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Notes to accounts

Geetika Sawhney (Article) (29 Points)

26 August 2011

How should ESIC & PF payments be disclosed in notes to accounts as per schedule VI of Companies Act?

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CA bezawada ranga (Chartered accountant) (315 Points)
Replied 26 August 2011

NO NEED.

They should be disclosed only when they are not remitted in time.

Also, disclosurre under CARO

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Geetika Sawhney (Article) (29 Points)
Replied 26 August 2011

Sir it is not remitted in time.

CA bezawada ranga (Chartered accountant) (315 Points)
Replied 26 August 2011

IF it is not deposited intime, see any provision is mede otherwise, it has to disclose it on note to accounts

No provision have been made in the accounts for PPF, FPF, Gratuity and Retirement Benefits for the employees . Management inform that this above provision is not applicable to the company hence no such provision made during the year.

ALSO, chceck-

Sections 417 Companies Act, 1956 deal with the Employees’ Securities and Provident Funds which seeks to ensure that any money or security given by an employee to the company is not invested in the business of the company. Section 417 provides that-

Any money or security deposit made by an employee of a company under the terms of his contract of services, must be kept or deposited by the company within 15 days from the date of deposit in a Post Office Savings Bank Account or in a special account to be opened with the State Bank of India or a Scheduled Bank or, where the company itself is a Scheduled Bank, in a special account to or be opened by it at or with the State Bank of India or any other Scheduled Bank.

The Company must not utilise any portion of such moneys or securities except for the purposes agreed to, in the contracts of service.

ALSO, under incometax act check whether it qualifies disqulification under 40(a)IV

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