Chapter 6 
Accounts of the Company 

(1) Every company shall duly maintain its accounts in the Nepali language. For the convenience of the company, the accounts may be maintain in English also. But in case accounts are maintained in both these languages, accounts maintained in the Nepali language shall be deemed to be authoritative. 

(2) The account to be maintained under Sub-Section (1) shall contain  particulare of the income made by the company, sales and purchase of goods, and a detailed statement of its assets and liabilities, in such manner as to clearly reflect the actual position of the company. 

(3) The accounts of the company shall not be kept at any place other that its registered office without the approval of the appropriate department. The directors may, if they so  desire, inspect the accounts at any time. 

(4) The cash balance of the company, other  than the amount prescribed by the Board of Directors, shall be deposited with the bank, where there is any. 

(5) A company having branches shall obtain accounts from them every three months. 

 92. Preparation of Balance Sheet 

(1) The Board of Directors shall prepare a profit and loss account and a balnce-sheet according to Section 93 every year at least thirty five days before the annual general meeting is convened. Such profit and loss account and balance-sheet shall have been audited and shall bear the signature of the directors. a copy of the director's report shall be attached therewith. 

(2) In them case of the first year of establishment of the company, the profit and loss account to be prepared under Sub-Section (1) shall include accounts for the period begning from the date when it was incorporated up to the end of its first financial year, and in the case of subsequent years, for the period of the previous financial year. 

(3) The auditor shall submit a copy of the report along with the balance sheet and the profit and loss accounts audited by him to the registered office of the company addressed collectively to all the shareholders, and another to the appropriate department. 

(4) The report to be submitted by the Board of Directors under Sub- Section (1) and by the auditor under Sub-Section (3) shall indicate the actual position of the company. The Board of Directors, in its report, shall recommend the amount, if any, to be maintained in the reserve fund as well as the dividend which may be declared. In addition, the report shall indicate the changes in the company or its business or any other matter in respect thereto, or any other matter in respect thereto, or any loss or damage therein. 

(5) The balance-sheet prepared under this Sub-Section shall be made available for inspection by any shareholder, if he so desires. 

93. Particulars to be Indicated in Balance-Sheet

(1) The balance-sheet shall contain, as far as possible, correct  particulars as mentioned below in regard to the company's capital, liabilities and assets, so that it recollects the actual position of the company. 

(a) Capital and Liabilities 

(1) Authorised capital, as provided for in the memorandum,  issued capital, subscribed shares, paid-up capital, reserve fund and other reserves. 

(2) Long-Term Loans 

(a) Debentures 

(b) Other long-term loans 

(3) Short-Term Loans 

(a) Acceptances 

(b) other short-term loans 

(4) Other Liabilities 

(5) Profits Earned from the Business of the Company 

(a) Profit brought forward from previous years. 

(b) Profit earned during the year. 

(c) Assets 

(1) Immovable Assets and other Fixed Assets 

(a) Houses and compounds and other assets 

(b) Plants, machinery and other equipment 

(c) Patents, trade-   similar other rights 

(d) Goodwill of the company 

(e) Preliminary expenses of the company. 

(f) Shares held in other companies. 

(g) Capital invested in debentures and similar other investments. 

(2) Movable Assets 

(a) Stock-in-trade, goods under process of manufacture, stocks of raw materials. 

(b) Securities other than shares and debentures, not meant for  investment. 

(c) Acceptances. 

(d) Receivable bills and advances. 

(e) Cash in hand, checks and bank balances. 

(f) Other particulars, if any. 

(c) Losses Incurred by the Company in Course of Business 

(1) Losses brought forward from previous years. 

(2) Losses Incurred during the current year. 

(2) In case the company has granted loans to its directors or employees, it shall indicate this matter in the balance-sheet. 

(3) In case the company has stood surety to secure the liabilities of  any person or in case the company itslef undertaken any liability, these matter shall be indicated in a note, if got mentioned in the balance-sheet. 

(4) Loans and liabilities accepted with or without security shall be shown separately in the balance sheet while indicating the particulars of loans and liabilities therein under Sub-Section (1). 

94. Valuation of Assets to be Indicated in Balance Sheet

(1) The price at which movable assets and other fixed assets of the company were acquired shall be indicated in the balance sheet while showing the value thereof. 

Provided that : 

(a) In case the price of such assets subsequently rises for any  reasons and is accordingly assessed in the accounts of the company, the value may be shown in the balance-sheet on the basis of such prices. 

(b) In case there is a fall in the value of such assets as a result of derreciation, such depreciation shall be deducted and only the value remaining thereafter shall be take into account. 

(2) While assessing the value of shares held by one company in another company, the balance-sheet shall separately show particulars regarding the latter company, the categery, number and value of shares and the total value of such shares. 

(3) The company shall not indicate the goodwill of its business as an asset. Provided that in case the company has purchased the business and goodwill of any other company, the balance sheet may indicate the price at which such goodwill was purchased as an asset. 

(4) While mentioning the value of manufactured or semi-manufactured goods and raw materials held in stock, the balance-sheet shall indicate the cost price or market price, whichever is lower. 

(5) The balance-sheet may indicate as an asset the loans issued by  the company only when there is definite or reasonable ground to believe that such loans can be recovered. 

95. Particulars to be Indicates in Profit and Loss Accounts

The profit and loss account shall, as far as possible, contain  the following particulars, clearly indicating the volume of the company's business during the period for which the accounts are given in the profit and loss account : 

(1) Gross sales. 

(2) Raw materials used up and the initial and subsequent stocks of manufacture goods. 

(3) Depareciation and the reasons if as provision for depreciation has bear made. 

(4) Interest paid on loans or debentures, and other necessary particulars, 

(5) Amount allocated for payment of loans. 

(6) Amount allocated for reserve or for gratuities from out of the profits. 

(7) Amount allocated for expenditure from out of the reserve fund. 

(8) Salaries, allowances and fees and share, if any, on profit paid to the managing agent, directors, etc. 

(9) Expenditure, as follows : 

(a) Salkaries, allowances, wages and benuses paid to employees and workers. 

(b) Amount allocation for the Provident Fund. 

(c) Gratuities paid to employees. 

(d) Freight and transport charges. 

(e) Taxes, fees (other than tax on profit). 

(f) Power and fuel costs. 

(g) Repair and maintenance. 

(h) Travelling allowances. 

(i) Other expenses, if any. 

(10) Amount of tax paid. 

(11) Income Accruing from the Following Sources 

(a) Interest and dividends accruing from investment. 

(b) Other income, along with particulars thereof. 

(12) Profits earned or less sustained on the sale of immovable assets or investments. 

(13) Amount of dividend already paid or recommended for payment. 

(14) Particulars of changes, if any, made on the basis on which accounts have been preparea as well as particulars of the effect of such charges on the profit and loss account.