Disclosure in Board Report relating to foreign Currency

[Sachin Jha]

Dear All,

The amount entered in the Board Report as Disclosure of foreign Currency Received is on ACCRUAL BASIS or CASH BASIS?.
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Sachin Jha

[Vineet Maheshwari]

As Balance sheet prepared on Accrual Basis and also accounting is done on that basis so it shall be on Accrual basis only.

Thx

CS Vineet Maheshwari

M:9958728134

[Sachin Jha]

Thanks Vineet Sir for your reply but my further concern is the provision of Rule 8 of Companies(Accounts) Rule, 2014 and Guidance note issued by ICSI on same disclosure  both says about actual Inflow of foreign currency. what does it means PLEASE CLARIFY

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Sachin Jha

M: 9540577647

[Savita Rao]

Hi All

I also have this query. Financial statements are prepared on accrual basis hence if we have to give the foreign currency information on cash/actual basis then the figures would not match the financials. On the other hand director report is prepared on the basis of the financial statements.

Request help in this matter 

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[Vineet Maheshwari]

Dear Sachin,

Here "Actual" means the bank's account of the Company should be credited or debited with the foreign currency.

For example, some time we received investment from foreign through Paypal for which we are not able to receive FIRC and the same could not count in FDI investment, then in this case we have not received the actual inflow of forex.

So, as the company maintains its account on accrual basis, accordingly, it reports the inflow or outflow of forex only on accrual basis.    

Hope this helps and clarify.

Vineet Maheshwari | Partner | RVA & Co., LLP

Contact: +91 9958728134    |  thecorp...@gmail.com 

 

RVA & Co., LLP,  New Delhi

Corporate Consultants | Registered Valuers | Insolvency Professionals

Offices:

D-2, Dayanand Block, Opp. Madhuban Chowk, Delhi-110092

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