EES 2010

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2010 Under EES the company is inoperative since incorporation with a very nominal amount of capital.and no business at all after that. now the company wants to show the assets and liabilities as nil.. can it be possible??

Aditya Maheshwari

Aditya Maheshwari (Expert)
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30 August 2010 Atleast minimum share capital as appearing in the subscription part of the MOA must be there i think though the same may be less than the minimum paid up capital as prescribed on the liability side and on the asset side u could show it in P & L Dr balance the same amount.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 August 2010 No.
Capital brought in by subscribers should be shown in liability side ,represented by "miscellaneous expenditure and losses" in the asset side of the balance sheet.

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CA SIDHARTH HIRALAL PATNI

CA SIDHARTH HIRALAL PATNI (Expert)
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30 August 2010 As per my opinion
Share Capital under this head paid up and subscribed Capital must be shown and on asset side the same amount must have been lying in bank a/c. As for the profit and loss only preliminery exp. if any must be shown

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 August 2010 Company cannot seek EES,2010 if they have a bank account.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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30 August 2010 Yes the format of affidavit states that the company does not have any bank account. So bank account not possible to be shown. However u could show cash balance or P &L Dr balance.

CA SIDHARTH HIRALAL PATNI

CA SIDHARTH HIRALAL PATNI (Expert)
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30 August 2010 I am very much thankful to both of you for correcting me.