Directors report and notes to account
This query is : Resolved
21 November 2011
Hello to all colleague,
Help me in following matter,
One of my client's (company) factory was burnt due to fire on 31.08.2010. Company has huge term loan and cash credit from nationalized banks. Company was also running through financial crises hence banks has took the possession of factory premises , land, plant and machinery.Now I want to prepare the Director's report and notes to account. Now company is no more going concern.
Require the help in following points?
1. What should be the note for going concern in Directors report as well in notes to account?
2.Notes on directors personal liability towards repayment of term loan?
Help me in following matter,
One of my client's (company) factory was burnt due to fire on 31.08.2010. Company has huge term loan and cash credit from nationalized banks. Company was also running through financial crises hence banks has took the possession of factory premises , land, plant and machinery.Now I want to prepare the Director's report and notes to account. Now company is no more going concern.
Require the help in following points?
1. What should be the note for going concern in Directors report as well in notes to account?
2.Notes on directors personal liability towards repayment of term loan?
22 November 2011
Hi,
Personal liability of director is dependent on the terms of Loan agreement. Generally they are not personally liable for this loan but everything is dependent on the language of loan agreement.
Simply prepare a note like you prepared in your quety regarding fire etc and put it in the Directors report. For notes to accounts prepare a note regarding financial liability of the company. While drafting keep this in mind that notes to accounts are just an explanation to the financial figures used in balance sheet and in profit and loss account.
RG
Personal liability of director is dependent on the terms of Loan agreement. Generally they are not personally liable for this loan but everything is dependent on the language of loan agreement.
Simply prepare a note like you prepared in your quety regarding fire etc and put it in the Directors report. For notes to accounts prepare a note regarding financial liability of the company. While drafting keep this in mind that notes to accounts are just an explanation to the financial figures used in balance sheet and in profit and loss account.
RG
22 November 2011
Thanks for reply
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Share accounting-->fifo - capital gain - period as per fifo?
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Article ship defecit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
