If a Company's net worth is eroded 100% and the auditors have commented in their report that its not a going concern or the going concern concept is questioned,
1) what the Directors should do and how much they will be responsible if there is no willful fraud or action which contributed to the situation?
2) Is the compulsory winding up the last route left for directors?
3) Will the officer in default be also liable? If yes, how and to what extent?
4) if the directors keep the company going even after the audit report, will the directors be liable for continuing trading while insolvent?
Assuming SICA is not applicable.
Waiting for inputs from elite professionals of the group. Your response will be highly appreciated.
CONTENTS SR. NO. CHAPTER PAGE NO. INTRODUCTION STOCK & RECEIVABLES AUDIT VERIFICATION OF STOCK & DEBTORS PROCEDURE OF STOCK AUDIT VERIFICATION OF SECURITIES ANALYTICAL REVIEW INTERNAL CONTROL QUESTIONNAIRE STOCK b) BOOK DEBTS LIST OF DOCUMENTS TAKEN AS WORKING PAPERS SPECIMEN INSPECTION REPORT SPECIMEN MANAGEMENT REPRESENTATION LETTER CHAPTER 1 INTRODUCTION: Banking is an important sector of the economy of any country and for the development of the economy a healthy banking system is a must. After the liberalization of the economy, the banking system has undergone a total change in India. There is hard competition in the banking industry to survive in the current circumstances. With the purpose to have better financial discipline & to ensure uniformity in accounting norms RBI introduced the concept of assetclassification & income recognition as per the recommendations of Narasimhan Committee. It was also suggested to classify the advances given by banks into Performing & Non Perfor…