Para 7 - Accounts - Simplified Exit Scheme, 2005

Accounts 07. (a) In case of companies which have not carried out any operations, business or commercial activity since their incorporation and have no financial information to furnish, a declaration by Applicants in the affidavit itself that the company has no assets and liabilities shall be sufficient and there shall be no need to attach separate audited financial statements. If however, such companies have been filing regular financial statements, they should file the financial statement for the latest year prepared upto a period which ended one month preceding the date of application. (b) Companies which discontinued their operations after having carried out the same for some period, should file audited financial statements under the Companies Act, 1956 for the period upto which they carried on business provided such period is of one accounting year or more. For subsequent period, a Statement of Account as per format prescribed at Annex D of this Circular, for the latest year prepared upto a period which ended one month preceding the date of application should be enclosed. Where the period of operation is less than one accounting year, a Statement of Account, as prescribed at Annex D shall suffice. The Applicants shall also give a declaration that the Statement of Account so submitted gives true and fair view of company s financial position specifying the reasons for non-submission of audited financial statements. However, if companies wish to voluntarily file the regular audited financial statement even for the subsequent period, they may do so. For the purposes of this Circular, the expression Financial Statements means balance sheet and profit and loss account required to be maintained as per provisions of section 211 of the Companies Act, 1956.