CONDUCTING
TAX AUDIT
CA. Sanjeev Lalan
Singrodia Goyal & Co.
Chartered Accountants
1
Applicability of Tax Audit – S. 44AB
 Every person carrying on business whose Gross Turnover, Receipts
Or Total Sales exceed Rs. 1 Crore
 Every person carrying on profession whose Gross Receipts exceed
Rs. 25 Lakhs
 Where profits & gains of person from business are taxable on
estimated basis u/ss. 44AD, 44AE, 44BB or 44BBB & such person
claims his income to be lower than profits & gains so estimated
2
Mandatory e-filing of Tax Audit report
• E-filing of tax audit report u/s. 44AB and other
reports and certificates made mandatory from AY
2013-14 onwards
• Notification No. 34/2013 [F.No. 142/5/2013TPL]/SO 1111(E), dated 01/05/2013
3
Tax Audit
Objective:
 To ensure maintenance of proper records and to assist Income Tax
Department to assess correct income of assessee
Main report:
 Form 3CA: Applies where accounts of business or profession of
assessee have been audited under any other law
 Form 3CB: Applies in cases where accounts are not required to be
audited by any other law
 Annexure I – Financial Reporting
Annexure in Form 3CD to main report
4
Tax Audit Report
 Form 3CA – Report that Statutory Audit was conducted in
pursuance of Statute applicable to assessee
 Form 3CB – Report that Tax Audit is conducted in accordance with
provisions of section 44AB. Expression of opinion whether
financial statements give true & fair view of State of affairs of assessee as represented by Balance Sheet
 Profit / Loss or Income / Expenditure as represented by Profit /
Loss Account
 Expression of opinion as to whether the particulars contained in
Annexure 3CD & Annexure I are True & Correct
5
Tax Audit Procedures
 Primary responsibility of assessee to prepare relevant information
 Tax Auditor (TA) to verify compliance
 Nature of Tax Audit
 Limits on conduct of Tax Audit.
 TA to• Use professional skill & expertise
• Apply Generally Accepted Auditing Procedures as applicable for
other audits
• Apply techniques of reasonable test audit checks & compliance
tests depending upon internal controls of assessee
• Follow principles of ‘Materiality’, ‘Prudence’ & ‘Substance Over
Form’
6
Tax Audit Procedures
 Refer to following publications issued by ICAI• Standards on Audit (SAs)
• Guidance Notes (GNs) on Audit Reports & Certificates for
Special Purposes
• GN on Tax Audit
• SA 700 - Auditor’s report on financial statements
• SA 705 – Modifications to the Opinion
• SA 706 – Emphasis of matters
7
Standards on Audit (SAs) issued by ICAI
S.No.
Standards on Auditing
Number
Type
1
Overall Objectives of the Independent Auditor and
the conduct of an audit in accordance with
Standards on Auditing.
200
SA
Revised
Apr 1, 2010
2
Agreeing the terms of Audit Engagements
210
SA
Revised
Apr 1, 2010
3
Quality Control for Audit of Financial Statements
220
SA
Revised
Apr 1, 2010
4
Audit Documentation
230
SA
Revised
Apr 1, 2009
240
SA
Revised
Apr 1, 2009
250
SA
Revised
Apr 1, 2009
260
SA
Revised
Apr 1, 2009
265
SA
Apr 1, 2010
Apr 1, 1996
5
6
7
8
The Auditor’s Responsibility relating to Fraud in an
Audit of Financial Statement
Consideration of Laws and Regulations in an Audit
of Financial Statements
Communication with Those Charged with
Governance
Communicating Deficiencies in Internal Control to
Those Charged with Governance and Management
9
Responsibility of Joint Auditors
299
SA
10
Planning an Audit of Financial Statements
300
SA
Revised or Not Effective Date
Revised
Apr 1, 2008
8
Standards on Audit (SAs) issued by ICAI
S.No.
Standards on Auditing
Number
Type
Revised or Not Effective Date
11
Identifying and Assessing the Risk of Material
Misstatement Through Understanding the Entity
and its Environment
315
SA
Apr 1, 2008
12
Materiality in planning and performing an Audit
320
SA
13
The Auditor’s Responses to Assessed Risks
Audit Considerations Relating to an entity Using
a Service Organization.
330
SA
402
SA
14
Revised
Apr 1, 2010
Apr 1, 2008
Revised
Apr 1, 2010
15
Evaluation of Misstatements Identified during
the Audits
450
SA
16
Audit Evidence
500
SA
Revised
Apr 1, 2009
17
Audit Evidence – Specific Considerations for
Selected items
501
SA
Revised
Apr 1, 2010
18
External Confirmations
505
SA
Revised
Apr 1, 2010
19
Initial Audit Engagements – Opening Balances
510
SA
Revised
Apr 1, 2010
20
Analytical Procedures
520
SA
Revised
Apr 1, 2010
21
Audit Sampling
530
SA
Revised
Apr 1, 2009
9
Apr 1, 2010
Standards on Audit (SAs) issued by ICAI
S.No.
22
23
24
25
26
27
28
29
30
31
Standards on Auditing
Auditing of Accounting Estimates, Including Fair
Value Accounting Estimates and Related
Disclosures
Related Parties
Subsequent Events
Going Concern
Written Representation
Using the Work of Another Auditor
Using the Work of an Internal Auditor
Using the Work of an Auditor’s Expert
Forming an Opinion and Reporting on Financial
Statements
Modifications to the Opinion in the Independent
Auditor’s Report
Number Type Revised or Not Effective Date
540
SA
Revised
Apr 1, 2009
550
560
570
580
600
610
620
SA
SA
SA
SA
SA
SA
SA
Revised
Revised
Revised
Revised
Revised
Revised
Apr 1, 2010
Apr 1, 2009
Apr 1, 2009
Apr 1, 2009
Apr 1, 2002
Apr 1, 2010
Apr 1, 2010
700
SA
Revised
Apr 1, 2012
705
SA
Apr 1, 2012
Apr 1, 2012
32
Emphasis of Matter Paragraphs and other Matter
Paragraphs in the Independent Auditor’s Report
706
SA
33
Comparative Information – Corresponding Figures
and Comparative Financial Statements
710
SA
Revised
Apr 1, 2011
10
Standards on Audit (SAs) issued by ICAI
S.No.
Standards on Auditing
34
The Auditor’s Responsibility in Relation to
Other Information in Documents Containing
Audited Financial Statements
720
SA
Apr 1, 2010
35
Audits of Financial Statements Prepared in
accordance with Special Purpose Frameworks
800
SA
Apr 1, 2011
805
SA
Apr 1, 2011
810
SA
Apr 1, 2011
1
SQC
Apr 1, 2009
36
37
38
Special Considerations – Audits of Single
Financial Statements and Specific Elements,
Accounts or Items of a Financial Statements
Engagements to Report on Summary Financial
Statements
Standards on Quality Control
Number Type Revised or Not Effective Date
11
Brief Introduction to SA’s & other relevant standards
 SA 200: OVERALL OBJECTIVES OF THE INDEPENDENT AUDITOR AND THE
CONDUCT OF AN AUDIT IN ACCORDANCE WITH STANDARDS ON
AUDITING
 It establishes the independent auditor’s overall responsibilities when
conducting an audit of financial statements in accordance with SAs.
 It also explains scope, inherent limitations of audit, objectives and
responsibilities of an auditor
 SA 210: AGREEING THE TERMS OF AUDIT ENGAGEMENTS
 It deals with the auditor’s responsibilities in agreeing the terms of the
audit engagement with management and, where appropriate, those
charged with governance
 Consideration to be given by an auditor while engagement acceptancepreconditions for an audit are present
 SA 220: QUALITY CONTROL FOR AN AUDIT OF FINANCIAL STATEMENTS
 It deals with the specific responsibilities of the engagement partner
regarding quality control procedures viz. ethical
compliance,
independence, quality control review, for an audit of financial
statements
12
Brief Introduction to SA’s & other relevant standards
 SA 230: AUDIT DOCUMENTATION
 This Standard on Auditing (SA) deals with the auditor’s responsibility
for preparation and maintenance of an audit documentation
 Keep detailed note of evidences relied upon
 Maintain all working papers including notes on following• Work done while conducting audit & by whom
• Explanation & information given during course of audit & by whom
• Decision on various points taken & judicial pronouncements relied
upon
• MRs / Certificates issued by client
 Design audit programme as would reveal extent of checking & ensure
adequate documentation
13
Brief Introduction to SA’s & other relevant standards
 SA 250: CONSIDERATION OF LAWS AND REGULATIONS IN AN AUDIT OF
FINANCIAL STATEMENTS
 It deals with the auditor’s responsibility to identify instances of non–
compliance with laws and regulations having direct/indirect effect on the
material amounts and disclosures in financials statements
 However, auditor not primarily responsible for non-compliance as well as
non-detection as the same rests on the Management and TCWG
 SA 300: PLANNING AN AUDIT OF FINANCIAL STATEMENTS
 Initial Audit Engagements-Acceptance (SA 220) and communication with
previous auditor
 Recurring Audit Engagement- Planning Activities
 SA 500: AUDIT EVIDENCE
 It explains what constitutes audit evidence in an audit of financial
statements, and
 It deals with the auditor’s responsibility to design and perform audit
procedures viz. inspection, observation, inquiry, recalculation, analytical
procedures, reperformance, to obtain sufficient appropriate audit evidence
to draw reasonable conclusions so as to enable him to express an opinion
14
Brief Introduction to SA’s & other relevant standards
 SA 500: AUDIT EVIDENCE
 It explains what constitutes audit evidence in an audit of financial
statements, and
 It deals with the auditor’s responsibility to design and perform audit
procedures viz. inspection, observation, inquiry, recalculation, analytical
procedures, re-performance, to obtain sufficient appropriate audit
evidence to draw reasonable conclusions so as to enable him to express an
opinion
 SA 501: AUDIT EVIDENCE—SPECIFIC CONSIDERATIONS FOR SELECTED ITEMS
 It deals with specific considerations by the auditor in obtaining sufficient
appropriate audit evidence in accordance with SA 230, SA 500 (Revised)
and other relevant SAs, with respect to certain aspects of inventory,
litigation and claims involving the entity, and segment information in an
audit of financial statements
 SA 505: EXTERNAL CONFIRMATIONS
 This Standard on Auditing (SA) deals with the auditor’s use of external
confirmation procedures to obtain audit evidence in accordance with the
requirements of SA 330 and SA 500 (Revised).
 SA 510: INITIAL AUDIT ENGAGEMENTS—OPENING BALANCES
 This Standard on Auditing (SA) deals with the auditor’s responsibilities
relating to opening balances when conducting an initial audit engagement
15
Brief Introduction to SA’s & other relevant standards

SA 550: RELATED PARTIES
 This Standard on Auditing (SA) deals with the auditor’s responsibilities regarding related
party relationships and transactions when performing an audit of financial statements.
 Related Parties as per SA 550:
a)
person or other entity that has control or significant influence, directly or
indirectly over the reporting entity
b)
Another entity over which the reporting entity has control or significant influence,
directly or indirectly
c)
entity under common control with the reporting entity
 Related Parties as per 40A(2):
a)
relative of the assessee
b)
director of company or partner of the firm, member of association of persons or
Hindu undivided family or partner of firm, or any relative of such director, partner
or member
c)
individual who has a substantial interest in the business or any relative of such
individual
d)
company, firm, association of persons or Hindu undivided family having a
substantial interest in the business or its director, partner or member or its
relative
e)
a company, firm, association of persons or Hindu undivided family of which a
director, partner or member, as the case may be, has a substantial interest in the
business or its director, partner or member or its relative
16
Brief Introduction to SA’s & other relevant standards
 SA 560: SUBSEQUENT EVENTS
 It deals with the auditor’s responsibilities relating to effect of
subsequent events on financial statements and auditor’s report
 SA 570: GOING CONCERN
 It deals with the auditor’s responsibility in the audit of financial
statements with respect to management’s use of the going concern
assumption in the preparation and presentation of the financial
statements
 Conditions that may cast doubt about the assumption:
a)
b)
c)
d)
e)
f)
g)
Net current liability position
Negative operating cash flows
Substantial operating losses
Inability to comply with the terms of loan agreements
Loss of key management without replacement.
Loss of a major market, key customer(s)
Changes in law or government policy expected to adversely affect the entity
17
Brief Introduction to SA’s & other relevant standards
 SA 580: WRITTEN REPRESENTATIONS
 It deals with the auditor’s responsibility to obtain written
representations from management and, where appropriate, those
charged with governance
 SA 700: FORMING AN OPINION AND REPORTING ON FINANCIAL
STATEMENTS
 Objective: expressing clearly an opinion (including basis thereof)
through a written report
 It also deals with the form and content of the auditor’s report issued as
a result of an audit of financial statements
18
Brief Introduction to SA’s & other relevant standards
 SA 705: MODIFICATIONS TO THE OPINION IN THE INDEPENDENT
AUDITOR’S REPORT
 This Standard on Auditing (SA) deals with the auditor’s responsibility to
issue an appropriate report in circumstances when, in forming an
opinion in accordance with SA 700 (Revised), the auditor concludes
that a modification to the auditor’s opinion on the financial statements
is necessary
 Determination of type of modification
Nature of Matter
Effect-Material
but not pervasive
Effect-Material
and pervasive
Financial statements are
materially misstated
Qualified Opinion
Adverse Opinion
Inability to obtain sufficient
appropriate audit evidence
Qualified Opinion
Disclaimer of
Opinion
19
Brief Introduction to SA’s & other relevant standards
 SA 706: EMPHASIS OF MATTER PARAGRAPHS AND OTHER MATTER
PARAGRAPHS IN THE INDEPENDENT AUDITOR’S REPORT
 It deals with the auditor’s responsibility to draw user’s attention to
important matters whether or not disclosed in the financial statements
by making a specific reference in the auditor’s report through
“Emphasis of matter” para and “Other Matter” para.
 SA 710: COMPARATIVE INFORMATION— CORRESPONDING FIGURES AND
COMPARATIVE FINANCIAL STATEMENTS
 It deals with the auditor’s responsibilities regarding comparative
information in an audit of financial statements.
 If the prior period financial statements were not audited, the auditor
shall state in the auditor’s report that the corresponding figures are
unaudited
20
Brief Introduction to SA’s & other relevant standards
 SQC 1: QUALITY CONTROL FOR FIRMS THAT PERFORM AUDITS AND
REVIEWS OF HISTORICAL FINANCIAL INFORMATION, AND OTHER
ASSURANCE AND RELATED SERVICES ENGAGEMENTS
 The purpose of this Standard on Quality Control (SQC) is to establish
standards and provide guidance regarding a firm’s responsibilities for
its system of quality control for audits and reviews of historical
financial information, and for other assurance and related services
engagements. This SQC is to be read in conjunction with the
requirements of the Chartered Accountants Act, 1949, the Code of
Ethics and other relevant pronouncements of the Institute
21
Clauses 1 to 12, 28 to 32
22
Annexure to Tax Audit Report (Form - 3CD)
Clauses 1-6:
 Name of the assessee
 Address
 Permanent Account Number
 Status
 Previous Year Ended
 Assessment Year
 Importance of PAN records in all the above clauses.
23
Annexure to Tax Audit Report (Form - 3CD)
Clause 7:
 Is applicable to Firms & Association of Persons
 Names of partners / members & their profit-sharing ratios [SubClause (a)]
 Changes in the constitution, or profit-sharing, of Partnership /
Association & the particulars of change [Sub-Clause (b)]
Clause 7: Relevant Issues
 Will change in remuneration paid to partners without change in
profit-sharing ratio would require any disclosure in tax audit
report?
 When partner in representative capacity retires & admitted as
partner in individual capacity, will it amount to change in
partnership?
24
Annexure to Tax Audit Report (Form - 3CD)
Clause 8:
 Nature of Business / Profession (If more than one business /
profession is carried out, then nature of every business /
profession) [Sub-Clause (a)]
 Particulars of change in business / profession [Sub-Clause (b)]
25
Annexure to Tax Audit Report (Form - 3CD)
Clause 8: Relevant Issues
 If assessee starts another business whose gross receipts are not
material compared to existing business, would it still amount to
change in business?
 If assessee manufactures certain products & also sells certain
components which are used in manufacture of product, would he
be categorized as trader or manufacturer?
 If nature of business covers vast no. of activities, is it sufficient for
TA to obtain management representations?
26
Annexure to Tax Audit Report (Form - 3CD)
Clause 9:
 Whether books of accounts are prescribed as per S. 44AA? [SubClause (a)]
 Books of Accounts maintained (In case of computerized system of
accounting, mention books of account generated by such system)
[Sub-Clause (b)]
 List of books examined [Sub-Clause (c)]
27
Annexure to Tax Audit Report (Form - 3CD)
Clause 9: Relevant Issues
 Where stock records are not maintained due to high volume of
transactions, what is TA’s stand?
 Would post audit print-outs of accounts prepared be sufficient
evidence of audit without audit ticks?
Clause 10:
 Mention profit assessable on presumptive basis which is included
in profit & loss account and relevant section under which it is
assessable
28
Annexure to Tax Audit Report (Form - 3CD)
Clause 11:
 Method of Accounting followed in P.Y [Sub-Clause (a)]
 Any change in method of accounting in relation to last P.Y [Sub-Clause (b)]
 Details of such change and its effect on profit / loss [Sub-Clause (c)]
 Details of deviation in method employed from accounting standards
prescribed u/s. 145 & effect on profit / loss [Sub-Clause (d)]
Relevant Issues
 Does change in accounting policy amount to change in ‘method of
accounting’?
 If preceding P.Y’s accounts were not subject to tax audit, is it sufficient to
rely only upon information & explanations provided by client?
29
Annexure to Tax Audit Report (Form - 3CD)
Clause 12:
 Method of Valuation of Closing Inventory employed in P.Y [SubClause (a)]
 Details of deviation of such method of valuation from method
prescribed u/s. 145A & effect on profit / loss [Sub-Clause (b)]
What is objective behind S. 145A?
Whether there is any effect on Profit & Loss Account by adopting
‘Inclusive Method’ as per S. 145A ?
30
Annexure to Tax Audit Report (Form - 3CD)
Clause 12: Relevant Issues
 Where closing inventories are valued at market price (being lower than
cost), should excise duty be added to such amount for complying with S.
145A?
31
Annexure to Tax Audit Report (Form - 3CD)
Clause 22:
 Amount of CENVAT Credit utilized during P.Y. & treatment in profit /
loss account & treatment of CENVAT Credit outstanding [SubClause (a)]
 Particulars of prior period Income / Expenditure credited / debited
to Profit / Loss Account [Sub-Clause (b)]
32
Annexure to Tax Audit Report (Form - 3CD)
Clause 22: Relevant Issues
CENVAT Credit
 Where CENVAT Credit as per assessees books is reconciled with Credit as per
Excise Department, which entries are to be considered under this clause?
Prior-Period Items
 Where particular item is considered as prior period item by TA but not by
statutory auditor, what is TA’s duty in this respect?
 How should sales tax refund determined as result of order passed in last month
of preceding P.Y but received in current P.Y, be treated?
 How should claim made for short supply of RM in preceding P.Y, settled in this
P.Y, be treated?
 Wage disputes started in preceding P.Y but settled in current P.Y-Whether
increase in wages pertaining to earlier P.Ys paid in current P.Y should be disclosed
as prior period item?
33
Annexure to Tax Audit Report (Form - 3CD)
Clause 23:
 Amount borrowed on hundi (including interest thereon) repaid
other than through account payee cheque (section 69D)
Clause 24:
 Particulars of each loan / deposit exceeding limits specified u/s. 269SS
taken or accepted during P.Y Name, address & PAN of lender / depositor
 Amount of loan / deposit
 Whether loan / deposit was squared up during P.Y
 Maximum amount outstanding at any time in P.Y
 Whether loan / deposit was taken / accepted otherwise than by account
payee cheque or account payee bank draft [Sub-Clause (a)]
34
Annexure to Tax Audit Report (Form - 3CD)
Clause 24:
 Particulars of loan / deposit repaid exceeding limits specified u/s. 269T during
P.Y-




Name, address & PAN of payee
Amount of repayment
Maximum amount outstanding at any time during P.Y
Whether repayment was made otherwise than by account payee cheque
or account payee bank draft [Sub-Clause (b)]
 Whether certificate has been obtained from assessee regarding taking or
accepting, or repayment of same through account payee cheque / draft
[Sub-Clause (c)]
 Such particulars are not necessary in case of government companies,
banking companies or corporations established under Central, State or
Provincial Act
35
Annexure to Tax Audit Report (Form - 3CD)
Clause 24: Relevant Issues
 What are reporting requirements in case where deposit is received along
with interest by other than account payee cheque or draft?
 Where current account is maintained for sister concern in respect of
purchase of goods, cheque received, etc., how should same be
approached by TA?
 What is treatment of booking amount received against sale of goods?
 Where asset is purchased under hire purchase finance, payment for
which is made by account payee cheque by financier to supplier, is such
loan taken by assessee in infringement of S. 269SS?
 Does S. 269SS include loans from finance companies & co-operative
banks?
36
Annexure to Tax Audit Report (Form - 3CD)
Clause 24: Relevant Issues
 Where payment to creditor is made by sister concern of assessee, will
same be required to be reported under this clause?
 Where repayment of loan is made by crossed cheque to creditor of
assessees lender, will same be covered under this clause?
 Where in loan account there is no transaction apart from interest to be
paid & TDS on such interest due, should same be reported under this
clause?
 Where creditors for supplies are converted into unsecured loans, what
are reporting requirements?
 Current account loans taken & repaid on different dates during P.Y, should
same be disclosed in respect of each credit entry under this clause?
37
Annexure to Tax Audit Report (Form - 3CD)
Clause 24: Relevant Issues
 Where assessee makes payments of LIC Premium or Advance Tax on behalf of its
depositors in account payee cheque of amounts exceeding limits specified in S. 296T,
would same be required to be disclosed?
 What is position if transfer entries are made in books as authorized by letter of
depositor?
 Opening balance of loan account is Rs. 1 lakh & only Rs. 10,000 has been accepted
during P.Y, should same be reported?
 Opening balance of loan account is Rs. 1 lakh & there absolutely no movement in
account either by way of further acceptance / repayment or interest during P.Y,
should same be reported?
 Is any comment required from TA in respect of contravention of provisions of Ss.
69D, 269SS & 269T?
38
Annexure to Tax Audit Report (Form - 3CD)
Clause 25:
 Details of brought forward loss or depreciation allowance, in
following manner [Sub-Clause (a)]Serial No
Assessment
Year
Nature of Amount as Amount
as Remarks
Loss
/ returned (in assessed
(give
Allowance Rs.)
reference
to
(in Rs.)
relevant order)
 Where change in shareholding of company has taken place in P.Y
due to which losses incurred in preceding P.Ys cannot be carried
forward as per S. 79 [Sub-Clause (b)]
39
Annexure to Tax Audit Report (Form - 3CD)
Clause 28:
 In case of trading concern, quantitative details of principal goods traded Opening Stock
 Purchases during P.Y
 Sales during P.Y
 Closing Stock
 Short / Excess [Sub-Clause (a)]
 In case of manufacturing concern, quantitative details of raw materials, finished goods &
/ or by-products Opening Stock
 Purchases during P.Y
 Consumption / Production during P.Y
 Closing Stock
 Short / Excess
40
Annexure to Tax Audit Report (Form - 3CD)
Clause 28:
 Yield of finished products *
 Percentage of yield *[Sub-Clause (b)]
*Information may be given to the extent available; applies to raw
materials only
41
Annexure to Tax Audit Report (Form - 3CD)
Clause 28: Relevant Issues
 How must quantitative details be disclosed in case of retail traders where there
are variety of items traded?
 Will TA be justified in conducting his audit in proper manner if he accepts MRs
regarding quantitative details of items, in case there is no mechanism to record
stock?
 How should TA report in case of civil contractor or construction company under
this clause?
 Where assessee was not valuing work-in-progress because processing time was
minimal, how should TA report this issue under this clause?
 In case where units of raw materials & closing stock are not same, how should
yield & shortage / excess of stock be measured?
 Are assessees rendering technical services required to maintain quantitative
details of drawing materials like tracing papers, etc?
42
Annexure to Tax Audit Report (Form - 3CD)
Clause 29:
In case of domestic company , details of tax on distributed profits
u/s. 115-O in following form Total amount of distributed profits [Sub-Clause (a)]
 Total tax paid thereon [Sub-Clause (b)]
 Dates of payment with amounts [Sub-Clause (c)]
Relevant Issues
Where tax audit is completed after dividend is declared but before
dividend distribution tax is paid, will it be sufficient compliance to
report on dividend declared in preceding P.Y but paid in current P.Y?
43
Annexure to Tax Audit Report (Form - 3CD)
Clause 30:
 Enclose a copy of Cost Audit Report, if any
Clause 31:
 Enclose a copy of Excise Audit Report, if any
Clause 32:
 Calculate following ratios:
• Gross Profit / Turnover
• Net Profit / Turnover
• Stock-in-trade / Turnover
• Material Consumed / Finished Goods Produced
44
45