Fwd: New Notice - My Home Vihanga - MHVWA - Financials Highlights

[Shraddhesh Doshi]

Dear GS,

Thanks for sharing this simplified view of accounts presentation, I must say it has been done very well and appreciate your efforts (+previous MC) in working towards the items mentioned therein. 

Let us look into the numbers shared by you, 

As per above slide for FY 2021-22

Net loss before other income is 103 lacs

Other income is 181 lacs

So there is a surplus of 78 lacs.

Further  we are stating that Advance tax paid is 74 lacs and the same is refunded. Our net tax liability was nil.

So effectively there was a surplus of 78 lacs in FY 2021-22.

However we broke the accounting rules and showed 74 lacs of adv tax as expense whereby we have created excess reserve.

This is exactly the point of contention with respect to our accounting practice.

For those who have an inclination to understand a bit of accounting , I have laid below how we do the accounting right now and what should be the right approach. 

Under the current method of income tax accounting every 100 rupees of interest earned leads to 120 rupees of  reserves which is the most absurd and hideous way of bumping up reserves.

Correct method of accounting would have produced following results

As per the notes to the accounts , For FY 22-23 the Association has paid Advance Income Tax of Rs. 43,00,000/- (Previous Year Rs. 59,00,000).

The expenses have been overstated to this extent. 

Thanks,

Shraddhesh

---------- Forwarded message ---------
From: MyGate <nor...@mygateapp.in>
Date: Sat, 6 Jan 2024 at 18:41
Subject: New Notice - My Home Vihanga - MHVWA - Financials Highlights
To: MyGate User <nor...@mygateapp.in>

My Home Vihanga Society Notice   :  MHVWA - Financials Highlights   Dear Residents/Members, Please find attached a brief summary of the financials for the previous years with specific focus on receipts, expenditure, depreciation claim and IT refund and the Management Committee's rationale for holding the IT refunds in FD reserves. Also find attached the spends over the last 4-5 years, which are either of recurring nature or done on an as-needed basis. Please note, these spends are not related to any AGM-approved spends. The sheet also provides insight into the cost cutting and revenue increase measures taken over these years besides fines levied on vendors for deficiency in services.  Thank you MHV Management Committee Disclaimer: This is an official notice sent by My Home Vihanga society admin Download App

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