Stock adjustment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2011 a company transfering goods from one concerned( i.e. abc a group of companies and a transfer goods form b ) to other with below sale price to l.e. rs 20 per sqft below sale price. through vat 15 or out vat. is it healthy practice and what will be impact this pracet in our audit report.

CA Sumat Singhal

CA Sumat Singhal (Expert)
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29 September 2011 Sir,
inter tranfer of goods or services is a pure matter of company's policies, for auditor's prospective it should keep in mind the following compliance:
1. Not recording of unrealised profits
2. compliance of AS 18 related party transactions
3 CARO
4. Compliance of provisions of section 297, 299 and 301 of companies Act.
Kindly let me know whether this solution has solved your query.
Regards,
CS Sumat Singhal