04 March 2009
Is there any specific norm in Co Act w.r.t Provision for doubtful debts We rely only on management certification on this. If the mgt certifies debtors > 6 mths as good, is it compulsory for making for provn or can we do away with this.
06 March 2009
No. there are no provns under companies act for making compulsorily the provision for doubtful debts for debtors more then 6 months. it only requires a seperate disclosure. Provision for Doubtful debts wholly depends on management discretion.
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