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    CH 5 Accounts of Companies BCL

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    Areeba Shoaib
    The document outlines key aspects of accounts and financial reporting for companies according to the Companies Act 2017. It discusses requirements for companies to prepare and maintain books of accounts, financial statements, and have their financials audited. It also covers related topics like inspection of accounts, directors' reporting obligations, approval of financial statements, dividend payments, and appointment of auditors.

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    CH 5 Accounts of Companies BCL

    Uploaded by

    Areeba Shoaib
    5 views12 pages
    The document outlines key aspects of accounts and financial reporting for companies according to the Companies Act 2017. It discusses requirements for companies to prepare and maintain books of accounts, financial statements, and have their financials audited. It also covers related topics like inspection of accounts, directors' reporting obligations, approval of financial statements, dividend payments, and appointment of auditors.

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    Ch 5 Accounts of Companies BCL

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    The document outlines key aspects of accounts and financial reporting for companies according to the Companies Act 2017. It discusses requirements for companies to prepare and maintain books of accounts, financial statements, and have their financials audited. It also covers related topics like inspection of accounts, directors' reporting obligations, approval of financial statements, dividend payments, and appointment of auditors.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    5 views12 pages

    CH 5 Accounts of Companies BCL

    Uploaded by

    Areeba Shoaib
    The document outlines key aspects of accounts and financial reporting for companies according to the Companies Act 2017. It discusses requirements for companies to prepare and maintain books of accounts, financial statements, and have their financials audited. It also covers related topics like inspection of accounts, directors' reporting obligations, approval of financial statements, dividend payments, and appointment of auditors.

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    Accounts of Companies

    Part VII of Companies Act 2017


    Outline / Summary
    • Books of account
    • Financial statements
    • Dividend
    • Audit
    Books of Account
    • 220 (1) Every company shall prepare and keep at its registered office;
    books of account and other relevant books and papers and financial
    statements for every financial year which give a true and fair view of
    the state of the affairs of the company.
    • (3) The books of account and other books and papers maintained by
    the company within Pakistan shall be open for inspection at the
    registered office of the company.
    • The books of account of every company relating to a period of not
    less than ten financial years.
    Books of Account
    • (5) The books of account of every company relating to a period of ten
    financial years shall be kept in good manner and if a company is in
    existence for a period less than ten years it should maintain it for the
    preceding years.
    • (6) If a company fails to comply with any of the requirements, their
    directors and officers involved in are liable for:
    • Imprisonment of two years and fine of Rs. Five hundred thousand to
    Rs. Five million, in case of public listed company.
    Inspection by the Commission
    • 221(1) The books of account and books and papers of every company
    shall be open for inspection by any officer authorized by the
    Commission.
    • (5) an officer authorized by the Commission, such officer shall make a
    report to the Commission.
    • 222 (1) The persons who involve in violation and default in complying,
    he/she shall be punishable with imprisonment for a term one
    hundred and eighty days and with fine of one hundred thousand
    rupees
    • (2) If a director involves he/she is required to vacate office for 3 years.
    Financial Statements
    • 223(1) The board of every company must lay/prepare financial
    statements, made up to the date of close of financial year adopted by
    the company.
    • (5) The financial statement shall be audited by the auditor of the
    company and the auditor‘s report shall be attached.
    • (6) Every company shall send financial statement to members of
    company.
    • (7) A listed company shall dispatch the financial statements three
    copies and in hard or electronically to Commission, Registrar and the
    Securities Exchange and also post on the Company‘s website.
    Financial Statements
    • 237(1) Every public listed company shall prepare the quarterly
    financial statements.
    Director’s Report
    • 226(1) The board shall prepare a directors‘ report for each financial
    year of the company.
    • the directors report must state:
    • (a) the names of the persons who are directors of the company;
    • (b) the principal activities of business and the development and
    performance of the company‘s business during the financial year;
    • (c) changes in the nature of the business of the company;
    Director’s Report
    • (d) information about the pattern of share holding;
    • (e) the current earning per share;
    • (f) the reasons for loss and future prospects;
    • (g) information about defaults in payment of any debts and reasons;
    • (h) any material changes and commitments affecting the financial
    position of the company
    Approval and Authentication of Financial
    Statements
    • 232(1) The financial statements must be approved by the board of the
    company and signed by the chief executive and at least one director
    of the company, and also by the chief financial officer.
    Dividend
    • 240(1) The company in general meeting declare dividends; but
    dividend shall not exceed the amount recommended by the board of
    directors.
    • 241 Any dividend may be paid by a company either in cash or in kind
    only out of its profits.
    • 242 Any dividend declared by a company must be paid to its
    registered shareholders.
    • 243(1) When a dividend has been declared, it shall not be lawful for
    the directors to withhold or defer its payment and the chief executive
    shall be responsible to make the payment.
    Audit: Appointment, Removal and Fee
    • 246(1) The first auditor or auditors of a company shall be appointed by
    the board within ninety days of the date of incorporation of the
    company; and auditors so appointed shall retire on the conclusion of
    the first annual general meeting.
    • (2) The subsequent auditor or auditors shall be appointed by the
    company in the annual general meeting and removed through special
    resolution.
    • (8) The remuneration/fee of the auditors of a company shall be fixed—

    • (a) by the company in the general meeting;


    • (b) by the board or by the Commission.

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