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Amalgamation of a company

04 March 2010

Hi friends,

Wanted to ask a question..

If two companies are amalgamated into a new company during the financial year (Say 30.06.2008 - F.Y. 2008-09) than as per companies act whether all of them are required to prepare the profit and loss acoount and the balance sheet for the year under consideration and present it at their AGM?. Is the amalgamating company which ceases to exist w.e.f. 30.06.2008 have to hold their AGM for the F.Y. 2008-09?

Pls do answer... Would be very helpful..

Thanks in advance...

Regards,

Chintan

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1 Replies

Rasesh (CS CWA MBA (Fin) B.Com LL.B (Spl)) (6501 Points)
Replied 04 March 2010

The Annual Accounts are to be prepared only for the merged entity and not for all the individual companies. The accounts have to be consolidated w.e.f. the appointed date and not the effective date. hence, i presume that the appointed date would be 1st April.