MD's Remuneration
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 May 2010
Can anybody kindly explain the audit procedure to verify the following:
1.Managerial remuneration
2.Derivative Loss
1.Managerial remuneration
2.Derivative Loss
26 May 2010
1. Managerial Remuneration
- Obtain the Board / Shareholders resolution in which the remuneration was fixed.
- Compute the profits as per Section 349 & 350 of the companies act, 1956 and compute the amount eligible to be paid.
- Review the General ledger account for the expenditure booked.
- Compare the same with the eligible amount.
- Ensure disclosures in the financials.
- If approval of shareholders is pending, mention the same in the Annual Report circulated to the shareholders.
2. Derivative Loss:
- Obtain the original contracts for derivatives.
- Compute the gain / loss on the closing date and book the loss and show it separately in financials and disclose the details of the contract in notes on accounts.
- Obtain confirmations for outstanding derivative contracts on closing date from all the bankers and ensure completeness.
- Obtain the Board / Shareholders resolution in which the remuneration was fixed.
- Compute the profits as per Section 349 & 350 of the companies act, 1956 and compute the amount eligible to be paid.
- Review the General ledger account for the expenditure booked.
- Compare the same with the eligible amount.
- Ensure disclosures in the financials.
- If approval of shareholders is pending, mention the same in the Annual Report circulated to the shareholders.
2. Derivative Loss:
- Obtain the original contracts for derivatives.
- Compute the gain / loss on the closing date and book the loss and show it separately in financials and disclose the details of the contract in notes on accounts.
- Obtain confirmations for outstanding derivative contracts on closing date from all the bankers and ensure completeness.
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Type of Capital Gain
- F&O reporting in ITR
- Grand in aid
- Taxability of credit in canara bank ET & T section (NRO)
- Loss of interest in PF transfer from EPFO to Trust
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
