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CMA Final · Corporate Financial Reporting · Internal Reconstruction (Capital Reduction)

Before sanctioning a capital reduction, the Tribunal requires under section 66(3) proviso that the company files with it:

The company must file an auditor's certificate that the proposed accounting treatment for the reduction conforms to the accounting standards specified under section 133 or any other provision of the Act. Without it the Tribunal cannot sanction the application.

  1. AA certificate of the company's auditor that the proposed accounting treatment conforms to the accounting standards specified under section 133 or other provisions of the ActCorrect
  2. BA certificate from the Registrar that no creditor exists
  3. CA valuation report of the shares by a registered valuer
  4. DA cost auditor's report on the reduction

Explanation

The proviso to section 66(3) prohibits sanction unless the proposed accounting treatment conforms to the accounting standards specified in section 133 or other provisions of the Act. A certificate to that effect by the company's auditor must be filed with the Tribunal. The other documents are not required by this proviso.

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