Urrgent

 

AS A STATUTORY AUDITOR HOW U DEAL WITH THIS FOLLOWING
 

Apex Ltd., a well reputed manufacturing public limited company has made a
contribution of Rs. 2.5 lacs during the financial year ended 31.3.12 to a political party
for running, a school, situated in the village, where most of the workers of the company
reside. It is admitted that the benefit of the school is mostly for the children of the
workers of the company. The company has not made any profits in the last four years

plz suggest the answer of this above..
Replies (3)
it should be considered as a political contribution

please give the full answer...

Answer for this same question is Given in PM of Audit in Company Auidt Chapter. Donations will be reported by the Auditor as the Co has not made Profits & the Donations cannot be made. Also it will be termed as Donations for Political Purposes

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