While auditing a private limited company, i found in the balance sheet, some of the vehiles are in the name of direcotor of the same company. They told that all the vehicles were used only for the business of the company. pl advise regarding this point.
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Company Law
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In my opinion, the title of the assets whatsoever it may be shall be in the name of the Company. Any deviations from the above shall be reported and audit report be qualified if necessary and the value is material.
Assets cannot be in the of the other person ohter than company itself. if the ownership is in the name of the director, the same should not be shown in the books of the company. There can be othere treatment i.e, the car may be used for the purpose of the company so hire charges can be paid on behalf of the company.
If the company assists to still proceed with the same, the report has be qualifed.
regards
Anil Kumar Reddy
Ca-Final
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