALANCE SHEET, PROFIT & LOSS A/C & TRADING ACCOUNT IS MADE OR SINGLE BALANCE SHEET IS MADE & SEPARATE TRADING & PROFIT & LOSS ACCOUNT IS MADE?
WHAT SHOULD BE DONE?
WHAT ABOUT 3CD?
PLEASE TELL WHAT SHOULD BE DONE?

If an auditor has given adverse opinion or disclaimer of opinion then what would be the repercussion on the auditor.

If there is any guidance note...please also share that...

hello sir for audit of debenture which form can be demanded from client;

is it a good option to go with book of KAMAL GARG for auditing ?

Hello sir,
i m discussing the situation as under that i have already discuss with lots of tax expert but no one is giving me the similar / right view.

The situation is: -
I m having a sale of 30lakh from Export sale of fabric & against this sale i am having a net profit as per books is 150000/-. I am also having some other income like as rental income (Rs.200000/-), int. income (Rs.5000), draw back (Rs.150000/-)etc. Sir, my main point is here that i want to consult to you, is it possible to file the ITR without audit (as per section 44-AB) and i also don`t want to go with section 44-AD of income-tax act`1961. Sir, some of the tax expert and also CA is saying to me that we can`t file our business profit below then 8% as my net profit is coming as per books is near 5.20% (approx).

Now, my main question to you sir is it possible to file the return in ITR 4 without audit in the above situation or not?
and i also don`t want to go with section 44-AD.

Hope for the best suggestion.

Thanks & Regards
sarbjit