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Three members of the Madhav Godbole committee resign
Mumbai
--Three members of the nine-member Madhav Godbole committee constituted to renegotiate the Enron deal have quit.This is as efforts to renegotiate the Enron power deal get underway,
The members who have quit are the former union energy secretary and Andhra Pradesh Electricity Board member E A S Sarma, Tata Energy Research Institute director Rajendra Pachauri, and Indira Gandhi Institute of Developmental Research professor emeritus Kirit Parikh.
The Godbole committee has submitted an interim report and a final one is expected by May 31.
The members now on the committee -- apart from Madhav Godbole -- are HDFC chairman Deepak Parekh, state's energy secretary V M Lal, fertiliser secretary and a representative of the Centre Anil Gokak, state finance secretary S K Shrivastava and Maharashtra State Electricity Board chairman Vinay Bansal.
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ICAI prescribes norm for determination of profit or loss
New Delhi: The Institute of Chartered Accountants of India has prescribed that enterprises would have to consider deferred tax expense along with current tax for the determining the net profit or loss for the period.
The institute, in the accounting standard 22 (AS 22) on accounting for taxes on income, has said that taxes on income are considered to be an expense incurred by an enterprise in earning income and therefore are accrued in the same period as the revenue and expense to which they relate.
AS 22 is mandatory in nature and would be applicable to companies with effect from April 1, 2001, if their equity or debt securities are listed on a recognised stock exchange as also to enterprises which are in the process of issuing securities that would be listed.
The accounting standard will also apply with immediate effect to those companies of a group, if the group presents consolidated financial statement and if this accounting standard is mandatory to any entity within that group.

For companies, which do not have or intend to have securities listed on any of the recognised stock exchanges, AS 22 would be applicable with effect from April 2002. For all other enterprises, it would be applicable with effect from April 2003.

It is felt that the new norms would ensure that companies present a more realistic picture of their financial position.
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domain - B : Indian business : News Review : 16 May 2001 : general