majorly they ll ask all abt statutory compliences like sales tax , entry tax, central excixe returns, service tax, TDS and Customs duty,,,,,,,for those statutory compliences i have clearly written on my blog, You please refer my previous posts on my blog....
Difference between net present value and internal rate of return:
• NPV is calculated in terms of currency while IRR is expressed in terms of the percentage return a firm expects the capital project to return;
• Academic evidence suggests that the NPV Method is preferred over other methods since it calculates additional wealth and the IRR Method does not;
• The IRR Method cannot be used to evaluate projects where there are changing cash flows (e.g., an initial outflow followed by in-flows and a later out-flow, such as may be required in the case of land reclamation by a mining firm);
• However, the IRR Method does have one significant advantage -- managers tend to better understand the concept of returns stated in percentages and find it easy to compare to the required cost of capital; and, finally,
• While both the NPV Method and the IRR Method are both DCF models and can even reach similar conclusions about a single project, the use of the IRR Method can lead to the belief that a smaller project with a shorter life and earlier cash inflows, is preferable to a larger project that will generate more cash.
• Applying NPV using different discount rates will result in different recommendations. The IRR method always gives the same recomendation.
Before going to interview have a look at working capital management nad Ratio analysis,,,,ensure that all ratio's should be covered with formula's
Finding Value of Closing Stock from Sales
1.Gross Profit = Sales − Cost of Goods Sold
2.Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses − Closing Stock
3.Gross Profit = Sales − (Opening Stock + Purchases + Direct Expenses − Closing Stock) [From (i) and (ii)]
= Sales − Opening Stock − Purchases − Direct Expenses + Closing Stock
4.Closing Stock = Opening Stock + Purchases + Direct Expenses + Gross Profit − Sales [From (iii)]
To use this relation to obtain the value of closing stock, we need the information relating to Gross Profit. All other information in this relation is readily available from the accounting records.
Purchases and Sales journal entries:
Purchases:
Purchase:To Party/Vendor Cr
By Raw materials Purchases Dr
By Vat(Input) Dr
Purchase Returns:
By Party Dr
To Raw materials Purchases Cr
To vat
Sales:
By Customer Dr
To Local/Interstate sales Cr
TOCentarl Excise(Output)10% cr
TO Edu Cess (Output) 2% cr
To Sec.Edu cess( Output) 1% cr
To Vat/ Entry Tax cr
Sales Returns:To Customer Cr
By Local/Interstate sales Dr
By Centarl Excise(Output)10% Dr
By Edu Cess (Output) 2% Dr
By Sec.Edu cess( Output) 1% Dr
By Vat/ Entry Tax Dr
Accounts Receivables and Payables differences:
Accounts recevables:
Accounts receivable are amounts a company has a right to collect because it sold goods or services on credit to a customer. (Sundry Debtors).
Accounts receivable are assets.
Accounts payable :
Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor.(Sundry Creditor).
Accounts payable are liabilities
Due Dates for Statutory Compliances Filing:
Central Excise ER1 Returns- 10 th of everymonth
Serveice Tax Monthly Returns- 5th of every month
TDS ( Tax Deduction at Source)- 7th of everymonth
TDS -Quartly Returns----
1st Q-Apr to June- Due date-15th of July
2nd Q- July to Sept- Due Date- 15 Th of Oct
3rd Q- Oct to Dec- Due Date- 15th of Jan
4th Q- Jan to Mar- Due Date 15 Th June
ESI-21ST of everymonth
Sales Tax(VAT)- 20 of everymonth
Entry Tax- 20th F EVERYMONTH
Professional Tax- 20th of everymonth
Providend Fund- 14th of everymonth
