Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

First balance sheet with pre-op expenses

Prabakaran (Service) (36 Points)

29 August 2007

When should the first balance sheet with the pre-op expenses should be furnished

If you have any xl format of this balance sheet please forward me to natarajanprabakaran @ yahoo.com

What are the statutory obligations for preparing the first balance sheet - briefly outline me.

Reply
Follow
Share

11 Replies

(Guest)

Hi, Incase, the company has not commenced its commercial operations during that financial year, then it need to file a statement of expenditure and not P&L. There is no specific format for this statement except for the same disclours as required by Schedule VI of Companies Act, 1956. The year, in which the company starts its commercial production, these expenses would be charged in P&L account in their respective heads. About statutory obligation, we need to get balance sheet and statement of expenditure audited and file annual returns. The max period that can be covered for first BS is 18 months.

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

Hey, small change in the my earlier reply. The maximum period as per Companies Act, 1956 is 15 months and can be extended to 18 with permission from ROC.

(Guest)

my co. is registered in Feb '07 and we have started entering contracts in Feb itself. We started the commissioning of machines (we are consultant engineers) in june '07. Hence, we have started commercial operations effectively from June only. so, when shld be my first balance sheet

Amit (ca student) (112 Points)
Replied 08 September 2007

i agree with Aparna

Amit (ca student) (112 Points)
Replied 08 September 2007

Pls. is it possible that company incorp on Feb & shares not subscribed on Sept. wht will be the impact in B.S.& other consequences.

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

I agree with Aparna.

(Guest)

I want to know that a company which was incorporated on Nov, 2005 and received commencement of business on March 07. is it necessary to prepare bs before COB.

thanks and regards

anil

(Guest)

When should the first balance sheet with the pre-op expenses should be furnished

If you have any xl format of this balance sheet please forward me to

NARAYANA CHARI K (DIRECTOR) (21 Points)
Replied 27 February 2010

First balance sheet with pre-op expenses

Piyush Singhal (ARTICLE) (36 Points)
Replied 04 July 2011

plz upload balance sheet of any company which have not commeced its business but got certificate of commencement.

Upgrade to CAclubindia Pro. Subscribe Now!

Meghna (Banker) (21 Points)
Replied 30 May 2012

On the same lines, I have an Pvt Ltd Co which is incorporated Oct 2010. It has not commenced operations till date, but rented out a part of its land and is earning income from Feb 2012. The construction of its building for production/ admin is under process.

My question is even in this case should the financials be audited for Mar 2012 as this would mean 18 months? is auditing of the financials mandatory?

Q2. What recourse does the Unit have in case it does not audit the financials even after 18 months? Does the Unit cease to exist in the eyes of the law? Can it audit financials for a later date say Mar 2013 as it would have started commercial production by that date?