Directors' report

This query is : Resolved

Guest

Guest (Querist)

05 September 2012 Dear Friends / Experts,

Please see the following and do the needful :

ABC Private Limited has not earned any revenue for the year ending 31.03.11.

During the year, company incurred expenses and therefore, resulted in loss of Rs.74,000/-.

When we prepare Directors’ Report, can we simply mention as under :

Query 1

Financial Results : The company posted a loss of Rs.74,000/- for the year ended 31.03.11.

Ans : …………… (You may suitably suggest the appropriate text).

Query 2

Should we keep DIVIDEND as a standard point in the Directors’ Report, though the company posted a loss as above ?

Ans : ……………

I will wait for the replies on the above queries.

Thanks.

Ajay Mishra

Ajay Mishra (Expert)
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05 September 2012 Hi

You mention in Query 1 the following:

RESULTS OF OPERATIONS

....... Limited ( was incorporated on January 17, 20.. in New-Delhi with the objective to carry on business of ........ and other purposes. During the Financial Year the Company’s net loss after tax is Rs. ....../-

Ajay Mishra

Ajay Mishra (Expert)
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05 September 2012 Hi

You mention in Query No.2 the following:

DIVIDEND

The Directors express their inability to declare any dividend for the financial year ended March 31, 2012 on account of loss during the year under review. The Company has not made any transfer to General Reserves.

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Guest

Guest (Expert)

06 September 2012
WORKING AND FUTURE PROSPECTS:

The company though has started its venture, yet the sales in the project have not yet started since the project is presently under implementation stage. Due to this reason, the P&L account of the Company reflects a nominal loss. It is expected that from the next year onwards, revenue generation will commence in the project and hence your directors foresee good growth in business in the times to come, which will consequently be able to show better results in the forthcoming years.

DIVIDEND

Due to absence of profits during the FY _______, your Directors do not recommend any declaration of dividend.