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Reply in director report for qualification of auditor

Resolutions 6719 views 1 replies

CS Amit Kumar

463 Points Posted on 28 December 2012

Dear All,

Need your suggustion for reply in Director Report in respect of below mentioned comment/adverse remarks of Auditors in BS in our some subsidiaries.

1. The company accumulated losses at the end of FY are more than 50% of its net worth.

2. According to the information and explanations given to us, the company has been regular in depositing undisputed statutory dues except for the Wealth Tax of Rs. 15 lakh for the financial year 2008-09 which is still unpaid.

3. The company does not have accumulated losses but has incurred cash losses of Rs. 13000 during the FY. There was no cash loss in the preceding FY.

All are in italic by auditors.

Please reply with suggusted note in Director Report.

Regards,
ACS Amit Kumar

Replies (1)

Tanveer Md Masood

Indispensable

361 Points Posted on 04 January 2013

Dear Mr.Amit Kumar,

Directors report is basically prepard for shareholders to givethem the insight regarding the fianacialstatus and standing of the company and ensure transparency by makng it accessible to them.

The auditors report is indeed very frightening and scary for the company given the huge amount of losses and dues , it has incurred. you can only reiterate or assure the shareholders that thelosses was due to bad economic scenario or bad recovery. non payment of wealth tax is also bothering for the company.