I have query regarding Application money refundable and interest payable on deposit which remains unpaid for more than 7 years. In one of the company in which I am auditing having two account. 1. Unclaimed Application Money 2. Interest payable on Deposit pending information.
In first account i.e. Application money, the contension of the company is that they did not get information from Central Bank regarding payment they made to the investor. So they did not change the balance after last confirmation. Around 8 lacs Rupees lying in that account. Further
For 2nd account, they informed me that only 23000 remains payable and we will pay if liability arises. But it is payable from 1993-94.
I am not comfortable with the companies explanation regarding this. According to me, both amount has to be transfeered to the Investor Protection Fund.
CAclubindia
