Government contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2016 What is the impact of not fulfilling any term or conditions of agreement which is entered between Private limited Company and Government suppose company has entered into an agreement with government for supply of medicines to govt. department.

Terms and conditions says that the price charged for the supplied item under the contract shall in no event exceeds the lowest price at which the contractor sells this medicine to other person.

Now at the time of audit auditors finds that company is selling medicines to government at very high price as compared it is selling to other.
and government is not aware about this, Now what will auditor do to safe guard himself.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 September 2016 Report this to the concerned Govt.

Message likes : 1 times

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 September 2016 Report this to the concerned Govt.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2016 Dear Sir,
please suggest if it has any impact on financial statements or audit report also under which section or act we can report

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 September 2016 Report u/s 143(12) of Companies Act 2013.
Fraud is defined in section 17 of Indian contract Act 1872, a promise made without the intention of performing it.

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2016 Dear Sir,

Is their any reporting requirment under ICFR.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 September 2016 It will not fall under it.

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