loss on sale

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2010 hi

a manufacturing company is making so many investments in equity shares. It has earned profit as well as loss. Whether the loss amounts should be separately given in the auditors report

please...

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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03 August 2010 I don't think it is required..., The investment schedule only carries the opening & closing statement of investments.

The net of loss / profit will appear in PL account

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2010 the company has earned profit on few investments and as well as incurred loss on other few investments. But the net figure is profit.

whether the loss figures should be separately shown as required under the act, in the auditors report.

please....

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Rasesh

Rasesh (Expert)
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04 August 2010 If the company is doing business of dealing in shares, then it should be treated as a seperate business activity as a whole. However, as per the current RBI guidelines, the company has to be registered as an NBFC to do such business as a part of its main object.

If the dealing in shares in not so frequent then the profit or loss (net) may be shown as a seperate line item in Misc Income or Other Expenses.

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2010 thanks