Annual accounts - General ‑ Drawing up of final accounts in respect of companies which are under process of amalgamation - Companies Law - Circular: No. 12/77

Circular: No. 12/77 [1/1/ 77 ‑ CL ‑ V and 2/331/75 ‑ CL ‑ II], dated 21 ‑ 11 ‑ 1977. Subject:- Annual accounts - General ‑ Drawing up of final accounts in respect of companies which are under process of amalgamation ‑ Whether obligatory A question has been raised whether a company which is in the process of being amalgamated with another company is required to draw up its final accounts as required under sections 210 and 211. This matter has been examined in the Department and it has been decided that till the amalgamation order is made by the court and the amalgamation scheme is in fact sanctioned, the transferor‑company is required to continue complying with the various provisions of the Act including those relating to preparation, presentation, circulation and filing of accounts as and when they become due for compliance. The failure to do this will, among others, mean the denial to the shareholders and the public knowledge about the financial position of the company because the amalgamation petition for some reason or the other may not be decided for quite some time.