answer fast plss answer fast plss
Answers
Answer:
(a)'A' Limited has paid minimum alternate tax under section 115JB of the Income-tax Act, 1961 for theyear ended 31st March, 2009. The companywants to disclose the same as an 'Asset' since thecompany is eligible to claim credit for the same.(b)XYZ Limited received a grant of`25 lakhs under the Governments' Subsidy Scheme, for acquiringan imported machinery for setting up new plant. The entire grant received is credited to Profit andLoss Account.(c)Moon Limited replaced its statutory auditor for the financial year 2008-09. During the course ofaudit, the new auditor found a credit item of`5 lakhs. On enquiry, the company explained himthat itis a very old credit balance. The creditor had neither approached for the payment nor he is traceable.Under the circumstances, no confirmation of the credit balance is available.(d)The statutory audit of Fortune Limited for the year ended on 31-3-2009 was completed and auditoralso submitted his report with the audited Financial Statements to the management of the company.Thereafter, the management of the company approached the auditor to revise certain items in theFinancial Statements.2.Give your comments with reference to the Chartered Accountants Act, and Schedules thereto:(a)Mrs. Fair is a Director of XYZ Private Limited, having 15% shareholding in the company. During2003, the Company appointed C.A. Mr. Lovely, Mrs. Fair's spouse, asits statutory auditor. On Mr.Lovely's advice, the company issued fresh equity shares in 2003-04, in the ratio of one share forevery two shares held by the shareholders of the company. Mr. Lovely used to deliver audit report forsubsequent years withoutany comments or disclosures, thereupon.(b)Mr. A, a Chartered Accountant was the auditor of 'A Limited'. During the Financial year 2007-08, theinvestments appeared in the Balance Sheet of the company of`10 lakhs and was the same amount asin the last year. Later on, it was found that the company's investments were only`25,000, but thevalue of investments was inflated for the purpose of obtaining higher amount of Bank loan.(c)An advertisement was published in a Newspaper containing the Photograph ofMr. X,—A member ofthe institute wherein he was congratulated on the occasion of the opening ceremony of his office.(d)Mr. X, a Chartered Accountant and the proprietor of X & Co., wrote several letters to the AssistantRegistrar of Co-operative Societies stating that though his firm was on the panel of auditors, no auditwork was allotted to the firm and further requested him to look into the matter....