The facts are as under:

1. I am the auditor of X Pvt. Ltd., who has pledged certain investments (shares in listed company) owned by it, to secure the debt take by its sister concern A Limited.

2. A Limited defaulted, consequently the lender of A Ltd. sold off the investments belonging to X Private Limited to recover its part debit.

The Query is:

1. What treatment should X Pvt. Ltd. give in its books and why? that is should is show as Sale of Investment or continue to show investment.

2. At what price should X Pvt. Ltd. show sale of investment (it also do not have the details as to the price at which the lender of A Limited has sold the investments)

Thank You

For confirmation, does the auditor directly has to send letters to the parties or the company sends it and asks to reply directly to the Auditor??

hi all,
I want to ask whether in the following situation the expenditure can be treated as deferred revenue expense or can directly be charged to revenue or other possibilites:

conpany has entered into an agreement with the AP govt for laying down of road of 57km in the area which is not owned by the company. The expenditure is around 5 crores. the company is charging this expenditure to P&L a/c in the same year of incurrance. what if the company also recieves subsisdy say 50% of the expenditure.

Please clarify soon..

Can someone pls guide me when a C.A. firm is selected for Peer Review audit, what are the requirements the C.A. firm should fulfill & keep ready for verification by the Peer Review auditors ? Is there any draft checklist or questionnaire which could help us in checking if all files & office documents are ready & in order which are going to be checked ? Urgent reply required.

sir,

Petrol expenses for Two wheeler(office use), will we have to pay fringebenefit tax for petrol expenses for two wheeler.

B.suresh

Dear Sir,
What is the difference between Dilutive and Anti-dilutive EPS?

At what rate is TDS deducted for car hire charges for which no agreement is made between the parties???

Is Accrued interest on NSC is exempt u/s 80c after five year period along with the principal amount deposited for the year.

Dear experts,

I would like to know whether initial insurance taken for a new vehicle(fixed Asset) should be capitalised along with the vehicle?..

thanking you

Alvin

Sir,
I have a query in regard to signing of tax audit reports. My query is "Can a partner of auditor firm sign on behalf of another partner? If yes, then will it not affect his limit to sign 45 tax audit reports as in Income tax return his name will be stated as auditor."