I'm working as credit analyst in SBI.
During analyzing audit report of various companies i found contingent liabilities in notes to accounts. Their contingent liabilities includes guarantee given by bank against the company to third party.
E.G
There is a XYZ company. SBI has given guarantee to ABC ltd for non payment by XYZ for the raw material supplied by ABC.
Now according to me guarantee is contingent liability for SBI and not for XYZ.
But audit report of XYZ shows it as contingent liability of XYZ.
So advice me. Whether i'm correct or audit report is correct?

CMA.Ramesh Krishnan has given answer to me, but i'm not getting any clarity. Mr.Ramesh is saying that it is real contingent liability but according to me it is a confirm liability which is already booked in accounts. So there is no need for contingent liability disclosure.

So when Company has already booked liability, there is no need of contingent liability. So my conclusion is like this
1) For company it is confirmed liability(which will be already booked in accounts and hence not required to be disclosed as contingent liability)
2) It is contingent liability for bank

Pls correct me where i'm wrong

Comany has given an advertisement inviting tender for the financial year 2010-11 in the month of march 2010.
Will it be the Pre-paid expenses .
or it will be the current year expenses.

EXCEPTIONALLY EQUITY SHAREHOLDERS DONT HV VOTING RIGHTS SO IF A CA WITH COP HOLDS A EQUITY SHARE OF A COMPANY HVING NO VOTING RIGHTS CAN BE THE AUDITOR OF THAT COMPANY? REASON?

IF A CA WITH COP HOLDING ANY SECURITY OF A COMPANY (LIKE EQUITY SHARES) CANT B AUDITOR OF THAT COMPANY AS IN EQUITY THEY HV VOTING RIGHTS $ HV PERSONAL INTEREST IN THAT.
BUT IN CASE OF PREFERENCE SHAREHOLDING CAN TAT CA B AUDITOR OF THAT COMPANY? REASON?

THERE R 4 PARTNRES ALL R CA $ HVING COP BUT 3 R FRM INSTITUTE OF INDIA $ 1 IS FRM INSTITUTE OF AUSTRALIA AND HVING COP OF AUSTRALIA. CAN A COMPANY APPOINT THEIR FIRM AS AUDITOR? ITS URGENT PLZ ANSWER

I am doing audit of an educational institution located in noida such educational institution has its own radio station called "salaam namaste"
My query is that the institute is earning income on advertisement from various parties.Whether, such income can be considered as "incidental to the main objects of institute"
i.e whether they are exempt from tax or taxable, if taxable, then such income taxable at maximum marginal rate?
Hoping for suggestions

can payment be made below rs.20,000 on different days to creditors (for materials)
or it is to be made by way of account payee cheque ?????

Should revenue stamp be affixed on money receipt if payment more than Rs. 5,000 is made through A/c payee cheque?

Dear seniors, friends

Please suggest me the accounting treatment of interest paid to supplier on delays payment of money.

Should it be debited to Raw material Purchase (or) it should be shown seperately as a financial charges

Actually one my Client has Imported goods from Japan. And it has paid interest for delay payment. Further it has debited the interest amount in Purchase itself.

My query is that i think Interest charges should not be debited to Purchase.

Me looking forward for Expert Advice

Regards
Jitesh Tibrewal
Singhi & Company
Final Year Article

what is diff between sales,turnover,and gross receipt for tax audit purpose.