If the Company has taken foreign currency loan for assetunderconstruction and the interest monetorium period is 6 years Should we book exchange gain as on 31st March,2010 as income or reduce(decapitalise) the cost of asset under consturction ? This affects indian corporate histroy greatway.Certain companies reduce cost of asset under construction due to exchange gain on such loan taking base of notification of As-11 issued on 31st March,2009.Mr.Dolphy De'sauza also opines the same may be credited to profit and loss account Please explain which is correct accounting effect to reduce cost or to book the same in profit and loss account

Hi
Respected Member

I am PE-2 student and i cleared my 2nd group in PE-2 now i going to convert in IPCC so can i start my articleship.?

One of the directors of public ltd. comp. died in FY 2009-10 and another director was added in comp. Plz tell me what to see as an auditor.What and where to report in audit report(Caro report and 3cd report)

how will u as an auditor treat the following?
1-receipt of substantial amount by way of damages from supplier in respect of inferior quality of raw material received and consumed during the year under audit?
2- finished goods were valued at cost of production including administration overhead.
3-financial expenses and advances paid to contractor during the period of construction.
4-know how relating to manufacturing process paid rs. 50 lakhs and know how relating to drawing of plant and machinery amounting tors. 100 lakhs.

AFTER REMOVAL OF FBT WHAT ASPECTS OF BOOKS OF ACCOUNTS OF A COMPANY WILL HAVE TO BE MENTIONED IN THE 3CD.

Due to rapidly changing in Information & Technology sector,whether any audit like Company Audit,Tax audit,cocurrent bank audit etc,can be conducted/carried out through online inspite of manually like Routine vouching by marking green ticks for each books of accounts ,Ledeger Scrutiny etc. with a view to take lesser time to finalise the reports.

Please comment's the member's views.

My Question is about the applicability of CARO:-

- Is Share Premium the part of Reserve & Surplus??

Our client being a company is in development stage. It has not started commerical operation till 31st Mar,10. During the year 2009-10 company has done one trial run sale more than Rs. 40 L.

they are capitalising all the expenses under the head " Expenditure during development phase". the above trial run sale will be deducted from the exp. during development phase, because it not a commerical sale. Hence it will be not shown in profit & loss account.

My querry is whether this sale will be considered as Sale.Turnover or Gross receipt as per section 44 AB of income tax act for tax audit purpose.

In other words will tax audit be applicable to our company.

The exchange rate fluctuation in relation to foreign currency loan for projects under construction to the extent interest cost adjustment is capitalised and the treatment of excess over interest cost differential is given as per AS-11.

My query is that if the company gets benifit of exchange rate fluctuation in relation to foreign currency loan for projects under consturction should reduce the cost or credited to profit and loss account. Schedule VI does not allow decapitalistion of CWIP or assets under consturction. Please expiain the above.

WHAT IS CAPITAL ADEQUACY NORMS IN CASE OF BANKS?CAN ANYONE TELL ME IN SHORT ABOUT IT????