A private company even after five years of incorporation, after writing off the preliminary expenses every year in the Balance Sheet, meeting all the filing fees, statutory audit fees etc. adopts the Statutory Audit Report with only Balance Sheet items. The Directors report says due to business has not yet been commenced, your company has not made any financial transactions and hence financial results could not be given. This continues for over four years.
Are the auditors' and Directors' statements justified?
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