Directors report and notes to account
This query is : Resolved
21 November 2011
Hello to all colleague,
Help me in following matter,
One of my client's (company) factory was burnt due to fire on 31.08.2010. Company has huge term loan and cash credit from nationalized banks. Company was also running through financial crises hence banks has took the possession of factory premises , land, plant and machinery.Now I want to prepare the Director's report and notes to account. Now company is no more going concern.
Require the help in following points?
1. What should be the note for going concern in Directors report as well in notes to account?
2.Notes on directors personal liability towards repayment of term loan?
Help me in following matter,
One of my client's (company) factory was burnt due to fire on 31.08.2010. Company has huge term loan and cash credit from nationalized banks. Company was also running through financial crises hence banks has took the possession of factory premises , land, plant and machinery.Now I want to prepare the Director's report and notes to account. Now company is no more going concern.
Require the help in following points?
1. What should be the note for going concern in Directors report as well in notes to account?
2.Notes on directors personal liability towards repayment of term loan?
22 November 2011
Hi,
Personal liability of director is dependent on the terms of Loan agreement. Generally they are not personally liable for this loan but everything is dependent on the language of loan agreement.
Simply prepare a note like you prepared in your quety regarding fire etc and put it in the Directors report. For notes to accounts prepare a note regarding financial liability of the company. While drafting keep this in mind that notes to accounts are just an explanation to the financial figures used in balance sheet and in profit and loss account.
RG
Personal liability of director is dependent on the terms of Loan agreement. Generally they are not personally liable for this loan but everything is dependent on the language of loan agreement.
Simply prepare a note like you prepared in your quety regarding fire etc and put it in the Directors report. For notes to accounts prepare a note regarding financial liability of the company. While drafting keep this in mind that notes to accounts are just an explanation to the financial figures used in balance sheet and in profit and loss account.
RG
22 November 2011
Thanks for reply
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Capital gain consideration
- TDS deduction (debit notes)
- Can a partnership firm become partner in a LLP ?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- TDS on purchase of value vouchers for employees ?
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
