Non Availability of Financial Statements of Associate Concern as it is into Liquidation

Ajit Shinde (CA Final Student) (48 Points)

03 March 2022  

Dear Colleagues,

What to do in case Associate Company in which we hold 38% has not prepared its Financial Statement as the same is in Liquidation. We had communication with IRP, but as his information they are in the process of preparation of FS for FY 19-20. And we need to file Annual Financial Statement for 20-21, also we had filed suit against the company and hence we can not make our investment to Zero in our FS.

Question 1 :
How to provide independent audit report? Shall we provide note for the same or Shall we qualify the report?

Question 2 :
While filling AOC-4 there are 2 options - CFS or Standalone FS.

If we choose standalone FS then it will be treated as prove that we don't have anything to receive from them. If we choose CFS then