Approval of financials in board meeting
This query is : Resolved
Swati Sharma
(Querist)
19 July 2016
Can a Pvt. Company place draft financials without Audit Report in Board Meeting before AGM?
Amol S Joglekar
(Expert)
19 July 2016
Try to understand : The management is responsible to prepare the financials. So obviously, the unaudited financials can be placed before the Board of Directors.
In fact, the finanicals prepared by the management are placed before Board of Directors and then handed over to Auditors for AUDIT
In fact, the finanicals prepared by the management are placed before Board of Directors and then handed over to Auditors for AUDIT
Swati Sharma
(Querist)
19 July 2016
Once they are Audited then again BM is required to approve Audit Report and Directors Report?
Amol S Joglekar
(Expert)
19 July 2016
BM in your query is taken as Board Meeting and not Branch Manager...am i right?
Basically "APPROVING audit report" is NOT a correct phrase.
Auditor is an independent person, although paid by Company.
The audited financials are placed before Board of Directors for onward placment to AGM
The Directors report is the prepared by Director. It is also placed before the Board of Directors meeting for onward submission to AGM.
Basically "APPROVING audit report" is NOT a correct phrase.
Auditor is an independent person, although paid by Company.
The audited financials are placed before Board of Directors for onward placment to AGM
The Directors report is the prepared by Director. It is also placed before the Board of Directors meeting for onward submission to AGM.
Swati Sharma
(Querist)
19 July 2016
What should be the Correct procedure according to you for approving Financials and Board's Report..
Amol S Joglekar
(Expert)
19 July 2016
Not according to me.....I am a very small disciple of this subject.....
This is as per the procedure followed by majority of the PLAYERs in the industry as per the Act.
1 :Appointment of auditor (In last years' AGM)
2.: Preparation of draft( i.e.Unsigned) financial statements(DFS) by the management
3 : DFS approved by Board of directors (BoD) in BM
4.: Approved DFS are sent to Auditor for Audit.
5 : After completion of Audit, DFS become Audited financial statements (AFS)
6. AFS are taken on record in BoD meeting (BM as you call it). (In the same meeting. mostly, the Directors report is approved, AGM date is fixed)
7 : AGM notice is issued
8 :AGM is held
This is as per the procedure followed by majority of the PLAYERs in the industry as per the Act.
1 :Appointment of auditor (In last years' AGM)
2.: Preparation of draft( i.e.Unsigned) financial statements(DFS) by the management
3 : DFS approved by Board of directors (BoD) in BM
4.: Approved DFS are sent to Auditor for Audit.
5 : After completion of Audit, DFS become Audited financial statements (AFS)
6. AFS are taken on record in BoD meeting (BM as you call it). (In the same meeting. mostly, the Directors report is approved, AGM date is fixed)
7 : AGM notice is issued
8 :AGM is held
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