Document Fragment View

Matching Fragments

2.1 It is not true that we have not suppression of sale in R.K. Traders, we have attached audited balance-sheet of R.K. Traders in which we have shown all the turnover which was above 1.76 lakhs.
2.2 Decreased in Gross Profit ratio:
As per our trading account our G.P. % of this year i.e. 10.45% and last year it was 15.62% and it was our first year of the company. Out GP% is decreased have submitted dour sales and purchased bills to you.

On going through the same it is seen that our sales side i.e. our purchasers of goods are fixed we are manufacturing of corrugated boxes, which are fixed in size and cost. Normally we have to do some oral contract with the parties that during the year we will submit corrugated boxes at fixed prices, during the year we have to purchase papers and other items at higher price we are herewith submitted to you our opening purchased bills and ending purchased bills so price . A.Y. 2010-11 are high, and our4 sales price are fixed we have no control over raw materials prices and our sales price are fixed so naturally our GP become low as per compare to industrial market our GP% is not so low as market condition is apply. Our fall is abut 5.17% it is a reasonable fall as we have no control over sale and purchased rates. Please accept it, 2.3 We have shown opening and closing stock of raw-materials and finished goods in a correct way because we have to purchase raw materials in Kilos quantity and converted in corrugated boxes in nos. and we have to sale in No, so we have shown both items separately in our closing and opening stock and finished goods in our business custom and normally all corrugated boxes industry shown it in this manner. Please accept it and not to reject our books of account u/s. 145(3) of the IT Act."