1. advance from customers which were not appropriated even beyond 365 days of its receipt was not considered as deposit
2. credit balance of Profit and Loss was treated as a part of free reserves for computing various thresholds under the Companies Act, 2013
3. one search was carried on the Company but the same was not disclosed in the Directors’ Report below the caption “State of Affairs”
4. minutes book was signed by the director who was not even authorized for the same
5. statutory auditor was allowed to be continued despite his relative having substantial interest (more than 20 percent) in the company
6. rent free flat was given for official use by one of the KMP but on his resignation the same was not given back to the company. Despite this, no disclosure for the same was made in the Directors’ Report
7. capital subsidy was not considered for computing profits under Section 198 of the Companies Act, 2013

Compiled By
CA Kamal Garg