Dear Professional colleagues,
On going through definition of "turnover" under new companies act, the definition goes to say that value of goods "realised" from supply of services & goods. If that be the case, dont you think there is a big mess? There is no way to find amount realised from supply of goods and service for a company from the financial statements because, in financial statements, company will present "Revenue" as per the schedule vi and revenue for that purpose will be revenue as per AS 9. Imagine that a company bags contract on 31st march and it recieves 20Crores as advance - this will make the company turnover of Rs 20 croers as per Companies act and other provisions will apply accordingly
CAclubindia
