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🌟 Please check me
🌟 my client is a manufacturer of rubber, he is in now Dubai , but he is an Indian he stayed in India previous year 60 days only 2 months.....can I take he is a resident of our country to file income tax Justin example please explain me
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| Without the specific financial statement visible, here are the general principles for checking and verifying a financial statement: 1. Balance Sheet Checks: - Verify that Assets = Liabilities + Equity (fundamental accounting equation must hold) - Cross-check opening balances with previous year's audited closing balances - Verify all schedules tie back to balance sheet totals - Check that all bank balances are supported by bank statements and reconciliation - Verify loan balances against bank statements/sanction letters - Fixed assets: Check additions match invoices, disposals are properly authorised, depreciation calculation is correct 2. P&L Checks: - Verify that gross profit ratio is consistent with previous years or industry norms (significant variation needs explanation) - Check that all revenue is supported by invoices, bank receipts, or GST returns - Verify major expenses have supporting vouchers - Check for any unusual one-time items that may distort ratios 3. Ratio Analysis: - Current Ratio (Current Assets / Current Liabilities): Ideal > 1.5 - Debt-Equity Ratio: Check if within acceptable limits for the industry - Net Profit Margin: Compare with previous years 4. GST Reconciliation: Revenue in financials should reconcile with GSTR-1 turnover (after adjustments for exempt supply, advances etc.) 5. Please share the specific financial statement or the numbers you want checked — I can then give a precise verification and highlight any issues. |
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