I understand that we need to get our account books audited by a CA when the turnover in the derivatives exceeds rs 2 crore.
How is turnover calculated. For this example lets use a Bharat Electronics futures contract This has 4950 shares..
I open a short position with one September month contract , ie I sell one contract of BEL which expires onlast thursday of September 2018, @ Rs 80.
Three days later i square off my position by buying one Septrmber month contract @ Rs 78.
As per my understanding the turnover will be
4950*80 + 4950*78= 7,82,100