I've uploaded the image (with a black frame to make it visible this time) Here's the doubt explained in detail ==> Section 164(2) says that if the company does not file F/S for 3 continuous financial years, then its directors will be disqualified for 5 years from the date company fails to do so.Read more
I’ve uploaded the image (with a black frame to make it visible this time)
Here’s the doubt explained in detail ==>
Section 164(2) says that if the company does not file F/S for 3 continuous financial years, then its directors will be disqualified for 5 years from the date company fails to do so. And in case of a newly appointed Director, he’ll not be disqualified for the first 6 months from his appointment date.
Now, in this case, the company didn’t file F/S for the financial year 2017-2018 i.e. for 1 financial year.
That means the company has not yet fallen under 164(2) because it required non-filing for 3 financial years. And if 164(2) is not yet attracted, the directors are not disqualified.
So when Mr. Khurana is appointed in July 2018, no question arises of his disqualification. Why, because as we discussed above, the company is not in any default yet, and therefore 164(2) is not attracted.
Ok so far so good.
Now, we know that as on the date of appointment of Mr. Khurana, neither he nor any other director of the company is disqualified. But what’s the date when they’ll be disqualified..?
The answer is the day when the company makes a default in F/S filing for 3 years. And from those 3 years, 1 year (FY 2017-18) has already gone. Thus, company is left with 2 non-filings (FY 2018-19 and 2019-20).
If you understood till here, very good and thank you actually. Now let’s come to the main doubt.
It’s clear from the above discussion that even if the company files all 3 years’ F/S on/before 31st March 2020 11:59 pm, the directors will not be disqualified until that moment. Their appointment is valid till that time.
But the ICAI said the appointment of Mr. Khurana is valid only up to January 2019.
Nooooo..!!! It should be valid up to 31st Mar 2020
Now you answer what’s right.
If your answer is that, ICAI read 2017-2018 as 2 financial years. Ok, understandable, but still in that case also, his appointment should be valid till 31st March2019 and not January 2019.
Thank you so much, sir. Also, yes I’ll reveal my name, but not right now. (I’ll inform you about the same in advance) And if you still want to know, get Admin Access from Sanjay Sir, and guess what, you can check all my details there. 😉
Thank you so much, sir.
Also, yes I’ll reveal my name, but not right now. (I’ll inform you about the same in advance)
And if you still want to know, get Admin Access from Sanjay Sir, and guess what, you can check all my details there. 😉
Thank you so much, sir. Also, yes I'll reveal my name, but not right now. (I'll inform you about the same in advance) And if you still want to know, get Admin Access from Sanjay Sir, and guess what, you can check all my details there. ;)
Thank you so much, sir.
Also, yes I’ll reveal my name, but not right now. (I’ll inform you about the same in advance)
And if you still want to know, get Admin Access from Sanjay Sir, and guess what, you can check all my details there. 😉
LAW / CoAct2013 / Sec 164
I've uploaded the image (with a black frame to make it visible this time) Here's the doubt explained in detail ==> Section 164(2) says that if the company does not file F/S for 3 continuous financial years, then its directors will be disqualified for 5 years from the date company fails to do so.Read more
Section 164(2) says that if the company does not file F/S for 3 continuous financial years, then its directors will be disqualified for 5 years from the date company fails to do so. And in case of a newly appointed Director, he’ll not be disqualified for the first 6 months from his appointment date.
Now, in this case, the company didn’t file F/S for the financial year 2017-2018 i.e. for 1 financial year.
That means the company has not yet fallen under 164(2) because it required non-filing for 3 financial years. And if 164(2) is not yet attracted, the directors are not disqualified.
So when Mr. Khurana is appointed in July 2018, no question arises of his disqualification. Why, because as we discussed above, the company is not in any default yet, and therefore 164(2) is not attracted.
Ok so far so good.
Now, we know that as on the date of appointment of Mr. Khurana, neither he nor any other director of the company is disqualified. But what’s the date when they’ll be disqualified..?
The answer is the day when the company makes a default in F/S filing for 3 years. And from those 3 years, 1 year (FY 2017-18) has already gone. Thus, company is left with 2 non-filings (FY 2018-19 and 2019-20).
If you understood till here, very good and thank you actually. Now let’s come to the main doubt.
It’s clear from the above discussion that even if the company files all 3 years’ F/S on/before 31st March 2020 11:59 pm, the directors will not be disqualified until that moment. Their appointment is valid till that time.
But the ICAI said the appointment of Mr. Khurana is valid only up to January 2019.
Nooooo..!!! It should be valid up to 31st Mar 2020
Now you answer what’s right.
If your answer is that, ICAI read 2017-2018 as 2 financial years. Ok, understandable, but still in that case also, his appointment should be valid till 31st March 2019 and not January 2019.
LAW / CoAct2013 / Sec 161
Thank you so much, sir. Also, yes I’ll reveal my name, but not right now. (I’ll inform you about the same in advance) And if you still want to know, get Admin Access from Sanjay Sir, and guess what, you can check all my details there. 😉
Thank you so much, sir.
See lessAlso, yes I’ll reveal my name, but not right now. (I’ll inform you about the same in advance)
And if you still want to know, get Admin Access from Sanjay Sir, and guess what, you can check all my details there. 😉
LAW / CoAct2013 / Sec 115
Thank you so much, sir. Also, yes I'll reveal my name, but not right now. (I'll inform you about the same in advance) And if you still want to know, get Admin Access from Sanjay Sir, and guess what, you can check all my details there. ;)
Thank you so much, sir.
See lessAlso, yes I’ll reveal my name, but not right now. (I’ll inform you about the same in advance)
And if you still want to know, get Admin Access from Sanjay Sir, and guess what, you can check all my details there. 😉
LAW / CoAct2013 / Sec 161
Thank you so much. :)
Thank you so much. 🙂
See lessCash Flow Statement
Ok sir.. 😔
Ok sir.. 😔
See lessFR / Cash Flow Statement
Ok sir.. 😔
Ok sir.. 😔
See lessEquity valuation
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Equity valuation
[video mp4="https://forum.sseiqforum.com/wp-content/uploads/2021/06/vlc-record-2021-06-21-23h33m49s-EQUITY-AUDIO_02.mp4"][/video]
Related to derivatives.. not getting the ans given in mtp nov 20
I've added a solution. If your answer is the same, I think you got the answer. And if not, then only Sanjay Sir have to come and help BOTH OF US.
I’ve added a solution. If your answer is the same, I think you got the answer. And if not, then only Sanjay Sir have to come and help BOTH OF US.
See lessSFM / Forex / Nostro
My bad. Sorry. And thank you, sir.
My bad.
See lessSorry.
And thank you, sir.