26 October 2016
A private limited company incorporated 11 years back and purchased land and shown in balance sheet then.
There after there are no transactions except audit fee roc fee and miscellaneous expenses.
Now the auditor says that no p&l account is required and filing only balance sheet with Roc & I T dept.
He is showing the expenses as pre operative expenses in balance sheet.
soliciting the correctness of the auditors opinion.
26 October 2016
Profit and loss account is compulsory. Inference is from section 2(40) and 129(2) of the Co's Act,2013. Violation attracts one year imprisonment or Rs. 50000 to 500000 penalty or with both per section 129(7) of the said act.
CAclubindia
