TMI Blog2011 (3) TMI 1767X X X X Extracts X X X X X X X X Extracts X X X X ..... The same is pending for final hearing. 2. It has been submitted that vide the order dated 20th January 2011 passed in the Company Application no. 189 of 2011, filed by the petitioner company, meeting of the Equity Shareholders of the company was dispensed with in view of the written consent letters placed on record. It has been pointed out that there are no Secured or Unsecured Creditors of the petitioner company. 3. The petition filed for obtaining the sanction of the court was admitted vide order dated 7th February 2011. The public notices for the same were duly advertised in the newspapers The Indian Express English daily, and Sandesh Gujarati Daily, both Ahmedabad editions dt. 17th February 2011 and the publication in the Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accounting Standard14 by the Transferee Company while giving effect to the Accounting entries, upon scheme being effective and (ii) the financial position of the petitioner company as on 31st Dec. 2010 as the Appointed Date for the scheme is 1st January 2011. The said issues are dealt with by the Additional Affidavit dated 18th March 2011 filed by the Authorised Signatory of the petitioner company. 6. Heard Smt. Swati Saurabh Soparkar, learned advocate for the petitioner company and Shri M. Iqbal A. Shaikh, the counsel appearing for the Central Govt. 7. It is submitted that the 1st observation of the Regional Director has no bearing to the present proceedings in as much the same would pertain to the Transferee Company, on the scheme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and the balance sheet of the company did not comply with the accounting standards, the said Company shall disclose in its profit and loss account and balance sheet, the deviation from the accounting standards, reasons for such deviation and financial effects, if any, arising due to such deviation. On conjoint reading of subsection (3A) and (3B) of Section 211, it necessarily follows that deviation from the accounting standards is permissible subject, however, to compliance of the requirement of disclosure in the profit and loss account and balance sheet of such deviation and the reasons for such deviation and financial effects thereof. In other words, deviation of accounting standards is not wholly prohibited, but is regulated by the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g standards, such companies shall disclose in its profit and loss account and balance sheet, the following, namely:the deviation from the accounting standards; the reasons for such deviation; and the financial effect, if any, arising due to such deviation. In view of the above, if an item in the financial statements of a Company is treated differently pursuant to an Order made by the Court/Tribunal, as compared to the treatment required by an Accounting Standard, following disclosures should be made in the financial statements of the year in which different treatment has been given: A description of the accounting treatment made along with the reason that the same has been adopted because of the Court/Tribunal Order. Description of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
