26 May 2010
1. Managerial Remuneration - Obtain the Board / Shareholders resolution in which the remuneration was fixed. - Compute the profits as per Section 349 & 350 of the companies act, 1956 and compute the amount eligible to be paid. - Review the General ledger account for the expenditure booked. - Compare the same with the eligible amount. - Ensure disclosures in the financials. - If approval of shareholders is pending, mention the same in the Annual Report circulated to the shareholders. 2. Derivative Loss: - Obtain the original contracts for derivatives. - Compute the gain / loss on the closing date and book the loss and show it separately in financials and disclose the details of the contract in notes on accounts. - Obtain confirmations for outstanding derivative contracts on closing date from all the bankers and ensure completeness.