6 things you should keep in mind while Preparing and Presenting Final Accounts:
In respect of preparation and presentation of the final accounts the requirement of Section 210 of the Companies Act are quoted below :
(1) At every annual general meeting of a company in pursuance of section 166, the Board of Directors of the company shall lay before the company :
(a) a balance sheet as al the end of the period specified in sub-section (3); and (b) a profit and loss account for that period.
(2) In the case of a company not carrying on business for profit, an income and expenditure account shall be laid before the company at its annual general meeting instead of profit and loss account and all references to “profit and loss account”, “profit” and “loss” in this section and elsewhere in this Act shall be construed, in relation to such a company as references respectively to the income and expenditure account”, “the excess of income over expenditure” and “the excess of expenditure over income.”
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ADVERTISEMENTS:
(3) The profit and loss account shall relate :
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in the case of the first annual general meeting of the company, to the period beginning with the incorporation of the company and ending with a day which shall not precede the day of the meeting by more than nine months; and
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in the case of any subsequent annual general meeting of the company, to the period beginning with the day immediately after the period for which the account was last submitted and ending with a day which shall not precede the day of the meeting by more than six months or in case where an extension of time has been granted for holding the meeting under the second proviso to sub-section (1) of section 166, by more than six months and the extension so granted.
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(4) The period to which the account aforesaid relates is referred to in this Act as a financial year and it may be less or more than a calendar year, but it shall not exceed fifteen months.
Provided that it may extend to eighteen months where special permission has been granted in that behalf by the Registrar.
ADVERTISEMENTS:
(5) If any person, being a director of a company, fails to take all reasonable steps to comply with the provision of this section, he shall, in respect of each offence, be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees or with both: Provided that any proceedings against a person in respect of an offence under this section, it shall be a defense to prove that a competent and reliable person was charged with the duty of seeing that the provisions of this section were complied with and. was in a position to discharge that duly.
Provided further that no person shall be sentenced to imprisonment for any such offence unless it was committed willfully.
(6) If any person, not being a director of the company, having been charged by the Board of Directors with the duty of seeing that the provisions of this section be complied with, makes default in doing so, he shall, in respect of each offence, be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees or with both :
Provided that no person shall be sentenced to imprisonment for any such offence unless it was committed willfully.