Certification course on Balance Sheet Finalisation

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Since last one year, many forms & information are required to be submitted by the company to the Registrar of company like Active form, BEN-2, MSME-1 etc. while submitting forms with ROC, in some forms certification by Chartered Accountant is also required.

In this article, what points should be taken care off while finalizing the books of accounts of the private limited company is explained:

Points to remember while finalizing books of accounts of pvt ltd company for FY 2018-19

1. Independent Audit Report - There has been some changes in the auditors independent audit report. And such changes are for financial year 2018-19. However Formats of CARO, Internal Financial Control have not.

2. Date of signing of Balance Sheet etc.- From 1st July 2019, ICAI has mandates on auditor to generate UDIN on every attest function. One has to ensure that after signing balance sheet UDIN should be generated within 15days.

3. Details of Share Capital -  

The Authorized Share Capital, Paid-up share capital, Registered Office Address of the Company as on 31st March 2019 should be tallied with 'Active Form' filed with RoC and Company Law.

List of Shareholders of the Company should tally with the list of shareholder given to us for BEN 2.

The Company should not ideally have any outstanding share application money as on 31st March 2019.

4. Scrutiny of Loan accepted -

A. Company should not have any unsecured loan from any person except the director & other Companies. Private Limited Company can accept loans from relatives of Directors.

B. Loan from a shareholder is allowed subject to filing separate DPT 3 and compliance with few

C. Any receipt of money including loan should be strictly as per DPT-3 filed /to be filed by the company with


Scrutiny of Creditors for Goods / Services - The details of Creditor should match with the details given for the form 'MSME-1' filed by Company with
Advance money received for Goods / Services - Any advance received against goods/services should be adjusted in 365 days and should not be outstanding for more than 365.

5. Loan, Investment, Security, Guarantee Given -

A. Company should not give any loan to its directors or their relatives, related concerns/firms. The company should not also give security, guarantee in connection with loan taken by Directors, relatives or related

B. However, the company can give loan, security, guarantee to other company in which directors are interested provided that previous approval has been obtained from a shareholder in general meeting and form MGT 14 is


C. If company has given loan to other Company then it should be used for the main object of that

D. If Total of loan, investment or guarantee (present and proposed) given exceeds 60% of its Paid-up capital + Free Reserves + Security Premium or 100% of Free Reserves
+ Security Premium (whichever is more), the company has to take prior approval of shareholders and file form MGT 14.

E. Interest must be charged on such loan at a rate not less than the prevailing government security rate. Violations of D and E are serious as these are non-compoundable.

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Published by

Gaganjot Singh
Category Income Tax   Report

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