Checklist Before Preparation Balance Sheet of Manufacturing Company


Capital Account/ Share Capital
** Movements in share capital
** Buy Back prodedure to be followed if there is any buy back
** Fresh issue procedure to be followed if there is any fresh issue
** Inflow in capital accounts
** FIRC Copies and RBI approval from foreign inwards towards capital
** Share application money pending allotment
Reserves and Surplus
** Movements in reserves and surplus
** Types of Reserves
** Specified reserve to be used for specific purpose
** Distribution of Surplus if any during the year
Secured Loan Analysis
** Terms and conditions of the loan
** Interest calculation
** Repayment schedule of the loan
** Charge creation if any , hypothecation on assets and creation of equitable mortgage
** Calculation of Interest accrued but not due 
** Calculation of Interest accrued and due 
Unsecured Loan Analysis
** Agreement with parties
** Loan taken from directors
** Terms and conditions of the loan
** Interest calculation
** Repayment schedule of the loan
** Application of sec 269SS and T
Provision calculation – Liability
** Provision for Interest Payments
** Provision for Expenses
Statutory Liability Provisions in respect of
**ESI
**EPF
**Leave Encashment
**Tax Provision (115JB and Credit calculations)
** Deferred Tax
**Wealth Tax Provision
**Bonus Provision— Exgratia 
** TDS/ TCS Payable
** Professional Tax
Other Provision
*Excise duty on final Finished Goods
* Goods in transit valuation
*Provision for Royalty and Techincal Fees 
* Price reduction
*Warrenty Provision
*Employee Benefits  Provision as per AS-15
*Provision for Bad debts
*Audit Fees

Provision Reversal entry
* Excise duty on the opening—-  Reversal  to Excise duty of Current year
* Goods in transit                  —-  Reversal to Purchase of current year 
Accrued Incomes
* Interest Receivable-for Loan and advances
* Bank interest reconcilation with TDS Receivable Certificates
Creditors ledger Analysis
** Creditors ledger Review
** CRS having negative balance and reasons for the same
** Balance Confirmations
** Prepare Aging Analysis for More and less than 6 months
Debtors ledger Analysis
** Debtors ledger Review
** DRS having negative balance and reasons for the same
** Balance Confirmations
** Prepare Aging Analysis for More and less than 6 months
Cash & Bank Analysis
* Cash vouching & Bank vouching
* Cash payment not exceed Rs20000( Relevant section in IT 269SS and T)
* Only Bank payment above Rs20000
*All Bank reconcilation and their confirmation from bank
Bank Interest calculation and Recognition
* all FDR and TDS Certificates and Interest Workings
* All deposit 
* Match with PL with Interest received.
Fixed Asset Addition and Deletion analysis
* Fixed Assets Register Analysis and copies of all invoices
* Prepare the Compay Dep as per Sech XIV
* Disposal of Assets  and Management confirmation for such
*Profit and loss of sale of assets
*Reversal of Depreciation for the sale of assets during the year
*Reconcilation of Assest Deletion with IT Dep and Comp Dep
*Reconcilation of Addition with IT and Company – If any diff  in IT that should be in the nature of 43A  Capitalization portion only.
*Verification of Depreciation entry for the current year
Closing Stock valuation and Mgmt certificates
* Stock Valuation Sheet Certified  by the Management
* Qty Wise Reconcilation with Excise Records
* Qty wise production and sale during the year
* Input and Output Ratio for Raw Materials
* Provision on FG
* Valuation method  adopted for WIP and FG
*RM stock Valuation 
Investments
* List of Investment
* List of investment made during the year
* List of investment sold during the year
* Valuation of the quoted investments
* Valuation of unquoted investments
* Nature of investment long term/ Short term
* Dividend receivable
* Interest Accrued but not received during the year
* Interest Received during the year
* Investment fluctuation reserve if any
* Match with TDS Receivable certifcates for Interest accuracy
Deposits
** Verification of Deposit certificate
** Confirmation for such deposits
** Agreement if any for such deposits
Loans and Advances
** Terms and conditions of the loan
** Interest calculation
Inter corporate loan
* Check whether any provision in the AOA
* Sec 372A Not applicable for Private Company
* Check the agreement and interest provision
Foreign Exchange Rate Fluctuation Calculation
** As Per AS 11
** ECB Loan Fluctuation
** Export Sale Fluctuation
** Capital Goods Fluctuation –Sec 43A of Income Tax
** Segregation of Forex between RM and CG
** Re state of Closing balance as per March — Closing Rate – ONDA Site
**Exim Bank rate fluctuations
**Restatement of Import Purchase liability and Exim Bank
Confirmation of Balances for
** All bank account
** All Bank FDR
** All Major Debtors
** All Major Creditors
** All Deposits
Preparation of Check List for Applicabilty of AS
Responsibilty of Management and Finance Head
Final Tally Backup , Excel soft copy, TB Print, 
Detailed TB   and duly singed by MD/ Finance head/Management
Audit Team Certification for
** Opening balance verification
** Closing Balance verification
** Latest print out/ final print  soft copy

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