valuatioN OF STOCK
This query is : Resolved
06 February 2008
i M CURRENTLY CARRYING ON VALUATION OF STOCK .
I M FACING TROBLE WITH TRANSCATION WHERE MAJOR PURCHASE OF STOCK ARE MADE FROM SISTER CONCERN.
I DOUBT IT BEING FICTICIOUS ENTRY
HOW DO I TRACE IT UP ?
PLEASE GIVE OPINION WITH REGARDS TO DIFFEREENT FACTS AND CIRCUMSTANCES
I M FACING TROBLE WITH TRANSCATION WHERE MAJOR PURCHASE OF STOCK ARE MADE FROM SISTER CONCERN.
I DOUBT IT BEING FICTICIOUS ENTRY
HOW DO I TRACE IT UP ?
PLEASE GIVE OPINION WITH REGARDS TO DIFFEREENT FACTS AND CIRCUMSTANCES
06 February 2008
The best you can do will be to ascertain the genuineness of transaction and its worth in open market and take decision.
06 February 2008
AS AN AUDITOR WE NEED TO SATISFY OURSELVES BEYOND DOUBT THAT THESE ARE GENUINE PURCHASES.
TO VERIFY GENUINENESS ALWAYS WE RELY ON AN OUTSIDER CONFIRMATION RATHER THAN INTERNAL.
FOR EXAMPLE TRANSPORT OF THE SAID PURCHASES CAN BE VERIFIED BY VISIT TO TRANSPORTER OFFICE AND SEE THEIR RECORDS.
VERIFY VEHICLE MOMENT REGISTER IN SENDERS AND RECEIVER'S RECORDS.
VERIFY STOCK STATEMENTS SUBMITTED TO BANKS .
SUPPLIER'S INDEPENDENT AND WRITTEN CONFIRMATION WILL HELP.
ENTRIES IN STOCK BOOKS WHETHER OVERWRITTEN OR CORRECTIONS FOUND ON THE DAY WHEN STOCKS WERE ACTUALLY RECEIVED.
CREDIT OR CASH PURCHASES NEEDS TO BE VERIFIED.ACCORDINGLY WHAT ENTRIES ARE MADE IN BOOKS CAN BE VERIFIED.
I EVEN KNOW HOW VEHICLE MOMENTS THROUGH SALES TAX CHECKPOSTS ARE ALSO TRACKED TO FIND THE TRUTH OR OTHERISE OF THE PURCHASES.
HAVE A WILL ,THERE IS A WAY.
COMING TO VALUES, CURRENT MARKET PRICES CAN BE A GOOD INDICATOR AS TO VERACITY OF VALUES ATTRIBUTED.
A CHANGE IN VALUATION POLICY IF ANY MADE AROUND THE TIME OF THE PRESENT SITUATION CAN THROW REAL LIGHT ON VALUATION ERRORS.
CONSISTENCY IN STOCK VALUATIONS CAN REMOVE DOUBTS .DIRECTORS'INTEREST IN GROUP COMPANY TRANSACTIONS WHETHER RECORDED IN STATUTORY REGISTERS NEED ALSO TO BE VERIFIED.APPROPRIATE STATUTORY APPROVALS FOR SUCH GROUP TRANSACTIONS MAY ALSO BE REQUIRED TO BE IN PLACE AS ALSO DOCUMENTATION FOR SUCH TRANSACTIONS ALSO GOT TO BE MADE.
to get to the truth it is a tough task but not impossible.
R.V.RAO
TO VERIFY GENUINENESS ALWAYS WE RELY ON AN OUTSIDER CONFIRMATION RATHER THAN INTERNAL.
FOR EXAMPLE TRANSPORT OF THE SAID PURCHASES CAN BE VERIFIED BY VISIT TO TRANSPORTER OFFICE AND SEE THEIR RECORDS.
VERIFY VEHICLE MOMENT REGISTER IN SENDERS AND RECEIVER'S RECORDS.
VERIFY STOCK STATEMENTS SUBMITTED TO BANKS .
SUPPLIER'S INDEPENDENT AND WRITTEN CONFIRMATION WILL HELP.
ENTRIES IN STOCK BOOKS WHETHER OVERWRITTEN OR CORRECTIONS FOUND ON THE DAY WHEN STOCKS WERE ACTUALLY RECEIVED.
CREDIT OR CASH PURCHASES NEEDS TO BE VERIFIED.ACCORDINGLY WHAT ENTRIES ARE MADE IN BOOKS CAN BE VERIFIED.
I EVEN KNOW HOW VEHICLE MOMENTS THROUGH SALES TAX CHECKPOSTS ARE ALSO TRACKED TO FIND THE TRUTH OR OTHERISE OF THE PURCHASES.
HAVE A WILL ,THERE IS A WAY.
COMING TO VALUES, CURRENT MARKET PRICES CAN BE A GOOD INDICATOR AS TO VERACITY OF VALUES ATTRIBUTED.
A CHANGE IN VALUATION POLICY IF ANY MADE AROUND THE TIME OF THE PRESENT SITUATION CAN THROW REAL LIGHT ON VALUATION ERRORS.
CONSISTENCY IN STOCK VALUATIONS CAN REMOVE DOUBTS .DIRECTORS'INTEREST IN GROUP COMPANY TRANSACTIONS WHETHER RECORDED IN STATUTORY REGISTERS NEED ALSO TO BE VERIFIED.APPROPRIATE STATUTORY APPROVALS FOR SUCH GROUP TRANSACTIONS MAY ALSO BE REQUIRED TO BE IN PLACE AS ALSO DOCUMENTATION FOR SUCH TRANSACTIONS ALSO GOT TO BE MADE.
to get to the truth it is a tough task but not impossible.
R.V.RAO
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
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Reporting Income under Section 44ADA
- ITR selection for salaries and capital gain less than L
- ITR 1: Details for showing Exempt Income
- ITR 2 Short Term gain & Long term gain
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR returnFY25-26
- Share accounting-->fifo - capital gain - period as per fifo?
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
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
