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    INTRODUCTION: 

    An investor having appetite to leverage his investment capacity, may indulge in borrowing funds to invest in Securities and can plan to earn profits out of the investment activity. Normally an investor has to provide security to the lender for funds being borrowed. The borrowings made with an intent to invest in Securities is normally called as Margin Trading. 

    To overcome the difficulties of maintaining the leverage at the time of investing in various securities In order to provide such facility SEBI has come up with a concept named MARGIN TRADING.f ramed a Scheme called Securities Lending Scheme, 1997. Also it has framed legal framework for Margin Funding by various intermediaries of the Securities Market. All the above concepts are cumulatively called as “Margin Trading”

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    Introduction: - 

    An auditor should obtain sufficient appropriate audit evidence in order to give opinion on the true and fair view of financials. Sufficiency and appropriateness of audit evidence shall depend on the assessed level of inherent and control risk of the entity. To assess the level of control risk, we exercise compliance procedures and based on the findings of the compliance procedures and other considerations like materiality, we decide the nature and extent of substantive procedures to be performed. 

    SA-200 “Basic principles governing an audit" (Erstwhile AAS-1) states that, "The auditor should obtain sufficient appropriate audit evidence through the performance of compliance and substantive procedures to enable him to draw reasonable conclusions therefrom on which to base his opinion on the financial information." 

    External Confirmation is a substantive procedure used to obtain audit evidence. SA-505 deals with “External Confirmations”. The purpose of this Standard on Auditing (SA) – 505 is to establish standards on the auditor's use of external confirmations as a means of obtaining audit evidence. 

    SA 505 is effective for audit of financial statements for period beginning on or after April 1, 2010. 

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    INTRODUCTION 

    An Internal Control is a practice, policy or procedure that is established within an organization to create value or minimize risk. Internal Controls are the methods put in place by a company to ensure the integrity of financial and accounting information, meet operational and profitability targets and achieve management policies throughout the organization. Internal controls are classified based on the size and nature of the business. Internal Control means different things for different people. 

    It helps an entity to achieve its performance and profitability targets and prevent loss of resources and ensure reliable financial reporting. It can help an organization in avoiding damage to its reputation and other consequences if properly executed. In sum, it pushes an entity to reach where it wants to go and avoid pitfalls 

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    Agricultural land is a land on which agricultural activities are carried out. Agricultural activity has been held to be an activity where human effort has resulted in growing crops. 

    Once it is held that the land is agricultural then one of the major legal issues arising in the treatment of capital gain is, whether the land is situated within the area specified in item (a) and (b) of sub-clause (iii) of clause (14) of Section 2. 

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