Chap 11 Accounts And Annual Return

Question 1

Books and paper

Answer 1

Books of account
Cost accounting records
Minutes, register, voucher etc

Question 2

Books of account

Answer 2

1. Sum received and paid
2. Sales and purchases
3. Assets and liabilities
4. Cost accounting records

Question 3

Place of keeping (books of accounts)

Answer 3

At registered office

At any other place- provided if board resolution is passed
Registrar is notified within 7 days

At branch office - books relating to branch
Provided summarised returns are sent to registered office

Question 4

Period of retention of books of account

Answer 4

At least 10 preceding Financial years

Question 5

Inspection of Books of Account

Answer 5

-By directors (including copies of books maintained outside pakistan)
-By members (if authorised by act, general meeting or board)

Question 6

Period covered by f/s
First

Answer 6

From incorporation till close of financial year

Question 7

Period covered by f/s - subsequent

Answer 7

From preceding financial year till close of financial year adopted by company
Not to exceed 12 months (unless approved by registrar)

Question 8

When to present Financial statements

Answer 8

To be presented in Agm

1. First within 16 months of incorporation
2. Subsequent within 120 days of close of financial year
   And once in each calendr year
3. Extension upto 3o days by commion or registrar

Question 9

Financial statements are approved by

Answer 9

Board

Question 10

F/s are signed by

Answer 10

Atleast 1 director and CEO
If ceo is not present in Pakistan then by atleast 2 directors
Also CFO if listed

F/s of SMC signed by 1 director

Question 11

Quarterly fs are prepared

Answer 11

1st quarter - 3o days of close
Extension upto 3o days by commission

2nd quarter - 60 days of close
Limited scope review by auditor

3rd quarter - 30 days of close

Question 12

Quarterly f/s approved and authenticated

Answer 12

Same as f/s

Question 13

Filing requirement of f/s - before agm

Answer 13

For listed company

3 copies by post to secp, registrar and stock exchange
1 copy electronically to secp, registrar and stock exchange
Upload on website
(Simultaneously dispatch to members)

Question 14

Filing of fs - after agm (not for pvt company with paid up capital 10m or less)

Answer 14

To registrar
Within 15 days (if unlisted)
Within 30 days (if listed)

If f/s are not adopted or agm is adjourned . Notify registrar .along with fs and report

Question 15

Filing of quarterly f/s

Answer 15

Electronically to commission, registrar and stock exchange

Question 16

Consolidated fs requirement

Answer 16

Attached to financial statements of every holding company
(Except pvt co with puc upto 1m)
Shall be audited by auditor of holding co

Question 17

Financial year of consolidated

Answer 17

If gap is upto 90 days
Comission shall facilitate by extending filing of fs/agm

If gap is more than 90 days
Subsidiary shall make interim closing on year end of holding company

Question 18

Disclosure requirement of consolidated fs

Answer 18

Comply Financial reporting standards and schedule
Include info about qualification of subsidiary which is material for members of holding company

Question 19

Directors report - which companies are required to prepare

Answer 19

Public company
Private company subsidiary of public company
Private company with paid up capital more than 3 m

Question 20

Content of director report

Answer 20

Director report of every company
Statement of affairs of company and fair review of business
Particulars of amount recommended as dividend
Particulars of amount transferred to reserve account

Question 21

Additional content of director report in case of public company

Answer 21

-Name of persons who were directors anytime during the financial year
-Principal activities and performance of business
-Material changes occurred during the financial year
-Subsequent events affecting financial position
- Explanation if auditor explained modified opinion
-Pattern of shareholding
-Name of holding company and country of incorporation
- Eps
- Info about default in payments of debt
- Description of principal risk and uncertainties
- Comments in respect of adequacy of internal control
- Remuneration package of each director and chief executive
- Any other info as may be specified

Question 22

Statement of compliance

Answer 22

Commission may direct directors to prepare statement of compliance and attach with financial statements

Question 23

Authentication of DR and stat of compliance

Answer 23

Approved by board
Signed by chief executive and director of the company

Question 24

Annual return
What is included?

Answer 24

General info about company as specified date
Ceo, directors, company secretary, legal advisor, auditor, Registered office address, members and share capital

Question 25

Requirement to file annual return

Answer 25

Annual return shall be filed to registrar in specified form
Form A ( for company having share capital)
Form B ( for company not having share capital)