THERE WERE 3 DIRECTORS ONE OF WHOM RESIGN ON 15TH JUNE 2010 .PLEASE TELL ME WHAT WILL BE ITS EFFECT ON AUDIT REPORT AND FINANCIAL STATEMENTS(B/S & P&L A/C) THAT WILL BE AUDITED FOR FY 2010-11.IN WHICH PART OF REPORT OR CARO IT WILL BE SHOWN???????
XYZ..... (-) (516 Points)
13 October 2010THERE WERE 3 DIRECTORS ONE OF WHOM RESIGN ON 15TH JUNE 2010 .PLEASE TELL ME WHAT WILL BE ITS EFFECT ON AUDIT REPORT AND FINANCIAL STATEMENTS(B/S & P&L A/C) THAT WILL BE AUDITED FOR FY 2010-11.IN WHICH PART OF REPORT OR CARO IT WILL BE SHOWN???????
Tanweer Umer Mirza
(ACCOUNTANT)
(42 Points)
Replied 13 October 2010
A Partnership Firm started business in 2009. The Purchase of Plant, Machineries, Other Assets and Compnay Formation Expenses started from April 2009. The Financial Year of the Company is Jan 09 to Dec 09. The complete year observed only expenes and total sales of the company that is during dec 09 was to tune of 300,000 local currency, as such the company suffers losses and shows a huge amount of losses, on the balance sheet. Please advise how to present the balance sheet with losses or any adjustment/treatment can be given on huge expenses on formation, huge amount of admin exp.etc.
Regards
Tanweer
CA Sandeep Kumar
(Audit Assistant)
(804 Points)
Replied 17 October 2010
Dear upjeet,
Your question is not clear. Please tell whether if it is a private or public ltd company, as in case of public ltd company, if the number of directors is reduced to 2, which is less than the mandatory 3, then any business transacted would be invalid.
So please repost the question with approprate data.
CAclubindia
