company e- filling its urgent

Dear Sonam,

Please find below the extracts of article available on CAClubindia for requirement of profit and loss account:

Many times, we see that many companies which are in startup stage i.e. during construction period and before it is ready for commencing commercial operations do not prepare Profit and Loss Account for the year / period and the total expenditure incurred during such year / period is kept under the head "Pre-Operative Expenditure, pending allocation" - Whether this treatment is correct as per Companies Act, 1956 and whether it complies with the Accounting Standards and Guidance notes issued by the ICAI?

Let us have a glance on the various relevant statutory provisions relating to the same.

Under the Companies Act, 1956:

Section 210(1) states: "At every annual general meeting of a company held in pursuance of Section 166, the Board of Directors of the company shall lay before the company - (a) a balance sheet as at the end of the period specified in sub-section (3); and (b) a profit and loss account for that period."

Section 210(3) states: "The profit and loss account shall relate - (a) in the case of the first annual general meeting of the company, to the period beginning with the incorporation of the company and ending with a day which shall not precede the day of the of the meeting by more than nine months..."

Hence, from the above, every company is required to prepare a profit and loss account from the date of incorporation of the company.

The link for above article is:

/articles/profit-loss-account-during-construction-period-mandatory--5635.asp?utm_source=newsletter&utm_content=article&utm_medium=email&utm_campaign=nl_30_05_2010

Accordingly, first of all, you have to prepare profit and loss account.

secondly, there is no fees for form 23ACA. You will find in challan as "For Form 23ACA - Nil."

THirdly, it is mandatory to file form 23ACA. WIthout that form, form 23AC is not accepted and challan can not be generated.

You can put all the figures as zero in form 23ACA.

hope this will suffice your requirement. 

regards...

THANKS FOR THE INFORMATION

I WANT TO KNOW CAN I ATTACH BALANCE SHEET AT PLACE OF P/L A/C IN FORM 23ACA

Once I had  been advised that I should attach a letter addressed to ROC that P & L Account is not prepared explaining the reasons thereof.

Without attachment, you can not sign form 23ACA.

regards...

you need to file form 23ACA also........

Dear u can file form 23ACA with Attaching "Auditors Report" and Balance Sheet that its self reflects the earning Capacity and other financial activies of the Company even though the company is not earning any profits.

This procedure can be followed for future years also because some times for the first 3 or 4 years of incoporation of the Company, it does not have any profits.

I have  done filing in the same way for some companies and all those forms are approved by ROC without raising any objections. Form23ACA is a mandatory attachment with Form 23AC so u have to file both the E Forms together.

Agree with opinon of Neha.

Originally posted by : PCS Neha Gupta
	Dear u can file form 23ACA with Attaching "Auditors Report" and Balance Sheet that its self reflects the earning Capacity and other financial activies of the Company even though the company is not earning any profits. This procedure can be followed for future years also because some times for the first 3 or 4 years of incoporation of the Company, it does not have any profits. I have  done filing in the same way for some companies and all those forms are approved by ROC without raising any objections. Form23ACA is a mandatory attachment with Form 23AC so u have to file both the E Forms together.

AGREE....WITH NEHA

you need to file form 23ACA also........