Non Accounting of some Transactions

This query is : Resolved

Madhu (Querist)
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10 July 2007 sir,

What are the likely Risk Implications for a Company when The Income earned from sale of scrap is not accounted.

Thanking You,
Madhu.

SHIV KUMAR GUPTA

SHIV KUMAR GUPTA (Expert)
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11 July 2007 IT IS CONCEALMENT OF INCOME AS PER INCOME TAX LAW INFLATING THE INPUT COST FINALLY UN DUE HIGHER COST OF PRODUCTION. NON COMPLAINCE OF THE OF COST/FINANACIAL AUDIT NORMS/STANDARDS.

S.K.GUPTA

Shashi Mohan Jha

Shashi Mohan Jha (Expert)
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11 July 2007 It is also a matter of bad corporate givernance, shows or would compel for a weak internal control apart from the leagl consequences of Income Tax, VAT,Audit

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SUBRAMANIA SARMA G

SUBRAMANIA SARMA G (Expert)
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11 July 2007 The provisions of the companies Act relating to maintenance of accounts viz 209 is violated resulting in the accounts prepared will not show the true and fair and corresponding consequences will arise. Further the responsibility statement given by the directors would become false resulting in initiation of penal actions.