Sir,
The Board of Directors of a Listed Company has adopted audited accounts in their meeting held on 29-05-2010.
Subsequently Board of Directors meet again on 15-06-2010 and decided to declare dividend.
In such case what is the date to be written on Balance Sheet
Can the auditor revise the accounts which were earlier adopted by the board
Is there any note required to be given by the Management.
Hi,
In your case the date of balance sheet is May 29, 2010 on which the BS adopted by BOD.
Yes to incorporate the changes suggested by the auditor accounts can be revised provided they are not approved by shareholders. In that case BS needs to be re-adopted through a separate board meeting. In case of re-adoption of annual accounts the date of re-adoption would be the date of BS. This re-adoption is required to be given in directors’ report and notes to accounts.
Wait for other suitable opinions.
Regards
Upto my understanding if you have adopted the BS on 25.05.2010, the signing date shall be 25.05.2010 and their is no problem in proposing dividend on 15.06.2010 in next board meeting but (you will have to transact busness related to AGM notice in this board meeting- preferably) or the date of notice shall be after the date of 15.06.2010.
But if your auditor is proposing any change in notes to account or any adjustment then you will have to readopt the BS and signing date shall be readoption date.-- Completly agree with Ankur Sir.
Regards,
thxs ankur sir vivek and kewal for u r contribution and sharing...........
Mr Ankur Garg is right
Dear Mr. Kewal,
As it is a Listed Company, the results must have been published in the news paper showing no dividend. In my opinion you have to re approve and re adopt the Balance Sheet and accordingly give this intimation to the Stock Exchange too.
Therefore, in my opinion the date of signing must be 15/06/2010 along with a note in this regard.
Further, directors report should also be on or after 15/06/2010 because the auditors would also give new report dated 15/06/2010.
You may save the expenses of republish the results, by properly give intimation to the Stock Exchange in this regard.
And the agenda for this would be Recommendation of Dividend and accordingly readoption of Annual Financial Results for the Financial Year ended 31st March, 2010.
If the agenda item is Re adoption of Annual Accounts, you have to republish the same in the news paper.
CAclubindia
