Meet Us Here asked 1 year ago

Sir in respect of due diligence of overvalued assets what do you mean by group company balances under reconciliation

1 Answers
RaviRavi Staff answered 1 year ago

on asset side we may show 50 crore receivable from group companies as a asset, we should check whether this balance tallies with books of subsidiary companies, many time balance will not match for example our books 50 crores their books 30 crore. 20 crore can be because of goods sent but not yet received by group companies. now this item of 20 crore can be fake, so we should see evidence supporting this reconciling item or else it will be overvalued asset

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