Can accounts of a company for a subsequent year be adopted without adoption of accounts of previous years?
Honey Sharma (Executive-CS) (51 Points)
26 September 2012Can accounts of a company for a subsequent year be adopted without adoption of accounts of previous years?
Tanveer Md Masood
(Indispensable)
(361 Points)
Replied 26 September 2012
DEAR MR.SHARMA,
SEC.210 STATES THAT AT EVER AGM, COMPANY SHOULD LAY DOWN AND ADOPT ACCOUNTS/ PROFIT AND LOSS AND BALANCS SHEET FOR APPROVAL.
NON APPROVAL OR NON ADOPTION OF ACCOUNTS WOULD RENDER THE COMPANY TO PAY A FINE OF Rs.5000 PER DAY DURING WHICH THE DEFAULT CONTINUES. AGAIN, IT IS BUT COMMON SENSE AND LOGIC THAT IF PREVIOUS ACCOUNTS HAVE NOT BEEN ADOPTED AND APPROVED NO QUESTION OF SUBSEQUENT ANNUAL REPORTS OR ACCOUNTS ARISES.
YOU CAN CHECK OUT WITH OTHER EXPERTS TOO.
REGARDS,
TANVEER MD MASOOD.
CA Harsh Lunia
(Audit)
(81 Points)
Replied 26 September 2012
No. Adoption of accounts is one of the agenda points in AGM. If for any reason, it can't be adpoted, then the AGM can be adjourned and accounts can be adopted at adjourned AGM (which is to be held within the time limit prescribed for AGM). In no case, the company can proceed to adopt current year's accounts without adopting previous year's accounts
Tanveer Md Masood
(Indispensable)
(361 Points)
Replied 02 October 2012
fine amont is Rs.500/- and not Rs.5000.
CAclubindia
