What will be the auditors view :
The debenture trust deed executed by A ltd. Stipulated the creation of a sinking fund for redemption of debentures. In terms of the trust deed , a specific amount was to be transferred to the sinking fund from out of the profits of each yr . inspite of substantial profits in the year 1997 , no amount is found transferred to the sinking fund.
In the course of audit of a manufacturing company , it comes to light that it has outstanding forward contracts for purchase of raw materials at a price , which is higher than the current market price. However , there is no mention of this in the financial statements of the year.
I got the answers incorrect for my postal . Plz. those who got the correct answers let me know .