Fast track exit

A company is going for FTE. On March, 2016, balance sheet Liability side capital 6L reserve & surplus 21L other CL 32k Short term provision 22K Asset Side Investment 7L Cash & cash equivalent 20L for FTE, assets & liabilities should be nil. how can we it in this situation
Replies (5)

Following Companies can apply under fast track exit mode for striking off its name from register of Registrar of Companies:-

a. Companies which are not operating or not carrying on any business since last one year from the date of application or,

b. Companies which are not operating or not carrying on any business since incorporation and,

c. A company having Nil assets & liability.

However, all companies which want to apply shall have ‘active’ or ‘dormant’ status on MCA portal.

In our case, Please clear all the company liabilities & make application to concerned ROC.

Please refer the below link for more details

https://www.fasttrackexitmode.com/faqs-on-fte.htm

 

 

 

 

Sir, in my opinion , for fte

1. to nil liability side, amount of reserves should be distributed among shareholders. and current liabilities should be paid from available cash.

2. on asset side, investment should be sold and realised amount must be distributed among directors.cash available in asset side should be utilised to pay expenses.

Plz suggest me.. is it right solution ???

 

You have to dispose of all assets, close bank accounts and make cash NIL by paying  off expenses/liabilities.  After this you will only be left with share capital and debit balance of P&L statement.  Then you can file application under FTE.

Thanks

 

sir shall we distribute reserves and surplus in form of dividend and pay dividend tax. or we just distribute available reserves among shareholders.

For FTE of company, ur balance sheet should be NIL i.e. ur (capital) liability side should be equal to asset side (p&l dr balance). Therefore u have to pay of all the liabilities, sell all asset, invstments, and close bank a/c in current year. Then adjust ur p&l a/c to show losses same as that of ur capital balance. Then u can file for FTE of company.
If its not possible u have to go for winding up through liquidator.

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