Restatement of accounts

Stat Audit 1001 views 3 replies

Mamta Doshi

CA & CS

25 Points Joined April 2011

Greetings!!

A Ltd newly formed company had loss of 18 lacs in its books and fixed assets of 9 lacs in A.Y 2011-12. Auditor transferred loss and fixed assets to WIP and filed a nill return and also filed audited balance sheet with ROC. In A.Y 2012-13 I was appointed as new auditor . I strongly propose that last years return shouyld be revised and a loss return should be filed. But what about ROC filing. Will I have to make new audit report with me as auditor for A.Y 2011-12. Or I dont need to File new balance sheet with ROC ???

Replies (3)

CA C.JANANI

partner

270 Points Joined November 2010

Yes. it needs to be filed as well as the deferred tax issues of future are to be considered.

CA Saroj Kumar

Keen to learn something new every moment

2588 Points Joined June 2010

As we know that once financial statements signed by the an Auditor the same can not be revised by the another auditor. however the same will be incorporated in the current audit report with the proper justification and explanation. and if needed reversed entries can be made.

Conclusion:- As per ur query - u may be rectify the same in ur current financial year report and yes you may file ROC as well as Income tax revised return.

As per MCA FAQ.

Yes, revised filing of Annual filing eForm can be done in respect of the Forms already filed but the fees for subsequent revised filing shall be charged, assuming it as a new filing.

Milind M. Kulkarni

Practicing CA

583 Points Joined April 2011

Transfer of loss in the first year to capital WIP could be due to the reason that there are no commercial operations and there is no revenue against which, cost can be off set. Hence, need to understand why previous year accounts need to be restated. Secondly, Company Law return and Income Tax return are different returns. Company Law return need not be revised if loss is correctly transferred to CWIP. It is Income Tax return that may require revision. One may like to check legal position if original return was not loss return and revised return to be filed after more than one year is to be a loss return - whether loss would be allowed to be carried forward in such case or not?